Date post: | 25-Dec-2015 |
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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
What Questions do you have for me?
559 287-7840 cell 559 256-0858 direct line
Rod WiltroutChurch Finance Specialist