Top 10 Memorable Events of 2016

Each year, people compile lists of important events that occurred over the course of the previous year. In this post, I want to briefly mention 10 things that I will remember about 2016:

1) US PRESIDENTIAL ELECTION
The US Presidential Election surprised everyone, but made it loud and clear that Americans are tired of "politics as usual" and were ready for some strong leadership. We learned never to believe the media, the polls, or the neighbor's opinion. We learned that honesty does matter to the public and that people aren't as dumb as politicians think we are. We learned that President Obama is delirious in his recollection of success, as due to his leadership we now have a Republican President, Congress, Senate, and additional governors. The tolerance the liberals champion is dependent upon whether you agree with their viewpoint. The projected plunge of the stock market has turned out to be an incredible surge of 7.7% since Donald Trump won the election. Bottom-line is that I'm glad the election is over and no President is as powerful as they think they are!

2) ZIKA VIRUS
Many had never heard of the Zika virus, but it got national attention after cases were reported in almost every state whether contracted locally or by those traveling. Scary to hear the CDC say there is no vaccine and the virus can cause microcephaly, along with other brain defects.

3) CHICAGO CUBS WON THE WORLD SERIES
It's been 108 years since the Chicago Cubs defeated the Detroit Tigers in 1908 to become the World Series Champs, but they reclaimed the title in game 7 against the Cleveland Indians! The curse is broken!

4) NC BATHROOM LEGISLATION
NC found themselves in the news and the target of boycotts for wanting people to use the restroom associated to the plumbing they were born with. There is a small part of me that could understand the problem such legislation causes for those who have completed sexual reassignment surgery; but no part of me comprehends restroom usage simply based on which gender he/she "identifies" with on a particular day. Such absurdity opens the door for perverts, pedophiles, and more. Some argued NC's legislation was an attack against the gay community, while others argued it was an attack against common sense.

5) POKEMON GO
Released in July 2016, the game uses the GPS in mobile devices to locate and capture virtual creatures, called Pokemon. The game has become a phenomenon and extremely profitable for its creators.

6) RIO OLYMPICS
The summer "Games of the 31st Olympiad" were held in Rio de Janeiro, Brazil with more than 11,000 athletes participating from 205 countries/regions. The USA won the most medals, but was plagued by the dishonesty of 3 members of the men's swim team. Ryan Lochte got a 10 month suspension for his elaborate story and effort to hide the scandal.

7) TERRIBLE DECISIONS: IRAN NUKE DEAL AND US VOTING AGAINST ISRAEL
What more can be said about either of these issues other than ASININE! God protects those who stand with Israel and this is just one more proof of President Obama's sympathy toward Muslims.

8) SCARY CLOWNS
The first scary clown sighting was reported in WI and quickly spread to SC, to at least 20 other states, and continued worldwide. They have caused school closings, led to several arrests, and caused a ban against clown costumes on Halloween. No doubt some are just pranking, while others are certainly up to mischief.

9) DEATH OF A DICTATOR - FIDEL CASTRO
Fidel Castro was a Communist dictator- period! Read the stories and talk to Cubans who have come to the US and you'll hear of hardship, poverty, shortages, rations, etc. All one had to do was watch the joy, jubilation, and celebration by the Cubans on the streets of Miami and in Little Havana and you would know the type of ruler Fidel Castro truly was. He lived his life and protected his lifestyle at the expense of everyone around him.

10) 75TH ANNIVERSARY OF PEARL HARBOR
With the kneeling protests of so many during our National Anthem, I want to make sure we remember this 75th anniversary of Pearl Harbor. I have a great respect and appreciation for those who serve or have served in our military. I realize that the freedoms I enjoy are a result of their sacrifices. Having traveled to many other countries, I've know that not every place is like this place! The United States of America is the greatest nation on earth and I am proud to be an American!

So, those are my top 10 memorable items from 2016. Your list may be different; but the point is to look back, appreciate, and learn from our experiences. Let's use what we learned in 2016 to make 2017 even better! I wish you and yours a happy, healthy, and prosperous New Year!

