Archive Picks

More from 2006

Salary Quandary

Ministries pay executives less than their secular nonprofit counterparts. Should they?
2006This article is part of CT's digital archives. Subscribers have access to all current and past issues, dating back to 1956.

A recent survey reveals that the vast majority of Christian ministries pay their leaders significantly less than what those executives could earn in private industry. No surprise there, but they also earn significantly less that their counterparts in secular nonprofits.

By reviewing the compensation practices of 147 Christian ministries, Best Christian Workplaces Institute (BCWI) and the Christian Management Association discovered that the average compensation for presidents/chief executive officers is $99,000; for chief operating officers, $88,200; and for chief financial officers, $78,200.

Numerous factors—the scope and complexity of the ministry, cost of living, revenue, and number of employees—contribute to total compensation levels, according to BCWI president Al Lopus. Still, the 2005 survey reveals that, overall, Christian ministries do not pay competitive salaries. Consider: Ministries compensate presidents and CEOs anywhere from 24 to 46 percent less than what their counterparts in secular nonprofits earn, and 65 to 403 percent less than leaders in private industry. Meanwhile, ministry CFOs are paid anywhere from 19 to 25 percent less than other nonprofit CFOs, and 69 to 203 percent less than those working in private industry.

Lopus says that ministry leaders and nonprofit executives have comparable responsibilities. He argues that higher salaries attract higher-caliber executives, which would increase ministries' effectiveness.

"I think it's reasonable to accept less to take a job where there is eternal value," he says. "But we have to look at the reasonableness of how much that is. The gap should not be as wide as it is now."

Others believe Christian companies do excellent work despite limited resources ...

Subscriber access only You have reached the end of this Article Preview

To continue reading, subscribe now. Subscribers have full digital access.

September
Subscribe to CT and get one year free.
More from this IssueRead This Issue
Read These Next
close