Missions and capital campaign included when calculating percentages?

by Adam

Our church has a general fund offering, and separate offerings for building improvement and missions. Should these other offerings be included when calculating our percentage? How about when determining salaries?

For example, we brought in about $350k general fund, $50k missions, and $25 building fund. So should our personnel be getting 50% of $425k or 50% of $350k? These funds are not intermingled. Every penny of what comes in for missions goes to missions.

Comments for Missions and capital campaign included when calculating percentages?

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by: Anonymous

To the OP, thanks for the update.

Regarding a percentage, it may not be good to even look at percentages for this.
In the small church I serve we have a budget of around $80K/year and my total support package comes to $44,600.00 not including the parsonage which would be a FRV or about $10K/year.
So total compensation is about $54,600/year.

But we are also not multi staffed.
I am pastor and lead youth group, teach our adult class, mens study, college & career group because of the needs here.

Every church is different. One thing to consider is that the pastor, as long as he is serving within God's will is your first missionary.
If you are giving to missions but your pastor is under-supported you may want to evaluate how much is given to para-church ministries of all forms.

I mean no disrespect to those who serve overseas or domestically that are not in self-supporting ministries.

Let me clarify
by: Original Poster

I guess my question was not clear. When we look in the church compensation handbook that gives data of what other churches of our size/budget/location, etc are paying their staff, we see that our staff is underpaid and would like to correct that. If we allow the salary portion of our budget to be 50% of our gross income, we can mostly bring salaries inline with the lowest recommended amounts. If not, we have to continue underpaying our staff. Hope this clarifies the question, even if the recommendations from you all are the same in the end.

Pastor's compensation and Designated Funds.
by: D Fry

I agree that compensation should not be based on a % of giving, regardless of where designated. Set a fair compensation based on responsibility, experience, and ability to pay.
regarding designated funds, no organization has the obligation to accept any funds designated for something that they have not solicited. Of course that means the gift must be returned, or the giver asked if they would consider some other designation. That is also an option at a later date if the money cannot be spent on the designated purpose - or the church chooses not to; if the give can be identified they can re-designate or release the funds - in writing of course.
When soliciting funds for a designated purpose. it may be a good idea to add a disclaimer that all funds received in excess of the stated goal will be spent elsewhere unless the giver explicitly states that they cannot be.
Designated funds can - and do - serve a valuable purpose, and shouldn't be a burden.

pastor doing financial bookkeeping
by: Anonymous

How much involvement should Pastor have in Church finances?

Pastor's involvement
by: Anonymous

In my opinion as a pastor, he should have no involvement in the finances of the church.
He is to be above reproach and there are always potential problems if there are money issues.
The pastor would then be suspect and his reputation in the pulpit could suffer.
It's always better to have someone in the congregation (or better - more than one) be responsible to deal with financial issues.

calculating percentages?
by: Lewis in NC

The previous answer is very true; designated funds should not be spread too thin. Most churches with cemeteries have a fund for that because of the high cost of maintaining them. If the church is building, they have a designated fund for that. Many mission funds are designated--some permanently and some temporary for various causes.

Pastor's salaries should be negotiated with fairness, area cost of living, and personal qualifications in mind and a set amount placed as a line-item in the church operations budget,never a preset percentage of the overall general budget.

by: Anonymous

I have never heard of a church or organization giving their staff half of what comes in.

Usually, a pastor's salary and support are set at the beginning of the fiscal year.

To your question, no, in my opinion the gross ought not be counted because if someone gives to missions, it is their intent for it all to go to missions and not the general fund.

I am speaking as a pastor who has been dealing with the downside of "designated funds".

DFs are not the best way to handle money because once designated it cannot be used for anything else.
Meaning, if "Aunt Nellie" gives to the "Ugly Cat Mission Fund" it can never be used for building repairs or Christian Education.
We have run into this type of issue where I serve.

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