New Year's Resolutions Can be Character Indicators

With another New Year celebration comes another abundance of New Year's Resolutions: Lose weight, go to the gym, eat healthy, start saving for retirement, quit smoking, stop drinking, or a myriad of other goals that people make and break annually. While some take New Year's Resolutions lightly, I see them as a window into a person's character. Fulfilled resolutions often reveal people who are committed and determined. Broken resolutions often reveal those who are less disciplined or may be starters, but not finishers. Some people are completely afraid to make any type of commitments! The excuses a person makes or the frivolous way he approaches a promise, will often reveal his character. If a person is willing to break one promise (resolution), then he is most likely willing to break another.

I've always been a fan of the "Promise Keepers" movement and believe men should be men of their word! James 5:12b says, "...But let your “Yes” be “Yes,” and your “No,” “No,” lest you fall into judgment." I remember the days when men could shake hands on a deal and their word was their bond. Sadly, times have changed and even "Christians" have to have legal contracts with one another. Truth is now relative, church leaders often lie, and you may need to beware of those who put a Christian fish symbol (Ichthus) on their business card. Whatever happened to being a promise keeper? Whatever happened to being men of character and integrity?

Character starts with the ability to admit a mistake or own up to the responsibility for a failure; but people have become experts at blame-shifting and finding excuses for their failures and shortcomings. The "blame game" becomes more perfected with each passing year. For example, after 8 years, President Obama still blames President Bush for the failures of his current administration. The Democrats are blaming James Comey and Vladimir Putin for Hillary losing the election. Hillary blamed a video for the attack in Benghazi and her aides for setting up her home server. No wonder people are tired of politics as usual!

Likewise, churches will go through several pastors, only to realize that the perceived preacher problems were really congregation or staff problems. In marriage, a perpetual divorcee will continue to blame his ex-spouses. NFL teams blame the coach for a losing season. Even in the corporate world, companies blame former employees for their ongoing problems. Lazy employees blame their bosses for poor performance reviews, and so on...and so on...and so on.

We must get back to teaching the basics about personal character and Exodus 20 is a great place to start:
- Honor your father and mother.
- You shall not murder.
- You shall not commit adultery
- You shall not steal.
- You shall not lie.
- And 5 other character commandments to live by.

Our world appears to be more focused on treating the symptoms of poor character, rather than looking for a cure. Here's a clue... IF YOU REMOVE WHAT YOU THINK IS THE PROBLEM, BUT THE PROBLEM STILL PERSISTS; YOU ADDRESSED THE WRONG ISSUE! Just as wearing workout clothes, eating a salad, and purchasing a gym membership won't make you skinny; neither will simply going to church on Sunday and praying before meals make more like Jesus! You must address the deeper issues in order to effect real change! It takes total surrender and complete commitment to be a disciple of Jesus Christ. So, let's resolve to make 2017 the year that our New Year's resolutions focus on building Christ-like character... and let's stick with them!

Jesus, Jesus, Jesus... There's Just Something About that Name

It's December 19... just 6 days before CHRISTmas. This year is different for my family, as all of our Christmas decorations are packed away in a storage unit. We sold our house and moved into a rental. Our Christmas decorations were in the attic, so they were the last items placed into the moving truck; which meant they were the first items put into the storage unit. They are 20' back...2/3 of the way to the right...up against the back wall. Two artificial trees and many boxes of decorations. With one daughter still living at home, we had to have a tree, so to Walmart (aka - Walmartz or Walmark) we went. We got our 18" pre-lit tree and spent about $10 on decorations. That little Charlie Brown tree, many Christmas cards from friends, and the lights & bows my wife put on our orange tree are the the extent of our decorations this year.

