Guidance for Preparing 2025 Church Budgets

As local churches begin to draft their 2025 budgets, GNJ’s CFO/Treasurer Rob Zuckerman provides the following guidance:

• Shared Ministry/Apportionments: You can find your church’s GNJ Shared Ministry and General Church apportionments here 2025 SM Fund Breakdown.pdf.
• Healthcare: The blended rate for full-time appointments will be $24,200; this is the amount the local church is responsible for paying.
  • Note, there may also be a “Participant Premium” which you would deduct from the pastor’s salary; it’s a pass-through expense so there is no impact on the church’s budget. It’s impossible for us to know this information until after Open Enrollment, as the amount is dependent on the plan(s) selected.
• Property Insurance: Assume a 12% increase over 2024 (multiply 2024 billing by 1.12). We do not have actual renewal rates until later this year, after most churches complete their budgets.
  • Note, as the insurance market continues to be particularly challenging, we are partnering with our broker (Sovereign) to consider new strategies to minimize the impact of the anticipated increases. We will communicate any changes as the renewal process unfolds.
• Workers Compensation Insurance: Assume a 5% increase (multiply 2024 billing by 1.05); same as property, we will not have actual rates until later in the year.
• Pension Billing Rates (% of salary): These will be the same rates as 2024:
  • CRSP/UMPIP @ 14%
  • CPP @ 3.4%
• Boy Scouts of America Billing: Will remain the same amount you are paying in 2024 (2025 will be the last year of this billing item).

Churches must pay healthcare billings of pastors, lay staff

A Letter from Lynn Caterson, Greater New Jersey Conference Chancellor
I have been asked several times recently about what a church needs to pay when they receive an invoice from the Conference. Easy answer: everything…(including) payments for the pastor’s optional health coverage….It is the church’s legal obligation to pay for these optional items. There is increasing concern about non-payment of billings for participant-selected healthcare.   Learn more. [LINK]

The foundation of the United Methodists is connectionalism. The connections between us mean we can do more good together than we can do alone. This is what shared ministry and connectional giving is in the United Methodist Church. Our membership is a whole – a whole of many parts that, when connected, makes big impacts.

As members, we agree to:

• participate,
• help with financial support,
• offer our time,
• pray for the church, and
• share our experience with others.

These membership agreements are universal expressions of belonging and commitment. They say we care about each other, take action, belong to a community, are growing spiritually, and helping sustain the church for future generations.

As a part of the United Methodists of Greater New Jersey

• we share an organizational structure/policies that ensures operating within the law and reflect collective values; and
• we participate in shared ministries to make the greatest possible impact in the world for positive change.

Conference creates their budget for all agencies and resourcing based on the allocation of apportionments to the Annual Conferences. As an Annual Conference, GNJ creates their budget based on allocations of shared ministry (apportionment) from local churches.  Shared ministry for local churches includes both General Church apportionments and Annual Conference resourcing.

Shared Ministry Fund breakdown identifies GNJ Shared Ministry Funds and the General Conference Apportioned Funds separately. Our news fund are listed below:

GNJ Shared Ministry Funds:
(Fund 101) (Includes the following as per GNJ Expenses listed on the Budget)

• Laity, Clergy, and Congregational Development
• Conference Mission and Benevolences
• Administration

One General Church Apportioned Fund with breakdown provided for reference only:

• General Administration Fund (Fund 401)
• Interdenominational Cooperation Fund (Fund 402)
• World Service Fund (Fund 403)
• Black College Fund (Fund 404)
• Episcopal Fund (Fund 405)
• Africa University (Fund 406)
• Ministerial Education Fund (Fund 407)