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Compensation Policies for Ministers and Paid Staff

Compensation Policies for Ministers and Paid Staff. Meeting their Needs and Balancing the Budget. The Budget Pie. Bill Hybel’s Wheel. Missions 10%. New Ministries 10%. Staff-50%. Staff 45%. Existing Ministries 15%. Building & Grounds 15%. Savings 5%. Rod’s Wheel.

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Compensation Policies for Ministers and Paid Staff

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  1. Compensation Policies for Ministers and Paid Staff Meeting their Needs and Balancing the Budget

  2. The Budget Pie Bill Hybel’s Wheel Missions 10% New Ministries 10% Staff-50% Staff 45% Existing Ministries 15% Building & Grounds 15% Savings 5% Rod’s Wheel

  3. What Factors Should You Consider? Housing Allowance Social Security Inflation • Where you are located • Size of your Church • Staff Position • Education • Previous service • Benefits

  4. Where you are located • Cost of Living • Commuting • Office Space-church or home • Compensation Trends in Your Community • www.guidestone.org/budgetresources • MSN Salary Study • http://www.cbsalary.com/Salary-Calculator.aspx?lr=cbmsn&siteid=cbmsn_home&specialty=&city=&state=&btnSubmit.x=80&btnSubmit.y=15

  5. National Salary

  6. Fresno, CA

  7. Size of your Church • Larger churches should be able to do more • Current debt • Tithing issue

  8. Staff Position • Senior Pastor, associate staff, secretary, janitor • Ministerial or non-ministerial for tax purposes • Full time, part time, bi-vocational

  9. Education • Bachelors, Masters, Doctorate • Specialized training; Marriage and Family Counseling

  10. Previous service • Where did he/she serve • How long did he/she serve • What notable projects, ministries did he/she accomplish

  11. Determine Personal Income • How to designate a housing allowance • Minister’s responsibility • Present an estimate of housing expenses • Church’s responsibility • Designate amount prior to paying minister • Review annually • Record it as set until changed by official decision • Remember housing allowance limits B08-32

  12. Social Security & Inflation • Social Security • Did the minister opt out • Inflation • 3.6% in 2011

  13. It’s More than Money… • Policies should cover four major areas • Ministry-related expenses • Employee benefits • Personal income • Personnel policies • www.yourchurchmatters.com • http://www.guidestone.org/budgetresources B08-18

  14. Provide for Ministry-Related Expenses • Address these expenses with an Accountable Reimbursement Plan (ARP) • Vehicle use for business purposes • Meetings, workshops and conferences • Books, periodicals, software, etc. • Continuing education opportunities • Provisions for ministry-related hospitality B08-20

  15. Provide for Ministry-Related Expenses • Requirements for an ARP • Expenses must have a business purpose • Document amount, date, place and purpose • Expenses substantiated within 60 days • Excess advances returned within 120 days B08-21

  16. Provide for Ministry-Related Expenses • IRS-approved standard rate for transportation (mileage rate), meals and lodging • Unused ARP money should not be given as a bonus or additional income; tax issues B08-22

  17. Provide for Ministry-Related Expenses • Create an ARP in three easy steps • Determine covered expenses and create a plan • Require expense reports to be submitted within 60days of incurring expenses • Reimburse approved expenses at least once a month B08-23

  18. Provide Employee Benefits • A strong benefit plan • Has tax advantages • Offers insurance coverage benefits • Protects church • Provides appropriate coverage for staff • Includes retirement contributions B08-25

  19. The Importance of Insurance • Insurance coverage can include: • Term life • Employee accident • Medical • Disability • Dental B08-26

  20. Help Them with Retirement • A retirement plan • Paid service ends, income needs do not • Employer contributions • Employee contributions B08-27

  21. Help Them with Retirement • A GuideStone retirement plan features: • Tax-sheltered contributions • Designed exclusively for ministries • No SECA taxes for eligible ministers • Housing allowance benefit • Roth contributions (not available in all plans) B08-28

  22. Help Them with Retirement • The Church Retirement Plan for SBC churches • Potential benefits • Disability income • Survivor protection • Mission Church Assistance Fund (MCAF) B08-29

  23. Budgeting That Works! Getting it Right! By PresenterMedia.com

  24. Over the Next Three Thursdays… Aug. 16th Aug. 23rd Aug. 30th Creating Buy in and Participation Preparing to Budget Comprehensive Budgeting

  25. Rod Wiltrout Church Finance Specialist What Questions do you have for me? 559 287-7840 cell 559 256-0858 direct line rwiltrout@csbc.com

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