Southern Heights Baptist Church

God's Plan For Pastoral Care

Fundamental Baptist Fellowship Association

The Pastor's Portion

By Pastor Otha Aden, M. Div. and
Beverly J. Worth EA, ATA, CTP

After more than Thirty-one years in the pastoral ministry. I realize the need for pastors to be adequately supported. This paper contains nine guiding principles that illustrate the proper care for the pastor. The need is great in most denominations, but it is particularly great in African American Fundamental churches where God's Word is preached in clarity.

Biblical Foundation for Pastoral Care

To begin, one must understand that-pastoral support is biblical. God’s Word deals with this subject in both the Old and New Testaments, “Every grain offering, whether mixed with oil, or dry, shall belong to all the sons of Aaron, to one as much as the other” (Lev. 7:10). The sons of Aaron, the priests, were provided for through the tithes and various offerings that God required from His people (Lev. 7:10-21; 27:30; 3:1).

The New Testament is not silent on this matter of pastoral care. Paul stated that “the LORD has ordained that they which preach the gospel should live of the gospel” (I Cor. 9:13-14). In fact, Paul quoted the Old and New Testaments on this matter of pastoral care and called both “scriptures,” He said, “You shall not muzzle the ox while he is threshing” and “the laborer is worthy of his wages” (NAS. Deut. 25:4; Luke 10:7; I Timothy 5:17-18).
God promised to provide bread, meat, clothing, shelter, and finances for his priests in the Old Testament. Grain and meat were provided (Lev. 7:10, 29-34, Numbers 3:12-14, 47-48). The meat included the shoulders and the breast. These were the choice portions of the animals that were sacrificed (Numbers 18:18; Lev. 9:21; Ex. 29:27; Deut. 18:3). God also provided the clothes for the priests to wear. The robe of the High Priest was a most beautiful garment (Ex. 39:1-8, 22, 30, 41; 40:32; Ezekiel 40:46).
The proper management of what God supplies is necessary. In the Old Testament, God appointed a treasurer to manage the tithes that came from God’s people (Neh. 11:20; 12:44; 13:5). The result was great rejoicing from the priests.
Some of the food was to be eaten in the presence of God. It was eaten in the holy place and was most holy unto the Lord (Lev. 6:29). The tribe from which the Levites came had no inheritance in Israel, but God made sure they were adequately supported (Deut. 18:1-3, Numbers 3:12-14, 47-48).
The priests wore holy garments, ministered in the presence of the Lord (Ex. 39:1-8), and ate the bread that God provided for them (I Sam. 21:4, 5). This “hallowed bread” was set aside for the priest only. It was consecrated for God’s priests, although God allowed David to partake of it. The Levites were conscious of God’s presence in the pillar of the cloud and fire (Ex. 40:38).
There is clearly a mandate for pastoral support in the scriptures. Let me suggest nine ways the church may begin the process of adequate pastoral care.

Pastoral Care Principles

The first Principle in accordance with scriptures is the church should realize that the pastor places his talents into the hands of the church or the board of deacons or trustees. The pastor must always give leadership to them, even in the matter of pastoral care. Those whom the church places confidence in should use utmost care to provide for the pastor out of the resources that God supplies through the church. The leadership in the church has the responsibility to give the pastor his proper portion. Nothing should take precedence over the financial support the church should provide for pastors.
The second principle is for the church to realize that in order for the pastor to function at his best, there should be adequate pay to accommodate his present needs. One may check the salaries of people who work in similar positions in the secular world in order to determine the pastor’s salary. In checking, consideration should be given to his training, the size of his family, and his tenure with the church. Once the pastor’s salary has reached adequacy for his living, it should be reviewed annually by the deacons or trustees. Pastors need to be full time in God’s work without working a second job.
The next principle is obvious. The pastor should not have to subsidize a church expense out of his salary. The church should establish accountable reimbursement policy for the pastor’s business expenses incurred in the performance of his duties. IRS Publication 463, “Travel, Entertainment, Gifts, and Car Expenses,” is recommended reading for pastors and the church finance committee. You can find a complete discussion of how to have a qualified plan and suggested wordings for the plan in chapter 3 of “Income Tax Guide for Ministers and Religious Workers,” by B.J. Worth.
The pastor must keep a log or record of all business miles. If he owns his own auto, he can be reimbursed by the church at the IRS mileage allowance rate in effect for the year of the business percent of actual expenses. If the church owns and provides the auto for the pastor and it can be used for both business and personal, the church will compute the personal use portion and include it in the W-2 as taxable. A record or log of business miles must still be kept.
When a pastor receives complete reimbursement for actual business expenses over and above his salary, 100% of the expenses are nontaxable. His tax preparation is easier and his audit exposure is much reduced.
The fourth principle is the church should provide an adequate housing allowanced for the Pastor. Internal Revenue Code 107 allows the whole cost of the pastor’s home to be free from income tax, but it is still subject to Social Security tax (Unless the pastor has chosen to be exempt by timely filing Form 4361). The church must officially designate an amount of the pastor’s salary as housing allowance. It can be worded perpetually and does not need to be annually stated. However, the pastor should evaluate the “tax plan” annually and consider if the amount designated remains adequate. The housing allowance can never be greater than the fair rental value of the parsonage and furniture, plus utilities and miscellaneous expenses.
Housing allowance is biblical; And the chamber whose prospect is toward the north is for the priests, the keepers of the charge of the altar.., these are the sons of Zadok among the sons of Levi, which come near to the LORD to minister unto him” (Ezekiel 40:46).
Former pastors who are retired and have served a long term with a church (10-15 years) may be considered for certain benefits:
A. Housing Allowance
B. Missionary support
C. He may be place on salary as a fellow-worker and thus qualify for certain benefits.
D. If he cannot perform duties for the church, he may be place in the missions budget for a dollar amount per week and his insurance should continue to be paid by the church.
Fifth, in order to begin care for his future needs, it is recommended that the church consider a Retirement Plan for the pastor and other employees. Non-profit employers can establish a voluntary salary reduction type of a 403(b) plan. IRS Publication 571 and portions of “Income Tax Guide for Ministers and Religious Workers” are recommended reading.
The church may increase the pastor’s salary by whatever amount it chooses to put into his 403(b) plan and the pastor can make additional contributions out of his salary. Generally, up to 25% of a salary, up to $10,000.00, can be tax-sheltered in a 403(b) plan. For those who haven’t contributed in ministry earnings in the past, there are several “catch-up” provisions discussed in IRS Pub. 571. The amount of salary that is contributed to a qualified 403(b) plan is to be omitted from Box 1 on the W-2 and entered as a memo in Box 13. Pastors do not pay Social Security on the amounts contributed to a 403(b). Lay employees; however, are different. There must be withholdings and matched by the employer for social security on their contributions to a 403(b) plan.
For those pastors who have chosen to be exempt from paying into social security from their ministry earnings, we would recommend that they contribute an equivalent amount of what they would have paid for social security (15.3%) into a qualified 403(b) plan.
Qualified 403(b) plans are available through mutual fund providers and insurance companies. The administrative cost of the 403(b) plan to the employer can vary depending on the plan provider.
Sixth, in addition to the 403(b) Retirement Plan, the pastor or employee may also invest in an Individual Retirement Account (IRA). The annual contribution limit for 2008 and 2009 is $5,000.00 per taxpayer for each year. A taxpayer can choose to contribute to a regular IRA or to the new Roth IRA, only one $5,000 per year. Any extra salary a church pays a pastor for the purpose of helping him make an IRA contribution is to be shown in Box 1, Form W-2 and it is subject to social security. The pastor will deduct the IRA on his personal income tax return if he qualifies.
A regular IRA contribution allows a tax-shelter deduction on the pastor’s tax return in the year of contribution, but it must be made by April 15th following the tax year. It will grow and be fully taxable upon retirement or distribution. Most distributions are subject to an extra 10% penalty if withdrawn before age 59 ½. Distributions must begin by the age of 701/2.

