Going to your first church

It is exciting to see how God weaves his plan into the fabric of our lives! For many seminary students, part of that plan is to minister on a church staff. The call to a church is exciting. However, at times it may be awkward, especially in regard to financial issues.

It is important that the church provide adequate compensation for its ministers. But many churches have very limited resources and do not understand the importance of administering a complete compensation plan. At the same time the prospective minister may not feel comfortable discussing financial issues because he does not want to come across as being too interested in money. The GuideStone resource, Planning Financial Support Workbook (pdf), can help as you consider the call to serve a church or as you work with the finance committee after you have gone to a church. You may download this workbook at no cost.

Here is a brief list of financial issues to consider:

1. Make sure you have adequate medical, dental, life, accident and disability coverage. Without this necessary protection, you are putting your family and your church at risk if something were to happen to you or someone in your family.
2. Utilize a reimbursement plan for your ministry-related expenses. Many churches continue to provide “allowances” to help cover expenses; then ministers write off the expenses on their taxes. However, you will save a considerable amount of tax dollars by utilizing an accountable reimbursement plan.
3. Take full advantage of a minister’s tax-free housing allowance (pdf).
4. Don’t wait to start planning for retirement. Experts suggest that setting aside 10% of your salary and housing allowance could be enough to reach retirement savings goals if you begin saving for retirement in your twenties. If you wait until later in life to begin saving, you will need to set aside more.
5. Understand the basics of ministers’ taxes. GuideStone’s Ministers Tax Guide is available free online to help you understand your unique circumstances.
6. Take the time to establish a family budget. A good spending plan will help you be a good steward of the resources God provides.

GuideStone Financial Resources of the Southern Baptist Convention welcomes the opportunity to share this general information. However, this article is not intended to be relied upon as medical advice, diagnosis or treatment.