Church Executive Compensation Policy (Sample)

The church Executive Compensation Policy (sample) below is available free to download, customize and print at your convenience 24 hours a day, 7 days a week for your church administration office, Human Resources Dept., etc.


A board's determination of the church's senior staff members' compensation is one of its key tasks. Church leaders should never be a part of the decision-making process for determining their own compensation. 

The IRS has parameters for what is permissible for tax exempt churches in setting executive compensation levels. An Executive Compensation policy for the church should set the process for determining and documenting executive compensation.

The policy below for executive compensation is a free and very important tool or guideline to use in your church administration office or Human Resources Department to create a policy and procedure of your own to fit your church specifically.

Policies and procedures are very important because they provide a set of guidelines for governing such things as the church executive compensation. Without them your church would have many questions and would not govern in a proper and organized way for their donors, members, etc. 

The sample Church Executive Compensation Policy below is available free to download and includes:

  • Church Name - Insert your church name on the top of your policy and procedure.
  • Policy & Procedures and Name of Policy - Insert the full name of your policy and procedure.
  • Statement - [Church Name] executive compensation policies are established by the Board of Directors Executive Committee and approved by the full governing Church Board of Directors prior to implementation.
  • Responsibilities - 1.Review and approve organizational goals and objectives relevant to the compensation of the Pastor(s) and Assistant Pastor(s) 2. Review his or her performance in light of those goals and objectives 3. Approve parameters for compensation of senior staff 4. Annually review compensation policies and procedures and make recommendations for adjustments 5. Produce an annual compensation report to the full Board of Directors 6. Review and approve any severance 7. Oversee plans for management development and succession 8. Retain and terminate, in its sole discretion, any compensation consultant
  • Compensation Philosophy - [Church Name] activities are guided by its mission and community impact agenda, reviewed by the full governing Church Board of Directors on an annual basis to affirm and/or update. The allocation of [Church Name] ‘s available financial and human resources, including this compensation policy, are designed to help achieve outcomes outlined in the mission and community impact agenda.  -   The Church Board of Directors recognizes that achieving this mission requires attracting, retaining and rewarding skilled executives and personnel within appropriate guidelines established by the IRS and good nonprofit governance practices. The Church Board of Directors desired to establish compensation parameters that are competitive in the market, honor our commitment to good stewardship, balanced between short and long-term performance and will serve to motivate mission-driven, successful performance.
  • Summary of Process Used to Determine Compensation Practices - Standards for Meeting IRS Guidelines: 1. Total compensation for [Church Name]’s executive(s) must meet the standards under the IRS “intermediate sanctions” regulations. 2. The IRS Intermediate Sanctions regulations apply to “disqualified persons” at 501 ( c ) (3) public charities and 501 ( c ) (4) social welfare organizations. [Church Name] is a 501 ( c ) (3) organization. A disqualified person is someone who is in a position to exercise substantial influence with respect to the organization’s affairs. Disqualified persons for [Church Name] include the Pastor(s) and Assistant Pastor(s) at this time, and may include other senior staff in future years. 3. Compensation, for purposes of intermediate sanctions, includes all remuneration (base pay, any incentive or bonus, if applicable, deferred compensation and benefits). Thus, total compensation compared to the market is the appropriate comparison for intermediate sanctions purposes. Incentive and bonus pay are permissible under intermediate sanctions, as long as the total amount of compensation is reasonable.
  • [Church Name] Process: During the 4th quarter of the fiscal year, the full board meets to establish mission-oriented goals for the coming year and allocate financial resources. These goals become the basis for establishing performance goals and metrics for the church as a whole, as well as for departments and individuals. (See Executive Compensation Policy below for more of the process.)
  • Signatures - Senior Pastor, Assistant Pastor and Church Board of Directors
  • Date Revised - Insert the current date each time the policy is revised/updated.
Click on the link to download the sample Executive Compensation Policy below.

Church Executive Compensation Policy (Sample)

If you need to modify this form, try the site: Free PDF Services. You can convert this Adobe file into a Word document free of charge and make the necessary changes.

Note: You will need Adobe Reader (the latest version is recommended) installed on your computer in order to save or open these forms.

You can get Adobe Reader free here (a new window will open so you can download it without leaving this page).

If you want to open the file in your browser window, just click on one of the links above. However, if you want to download the file to view later, then right-click on the link and choose "Save Target As" or "Save File As". Then select where you want to save the file on your hard drive.

If you would like to receive access to the Table of Contents that has all the free church forms, certificates, flyers, brochures, letters, games and more that are listed in alphabetical order by category with links leading to the page to immediately download just simply sign up for my free monthly newsletter below. You will also receive access to my free 14 Page eBook - "Top Ten Tips on How to Organize Your Office" as a Thank You Gift for signing up. Enjoy! :)

Note: These sample forms are meant to serve as example forms and should not be construed as legal documents.  Please contact a legal professional for legal language for your specific organization.

Free eBook - "Top 10 Tips on How to Organize Your Office"

when you...

Subscribe to "The Form Gallery" Monthly Newsletter (Free)

**The information above will be secure and your privacy will be maintained.** Click here to read and accept the Privacy Policy (GDPR Update).

Please feel free to contact me if you have any questions.

You might like these

  • Church Usher Policy and Procedure

    The Church Usher Policy and Procedure sample is available free to download, customize and print for your church administrative office, Human Resources Dept...

  • Church Policy Manual

    Church Policy Manual (sample) free to download, modify and print 24 hours a day 7 days a week with policies and procedures for church committees....Also, Church Accounting Policy Manual...

