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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
What Factors Should You Consider?
• Where you are located
• Size of your Church• Staff Position• Education• Previous service• Benefits
• Housing Allowance• Social Security• Inflation
Where you are located
• Cost of Living• Commuting• Office Space-church or home• Compensation Trends in Your Community
– 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
Staff Position
• Senior Pastor, associate staff, secretary, janitor
• Ministerial or non-ministerial for tax purposes
• Full time, part time, bi-vocational
Previous service
• Where did he/she serve• How long did he/she serve• What notable projects, ministries did he/she
accomplish
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
It’s More than Money…
• Policies should cover four major areas–Ministry-related expenses–Employee benefits–Personal income–Personnel policies–www.yourchurchmatters.com– http://www.guidestone.org/budgetresources
B08-18
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
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
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
Provide for Ministry-Related Expenses• Create an ARP in three easy steps1. Determine covered expenses and create a plan2. Require expense reports to be submitted within
60days of incurring expenses
3. Reimburse approved expenses at least once a month
B08-23
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
The Importance of Insurance
• Insurance coverage can include:–Term life–Employee accident–Medical–Disability–Dental
B08-26
Help Them with Retirement
• A retirement plan –Paid service ends, income needs do not–Employer contributions–Employee contributions
B08-27
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
Help Them with Retirement
• The Church Retirement Plan for SBC churches
• Potential benefits–Disability income–Survivor protection• Mission Church Assistance Fund (MCAF)
B08-29
Budgeting That Works!Getting it Right!
By PresenterMedia.com
Creating Buy in and Participation
Over the Next Three Thursdays…
Preparing to Budget
Comprehensive Budgeting
Aug. 16th
Aug. 23rd
Aug. 30th
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