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Because YOUR CHURCH receives so many requests for information on pastor compensation, we decided to go beyond our 1999 survey on church budgets to see what those findings mean to church leaders and financial experts.

The reactions of pastors to their salaries vary widely; 70 percent feel they are fairly paid and 30 percent that they are underpaid. At one end, an associate pastor of a megachurch in the South is satisfied with his compensation. "We may not make the median income for our community, but we are better off than the average, typical minister in a small church," he says.

The senior pastor of an 1,100-member church in the Southwest is also happy with his salary, which was determined partly by following the guidelines of "NACBA's Church Business Administrators' Church Staff Compensation Survey."

At the other end are pastors who are mildly to greatly dissatisfied with their pay. Bob Welch, associate professor of administration at Southwestern Baptist Theological Seminary in Dallas, Texas, understands why. "Most pastors are underpaid," he says.

Some churches are short on tact as well as compensation. "We didn't make the budget this year, pastor, so guess what?" is how one church began its budget report. The 300-member church has salary guidelines from its synod, but it doesn't follow them.

Understandably, the pastor of that church is unhappy. "It is very frustrating to be a rural pastor," he says. "Church members are whipped and beaten down by the economy, then they pass that on to the pastor. One member even suggested that my salary increases be tied to the hog market."

Resources that can help churches determine a fair salary for pastors include The Annual Compensation Handbook for Church and Staff from Christian Ministry Resources, Zondervan's 2000 Minister's Tax and Financial Guide by Dan Busby, and How to Set Clergy Compensation by Steve Clifford.

Your denominational headquarters could tell you what pastors in churches like yours are paid. So might CPAs such as Jack L. McGinnis of Brooks, McGinnis & Chafin in Atlanta, Georgia, who collects data from more than 50 churches to help clients determine salary packages. A typical package includes:

• Base Salary. A salary of $40,000 sounds reasonable for a pastor, but the take-home pay will be significantly less. In addition to tithing, 15 percent will be deducted for federal tax, 15.3 percent for Social Security and Medicare, up to 9.3 percent for state tax, and as much as 20 percent for unreimbursed business expenses.

"Now subtract those things that are unique to being a pastor," says Steve Paul, president and founder of ChurchPayroll.com. For example, if a pastor's church requires him to wear a suit, subtract the cost of dress clothing and dry cleaning. Subtract those costs for the pastor's family, too, because they also represent the church. Now subtract the costs of entertaining church guests, such as missionaries and speakers. What's left isn't much.

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