Compensate pastors

As a former church treasurer of two churches, responsible for the recommendation of the pastor’s compensation package, I write to rebut the “Letter to the Editor” article “Paying Pastors’ Mileage.”

First, we must realize that under IRS (Internal Revenue Service) rules, pastors are independent contractors, not necessarily an employee. So payment of his salary is a “gross payment” from which he must pay all taxes such as Social Security and Medicare, whereas we only pay one-half with our employees and executives of business. Our pastor is our “CEO” of the spiritual leadership of our church and has great demands made upon his time, his emotions, his family life and his life every day. A pastor’s dedication is to be the Lord’s committed servant in the main, and the primary reward for him is serving the Lord. As members of his flock, we need to recognize he has the same demands for living expenses as each of us do and as our CEO, deserves proper compensation so his attention will not be duly diverted from his objective in serving the Lord to the full extent of his abilities and to our benefit.

In regards to auto mileage, the IRS allowance is applied only to that related to church business. Actually it could mean that such mileage must commence and end from the pastor’s church office. So he really may not be paid for personal mileage including travel to and from his church office. Using the example in the Nov. 17 issue of The Alabama Baptist, in addition to fuel and maintenance costs, they must add insurance, which would most likely be $100 a month to have liability coverage that not only protects the pastor but the church as well.

The other point to consider is the initial cost and subsequent depreciated value of his vehicle. For example, a vehicle purchased new for $20,000 could have another $1,000 added to cover taxes, licenses, dealer prep, DOC, etc. Over a five-year period at 18,000 miles per year, this vehicle would have a trade-in value of less than $5,000. 

To purchase an equivalent vehicle means the pastor has to have $16,000 to make the purchase or the ability to make payments on a loan. 

All of this is taken into account by the IRS in setting mileage allowance rates, and we can be assured that the IRS is not liberal in this. An equivalent business CEO would most likely have a company-owned vehicle on which any and all expenses are paid even if used personally. 

A pastor is certainly due any allowance for vehicle mileage allowed under IRS rules.

Yes, we need to use the Lord’s money wisely, but the first obligation we have to Him is to adequately compensate our pastor. From personal experience, I can state that a church is apt to waste the Lord’s money in unnecessary ways other than the pastor’s compensation, which sadly in many cases, is not as it should be.

James B. Hudgins
Daphne, Ala.