Are Pastors Overpaid for Their Work?

Anonymous has left a new comment on your post "Why Is the Patterson Network On Synod Welfare?":

Often it seems that the called workers/administrators have a poor grasp of financial matters. I think that is what has caused many of the problems in the church in recent decades.

For example, our pastor's parsonage is comparatively nicer than the majority of the members' homes (larger, more modern, in a nicer neighborhood). No rent is required, the utilities are all paid by the congregation. In addition, there is no tax liability to the pastor with respect to the implicit cash value of this housing, which could well exceed $1,000 per month if an individual needed to pay for these items out of pocket.

The pastor also receives a good health plan; again, better than many members, some of whom are uninsured. The premiums are entirely paid by the congregation.

Car mileage is also paid for visitation trips, etc.

Our congregation also pays a salary according to synodical code. No, it's not a fortune but with the preceding items it is greater than that of many of the members.

Often our pastor seems unhappy with this arrangement and feels that the congregation is not doing enough.

Often the pastor claims that he is on a fixed salary. This claim is made with no appreciation that most members cannot simply go to their employer and ask for more money on a whim. It either has to be earned through increased productivity, tenure, innovations to the running of the business etc.
If our congregation was a business, with declining membership and a constant loss of money the pastor would be let go.

As far as I can tell, the only drawback the pastor might legitimately claim is the pension plan offered. However, most of the members (currently employed) are no longer covered by pension plans. Pension plans have pretty much disappeared.

I once heard a quote that went something like this:

"The best pastor is a full time farmer and a part time pastor..."

Maybe it is my non-German heritage that makes me a bit critical at this point. (I'm Italian, as shown by my name).

Sincerely,

I. Donwannago Broke

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GJ - Those in a parsonage may think it is a bad deal, but paying for all those things is a real burden. Those of us with mortgages also have home repairs and property losing value steadily. If a pastor with his own home gets a call, he has the burden of selling it. Pastors paying Social Security have to add the "value" of living in a parsonage, so they pay that extra SS tax on top of the salary tax.

The advantage of a parsonage for a church is the long-term equity buildup. However, many congregations are negligent about keeping up the property, but quick to criticize the occupants. Proportionate giving in Lutheran congregations is anemic, although pastors are quite generous, even when poorly paid.

Don't worry - the supply of pastors will go down steadily. So will the number of congregations. Seminary education costs are absurd. So are health benefits. The old system is falling apart.

Pastors and lay leaders should study tax law. A pastor can receive a furnishings allowance, or a housing allowance, or both. Like the military allowances, it is not counted as income. Consult a tax lawyer about the fine points. A pastor in a parsonage can have part of his income stipulated as a furnishings allowance. That will reduce his tax burden, which is equitable, since military people get the same benefit from the tax code.

A home-based business can provide added income and tax benefits.

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Anonymous has left a new comment on your post "Are Pastors Overpaid for Their Work?":

You have it right most of the time. (I can't say all of the time because I'm a WELS pastor's wife and sometimes I will know the inside story.) But for the most part, you are right on target! Thanks for Ichabod, I really enjoy reading it. I usually can get a real good laugh from it and sometimes it just makes me sad that what you are writing is actually true. My biggest shock on reading the pastor's comments has been their horrendous spelling! God's blessings to you.

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GJ - It is my melancholy duty to focus on the bad spelling, bad grammar, bad theology, and bad behavior of the Lutheran clergy. But I know there are many good, faithful pastors helped by their dear wives, no matter what crosses they have to bear.

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Anonymous has left a new comment on your post "Are Pastors Overpaid for Their Work?":

Unfortunately some are paid too much and others not enough. Much of this is due to the fact that some pastors are hard workers while others are simply slackers doing little more than playing church.

GJ - So true. Unfortunately, the slackers in Church and Change who play at church get all the money, tons extra for assistants (to twitter for them?), and the adoration of their soft-brained leaders at The Love Shack.