The new Roth IRA does not create a tax deduction in the year of contribution. The contributions and all that they earn can grow until retirement and the qualified distributions are free from taxes. This is a good choice for the pastor who has no tax liability to shelter.
Seventh, the church should carry an adequate Insurance Disability Policy for the pastor in case of an accident that results in his loss of income earning ability. In case of an accident, the church should agree to pay the pastor at his present salary until the disability policy begins to provide for his needs. One that provides for 9-months to one year will be the most reasonable for his protection. It is recommended that you read IRS Publication 105(e).
Eighth, the church should carry group term insurance for the pastor in order to provide for his wife and family in case of his death. The policy may be for $50,000. It is not considered taxable income for the pastor unless it is above $50,000. See IRS regulations 179.3(d)(3) for computing the taxable amount.
Ninth, in case of the pastor’s death, his wife should receive the pastor’s current pay from the church for at least one year. All funds in the pastor’s retirement accounts should be held in his name. Only his beneficiary will be the recipient of his retirement in case of his death.
Since Pastoral care is stressed in both the Old and New Testaments, I challenge pastors to be assertive in providing leadership in the area of the pastor’s portion.
God has placed one book in the New Testament that illustrates the need for believers to support those who have gone out to carry God’s Word. The layman Gaius in III John was especially kind to those whom God had called to represent him.
1.) Gaius was faithful to those who were “brethren” or to those local preachers and “especially when they are strangers” [NAS]. He stressed the need for reception of those who served in other areas.
2.) Gaius treated those traveling preachers “in a manner worthy of God.” He gave great respect to those who were God’s representatives. He treated them just like he would treat God! Because they did not receive support from Gentiles, believers were to “support them.” This word taking means, “to receive.” It is used two times in this context. It is translated “taking nothing of the Gentiles” in verse 7 and “support such men” in verse 8. By “supporting” them they became fellow workers with the truth in verse 8. The support they gave to them was not necessarily financial, although that is implied in the context.
3.) The point of the passage is seen in the attitude that Diotrephes had toward the apostles and other Christian brethren. He “did not accept what the apostles said, …neither did he himself receive the brethren. He forbade those who desired to receive them and he put them out of the church” (III John 9-10). The word, to receive” means “to welcome, receive, pay attention to” something. It is different from the one used in verse 7 and 8, but basic meaning is “to receive” someone. The nature of the problem the Apostle John faced in the early church was rejection of traveling preachers. John concluded by indicating his desire to come and speak with Gaius.
4.) Let’s be helpers with those who preach the gospel to the lost. Whether it’s the pastor, traveling preachers or missionaries, the church needs to support those who depend upon the Lord for their daily supply in order to teach the lost. We are “workers together with God” in this venture (I Cor. 3:9).
5.) The Apostle was concerned about the truth. That word appears seven times in fifteen verses. Jesus is the truth and we must identify with the truth (III John 1, 3, 8, 12). The word means “to perform with the right motive, truly.” Providing the pastor his proper portion means that we stand with God in presenting the Gospel of Truth.
It is my prayer that the church will obey the Lord in granting to the pastor the portion that God has provided for him. Since pastoral care is a critical issue in scriptures, I desire to encourage the church in the matter of financial support for God’s pastoral staff.