On this page, you will find information on a variety of topics of interest to Pastors.  Click on the title link to access a topic.  At Envoy Financial, our ministry is to serve you and your ministry.  If you have any questions or need assistance, please contact us at (888) 879-1376, ext.1 or by email.

For information on any of the following, click the title link.

1. What does the Bible say about money and stewardship?
2. Sermon ideas about financial stewardship
3. Five essential financial questions -- “Am I Financially Healthy?”
4. What are the best retirement plans for pastors and churches?
5. Important tax benefits for pastors
6. Retirement planning and savings calculators
7. How do I speak to my board about establishing a retirement plan?
8. How do I counsel couples about financial stewardship issues?
9. Common investment mistakes pastors must avoid
10. Financial products and services available
11. Request Information

1.  What does the Bible say about money and stewardship?     (Back To Top)

Introduction

Did you know that there are roughly 2,350 verses concerning money in the Bible? That’s almost twice as many as verses about faith and prayer combined. Jesus had a lot to say about money:

• Nearly 15% of everything Jesus spoke about related to money and possessions.
• 16 out of his 38 parables dealt with the topic of money.
• The only subject Jesus taught more about than money was the Kingdom of God.

Why? Because the Scriptures are very clear about an inherent connection between a person's spiritual life, attitudes and actions concerning money and possessions.

Envoy Financial provides “Trusted Advice Along The Way” for today’s Christian Ministry Professionals. Whether your church is large, small, or any size in between, Envoy Financial is equipped with the wisdom and knowledge to help you make the right decisions from a biblical stewardship perspective.

The Bible is clear that we are to save for our future.  “A wise man saves for the future, but a foolish man spends whatever he gets.” (Proverbs 21:20, NIV)

Scripture References

Money, Wealth, Blessing and Prosperity:

A wise man saves for the future – Proverbs 21:20
Money little by little grows  - Proverbs 13:11
Ability to produce wealth – Deuteronomy 8:18
The blessing of the Lord brings wealth – Proverbs 10:22
Diligent hands bring wealth  - Proverbs 10:4
Pursue righteousness and find prosperity - Proverbs 21:21
All hard work leads to profit - Proverbs 14:23
Oh, that you would bless me indeed – 1 Chronicles 4:9-10
Then you will be prosperous and successful – Joshua 1:8
God gives any man wealth and possessions – Ecclesiastes 5:19
A generous man will be blessed - Proverbs 22:9
Enduring wealth and prosperity - Proverbs 8:18
Trusting God leads to prosperity - Proverbs 30:8-9
Steady plotting brings prosperity - Proverbs 21:5
Trying to get rich quick - Proverbs 28:20, 22
Do not boast in riches – Jeremiah 9:23-24
No hope in wealth – I Timothy 6:17-19

Generosity, Contentment and Giving:

More blessed to give than receive – Acts 20:35
Give and it will be given to you – Luke 6:38
The righteous eat to their hearts content – Proverbs 13:25
A generous man will be blessed - Proverbs 22:9
Support those who teach the word – Galatians 6:6
Sow generously and reap generously – 2 Corinthians 9:6
I was hungry and you gave me something to eat – Matthew 25:35-40
Godliness with contentment is great gain  - 1 Timothy 6:6
Content with your pay  - Luke 3:14
Be content with what you have – Hebrews 13:5
I have learned to be content  - Philippians 4:11
Everything we have and give comes from God – 1 Chronicles 29:11-17
Rich in all things, generous on all occasions  - 2 Corinthians 9:11
God loves a cheerful giver - 2 Corinthians 9:7
Excel in the grace of giving  - 2 Corinthians 8:7

Greed and Coveting:

Greedy man brings trouble to his family – Proverbs 15:27
Put to death greed – Colossians 3:5
Be on guard against greed – Luke 12:15
The love of money  - 1 Timothy 6:10
Dishonest money  - Proverbs 13:11
I have not coveted anyone’s silver or gold – Acts 20:33
Can’t serve two masters  - Matthew 6:24
Free from the love of money  - Hebrews 13:5
Do not trust in riches  - Proverbs 11:28
Where your treasure is – Luke 12:34