Before you feel sad, let me tell you... it's been great! We're not focusing on decorations, but we are focusing on the real meaning of Christmas -- JESUS! I had the privilege of preaching on John 3:16 two weeks ago and 3 people were saved! Yesterday, I preached on the name of Jesus and started my sermon by reading Matthew 1:21 - "And she will bring forth a Son, and you shall call His name Jesus, for He will save His people from their sins.” I also read Isaiah 9:6 - "For unto us a Child is born, Unto us a Son is given; And the government will be upon His shoulder. And His name will be called Wonderful, Counselor, Mighty God, Everlasting Father, Prince of Peace.

What a name -- JESUS! In Philippians 2:10, the Apostle Paul wrote: "That at the name of Jesus every knee should bow, of those in heaven, and of those on earth, and of those under the earth." He is God, God's Son, God the Son, Yeshua, and Immanuel; but the name that represents God in the flesh is JESUS! The Creator became as His creation. He left heaven, lived as a man, and suffered the pain of death; just so I could be saved... and YOU too! That's what Christmas is all about. Jesus...Jesus...Jesus. No man comes to the Father, except through Him. This Christmas, accept God's gift of eternal life through Jesus Christ our Lord.

"Friendly Fire" is Killing Pastors & Churches

This has been one of those weeks. You know, the kind of week that hits you out of nowhere... but has a resounding theme. The theme this week has been attacks against pastors that cause upheaval and division in God's Church. Some of the problems are self-inflicted and sinful, such as the pastor in Hartsville who was arrested for drunk driving or the pastor in Bishopville who was arrested for exposing himself. But, most of the problems are inflicted by self-seeking church members, staff and/or deacons.

This week, I heard about a pastor in Florence, SC that was forced out by a disgruntled staff member and personnel committee after 27 years of faithful service. I also heard about a pastor in Florida being forced out by a disgruntled staff member and deacons, after almost 30 years of faithful service. Sadly, in the last month, I've heard other very similar stories stretching from FL, NC, SC, TN, and TX. Every conversation included similar elements: lazy ministerial staff, employee dissatisfaction, opposition to accountability, a willingness to make false allegations, power struggles between the pastor and deacons, and a church bully (usually a strong a deacon or elder that everyone was afraid to stand up to).

My friend, Dr. Ron Long at Luther Rice Seminary, tells me that he deals with at least 3 calls per week from pastors facing church division, personal discouragement, or forced resignations each week! It appears that the Church is no longer focused on doing battle against the principalities and powers of this world; but instead is choosing to attack itself and is imploding due to internal conflicts. We have forgotten who the true enemy is -- it's Satan his forces! Sadly, the church has lost focus and is waging war against itself. Cancer is caused by abnormal or rogue cells that multiply and attack the physical body. Those rogue cells must be removed and destroyed, or the body will be. The Church better learn a lesson from the fight against cancer, before rogue staff/members/deacons multiply at an abnormal rate and destroy the Body of Christ! Without radical treatment, the Church will die!In fact, many are dying and many are closing their doors.

Search the web and you will find statistics stating that 1,500-1,700 pastors are leaving the ministry each month. Those numbers may be off slightly, but almost every study/survey seems to reveal the same data -- pastors are tired of church politics! They are tired of the attacks, rogue cells, and cancer within the Body of Christ. The enemy chuckles when a pastor falls into adultery or some other egregious sin; but the enemy laughs hysterically when a pastor is removed from ministry by "friendly fire" from within the church! Former missionaries state that while on the foreign field, they engaged in spiritual warfare with those outside the church; but in the USA, they do battle with those inside the church.

Just as football teams review game film of their upcoming opponent, the Church better review the tactics Satan is using. Remember Ephesians 6:10-13 - "Finally, my brethren, be strong in the Lord and in the power of His might. 11 Put on the whole armor of God, that you may be able to stand against the wiles of the devil. 12 For we do not wrestle against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this age,[c] against spiritual hosts of wickedness in the heavenly places. 13 Therefore take up the whole armor of God, that you may be able to withstand in the evil day, and having done all, to stand."

