The results of the 2008 Salary Survey by Leadership Network and Church Executive show cause for a strong year in 2009, even under tightening conditions.
The news is mixed among larger churches surveyed about the impact of tough economic times on their congregations.

The 105 large churches surveyed by Leadership Network this summer said they were "minimally" or "not at all" affected (56%) by the downturn in the economy, while 41% responded "somewhat negatively" and 3% "very negatively" on the question.

Both attendance and financial offerings appeared to be mildly positive in the majority of the churches surveyed, with attendance up more than offerings since January of this year (see chart).

"Most of these churches were already growing, and so they are continuing their growth pattern despite today's more challenging economic pressures," says Leadership Network's Warren Bird, director of research.

The survey of salary and economic outlooks was derived from 105 churches with attendances of 1,400 to 10,100. It is not a scientific or random sample of larger churches, but rather a sampling of those who self-selected to participate in a 208-item online survey.

The sample size was considerably larger than the previous edition of the survey, which was conducted in 2006. Church Executive was a participating partner for the survey in both years.

Churches Expecting Increased Income
In terms of expected income this year, 74% of surveyed churches expect that income will increase in 2009, while 66% expect that their
Both attendance and offerings have
increased since January, 2008.
church will probably meet its budget this year and 28% said they probably would not meet budget. Two years ago, the latter group constituted only 4% who would not meet budget.

While 74% of surveyed churches expect their income will increase next year, that's down from 96% two years ago. Nevertheless, 13% expect income to remain the same and only 12% predict a decrease. The latter data is the first time in the survey that any church has predicted a decrease.

An open-ended question asked church leaders what they are doing to prepare their people for the potential of a significant national recession. Half the churches responded and expressed such thoughts as staying on message, increasing financial counseling, doing more stewardship training, monitoring the church budget more carefully, decreasing church debt, helping people get out of debt, and job coaching when people lose a job.

Four Respondent Groups Defined
The high response rate from 30 states allowed the responses to be split into four groups: Attendance of 1,400 to 2,999, 3,000 to 4,999, 5,000 to 6,999, and 7,000 and more. The number of churches in each group was 62, 28, 9 and 7. Among respondents, the typical church offers five weekend services, more than the national norm of two for Protestant churches.

The survey also produces data on staff costs, staffing ratios, numbers of direct reports, salaries, benefits, medical insurance, and pay increases, among other data.

Ratios of staff to church attendees was 1:45, or one staff member to every 45 attendees (calculated from an average number of 70 staff and an average attendance among the 105 churches of 3,178). In 2006 the ratio averaged 1:59.

Salaries for the senior pastor or the directional leader rose $7,000 in two years, from an average of $132,000 to $139,000; the highest salary was $300,000, down from $364,000 two years ago. Executive pastors' salaries also rose $7,000 in two years, from $90,000 to $97,000, with the highest at $167,000. (Salary information for 32 other titles is also included in the complete report, see links at the end of the article.)

Pay increases among 72% of the churches were reported at 3% or more, while 15% went as high as a 5% raise. A total of 91% of churches are planning to give staff pay increases. The responses to this question did not vary much with church size.

What major emphases are churches expecting in year 2009? Leading the way are a capital funds drive for new property or building–-30%, down from 44%  in 2006--followed by a special campaign to help the poor and needy (25%), and an appeal to plant new congregations (23%, the same number as two years ago).

Missions Giving Increases
By church size, the largest group (7,000 and higher attendance) expects to increase spending in missions, facilities and communications. Nevertheless, none of the 105 churches indicated a "significant decrease" in any of the seven categories named, and very few projected a "moderate decrease."

"The survey," says Bird, "gives selective insight into what's ahead. If nothing else, it shows that the surveyed churches are going forward, growing and reaching out. They seem to reflect much hope for the months ahead."

For a copy of the "2008 Leadership Network Salary and Economic Outlook Report," including charts and graphs, go to Leadnet.org/salary. Reference the extended article in Church Executive.

2008 Leadership Network Salary and Economic Outlook Report

Paying Your Pastor and Coping with Today’s Economic Downturn (podcast)
Authors’ commentary on the 2008 Salary Survey and Economic Outlook Report, plus pastor interviews about leading in tough economic times.

2008 Salary Survey Slide Presentation (PowerPoint)
A slide presentation of the graphics included in this report.