I guess this question would be more for those who have started new churches or pastored very small churches. We have heard of pastors who are receiving a percentage of the offerings as their pay .........not as a bonus but as their only salary. Does anyonehere have experience with this? I am wondering what the typical guidelines are.
This is a difficult issue...I think it needs to be made very clear. Our best friend got into a BAD situation with this. Let me share so you'll understand...
When he went to his church it was maybe 200 people or so...they had a policy that they always had for many years that the pastor received a "base salary" - I can't remember the exact amount, but let's say in the neighborhood of 30 or 40K at the most. Then what they would do in addition was give the pastor 10% of each weekly offering that was undesignated. (Did not include offerings for missions, special projects, etc.) but simply tithe and regular offering. The board did it many years prior as an "incentive" for the pastor to work harder, grow the church, etc. As the church prospered, so would he, was their rationale. Okay, fine.
Our friend went in and said, "alright, so you are going to be fine with this no matter how much the church grows, correct?" They said, "absolutely." Well, our friend grew that church INCREDIBLY...I mean within a while they were 500+ people...I believe at one point they reached maybe even 6 or 7 hundred. The offerings skyrocketed, obviously. Our friend started making some good money. Well at that point, the board got upset about it. They started getting disgruntled. The pastor was making more than most of them. (Some board members can't handle that.)
They called him in and told him they wanted to take away the policy about the 10%, and just give him a set salary. Our friend told them that it was unfair based upon the fact that when he went there he was willing to sacrifice and on weeks the offering was very down, he may have gotten little. There were lean weeks in the beginning and the board never cared that he was getting a small check, but now they cared about a large one when they had to do it.
Our friend told them he would agree to them capping the salary at the average he was currently making, but that he would not accept a decrease. (In other words, he would accept not continuing to increase, but he wouldn't take a step backwards.) The board agreed to that, but then they just got completely out of control attitudes and within probably a year our friend left.
Thank God he's now pastoring a wonderful church where he and the church have both flourished and are prospering.
I just think you have to be really careful with that. Make sure that they will not mind you taking a portion of the offerings if and when the church really prospers.
I see nothing wrong with you receiving money from the offerings, as long as the board is aware of it and has approved it.
I don't have much to contribute in this area. We're still funding the ministry out of our own personal finances. We've got a handful of members right now. So the very thought of asking for a salary is unheard of.
There is a bishop who was found guilty for not reporting income from the church. Even the church board knew he would take church funds and pay his personal bills, he never recorded it. When his defense attorney said that this is how a lot of churches do business, the judge wanted to make an example out of him and sentenced him to 18 months in jail. He's out on appeal.
I've learned that churches must file w-9's. You can't go lifting offerings for people and give them the money without recording it. You'd be surprised how many times I've seen this.
So let me ask, when guest ministers come and minister, do you have them fill out a w-9?
We have a guest coming for a one-night revival. I know (or have been told) that income under a certain amount, a w-9 need not be filed. I've got to send the woman of God a letter and w-9 form. I pray folk don't get offended! Our goal is to handle the ministry's finances in decency and in order!
I'm not the bookkeeper at our church so I'm not for certain about the W-9, but I do know that when we have any guest speaker, we need their Social Security number, and I know we do report it to the IRS. I could be wrong...but somewhere in my mind the number $500 comes to mind - I think that is the amount where you have to start reporting it, but I am not for certain.
We have never had a problem with anyone giving us their SS number or being offended. They are just really glad they are getting paid! (And obviously it's of a certain amount if it needs to be reported, so that right there tells them it's going to be a decent check.)
Deanna's right about people not being offended! I work at at North Central University aside from my ministry job, and we often take up offerings to pay our guests who come and speak during chapel. It's my job to make sure the appropriate paperwork is filled out so that they can get paid. Here's how I put it if I need to call them for info:
"We would like to cut you a check for agreeing to come and share in chapel/class/wherever, but our accounting department requires us to provide your social security number. Would you mind giving me that info?" If necessary, I assure them that the information is going nowhere, other than straight to the person who cuts the checks. They're usually fine with it - as long as you approach it graciously and start out with the fact that you would like to cut them a check!