2.  Sermon ideas about financial stewardship     (Back To Top)

Money and Possessions

The Unmerciful Servant – Matthew 18:23-35
The Shepherd and His Flock – John 10:1-18
The Parable of the Talents – Matthew 25:14-30
The Rich Young Ruler – Mark 10:17-30
Everything Belongs to God – Psalm 50:10, Psalm 24:1
Don’t Worry About Worldly Needs – Matthew 6:25-31

God’s Lordship and Ownership

The Cost of Discipleship – Luke 14:28-33
The Faithful and Wise Servant – Matthew 24:45-51; Luke 12:42-48
The Great Banquet – Luke 14:16-24
The Master and His Servant – Luke 17:7-10
The Shepherd and His Flock – John 10:1-18
The Tenants – Matthew 21:33-44; Mark 12:1-11; Luke 20:9-18
The Thief – Matthew 24:42-44; Luke 12:39-40
The Two Sons – Matthew 21:28-32
The Unfruitful Fig Tree – Luke 13:6-9
The Unmerciful Servant – Matthew 18:23-35
The Watchful Servants – Mark 13:34-37; Luke 12:35-40
The Wedding Banquet – Matthew 22:2-14

Human Prosperity and Poverty

The Lost Sheep – Matthew 18:12-14; Luke 15:4-7
The Rich Man and Lazarus – Luke 16:19-31

Contentment

The Workers in the Vineyard – Matthew 20:1-16

Tithing

New Cloth on an Old Garment – Matthew 9:16; Mark 2:21; Luke 5:36
New Wine in Old Wineskins – Matthew 9:17; Mark 2:22; Luke 5:37-38
The Pharisee and the Tax Collector – Luke 18:9-14

Generosity

The Friend in Need – Luke 11:5-8
The Good Samaritan – Luke 10:30-37
The Moneylender – Luke 7:41-43
The Owner of a House – Matthew 13:52
The Prodigal Son – Luke 15:11-32
The Son’s Request – Matthew 7:9-11; Luke 11:11-13

Funding the Great Commission

The Growing Seed – Mark 4:26-29
The Kernel of Wheat – John 12:24
The Mustard Seed – Matthew 13:31-32; Mark 4:30-32; Luke 13:18-19
The Yeast – Matthew 13:33 ; Luke 13:20-21

Revival and Reformation

The Discarded Salt – Matthew 5:13; Mark 9:50; Luke 14:34-35
The Fig Tree – Matthew 24:32-35; Mark 13:28-31; Luke 21:29-31
The Lamp Under a Bowl – Matthew 5:14-16; Mark 4:21-22; Luke 8:16 , 11:33 -36
The Lost Coin – Luke 15:8-10

Eternal Reward

The Hidden Treasure – Matthew 13:44
The Lowest Seat at the Feast – Luke 14:7-14
The Sheep and Goats – Matthew 25:31-46
The Valuable Pearl – Matthew 13:45-46
The Wise and Foolish Builders – Matthew 7:24-27; Luke 6:46-49

3.  Five essential financial questions -- “Am I Financially Healthy?”     (Back To Top)

• What happens when the paycheck stops?
  • Are you ready for retirement, or what we refer to as your Future-Funded Ministry ^TM?
  • Proverbs 21:20 states that a wise man saves for the future.
  • Envoy Financial is committed to helping you grow the resources God has entrusted to you from a biblical stewardship perspective.
    
• What happens if I need to be cared for?
  • Will you have the resources to live if you become unable to perform the normal activities of life?
  • Although Envoy Financial doesn’t provide Long Term Care Insurance, we encourage you to look into these important benefits through your employer or an individual policy.  
    
• What happens if I am not healthy?
  • Will you have the finances to cover hospitalization, unexpected doctor visits or medication?
  • With the rising costs of medical expenses, you must be protected and transfer some of this risk to a Health Insurance provider.  Although Envoy Financial doesn’t provide Health Insurance, we understand how crucial this coverage is for your family and your financial health.
    
• What happens if I become disabled?
  • What would happen if you became disabled or unable to work?
  • Although Envoy Financial doesn’t provide Disability Insurance, we encourage you to look into these important benefits through your employer or an individual policy.  
    