Thom Rainer must be observing similar issues pertaining to Church Bullies. Read his blog posts below for further insight and understanding. Take time to read the comments, too.
- The Painful Reality of Church Bullies
- 5 Dangers of the Church Cartel
- Autopsy of a Deceased Pastor

Church Finances #6 - Year End Giving

This is the time of year that every non-profit organization is after your last charitable giving dollars. From "Giving Tuesday" to "Christmas" and through December 31, you'll hear pleas for money. Some statistics show that non-profits receive 50% of their donations from October through December. It could be that folks want to get caught-up on tithes to their church or companies may see that they are going to have a year-end surplus; but whatever the reason, 'tis the season for giving to charities.

There are several things to keep in mind as you consider giving a year-end gift:
1) Make sure your tithes and offerings to your local church are caught-up, before considering your gift to para-church organizations.
2) If you choose to give outside your local church, look to other local charities.
3) Make sure the organization you desire to donate to is credible. Many aren't.
4) Research, or at least ask, how much of your money the organization will use for "administrative fees."
5) If you are giving above your tithes to a church, ask for a list of current ministries or projects to help you determine how you want your money used. You could request that it be used generally for missions, summer camps, etc. If you don't request an area for use, the church may just "bank" it.
6) Look for genuine need. I've learned never to give beyond my tithes and missions giving to a church that is debt free. Debt-free churches without a "front-burner ministry project" will usually be arguing over how to increase staff salaries or how the most influential people want to spend your money.
7) Make sure the recipient will use your donation as you request, because non-profits are NOT required to do so. Technically, the donor is not permitted to dictate "how" the donation is to be used if a tax deductible letter is given. BUT any organization with integrity will try to use the money as the donor has requested.
8) Look for sustainability in the organization.

Final thoughts to consider BEFORE you donate:
1) If you are desiring a tax deduction, you should verify the groups 501(c)3 status before you give. This can be done by simply going to GuideStar.org, a nonprofit database, and enter the name. If the organization isn’t a 501(c)(3), move on, because your donation might not be tax-deductible.
2) Research and examine the non-profit’s IRS Form 990 tax return and/or the organization's annual financial audit statement. If the organization doesn't file a Form 990 or cannot provide you with an financial audit statement, I would encourage you to give your donation elsewhere. The Form 990 can be retrieved from the organization or from organizations like GuideStar.org.

Finally, remember that money isn't always the most desirable gift for a non-proft. Often, to volunteer your time is the greatest gift that you can give.

Church Finance #5 - Are Churches Required to Follow Their Bylaws?

I've often heard the comment that "a church is not a business." I strongly disagree for several reasons. In the Bible we find: 1) The Early Church had a definite structure; 2) The Bible outlines positions in the Church and requirements for those serving in those positions; and 3) 1 Cor. 14:40 states, "Let everything be done decently and in order." When a Church organizes and incorporates, it is required to register with the State and provide a Constitution and Bylaws. The Church must meet Federal Labor Laws, comply with health codes, meet IRS expectations, etc. The Church may operate independently, but it also must operate lawfully.

Consider that just as churches have a "Statement of Faith" outlining the doctrine that they adhere to, an organized Church is required to have a "Constitution or Bylaws" defining how the church is structured, organized, and "conducts business." The Bylaws help the church function efficiently, define the mission, and outline the methodology. The Bylaws maintain unity and help the church avoid liability. Bylaws are NOT suggestions and cannot by selectively adhered to, ignored, or unilaterally changed by the pastor or deacons.

When a pastor or deacon(s) knowingly chooses to ignore or violate the Church Bylaws, they are putting the church in legal danger. All one has to do is a quick Google search and you can find lawsuit after lawsuit caused by a violation to the church bylaws. One such instance is discussed by Raul Rivera in an article on "Start Church" entitled, "When Churches Violate Their Bylaws:" "On any given day, within the 50 states, thousands of churches are in court because of disputes between members and leaders. These disputes usually begin with personality differences, but often times end up with both parties having to look at the details of the church's bylaws. Such was the case with a church in Ohio whose pastor chose to change the time of the church's annual business meeting. When some disgruntled members disagreed with his decision and noticed it was inconsistent with their bylaws, they sued the pastor. The court, in keeping with the church's bylaws, invalidated the meeting because the pastor did not follow the procedures stated therein.

