This is a contract between a pastor and a church which is a non-profit corporation. A non-profit corporation is a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers. Non-profit entities are organized under state law. For non-profit corporations, many states have adopted the Revised Model Non-Profit Corporation Act (1986). For federal tax purposes, an organization is exempt from taxation if it is organized and operated exclusively for religious, charitable, scientific, public safety, literary, educational, prevention of cruelty to children or animals, and/or to develop national or international sports.
Illinois Pastoral Contract
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US-04500BG
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Cash compensation includes the pastor's cash salary and housing allowance, plus cash equivalents such as the Social Security offset. A benefits package often includes a retirement savings plan, life insurance, plus disability and health insurance. It can also include a paid sabbatical.
The average Pastor salary in California is $113,718 as of April 26, 2022, but the range typically falls between $93,465 and $128,887.
While a congregation may encourage a pastor to take 36 weeks of annual, paid vacation, a true Sabbatical is typically 34 months in duration and may last up to a year (as in the case described by Eugene Peterson in The Contemplative Pastor).
Nearly 80 percent of pastors serve in congregations with fewer than 200 people, and 55 percent have fewer than 100 people in their church. The median annual budget of churches surveyed was $125,000. 50 percent of pastors receive compensation under $50,000 per year, even though many of them have advanced degrees.
A pastor, in the role of a spiritual nurturer, is the one who actually performs pastoral care. Pastoral care involves the tending of the pastor to those within the same community of faith. Every aspect of a pastor's interactions with the people in the pastor's realm of influence is a part of pastoral care.
Most churches pay a pastor salary that is established by contract. The amount of salary varies based on the size of the church and the congregation. Mega-churches have congregations in excess of 5,000 members.
According to the Evangelical Covenant Church, a healthy congregation with a weekly average attendance of 150 people should spend 40 to 50 percent of their total budget on staff salary.
Clergy, considered as self-employed for Social Security purposes, must pay the current 15.3% (Schedule SE) on the cash salary plus housing allowance or fair market rental value of the parsonage with utilities.
Scripture makes it clear that those who proclaim the gospel should earn their living by the gospel (1 Corinthians ), and by extension this means that the church is responsible for supporting its pastor and ensuring he is free from worldly care and employment, (see the OPC Form of Government chs.
Cash compensation includes the pastor's cash salary and housing allowance, plus cash equivalents such as the Social Security offset. A benefits package often includes a retirement savings plan, life insurance, plus disability and health insurance. It can also include a paid sabbatical.