• What happens if I die before I have settled my financial commitments?
  • If you die unexpectedly, what will happen to those you love?
  • If you are the primary breadwinner in your family or if your family depends on a portion of your income to survive, you will need to make up that shortfall if anything happens to you. 
  • At Envoy Financial, we have Life Insurance Specialists to help you get the right protection to meet your family’s need.  This is a foundational piece to having your financial house in order.

4.  What are the best retirement plans for pastors and churches?     (Back To Top)

403(b) Retirement Plans vs. 401(k) Retirement Plans

• Both plans are excellent plans to help you save for your Future-Funded Ministry ^TM.  However, we have found that for most 501(c)(3) Ministries (Mission-Sending Organizations, Churches and Para-church organizations), the 403(b) Retirement Plan is more favorable.

Roth vs. Traditional Plans

• As of January 1, 2006, thanks to recent tax legislation, you now have a choice of tax options for contributing to your retirement plan. 
• Introducing the Roth 401(k) and Roth 403(b) Retirement Plans, which allow you the option of contributing either before-tax or after-tax dollars.

Freedom 10

• Do you work for a small ministry with 10 or fewer employees?  Have you felt like your ministry could never afford a sophisticated Retirement Plan?  What seemed impossible is now easily available with Freedom 10, Envoy Financial's online retirement plan setup system that allows you to implement a retirement plan for under $300 - only $100 for churches.
• For more information about specific details or to start a Retirement Plan for your ministry, please contact Envoy Financial's Christian Ministry Organization Division at (888) 879-1376, ext. 1.  Envoy Financial is uniquely qualified as a leader in retirement planning for faith-based organizations, serving over 8,000 Ministry Professionals worldwide since 1992.

5.  Important tax benefits for pastors     (Back To Top)

• Definition of a Pastor – Licensed, Commissioned, or Ordained
  • Pastors can take advantage of many unique tax benefits for your 403(b) Retirement Plan.  To do so, by law, you must Licensed, Ordained or Commissioned as understood in the IRS tax code.  Consult your tax advisor or speak to a qualified representative at Envoy Financial at (888) 879-1376, ext. 1.
    
• Common Tax Questions Pastors Ask:
• How Can I Reduce My SECA Taxes?
  By contributing to a 403(b) Retirement Plan, you may receive valuable income tax benefits, and save on your SECA or your social security taxation.
  
• What Happens With My Housing Allowance At Retirement?
  As a pastor, your housing allowance is excluded from taxes when you finally draw income out your plan.  Consult a qualified tax advisor or speak to a qualified Envoy Financial LifeStage Specialist, as specific rules apply.  (For more information on Housing Allowance - including forms for churches and pastors - click this link: Housing Allowance: An Update and Current Status Report.)
  
• Can The Church or Ministry Contribute To My Retirement As Part Of My Benefits?
  Envoy Financial can structure your plan to accommodate many different variables while handling all the contractual details of your Plan Document.  We can even help you present proposals to your Board.
  
• How Can Envoy Financial Help Me Talk To My Board? 
  Envoy Financial handles all the details of the plan including an outline on how to speak to your Board.
  
• How Expensive Is This For Our Ministry? 
  Envoy Financial understands the demands on your ministry budget, and we offer our services at the industry’s lowest prices.
  
• What Makes You Different From My Local Financial Advisor? 
  Most local financial professionals are not specifically trained and do not have the expertise to understand the special needs and features in plans for Christian Ministries.  Envoy Financial is an experienced leader in serving churches and ministries as we have served over 8,000 Ministry professionals and hundreds of ministry organizations worldwide since 1992.
  
• If I Am Still Working, Do I have To Take Required Minimum Distributions? 
  If structured properly and you meet these requirements, you are not subject to the forced distributions of most retirement plans.  In fact, many Pastors work well into their 70’s or 80’s, accumulating and not depleting their retirement.
  
• Can Envoy Financial Help Me With My Other Investments and Additional Planning? 
  Our greatest joy as a ministry is to help you manage the resources God has entrusted to you with “Trusted Advice Along The Way.”  Our LifeStage Specialists are knowledgeable, equipped and fully licensed to provide you with sound financial guidance from a biblical perspective.

For more information on any of the above, contact a qualified Envoy Financial representative at (888) 879-1376, ext.1. or by email.

