What percentage of church budget should be pastor salaries?

Church consultant Tony Morgan says, “Our consulting team generally encourages churches to try to stay in the range of 45 to 55 percent of total budget.” So, what percentage of your total budget should your church spend on staff salary? Whatever amount you determine is generous but not too risky.

What is a ministry budget?

A church budget is a tool that works to balance finances with ministry. It is the financial road map for your church or ministry. To begin creating a budget, there are really two options. The zero-based method or the method of budgeting based on historical church budget trends.

What is a church operating budget?

In addition to personnel costs, your church’s administration costs will likely stay the same year after year. Operating expenses include rent or mortgage payments, office equipment and supplies, insurance costs, and more.

How much of your salary goes to the church?

(10%)
What Is Tithing? A tithe is a portion (10%) of your income given as an offering to your local church. (Fun fact: The word tithe literally means tenth in Hebrew.) Because the custom of tithing is biblical, many Christians and Jews practice it as part of their faith.

How much of a church budget should be missions?

ten percent
A good rule of thumb is ten percent of the budget should be dedicated to local and international missions. Do not underestimate hospitality. Few people will vie for more funds in the hospitality budget. In fact, some may even scoff at what is spent on guest cards and coffee.

How do you write a church budget?

To build a healthy church budget, ensure that these things are true from the get-go:

  1. The budget’s priorities reflect the church mission statement.
  2. It’s based on projected income, not just the past.
  3. It includes a spending plan.
  4. Leadership agrees on the plan.
  5. The plan is communicated clearly to all involved.

How do you categorize church expenses?

Common Church Budget Categories

  1. Personnel (salaries, benefits, etc.)
  2. Administration (operating expenses)
  3. Facilities and Equipment (utilities, insurance on property, maintenance)
  4. Outreach (missions, evangelism, social events, etc.)

Who prepares the church budget?

The committee redistributes a draft budget to pastor, minister of music, board and ministry leaders. It will hear any other concerns, then prepare the final budget draft. One month prior: The finance committee presents the final budget draft to the pastor, minister of music, board, and ministry leaders for approval.

What expenses do churches have?

Typical business expenses

  • Office supplies like pens and paper.
  • Equipment such as computers or other necessary technology.
  • Rent, if the church needs additional office space.
  • Mileage, airfare, tolls, parking, and rental vehicles for ministry travel.
  • Continuing education and training courses for staff.

How much should you tithe a month?

Calculate 10% of the fixed income you receive. If you receive Social Security, rental income, a pension, or any other fixed income, you might keep it easy and calculate 10% of that to pay to the church.

How much debt can a church afford?

A normal church can borrow up to about 4 times gross tithes and offerings, but it can be as high as six times its gross tithes and offerings. The maximum loan amount is based upon 4x-6x the church’s gross tithes and offerings (before expenses).