Pastoral Budget Guideline and Worksheet.xls by langstonwalker


									Pastoral Budget Guideline/Worksheet
Minister's Compensation              Description                                                 This Year       Next Year
                                     Include both an annual cost -of-living increase and
                                     recognition of merit or appreciation of service, and
                                     should be comparable with the salaries of other
Cash Salary                          similarily educated professionals in your area.
Housing (either a or b)
                                     Based on the fair market value of renting the
a. Parsonage rental value            furnished parsonage.
                                     A portion of a minister's salary designated by the
                                     church to cover the cost of insurance, repairs,
                                     furnishings, etc. paid by the minister. It also includes
                                     utility costs if the pastor is paying for them. The
                                     allowance is excluded from taxable income only to
 a.1.parsonage allowance             the extent it is actually used.
                                     Include items such as heat, electricity, telephone, etc.
                                     If the church pays for the utilities directly, the amount
                                     should be included as part of the pastor's total
                                     compensation. If the minister pays, include utilities in
 a.2.Utilities allowance             parsonage or housing allowance.
                                     When there is no parsonage, the housing allowance
                                     designation should include the cost of maintaining a
                                     home, including mortgage payments, furnishing,
b. Housing allowance                 utilities, etc.
Total Compensation                                                                               $           -   $           -

                                     MMBB provides retirement benefits and protects the
                                     minister and his/her family in the event of disability or
Benefits for Life Premiums           death before retirement.

                                     TDA provides employer-paid retirement benefits to
Tax-Deferred Annuity contributions   supplement those available through Benefits for Life.
                                                    Health insurance should be provided by the church.
                                                    MMBB has arranged to make PremierHealth medical
                                                    coverage available to ministers and lay employees
Health insurance premiums                           sponsoring churches and organizations.
                                                    Provides assistance to your minister who must pay
                                                    his/her full Social Security and Medicare tax as a self-
                                                    employed person. Most churches provide an offset
                                                    for their pastors. The offset is reported as taxable
                                                    incomefor the federal income tax and Social
Social Security/Medicare tax offset                 Security/Medicare tax purposes.
Total Benefits                                                                                                 $   -   $   -

Reimbursement for Ministry-Related Expenses
                                                 For miles driven each year by the minister in
                                                 performance of church business. A guideline could
                                                 be the standard amount allowed for deduction by the
Automobile ______ miles at ______ cents per mile IRS.
                                                 Include the cost of attending denominational area,
                                                 regional, and national meetings, i.e., transportation,
Convention expenses                              meals, housing, and registration.
                                                 Should include an annual amount set aside for a
                                                 course of study or educational conference to further
                                                 develop professional skills. Professional clergy
                                                 groups recommend that 10 days be set aside each
                                                 year for this purpose (and that a sabbatical be given
Continuing Education                             every 7 years).
                                                 These are essential tools for ministers. A reasonable
                                                 amount should be included in the budget for these
Books, periodicals, and other resources          items.
                                                 Provide for the cost of hospitality extended to
Hospitality fund                                 individuals and groups on behalf of the church.
                                                 Unique to a particular ministry also should be
                                                 included for reimbursement, including Ministers
Other expenses                                   Council dues.
Total Reimbursement for Ministry-Related Expenses                                                              $   -   $   -
Total Package                                   $     -      $   -

MMBB recommends that you use the following
formula to calculate percentage increases for
your pastoral staff's compensation.

Current compensation
Merit increase
Cost-of-living increase                             4.30%
Total Increase                                       $0.00
Total Amount                                         $0.00

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