• 2007 Contribution Limits for 403(b) and 401(k) Plans

Your retirement plan continues to be one of the very best ways to prepare for the future financially.  The limits have increased again this year. (Click the link to access the 2008 Contribution Limits.)  Here are some important facts:

Be aware that these limits are higher than many participants can use. However, there are circumstances where increased contributions are important, including employer contributions as part of a severance package for up to 5 years after separation from service.

Be aware that retirement plan account types need to be added together to determine the contribution limits. For instance, in 2007, the elective deferral limit will be $15,500.  An employee who contributes $5,500 to an after-tax Roth 403(b) account can only contribute $10,000 to their before-tax Traditional
403(b) account. Roth 403(b) contributions are part of the $15,500 limit – not in addition to pre-tax contributions – in other words no double dipping.

• Elective Deferral Limits (402(g) Limits) (Employee Voluntary Contributions): $15,500
  
• Age 50 Catch Up Provision (In addition to the Elective Deferral Limits): $ 5,000
  
• 15 Years of Service Catch Up Provision (In addition to the Elective Deferral Limits, 403(b) plans only, see dialog below*): $ 3,000
  
• Maximum Combined Employee and Employer Contribution: (415 Limits) $45,000 (or 100% of includable compensation - apply the lesser of the two.)
  
• Maximum Combined Employee and Employer (if the Age 50 Catch Up applies): $48,000 (or 100% of includable compensation - apply the lesser of the two.)
  
• IRC 415(c)(7) Catch Up Option (seldom used but nonetheless available), 403(b) plans only, see dialog below **): $10,000 per year Employer Contribution for very low-income employees. 11/06 C-51(a) Contribution Limits * Certain 501(c)(3) organizations that sponsor 403(b) plans are eligible for the use of the Catch Up Option.
  
• “15 Years of Service Catch Up Provision”. Those eligible are limited to five groups:

1. Educational institutions
2. Hospitals
3. Churches and church affiliated organizations
4. Home health service agencies
5. Health and welfare agencies

The criteria for Christian Ministry Professionals (CMPs) to determine "15 Years of Service Catch Up Provision" eligibility is as follows:

1. The CMP will have to reach the 15 years of service anniversary date by the end of the current tax year.
2. Years of service can only be counted with their current Christian Ministry Organization, except for the employees of religious organizations where years of service are counted within the denomination.
3. CMPs who have contributed, on average, $5,000 or more for each year of service leading up to the 15 years, are not eligible to use the increased contribution limit.
4. The increased limit for the 15 Years of Service Catch Up can be used with the current employer only until $15,000 in "extra" contributions have been made.  At that time, the "extra" contributions will need to cease.

** The “IRC 415(c)(7) Catch Up Provision” permits up to $10,00 per year to be contributed to a 403(b) plan until a total of $40,000 has been used under this limit. It will apply to very low income employees for whom the religious organization wishes to make employer contributions.

Example: A pastor preaches for a small congregation once a month and receives compensation of $2,400 per year for those services. The pastor cannot afford to make elective deferrals to a 403(b) plan; however, the church wishes to recognize his many years of faithful service. The church can make a contribution on behalf of the pastor to a 403(b) plan of up to $10,000 each year until the $40,000 limit has been utilized. After that, the church could continue to contribute on behalf of the pastor, subject to the “100% of includable compensation” 415 limitations.

*** Other Important Information:

1. For CMPs who are maximizing their contributions (using the maximum Elective Deferral, the 15 Years of Service Catch Up Provision and the Age 50 Catch Up Provision, subsequently equaling $23,500 in contributions), the IRS has established "ordering rules". Under these ordering rules, individuals using both "extra" contributory limits will be considered to be using the “15 Years of Service” limit first.
   
2. If a CMP is over age 50 and is eligible to use the 15 Years of Service limit contributed (for example) 11/06 C-51(a) Contribution Limits $3,000 more than the elective deferral limit, he/she will be using the 15 year of service increase - not the age 50 catch up.
   
3. If the CMP is not eligible for the 15 year of service increased contribution limit, the age 50 catch up will apply to salary reduction contributions made in excess of the basic limit.
   
