Podcast Episode #123
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Not every church can provide every possible benefit listed in today’s podcast for their staff. But most—if not all—churches can provide at least some of these. Extra benefits like the ones we cover today can foster staff and church unity, boost staff morale, and, as a result, increase the effectiveness of the staff and church. These benefits are worth considering for every church.
Some highlights from today’s episode include:
- Churches need to do their part in providing retirement options for staff; and staff need to save for retirement.
- I would like to see more churches provide meal reimbursements for staff to build relationships with others.
- Many position titles are antiquated. They reflect neither the value of the position nor an accurate representation of it.
- Free babysitting for church staff is a tremendous blessing to staff families with kids.
- When your church provides monetary or non-monetary benefits, you are telling the staff they are loved.
Ten Monetary Benefits Churches Can Provide:
- Retirement
- Insurance
- Sabbaticals
- Book allowance
- Conference budget
- Education reimbursement
- Staff retreats
- Meal reimbursement for ministry
- Cell phone and mileage reimbursement
- Gifts for the spouse
Eight Non-Salary Benefits Churches Can Provide:
- A consistent day off
- Bonus time off
- Daycare/school if the church has one
- Free registration for church events/meals
- Extra books and other material you own
- Share gifts
- A position title that reflects the value of the ministry
- Babysitting
Episode Sponsor
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Feedback
If you have a question you would like answered on the show, fill out the form on the podcast page here at ThomRainer.com. If we use your question, you’ll receive a free copy of Autopsy of a Deceased Church.
I recently gave up my salary from the church where I pastor. We have grown in numbers yet tithe amount has diminished. I still take a ‘living expense’ which consists of my rent plus ~$200 for utilities. It doesn’t actually cover living expenses but God provides. I don’t receive any of the ‘Ten Monetary Benefits’ listed. I’m by no means against any of those things. I think it’s a great list and it’s nice to know that there are congregations out there that are willing and able to provide in these ways.
I am so appreciative of your sacrificial ministry, Mark.
I’d like to vouch for the benefits of meal reimbursement. I used to be the young adult pastor for a church that reimbursed us for meals and found this to be my best form of ministry. For example, I took a 20 year old guy named Drew out for dinner to “recruit” him into my ministry at the church. It cost the church $40, but Drew immediately signed on, and has grown into a fantastic, Godly man who has followed me to two other churches in the 7 years since that dinner! Probably the best money I’ve seen a church spend.
Most smaller churches will have a hard time providing any (much less all) of the monetary benefits, but the non salary benefits list is intriguing…….
Louise –
You are right. And the non-monetary benefits can be as meaningful as the monetary benefits.
I work for a small church and one of my benefits is building use. We live in an area where renting a community room runs $200+. I was able to have my daughter’s birthday party in the church’s social hall at no charge. This was a huge blessing to me and incurred minimal cost (electricity) to the church.
Check it out first… most of these benefits must be reported as taxable income!
Jenice, do you have some additional thoughts about the taxability issues? I only ask because I believe every one of these items, in both groups, can be structured in a way that they are not taxable to the employee.
John… I have had some accountants suggest ways to get around the taxable income issue, but every attorney I have spoken with (some in our state convention and foundation and some you probably know if you are involved with church administration) has confirmed for me that if the value of the gift can be determined – it must be reported. Richard Hammar’s annual Church and Clergy Tax Guide is our primary source of information. Our church adopted the policy that all gifts to employees will be reported – it simplified things for us by ending the constant debates. Obviously, a reimbursable expense plan is not included in that.
Just listening to this podcast. On insurance, you didn’t discuss the pastor’s need for Renter’s Insurance to cover personal property if he or she is provided a parsonage. Not necessarily a church benefit, but very much needed by the pastor.
Great point. Thanks, Rick.
Thom’s advice on benefits is sound. I have served as tax, accounting and management advisor for many churches over the last 20 years. If anyone has a specific question, I will answer gratis and privately.
Wm. Dan Gilbert M.Ac., M.B.A.
502-457-0360
AmeriTaxUSA@Live.Com
Louisville, KY
P.S., I attended the Billy Graham School of Evangelism and Church Growth, SBTS,for 2 years beginning
the first year classes were offered. THOM was Founder and Dean.
That is very gracious of you, Dan. Great to hear from an early BGS alum!
Provide filters and accountability software to guard all internet devices (computers, phones, pads, pods, etc) used by pastors and every member of their families.
Internet pornography and inappropriate relationships via the internet are destroying pastors, their marriages, their families, and their ministries in staggering numbers.
Often pastor’s salaries are slim. The money it takes to purchase this software can easily be trimmed from the “needs” list.
This is a simple way churches can show how much they value their pastors and protect the integrity of their ministries.
Tom wanting to get permission to put an article you did about Sabbaticals 5 Reasons Why to put in a booklet I am doing.
How can I get your permission to use this?
thanks
Alan Heller
Thom,
Regarding insurance I didn’t hear/notice any conversation about life insurance on the pastor strictly for his family. This will save the church much heartache and conflict if the pastor should die and leave behind a wife and children. Too often churches find themselves in the position to want to take care of the pastor’s family and conflicted in the reality that they must find and hire a new pastor. The life insurance can help with funeral expenses, possibly moving expenses, and life adjustments. This life insurance for the family is also a good practice for staff and allows a church to be satisfied in its responsibilities and also able to move on in ministry.
In closing, I think that many churches think that they can’t do all of these financial things, but perhaps the guidance would be that instead of a pay raise they could invest that money into the insurance, retirement, fuel/car allowances, etc.
“instead of a pay raise” HA! most churches do not even do cost-of-living raises. In the last few years, with the cost of insurance skyrocketing, many pastors take home less than they did in the last couple of years.
We recently had a discussion in our church about whether salaried staff could be paid an extra stipend/bonus for large events that they worked extra hours. We were told by our HR staff that it wasn’t a legal option, but I know of many churches that do it. Do you know how this is usually handled?