Growth Points with Dr. Mc

"You keep him humble, Lord. We'll keep him poor."

I doubt if any church leaders ever prayed such a prayer. Most church boards honestly desire to be fair with their pastors. They wish to pay them well. However, this old joke contains more truth than error. Clergy continue to be one of the most underpaid professions. Why is this so? Three reasons churches pay lower salaries are . . .

#1: Unbiblical Priorities: Money goes to facilities, programs, and debt reduction, while the person who ministers day-to-day is neglected.

#2: Unbalanced Expectations: Church members expect their pastor to live on less as an example of suffering to the flock, who, of course, live on more.

#3: Inexperienced Leaders: Church leaders do not know how to develop a pastoral compensation plan.

While #1 and #2 need to be addressed, #3 appears to be the major issue. Church leaders often have no idea how to design an equitable financial plan for their pastor. As you think about setting your pastor’s salary and benefits package this year, consider the following general rules of thumb:

First, the priority for expenditures of money should be in the order of staff, ministry, and facilities. Thus, determine your pastor’s salary and benefits package before you set the rest of the budget.

Second, The pastor’s salary package for a smaller church will normally be between 50% to 60% of the total church budget. In larger churches, it will be between 35% to 50%. View the pastor’s salary package as an investment, rather than an expense.

Third, placing a priority on paying your pastor well will benefit your church. Remember the admonition of Galatians 6:6-7: ”Let the one who is taught the word share all good things with the one who teaches. Do not be deceived: God is not mocked, for whatever one sows, that will he also reap.”

If you found this blog helpful, please share it with your friends and network.