  • Donation Fund Policy and Procedures

    Donation Fund Policy and Procedures for Church Funding available free to download, customize and print for your church...Free Letter to the Congregation Regarding Donations...

Return to Church Policy Manual from the Church Executive Compensation Policy (Sample).

Church Forms...CD

Collection of all the Church Forms, Flyers, Certificates...(1,000+) on available on CD or Instant Download - each form available in Microsoft Office Word editable format. Plus 5 Free Bonuses!

The Church Forms CD is Convenient and Saves Time

Learn More


Need an Affordable, User Friendly Church Membership Database? Shepherdbase Could Be Just What You Have Been Looking For...Available on CD or Instant Download.

  • User Friendly
  • Tracks Memberships, Contributions, Attendance, Etc.
  • Instant Access to Church Directory, Contributions, Attendance, Etc.

Learn More

Pastoral Recordbase

Need an Affordable, User Friendly Event/Sermon Tracking Database? Pastoral Recordbase Could Be Just What You Have Been Looking For. Available on CD or Instant Download.

  • User Friendly
  • Tracks Events (Baptisms, funerals, etc.)
  • Tracks Sermons (Pastor's or minister's sermons)
  • Tracks Phone Numbers (Pastor's phone book)
  • Tracks Church Info (Name, address, etc.)

Learn More

Special Offer!

Church Office Package#1

(Shepherdbase CD & Church Forms CD with 1,000+ forms, flyers...along with Free Bonuses) - Also Instant Download Available!

Church Office Package#2

(Shepherdbase CD, Church Forms CD with 1,000+ forms... & Pastoral Recordbase CD along with Free Bonuses) - Also Instant Download Available!

Learn More

Church Offering Envelope Templates

Very easy to download, modify and print on your blank envelopes.

Learn More


Powerful Church Software

Are you tired of trying to manage your church from several different systems and spreadsheets?

You need Aplos.

Cloud-based software to handle your accounting, people, and giving from one platform.


Church Finances Accounting Book

Are you stressed about your church accounting? If yes, then you need this accounting book!

Learn More

Visitor Testimonials

*I wanted to take a minute (during my email time slot) to thank you for all this work you do and share with the small church community. You and your staff (if you have some) are very much a blessing. Thank you, Elizabeth - PA - U.S.
*Terressa! I received the discs today!! A few years back I was at a small church that used your software and it was perfect for their volunteers to use. The church I am at now has 2 volunteer secretaries and one found your product and I gushed!!! Her first request is a directory so this will be perfect. God Bless you for creating such a great system (Shepherdbase). Regards - Tonya - OK - U.S.
*This is the 1st time I've visited your website and I just wanted to say "thank you". I go to a very small Christian Church and thanks to you, the forms you have for a children's ministry will keep me from having to "reinvent the wheel" and I am very grateful to you. We are a very small church (about 40 regular attendees) and 90% of those are over 65. We just had a young couple offer to help us get a Youth Group. Thanks to you, we won't have to do to much to get this off and running for the holiday season. Thanks again! - Kentucky - U.S.
*I do the tithes at the end of the year for a very small outreach in the city of Detroit. They had been paying thousands of dollars every several years trying to keep a database of their donors.

I searched last year for something less costly for them and came across your database (Shepherdbase). It is a blessing and so appreciated. Thank you for all your hard work and thank you for Giving To The Lord. Peacemakers Int. in Detroit on Chene street is another ministry you have blessed. - Charlene - U.S. *Disclaimer

*This website has been very useful for my ministries with Hospice, the Hospital and Human Services. I recommend this website to any church, ministry or agency that is supporting or ministering to people. God Bless You - Chaplain Dave - U.S. *Disclaimer

*Just wanted to let you know how helpful your resources are. We are a small church and have missed out on doing a lot of things. We ordered your Church Forms on CD and are just pleased. Keep up the good work of providing resources for Churches. - Lillian - U.S. *Disclaimer

*I am a minister of the Gospel of our Lord and Savior Jesus Christ and have been tremendously blessed to access you and pray that God the Almighty favor you in what you do. You have enabled me to access ready-designed church documents. Thanks and God Bless You Terressa. - Bro. Mike - Kenya, Africa *Disclaimer

*Thank You! You're heart for giving free resources and making things so affordable is truly a blessing. My Pastor always says: "What you make happen for someone else, God will make happen for you!" May God richly bless you and your ministry to us and so many others, enlarge your territory and bring financial blessings with good measure, pressed down, shaken together and running over!!! 10,000 Blessings! Leeanna - U.S. *Disclaimer

*Thanks for making this site available. I took over as secretary of our small church a few months ago, and I am having to create a lot of forms. This site is a blessing! - Vicki - U.S. *Disclaimer

*After years of frustration and being overcharged for Church Management software, I came across "Shepherbase" and all my problems were solved. *Disclaimer

This database:
  • 1. Tracks members and visitors
  • 2. Tracks contributions
  • 3. Organizes by both individual AND family
  • 4. Creates professional letters, relevant to church ministry
  • 5. Is easy to use
  • 6. Costs a mere fraction of other databases offering similar features. *Disclaimer
  • 7. So much more.

I am very thankful for this product and I recommend it to anybody wanting to exit the cost and complexity rat race of Church databases.
Thank you Shepherdbase!
Brandt *Disclaimer
Anchorage, Alaska

Read More Testimonials...

Does your church use QuickBooks? If yes, then the "QuickBooks for Churches and Other Religious Organizations" by Lisa London, CPA eBook below is a must for you!

Lisa will walk you through QuickBooks from start to finish, complete with examples, terminology, and everything a busy church administrator or bookkeeper needs to know. For more information just click the link above!

Check out on Your Mobile!