Can you provide a checklist of items for a new church to consider? Pastoral Compensation Issues: 1. Consider establishing a professional expense reimbursement plan, either using an “advances” or a “reimbursement” arrangement. 2. Determine health insurance and medical care benefits, including the possible use of a major medical policy combined with a Health Reimbursement Arrangement (HRA). Two key questions to resolve regarding an HRA—what annual amount? and will any unspent amounts carryover? 3. Consider retirement funding, typically using either a 403(b) plan to providing funds for the pastor to fund his own Roth or traditional IRA 4. Designate a portion of cash compensation as a housing allowance. 5. Determine cash compensation. It may not be wise to reduce this amount too low (by providing other benefits instead of cash compensation). Pastors need $11750-$17400 (2007 amounts) for maximum Earned Income Credit (EIC) with 2+ children or need $8350-$16000 (2007 amounts) for maxi...
This blog posts answers to questions given to us by ministers and others serving in Christian ministries advancing the gospel of Jesus Christ. It also discusses other financial topics that those in gospel ministries face. We trust the information provided can be helpful to you.