We’ve got tons of resources available on determining the best budget percentages for your church. When evaluating how much a pastor makes, consider benefits like health insurance, 401 (k), paid time off (PTO), sabbatical, paid conferences, expense budget, and free meals. If the church pays 100% of your PPO health plan, that is worth a few thousand dollars. Budgeting should be something other than a once-a-year activity. Instead, view it as an ongoing process that requires regular attention and adjustments. By treating budgeting as a continuous task, you can stay on top of your church’s financial health and make informed decisions throughout the year.
- Setting budget percentages can also help a church prioritize its ministries and missions.
- Do not calculate a living wage and reduce it by taking the cost of benefits from that amount.
- I would be far stronger at restricting salary growth and boosting savings growth.
- The wise and discerning pastor/leader of God’s church – your church – does all they can to be the best stewards in budgeting His resources.
- You want to use faith for income, and wisdom with expenditure.
Key Tips for Creating a Healthy Church Budget
First, let’s talk about why church budget percentages really matter. They can seem like a somewhat abstract concept, so let’s put some flesh and bones on it. That said, the benchmarks discussed in this series are not prescriptive. Every church is unique and payroll spending at your church will be influenced by a Food Truck Accounting host of factors.
Balancing Budgets & Blessings: Explaining Pastors Salaries by Church Size
In doing so, the percentage spent on how to create a church budget compensation will decrease. I am amazed at the number of pastors who either are hesitant or refuse to preach on tithing. You should preach on tithing not because the church needs the money, rather because of the admonition of scripture. For those who tithe, they understand the blessings of the Lord that come as a result. And the church is able to have more effective ministry, in this case, aligning their compensation paid to income. It’s important to note that these are just suggested, ballpark figures.
- One likely explanation for the discrepancy between the average and median salaries is that there are far more pastors of small churches than pastors of large churches, thus skewing the average salary lower.
- By allocating a certain percentage of funds towards specific areas such as outreach, youth programs, or worship, a church can ensure that these important areas are receiving the necessary resources.
- Ideally, there should be some system in place for the board to set the senior pastor’s salary.
- Life Church has a church budget sample that can get you started with your plan.
- Vanderblomen shared $92,255 – $189,053 as the typical salary range for large churches with over 1,200 people in attendance.
Geography and Cost of Living
- This process will help you develop best practices in your church finances.
- There are no significant statistical differences observed by church size.
- By setting budget percentages and regularly reviewing financial reports, we can ensure that we are being good stewards of these resources and are accountable for how they are being used.
- Small church expert Karl Vaters says, “While 45 to 55 percent of budget going to staff is healthy for mid-size to larger churches, the range is much wider for small churches.
- All the while other staff members were in attendance learning for the first time that their co-worker might be making more or less.
- Needless to say, voting tends to create division in churches.
At this stage, the budget should be both detailed and big-picture. The stewardship team kicks into gear and prepares a draft budget with projected income and expenditure. Smaller churches are going to have more wriggle room on this timeline. However, as the church gets larger, you’ll need to utilize a good timeline and never create your budget last minute.
This model is especially useful for churches that have recently taken on significant debt in order to purchase or renovate a new facility. It allows for responsible debt management while still prioritizing the online bookkeeping needs of church staff. Many church metrics reflect both the best practice and the reality of what it takes to staff and administer a healthy church.
- Indeed found the average pastor’s salary in America is $48,382 per year, as of April 22, 2024.
- This may include supporting missions, local charities, and other initiatives that align with your church’s mission.
- The pastor’s salary will be influenced by more than just your budget.
- But that budget can become useless if one or two givers get laid off or transferred out of town.
- Too many churches fly by the seat of their pants and spend 105% or 110% of their total income.
- The spending priorities of a large suburban church near Dallas likely will look much different from a small rural one in Kansas.
