There's a conversation that happens in ministry leadership more often than anyone likes to admit.

We are losing talented people — and we are going to keep losing them — because we haven't been honest about what it actually costs to live in 2026.

This isn't a new problem. But the gap between ministry compensation and market compensation has widened significantly over the past five years, and most churches and nonprofits are still setting salaries based on numbers that made sense in a different economy.

THE INFLATION REALITY

Here's the hard math. According to Bureau of Labor Statistics data, prices rose 22.7% between January 2021 and mid-2025, while average wages grew just 21.8% over the same period — leaving real purchasing power still in negative territory cumulatively since the pandemic. That's the national average for all workers. For ministry staff, who have historically earned below market rates and received smaller annual increases, the gap is almost certainly wider.

A salary that felt adequate five years ago doesn't feel adequate today — because it isn't. The dollars are the same. What they buy is not.

Here's my take on actual numbers:

$70,000 is the new $45,000.

$100,000 is the new $70,000.

$150,000 is the new $100,000.

Those aren't precise inflation calculations. They're an honest attempt to capture the combined effect of cumulative inflation, rising housing costs, increasing healthcare premiums, student loan burdens, and the broader cost-of-living shift that your staff members are navigating every single month. They are also the reality I am seeing and hearing.

For a long time, ministry leaders could count on what ChurchSalary has called "Kingdom pressure" — the reality that most pastors and staff genuinely want to serve in the church and feel called to do so. That pressure still exists. But it is no longer enough on its own.

WHAT NONPROFITS ARE FACING

Churches aren't alone in this. A 2024 report from Independent Sector found that a significant percentage of nonprofit workers qualify as ALICE — asset limited, income constrained, employed — meaning they earn too much to qualify for public assistance but not enough to cover basic living expenses in their communities. These are full-time, dedicated, mission-driven workers who are financially stressed.

The nonprofit sector has historically consoled itself with the idea that mission compensates for lower pay. And for some people, some of the time, it does. But mission doesn't pay rent. And the research is increasingly clear that financial stress directly undermines the engagement, creativity, and longevity of mission-driven workers.

SO WHAT DO YOU DO ABOUT IT?

I'm not suggesting that every ministry can immediately restructure its entire compensation philosophy. Budgets are real. Giving is not unlimited. These are legitimate constraints.

But here is what I am suggesting:

Stop anchoring to old numbers. If your salary ranges were built five years ago and haven't been fundamentally reassessed, they are out of date. Not slightly — significantly.

Benchmark regularly and honestly. Tools like ChurchSalary and the annual Vanderbloemen compensation report exist precisely for this purpose. Use them. And when you benchmark, compare not just to other churches, but to the broader market your staff members are aware of.

Talk about compensation openly with your board. Compensation is a stewardship issue. Boards that only evaluate whether the budget balances are missing half the picture. A church that consistently underpays its staff is not being fiscally responsible — it is deferring a cost it will eventually pay in turnover, recruitment, and organizational disruption. When is the last time your board seriously considered your salary?

Think total compensation, not just salary. Housing allowances, health coverage, retirement contributions, professional development, and schedule flexibility all have real dollar value. Make sure your team knows the full picture of what they're receiving — and make sure that picture is actually competitive.

The people on your ministry staff are not just employees. They are, in many cases, your most significant investment in the mission. They deserve to be paid in a way that reflects the economy they actually live in — not the one you were budgeting for in 2019.

Faithfulness to your mission includes faithfulness to the people who carry it.

Bryan

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