Using the worksheet in the Compensation Planning Guide will help develop a comprehensive compensation plan for a new budget year.Īt GuideStone, we want to help churches in any way we can. Ministry-related expenses and the cost of benefits should not be considered part of personal income. Several factors should be considered when determining ministers’ and employees’ personal income, such as inflation, Social Security and minister’s housing allowance. Making these benefits available is a tangible way to show a church staff that they are cared for - which can help attract quality, new employees and reduce turnover. Provide Employee Benefits (Including Health and Retirement Benefits)Ī strong employee benefit plan includes retirement contributions along with medical, life and disability coverage for ministers and other employees. As such, the expenses should be fully paid for by the church through an accountable reimbursement plan and budget and should not impact any portion of a minister’s or employee’s personal income. However, these expenses should never be a burden to them. Ministers and employees naturally have expenses related to the work they need to accomplish. They also help ministers and employees clearly understand the provisions and expectations of the church. Written policies reduce confusion by forming a standard for current and future actions. Determine the NeedsĬhurches need to review ministry-related expenses, employee benefits and personal income to determine ministers’ and staff’s compensation needs appropriately. To help establish a compensation plan that follows best practices, we encourage churches to follow these six essential steps*: 1. This downloadable workbook aims to help churches develop a solid budgeting plan for the benefit of both the church and staff. To help churches care for their employees through financial stewardship, GuideStone® makes available our free Compensation Planning Guide, which includes sample forms, templates, worksheets and expense reports. Still, this line item has reentered the spotlight as a first concern following the trials many experienced in 2020. The biblical obligation to provide well for their pastors and other church staff has always been a priority of churches. ![]() ![]() Prioritizing Compensation Planning is a Key to Financial StewardshipĪs churches evaluate their budget each year, they often seek ways to stretch limited budget dollars to cover a myriad of God-honoring goals - from weekly services and congregational care to missions and ministry outreach. By Shawn Dorrough, Senior Relationship Manager in Retirement Solutions
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