Is your church following its Bylaws?
Are policies for selecting committee members being implicitly followed? Is proper notification being given prior to conducting meetings? Do all of your deacons meet the qualifications outlined in your Bylaws? Is the protocol for resolving conflict being followed? Is all church money being properly accounted for? If you could answer "no" to any of these questions, or you see any other areas of your church Bylaws that are not being followed... then your church is at risk for a lawsuit! Nobody likes to use the words "church" and "lawsuit" in the same sentence, but pastors, deacons, associates, and members often do NOT realize the seriousness of the situation and the risk they bring to the church.

Church Finances #4 - How Much Do You Pay a Guest Preacher?

Determining how much to pay a guest preacher is another one of those areas that they usually don't teach you in seminary. So, how do churches determine the size of the honorarium? In some churches, they simply give what they think sounds right. For example, some think like this: A guest preacher comes into the church and preaches during a 1 hour church service... so they assume $50 is very good for 1 hour's work. That sounds good, but most people don't realize that a solid preacher will put in 8-12 hours in sermon preparation, and that is after spending time in prayer to seek what it is that God wants him to preach. In addition, they don't consider the time driving, the fuel costs, accommodations, and food expenses. 1 Timothy 5:18 says, "...a workman is worthy of his hire." It shouldn't cost the preacher out of his own pocket to come preach at your church.

Most preachers will never worry about the amount of money they receive for preaching as a guest. Most feel honored just to be invited and to have the opportunity to proclaim God's Word. That's why most understand when a small country church offers a small gift. That simple act of appreciation goes a long way to encourage the heart of a preacher. BUT for those churches that do have full-time pastors, Art Rainer has come up with a good formula for determining honorariums in his article entitled, "How Much Should You Pay a Guest Preacher?" The summary of Art Rainer's article is that a church should cover the costs for travel, food, and accommodations. In addition to covering those costs, a church should pay a guest speaker .5% of the Pastor's gross salary (including housing allowance)for each service at which he speaks. Thom Rainer also has a similar article at "What Should a Guest Preacher be Paid?"

In addition to the Rainer's articles, others advise to consider factors such as the speaker's experience, expertise, skill level, number of times speaking, number of days away from family, etc. Others suggest that smaller churches guarantee a minimal amount and also receive a love-offering for the speaker. Whatever method your church decides to follow or however much the church decides to give, the bottom-line is that the church should be generous with God's man.

Church Finances #3 - Financial Policies & Procedures - A MUST!!!!!

As mentioned in my previous blog post, transparency is the key to maintaining integrity with the congregation; but other factors also play into the equation. I am a BIG advocate of accountability in every area of church ministry, but especially finances. Too often, people say "we don't have time to do all of that"... or "the church isn't a business"... or "we trust our people." those are EXTREMELY foolish comments, so please save yourself the embarrassment and don't say them out loud. Remember the "7-P's" - Proper Prior Planning Prevents Pitifully Poor Performance. By taking the time to develop and implement a few simple and preventative steps, you may save your church a lot of money, embarrassment, heartache, and a tarnished testimony.

So, I would recommend that every church implement the following steps to maintain transparency, accountability, and integrity with regard to finances.

