1. Compensation Policies for Ministers and Paid Staff Meeting their Needs and Balancing the Budget

2. Staff-50% Missions 10% New Ministries 10% Existing Ministries 15% Building & Grounds 15% The Budget Pie Savings 5% Staff 45% Bill Hybel’s Wheel Rod’s Wheel

3. What Factors Should You Consider? Where you are located Size of your Church Staff Position Education Previous service Benefits Housing Allowance Social Security Inflation

4. Where you are located Cost of Living Commuting Office Space-church or home Compensation Trends in Your Community – www.guidestone.org/budgetresources www.guidestone.org/budgetresources MSN Salary Study – http://www.cbsalary.com/Salary- Calculator.aspx?lr=cbmsn&siteid=cbmsn_home&specialty=&city=&state=&btnSubmit.x=80&btnSubmit.y=15 http://www.cbsalary.com/Salary- Calculator.aspx?lr=cbmsn&siteid=cbmsn_home&specialty=&city=&state=&btnSubmit.x=80&btnSubmit.y=15

5. National Salary

6. Fresno, CA

7. Size of your Church Larger churches should be able to do more Current debt Tithing issue

8. Staff Position Senior Pastor, associate staff, secretary, janitor Ministerial or non-ministerial for tax purposes Full time, part time, bi-vocational

9. Education Bachelors, Masters, Doctorate Specialized training; Marriage and Family Counseling

10. Previous service Where did he/she serve How long did he/she serve What notable projects, ministries did he/she accomplish

11. Determine Personal Income How to designate a housing allowance Minister’s responsibility – Present an estimate of housing expenses Church’s responsibility Designate amount prior to paying minister – Review annually – Record it as set until changed by official decision – Remember housing allowance limits B08-32

12. Social Security & Inflation Social Security – Did the minister opt out Inflation – 3.6% in 2011

13. It’s More than Money… Policies should cover four major areas – Ministry-related expenses – Employee benefits – Personal income – Personnel policies – www.yourchurchmatters.com www.yourchurchmatters.com – http://www.guidestone.org/budgetresources http://www.guidestone.org/budgetresources B08-18

14. Provide for Ministry-Related Expenses Address these expenses with an Accountable Reimbursement Plan (ARP) – Vehicle use for business purposes – Meetings, workshops and conferences – Books, periodicals, software, etc. – Continuing education opportunities – Provisions for ministry-related hospitality B08-20

15. Provide for Ministry-Related Expenses Requirements for an ARP Expenses must have a business purpose Document amount, date, place and purpose Expenses substantiated within 60 days Excess advances returned within 120 days B08-21

16. Provide for Ministry-Related Expenses IRS-approved standard rate for transportation (mileage rate), meals and lodging Unused ARP money should not be given as a bonus or additional income; tax issues B08-22

17. Provide for Ministry-Related Expenses Create an ARP in three easy steps 1.Determine covered expenses and create a plan 2.Require expense reports to be submitted within 60 days of incurring expenses 3.Reimburse approved expenses at least once a month B08-23

18. Provide Employee Benefits A strong benefit plan – Has tax advantages – Offers insurance coverage benefits Protects church Provides appropriate coverage for staff – Includes retirement contributions B08-25

19. The Importance of Insurance Insurance coverage can include: – Term life – Employee accident – Medical – Disability – Dental B08-26

20. Help Them with Retirement A retirement plan – Paid service ends, income needs do not – Employer contributions – Employee contributions B08-27

21. Help Them with Retirement A GuideStone retirement plan features: – Tax-sheltered contributions – Designed exclusively for ministries – No SECA taxes for eligible ministers – Housing allowance benefit – Roth contributions (not available in all plans) B08-28

22. Help Them with Retirement The Church Retirement Plan for SBC churches Potential benefits – Disability income – Survivor protection Mission Church Assistance Fund (MCAF) B08-29

23. Budgeting That Works! Getting it Right! By PresenterMedia.com PresenterMedia.com

24. Creating Buy in and Participation Over the Next Three Thursdays… Preparing to Budget Comprehensive Budgeting Aug. 16th Aug. 23rd Aug. 30th

25. What Questions do you have for me? 559 287-7840 cell 559 256-0858 direct line rwiltrout@csbc.com Rod Wiltrout Church Finance Specialist