How much should a church pay its pastor

One-dollar bill on a white background, symbolizing the financial considerations churches must make when determining pastor compensation, as discussed by Reynolds Law Group in church financial planning services.

Determining a pastor’s salary can be complex. Often, churches base the compensation on several factors:

  1. The pastor's previous salary at a former church.

  2. The salary of the church’s former pastor.

  3. The pastor’s level of experience.

  4. The pastor’s educational background.

  5. The average income of the church’s congregation.

While these factors can influence the decision, relying solely on them may not be sufficient for determining a fair and equitable salary.

Developing a Compensation Policy

Instead of just comparing previous salaries or averages, churches should develop a comprehensive compensation policy. This approach is crucial, especially for churches with multiple staff members, to ensure consistency and fairness across all roles.

A Real-Life Case History

Consider the case of First Church, which hired a new children’s pastor and decided to match his previous salary. Unfortunately, this decision led to unforeseen problems. When it was revealed that his salary exceeded that of his supervisor, it caused discontent, especially since the supervisor was a female minority and the children’s pastor was a white male. The situation escalated into an Equal Employment Opportunity Commission action, resulting in a nearly $300,000 fine for the church due to various violations.

A well-defined Compensation Policy could have prevented this costly situation, ensuring fair and equitable treatment for all employees and avoiding legal and morale issues.

Want to Know More?

If you want to learn how to focus on ministry rather than legal issues, contact our team by clicking the button below.

Glenn S. Reynolds, DMin, Jd

Glenn is a speaker, ordained pastor, writer, and attorney living in Suffolk, VA. Before starting Reynolds Law Group, Glenn pastored one of the largest churches in America and was the Director of Church Planting for the Iowa Ministry Network. Glenn roots hard for the Kentucky Wildcats in basketball, the Baltimore Orioles in baseball, and the Iowa Hawkeyes in football.

To learn more about Glenn, you can read his full bio here.

You can find him on Instagram @glennsreynolds

Previous
Previous

4 Compelling Reasons to Incorporate Your Church | Reynolds Law Group

Next
Next

TRUSTS AREN'T JUST FOR RICH PEOPLE