1) Develop clear financial policies and procedures outlining every aspect of how money is handled in the church. Conduct self audits at random times throughout the year to see if the processes are being followed.
2) Have an outside party (third-party CPA) perform an annual audit of all financial records. Make the results of the audit public to the congregation. Any church that would refuse to do an audit is most likely hiding something!
3) Present an annual zero-based budget for congregational approval and allow at least 2 weeks for the congregation to ask questions prior to approving it.
4) Present an annual year-end report showing income and expenses, as well as, starting and ending balances in each fund. This should include an annual report of how much money is held in savings accounts, investments, and emergency funds.
5) Demand segregation of duties for those handling the finances. This includes: Receiving, depositing, recording, reconciling, and distributing funds.
6) Require 2 signatures on all church related checking accounts.
7) Do not use gimmicks or raise excess funds. Present the need and keep the people informed as to the status of the fundraising.
8) Mail quarterly or bi-annual giving statements to all contributors. This will motivate those who fall behind on their giving, but it will also serve as a confirmation of receipt for those who use online banking or mail-in their tithes and offerings.
9) Protect the Pastor by restricting him from access to financial information and handling or any money.
10) Many churches are closing their onsite business offices and hiring outside CPA firms to handle all church accounting. This has been shown to slow-down the spending and provides a greater level of protection to the ministry. At the very least, have your church's CPA do a quarterly financial statement. This adds credibility and an extra layer of protection.
11) Set spending limits for individuals and committees.
12) Be transparent by printing the weekly or monthly giving amounts. This can be in the church bulletin, prayer sheet, verbal announcement, etc. Don't ever be viewed as "hiding" the financial reports.

For additional ideas regarding church finances or ideas for developing financial policies and procedures see these helpful sites:

1) LifeWay - A Model Church Financial Policy
2) Guidestone - Church Financial Policies
3) FreeChurchForms.com - Church Policy Manual
4) Church Law & Tax - Finances
5) Interactive Guide to Church Finance - AG Financial Solutions

At Emmanuel, we worked with our CPA (Moore, Beauston, and Woodham) in the development of financial policies and procedures for our church and Christian school, so I'm not advocating something that I don't truly believe in. You can also find many other local churches that see the value in having written financial policies by doing a quick Google search. Many local churches have their financial policies listed online and they can be used as guides. I would encourage every church member to ask your pastor or church finance committee to see a copy of your church's "Financial Policies and Procedures Manual." You may be pleasantly surprised to find that you have one, or you may be the catalyst God uses to bring accountability and protection to your local assembly.

Church Finances #2 - Transparency Regarding Church Money

As we continue our discussion about church budgeting, "transparency" would be the next key word. Like all other areas of the church, you don't have to continually share all of the details that people don't care about; but when a member asks a question about church finances, there shouldn't be any secrets. Keeping people in-the-loop with regard to general financial issues is critical to maintaining the trust of the congregation. I've found that people will give freely, if they trust those overseeing the church finances. I can't remember one year during my pastorate that we ever experienced a budget shortfall. I feel it was because people were always informed and financial reports were readily available to any member who would simply ask. After saying that, let me clarify that I think it is unhealthy for the congregation to have to "vote" on every expenditure, but I also think there needs to be transparency and good communication from those spending the church's money.

The Bible does not say anything about the early church having expense reports, budgetary meetings, or finance committees. What it does reveal is a pattern in which the church entrusted a leader(s) with the finances, and then those leaders managed the finances. In Romans 15:25-28 and 1 Corinthians 16:1-4 we find accounts of churches taking up a collection and then giving the money to Paul and others for distribution. So, without explicit instructions, there is freedom of process; but we should require a high level of accountability. Churches have been plagued by embezzlement and fraud by staff and volunteers; and financial scandals have destroyed or damaged countless churches. These events may not have been 100% preventable, but most occurred due to lack of transparency and lack of accountability.

Peter J. Reilly states, "The strongest voice I have noted for church financial transparency is that of Reverend Frank Benson Jones. In his book 'Stop The Prosperity Preachers,' he argues that lack of transparency is one of the things that draws the wrong type of people into ministry. He believes that if the profits were removed, only prophets would remain." He goes on to say, "Most charities are subject to some level of transparency, but not churches. That leaves it up to the members to demand transparency. If you meet resistance from the leadership, maybe you might consider that rather than a sheep who is being fed, you are one that is being shorn." If you encounter leadership operating in secrecy, be sure there is a problem...they ARE covering something up!"

