It’s That Time of Year!
Fall is typically the time when churches are working on their finances for the coming year. It can be a time of casting new vision, evaluating programs, and setting salaries. How churches work through these decisions is not meant to be just a business-like transaction. It is a spiritual discernment process worthy of our time and effort as it will support our God-given vision and the care of our pastoral staff.
“But all things should be done decently and in order.” – 1 Corinthians 14:40 (ESV)
To aid in this discernment process we want you to have access to some helpful resources.
MB Foundation offers a free digital copy of the ECFA Tax Guides for 2024 for churches and pastors. It provides information dealing with Housing Allowances, budgeting, benefits, filing, record keeping, etc. Remember, pastors, to have your Housing Allowance documented in the church board minutes. Your Housing Allowance cannot be claimed retroactively and it is good practice to review this document yearly. The Tax Guide has a very helpful worksheet!
ECFA also offers numerous eBooks you can download for free or for a small cost to give you an up-to-date guide on numerous subjects pertaining to church finances and pastoral support. You can view the 25 eBooks here and order on their website here.
We strongly encourage all churches to consider a Salary and Benefits approach instead of a pay package approach where the pastor is paid a set amount to allocate and directly pay for health insurance, books, retirement, travel, and other expenses. Guidestone has a helpful flyer illustrating the tax savings for pastors if the church pays for the benefits. It will put more funds in the pastor’s personal finances (less taxes) without additional costs to the church.
Guidestone is the plan provider for the MB Associational Retirement 403b Church Plan. Please contact us if you’d like to know more about this retirement plan sponsored by MB Foundation.
Wondering how much you should pay your pastor? GuideStone also offers a free Compensation Planning Resources for Your Church. Use their Compensation Summary 2022 based on over 10,000 Southern Baptist churches in 40 states.
Please contact us if you have any questions. We are here to help churches and pastors!