February 24, 2003






Free market economy of congregational
churches burdens ministers, study says

___By Mark Wingfield
___Managing Editor
___DURHAM, N.C.--A free-market economy drives pastors of Baptist churches to climb a career ladder in order to maintain a decent standard of living, according to a new study from Duke University.
___This pattern imperils the health of smaller congregations that cannot afford to pay a middle-class salary and threatens the prophetic role of ministers who are trapped by climbing the ladder, conclude the authors, Becky McMillan and Matthew Price.
___"How Much Should We Pay the Pastor?" is the title of the report produced by the Pulpit & Pew research unit of Duke Divinity School. The study was funded by the Lilly Endowment.
___"While pastors may feel called to serve small or poor congregations, the costs of doing so might be considerable," the authors note. "In order to accumulate savings and pay off educational debt, they need to progress to larger congregations with correspondingly larger salaries.
___"The salary structure is such that clergy wishing to maintain a middle-class lifestyle must take on a 'career' as opposed to a 'calling' mentality. Local congregations, rather than focusing on their mission to the world around them, must focus inordinately on 'church growth' strategies in order to increase their market power to attract good clergy."
___The study compares clergy compensation among three types of churches--Catholics, connectional Protestants and congregational Protestants. Connectional Protestants, such as Methodists, allow a denominational structure to play a major role in clergy placement and in setting standards for clergy qualifications and pay. Congregational Protestants, such as Baptists, allow congregations free reign to hire whomever they desire and pay whatever they choose.
___Baptists and other congregational churches exemplify the strongest correlation to free-market economics, the authors explain.
___Data for the report were gleaned through a national survey of 883 clergy in 2001. Among the key findings:
___ In all but the largest churches, connectional churches pay their ministers better than congregational churches and provide better benefits.
___ Church size matters when it comes to salary. Among Protestant churches of both kinds, landing a job at a larger church translates into a larger income.
___ Smaller churches struggle to pay a high enough salary to attract and retain qualified clergy. An increasing number of smaller churches are moving toward part-time or less-experienced clergy as a solution.
___ Regardless of polity, "only a small percentage of pastors earn what most Americans would consider a professional-level salary."
___The problem begins with the assumptions upon which clergy salaries are based, the authors contend. "Most congregations attempt to answer that question by looking at what they have paid pastors in the past and what they can afford given their current membership."
___But what is the purpose of a clergy salary? the authors ask. "Is it to reward good preaching? Is it to attract a much-sought-after visionary? Is it to pay a professional for ministerial services rendered? Or could it simply be to provide hospitality and a well-lived life for persons and their families who are compelled by a call from God to proclaim the gospel?"
___Catholics approach these questions from an entirely different perspective than Protestants by removing financial incentive as a motivator for excellence in ministry. The variation between compensation for Catholic priests varies relatively little between larger and smaller parishes.
___That allows Catholic priests to move more freely between parishes of different sizes, the authors note. But on the other hand, the relatively low pay of Catholic priests may discourage young adults from entering the ministry.
___Likewise, connectional Protestant churches are more likely than congregational Protestant churches to offer clergy a living wage minimum. The down side of that policy, however, is that some smaller connectional churches go without clergy because they cannot pay the minimum salary required by the denomination.
___For example, in the Presbyterian Church (USA) in 1999, 62 percent of churches with membership less than 100 were without pastors.
___Another reason clergy salaries may be higher in connectional churches than in congregational churches is the typical economic status of those churches. "Churches within connectional polities also happen to be on average larger and richer, and they hire clergy with higher education," the study explains.
___The researchers applied their data to compare what a particular pastor might expect to earn in a congregational church versus a connectional church and in churches of various sizes. This John Doe has 20 years' experience in the ministry, an earned seminary degree and serves a church with an average lay income of $49,000.
___Relatively speaking, the smaller the congregation, the better off financially the pastor would be in a connectional church. The larger the congregation, however, the better off he or she would be in a congregational church.
___Under this model, in churches under 100 in attendance, the pastor would earn about $35,000 in a congregational church and about $40,000 in a connectional church. At about 180 attendees, the salary offered by the two kinds of churches meets at $52,000. From there, the projected salary in the congregational church soars much faster than in a connectional church, so that in congregations of 1,000 attendees, the congregational church would pay about $35,000 more than the connectional church.
___Among other findings:
___ Clergy salaries correspond much more to church size than to years of experience held by the pastor.
___ Median salaries for clergy have grown to become comparable to those of teachers and social workers. The gap between clergy salaries and those of other professionals such as doctors and lawyers has widened.
___ African-American churches are more likely than Anglo churches to offer pastors less than a livable wage, although some African-American churches have broken through this barrier. On average, African-American pastors earn two-thirds of what white clergy earn, even though African-American laity are more likely to tithe and report similar income levels to white laity.
___ Female clergy on average earn $6,500 less than male clergy, although average household income for female clergy is higher than for male clergy households due to working spouses.
___McMillan, lead author of the study for Pulpit & Pew, is a labor economist and United Methodist minister. She holds a doctorate in economics and a master of divinity degree. Price is an Episopal layman who holds a doctorate degree in sociology. He is a researcher for the Episcopal Church Pension Group.
___The complete report, "How Much Should We Pay the Pastor?" is available at www.pulpitandpew.duke.edu.



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Median salary for pastors and priests
Polity Average Weekly Percent of Median
Attendance Pastors Salary
Catholic <100 10% $20,883
101-350 34% $24,170
351-1,000 35% $24,735
1,001+ 20% $26,633
Connectional <100 56% $36,000
101-350 38% $49,835
351-1000 6% $66,003
Congregational <100 63% $22,300
101-350 32% $41,051
351-1,000 5% $59,315
1,001+ 0.5% $85,518
Source: Pulpit & Pew National Pastoral Leader Survey, conducted in 2001. Salaries are for 2000 and include housing allowance. Based on a random sample of 883 pastoral leaders from 81 faith traditions.


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