Church Finances #1 - Determining Church Salaries

Talking about money is one of the issues that is usually taboo in a church. Either people are consumed with watching every penny -- usually those are the people who don't give much; or others don't even want to see a financial statement. I feel that both extremes are wrong, but they also come into play regarding church salaries. I remember going to Bible College and Seminary excited about how much I would learn about ministerial work, only to find that upon entering my first vocational ministry position, I still had so much to learn (an continue to). In college & seminary I learned theology and we had some debates about methodology, but we often did not discuss the practical points of pastoral ministry. One of those items was church finances, specifically how to determine salaries for church employees. If pastors have questions and may not have received much training in church finances and budgeting, then how can we expect lay-volunteers (often deacons and lay-elders) to know what to do regarding setting church salaries? So, with this being the time of year that many churches are working on their budgets for the upcoming year, I want to take a moment to offer some insight regarding setting church salaries.

One of the most helpful resources that I've found is the "Compensation Handbook for Church Staff" by Richard R. Hammar. This is a tremendous resource and based on national survey results, the compensation profiles are classified by part-time, full-time, church size, income budget, geographical setting, etc. Each position’s compensation levels are presented based on personnel characteristics including: years employed, denomination, region, gender, and educational training. In addition, compensation profiles are broken down by categories so you can easily determine: Base salary, Retirement, Health insurance, Housing allowance & parsonage, Life insurance, Continuing education, Auto expense, etc. The book can be ordered at the Church Law & Tax Store or on Amazon.

Another good resource is the local or state headquarters for your denomination. Most will have a questionnaire for you to complete (often online) regarding some of the same items mentioned above: church setting, budget, attendance, education, years employed, etc. They will input that data and provide a report for you. Again, you will need to determine whether that report is based on your local, state, or national data and adjust accordingly; but it will give you the average pay for the positions requested.

While information regarding state and national compensation levels is important, the local factor should also be investigated. Church staff compensation definitely varies by community! What do the other churches in your local community do with regard to compensation? A couple of years ago I called the other churches in our community that were close to our size and had confidential conversations regarding staff compensation. I found out that we were paying our staff at the top level for our community and above the median household income. In addition, I discovered that we were one of only a couple of churches that were covering full medical benefits for our employees. Thanks to the healthcare changes, 100% medical coverage seems to be a thing of the past in most businesses. We were also providing full mileage reimbursement, while most only offer a percentage (ranging from .32-.44 cents per mile). My point is that local compensation information is essential when setting staff salaries and will give you a true perspective of what is fair and comparable for your community. Every church should want to be fair and desire to take good care of their employees.

Another factor for discussion is how to determine an annual raise for church employees. I have a strong business mind, but also a heart for people. While opinions will differ, I personally don't think it is appropriate to give annual raises, just for the sake of giving a raise. Sadly, I've found that church staff are often lazy and need incentives to increase their productivity. Offering raises based on productivity is fair and can also be motivational. If the Worship Director doesn't grow the choir, introduce new songs, establish new vocalists and groups, recruit new musicians, lead anyone to Christ or bring any new families into the church... then "why" is he being paid at all? Even more so, "Why would you give him a raise?" The same is true of the Pastor, Youth Director, or any other ministerial position. The biblical principle in 1 Timothy 5:18 is that a workman is worthy of his hire (wages). As in any business, employees should be rewarded for going above and beyond. If you reward poor performance, you set a precedent and can never expect more. So, when considering pay increases for church staff, consider productivity as a gauge to determine raises.

What percentage of your church's annual budget should be going toward salaries? The simple rule of thumb is that salaries should be around 50% of the church's annual budget, but not much more. I don't advocate revealing individual salaries to the congregation, as that would cause unnecessary division with the congregation and even between co-workers if they knew one made more than another (as is often the case). I do, however, advocate that the congregation be made aware of the total budget percentage (or lump sum) going toward employee compensation. I am a strong advocate for accountability in every area of ministry, especially church finances.

Last but not least, make sure your church is well versed in the IRS rules for church staff compensation. Like it or not, the church is a business. Too many churches exhibit zeal with no knowledge when it comes to compensation. Utilize all available resources, hire a CPA firm, ask questions, and don't be too proud to ask for help. Churches should set the example for transparency and accuracy in all financial matters.