Pastors and Fringe Benefits

by John C. LaRue, Jr.

Benefits are a vital part of any employee's compensation package. A recent nationwide survey conducted for Your Church takes a look at how many pastors receive benefits, and what kinds of benefits their churches provide.

The Haves and Have Nots
Previous studies for Your Church (September/October 1997) showed that senior pastors who serve in churches with other paid ministry staff usually earn more than solo pastors. New research shows that senior pastors are also more likely to receive various fringe benefits than solo pastors (see Graph 1). In every category but one, churches offer more fringe benefits to senior pastors than solo pastors (see Graph 2). But churches also contribute an average of $500 more per year for health insurance for solo pastors than for senior pastors.

In addition, more churches are providing pastors with various benefits than in 1991, when Your Churchdid a similar study. The most dramatic increases since then have been in providing reimbursements for professional, entertainment, and hospitality expenses. Fifty to 100 percent more pastors have obtained coverage for those expenses.

Graph 2:
Median Annual Amount of Fringe Benefits

	Senior Pastor	Solo Pastor
Health Insurance	$4,000	$4,500
Auto Expenses	$2,400	$2,112
Convention/Cont. Ed.	$1,000	$500
Life Insurance	$600	$276
Entertainment/ Hospitality	$600	$200
Professional Expenses	$500	$400
Disability Insurance	$500	$248

Solo Pastors:
Amount of Fringe Benefits by Average Sunday Morning Attendance

50 or Less 51-100 101-150 Over 150 Health Insurance $2,350 $4,500 $5,000 $5,000 Life Insurance $316 $263 $256 $400 Disability Insurance $236 $276 $300 — Auto Expenses $1,800 $1,900 $2,400 $2,625 Convention/ Continuing Ed. $600 $500 $500 $500 Professional Expenses $250 $400 $650 $300 Entertainment/ Hospitality $50 $126 $220 $300

Senior Pastors:
Amount of Fringe Benefits by Average Sunday Morning Attendance

50 or Less 51-100 101-150 Over 150 Health Insurance $3,800 $4,355 $4,500 $3,920 Life Insurance $300 $500 $900 $1,000 Disability Insurance $250 $490 $558 — Auto Expenses $1,800 $2,300 $2,800 $3,531 Convention/ Continuing Ed. $600 $1,000 $1,000 $1,250 Professional Expenses $300 $500 $500 $650 Entertainment/ Hospitality $600 $400 $500 $875

Insurance Coverage
Pastors are more likely to receive health insurance than any other benefit. Unfortunately, our survey did not question why 20 to 26 percent of full-time pastors don't have this coverage. Perhaps most get this benefit through their working spouse or pay for it themselves.

For a pastor's medical coverage, the median annual amount churches pay is $4,400. One-fourth of churches spend $2,500 or less, while another 25 percent spend $5,950 or more.

Twenty to 30 percent of pastors serve at churches that pay for life and disability insurance. Premiums for the majority of those policies range from $150 to $1,000. Our study did not indicate what kind of coverage was included.

Professional Reimbursements
More than 7 of 10 pastors have their auto expenses reimbursed, adding up to a median annual amount of almost $2,400. One-fourth of the pastors receive $1,200 or less for auto expenses, and 25 percent receive $3,300 or more. The survey did not ask how many pastors use a church-owned vehicle.

Almost 7 of 10 pastors are compensated for conventions and/or continuing education. Twenty-five percent are allotted $1,100 a year for that, and 25 percent, $500. The median amount is $600.

The majority (51%) of full-time pastors are reimbursed for professional books, magazines, and memberships, which cost between $225 and $1,000 a year. The median amount is $500.

Though the numbers have grown significantly since the early 1990s, only one quarter of churches reimburse their pastors for entertainment and hospitality expenses. Typical annual expenses total $325. A fourth of the pastors spend more than $1,000 a year, and a fourth spend less than $126.

For More Information
Benefits to pastors vary significantly according to church size. That information and more is available on the Web at http://www.ChristianityToday.com/cbg/features/report.html.html. This page also offers links to "Special Reports" dating back to 1994.

The Studies
In 1991, Your Church mailed 10,000 surveys to a random selection of churches in the United States and received 3,977 in return, for a response rate of 40 percent. In 1996, 1,200 surveys were mailed, and 594 were returned, for a response rate of 52 percent. With these samples, results are considered accurate to within plus or minus 2 and 4 percentage points.

John C. LaRue, Jr., is vice president of research and development for Christianity Today International, in Carol Stream, Illinois. He may be reached by e-mail at webmaster@christianitytoday.com.

Copyright © 1997 by the author or Christianity Today International/Your Churchmagazine. For reprint information call 630-260-6200 or e-mail yceditor@yourchurch.netJanuary/February 1998. Page 96