The Struggle Is Real… for Pastors, too.
If you are a pastor who is struggling with financial issues, you are not alone. At Servant Solutions, we encounter many pastors who need help with real financial planning issues such as managing debt/income, paying off student debt, college savings for children, estate planning, tax planning, and our specialty…retirement planning. Do you need help in any of these areas? The truth is that ALL of us do.
Studies show pastors often suffer in silence on financial issues and lack necessary resources. At Servant Solutions, we stand ready to serve with trained professionals who provide sound, Biblically-based financial/retirement planning.
The National Association of Evangelicals (www.NAE.net) released the results of a new study in 2016 revealing the extent to which many pastors are struggling in their personal finances and do not know where to turn for the right tools and resources on managing their personal and church finances. According to the study, the problems were most pronounced with pastors serving in smaller congregations, which make up the vast majority of churches across the United States.*
The following findings are just a few of the most telling from the full report available at NAE.net/pastorresearch:
Half of the pastors serve in churches with annual budgets under $125,000…used almost solely to cover the cost of the church facilities, programs, and pastor/staff payroll.
Fifty percent of pastors receive less than $50,000 per year in compensation with 30% having student loan debt averaging $36,000.
When asked to rank their financial concerns, 92% identified lack of retirement savings, 84% felt they did not have needed funds for emergencies and larger purchases, 60% were concerned about medical insurance/bills, and 54% were concerned about lack of college savings for their children’s education.
Over 85% of pastors said they did not receive financial training from their seminary. Many pastors (37%) are not familiar with what resources their denomination offers for personal finances.
Pastoral Tax Preparation Help – A great FREE resource available for our Servant Solutions members
Clergy taxes can be just that….Taxing!! The unique “Dual Status” pastors carry with the IRS and the Social Security Administration present unique challenges in tax reporting and preparation. At Servant Solutions, it is our prayer the practical information and tips included in the “Ministers’ Taxes Made Easy” guide from Dan Busby will be useful to you as a pastor in eliminating confusion about some of the most common tax questions. It can also be a tool in leveraging your compensation to yield the best possible stewardship outcome.
Here are a couple of Turbo Tax questions we receive most often:
I am a minister and I receive a W-2, not a 1099. Where in TurboTax do I enter my allowable housing expenses?
Answer: https://ttlc.intuit.com/questions/3087842
I am a minister and I receive a 1099-R. Where in Turbo Tax do I enter my allowable housing expenses?
In it with you...
At Servant Solutions, we are here to help! Every day, we live out our motto of “Serving Those Who Serve”…by improving financial security for servants of the church. Please call us today so we can provide the personal attention and educational resources that are available to you.