4. Includable Compensation/Housing Allowance:
   Among the most frequently asked questions about compensation for the purposes of the 403(b) contribution limits are whether or not a minister’s housing allowance can be included in compensation for purposes of the maximum annual contribution calculation (100% of compensation).  The answer is “no.”

• The housing allowance is not a taxable benefit.  Section 107 of the Code specifically states that housing allowance is not includible in gross income; hence is not subject to taxation.
• If you have additional questions, please contact our CMO Ministry Services Manager at (888) 879-1376, ext. 228.
  

• Summary of Tax Benefits
  
• Housing Allowance - Section 107 of the Code specifically states that housing allowance is not includible in gross income; therefore, it is not subject to taxation.
  
• No Forced RMD at Age 70 ½ - In a 403(b) plan, as long as you are continuing to work (even part time), you are not required to take a Required Minimum Distribution at age 70½.  This is significant because if you are drawing an income, you can continue to contribute to your plan and defer money from taxation.
  
• Roth Plans – Roth is now available in a 403(b) plan, which allows you to contribute to your plan on an after-tax basis, grow your principal and earnings tax-free and take tax-free distributions when you ultimately draw income out of your plan.  Because of other tax benefits to pastors, the Roth after-tax contributions to your plan can be a powerful combination to building a significant Future-Funded Ministry ^TM.
  
• Avoid Paying SECA Taxes – Many pastors can gain a tax benefit by contributing to their plans on a pre-tax basis which may reduce their income tax burden and the SECA taxes.
  • The Self-Employment Contributions Act (SECA) tax is basically the business owner's version of the FICA tax that many pastors pay. Like FICA, it is made up of your "contributions" to both the Social Security and Medicare programs.
  • However, the basic tax rate for the self-employed under SECA is 15.30 percent - twice the 7.65 percent rate that employees must pay on their paychecks as FICA tax - to reflect the fact that employees pay one-half the FICA tax and employers pay the other half.
    
• Higher Contribution Limits Than IRA’s – The maximum combined employee and employer (415 Limits) if the age 50 Catch Up applies is $48,000 or (100% of the includable compensation – apply the lesser of the two.).  Please review the contribution limits section for more specific details.
  
  
• How can my 403(b) help me when I retire?
  
• The Only Plan You Need – Once you are ready to take an income stream from your 403(b), there are many systematic flexible payout options available to you.  You may take monthly, quarterly, semi-annual and annual payments. Or if you prefer, take money out whenever you need it and not systematically.
  
• Envoy Financial Service Continues – The Envoy Financial Ministry Service Team and LifeStage Specialists continue to provide you with service and “Trusted Advice Along The Way” during your Future-Funded Ministry^TM
  
  
• Self Employed Pastors
  
• Envoy Financial Designs Plans With You In Mind – Our ministry is here to serve your ministry in helping you grow the resources God has entrusted into your care.  We have found that many self-employed pastors are reluctant to start a plan, are afraid of being a burden to their churches and, do not know where to start.
  
• Envoy Financial will help you design the appropriate, cost-effective plan for any size ministry or church.
  
• We understand the financial burdens on both pastors and churches and so we have flexible platforms to build the right plan for you that won’t burden you or your church financially. 
  
• If you have additional questions, please contact our CMO Ministry Services Manager at (888) 879-1376, ext. 228.
  
  
• Ministry Workers
  
• Envoy Financial Designs Plans With You In Mind –We have found that many churches don’t have retirement plans for their ministry workers.  Envoy Financial can help your church design the appropriate, cost-effective plan for any size ministry or church.  We understand the financial burdens on churches and so we have flexible platforms to build the right plan for you that won’t burden you or your church financially.
  
• If you have additional questions, please contact our CMO Ministry Services Manager at (888) 879-1376, ext. 228.

6.  Retirement Savings and Planning Calculators     (Back To Top)

Envoy Financial is pleased to provide the following financial calculators on our website, provided by Faith and Finances.org.  (Faith and Finances.org is a strategic outreach of the Assemblies of God Financial Services Group.)  We have investigated many financial calculators and these are some of the best we have seen!  Interactive calculations, dynamic graphs and fully customizable reports really make these calculators stand out from many others available on the Internet.