Finances & Succession: The Conversations Most Churches Avoid
Money. It’s one of the most avoided topics in the church—and yet, when it comes to pastoral succession, it’s one of the most important.
In Episode 6 of the LeadingSmart Podcast, we tackle the financial side of succession: how to plan for it, how to fund it, and how to lead with clarity instead of confusion.
There are three key financial conversations every church must have when planning a leadership transition:
1. Preparing the Outgoing Pastor for What’s Next
Too many pastors stay longer than they should—not because they’re unwilling to leave, but because they can’t afford to.
If you’re a board member or on the executive team, this is a critical gap you can help close. Start by connecting your senior leader with a trusted financial advisor. Evaluate what’s already been set aside for retirement. And if necessary, build a plan to true it up—especially for founding pastors who sacrificed salary and benefits in the early years.
Some churches even go as far as creating a “transition fund” years in advance, so when the time comes, they’re ready to honor their leader without hesitation.
2. Setting Compensation for the New Pastor
Here’s the reality: if your outgoing pastor has been in the seat for a long time, you’re probably not paying at market rates.
Hiring a new senior pastor—especially from outside—comes with a cost. That’s why we recommend compensation benchmarking tools like Vanderbloemen’s surveys. They’ll help you understand what similar churches are paying for similar roles in your area.
Fair compensation isn’t just about market data. It’s about honoring the weight of the role—and setting your next leader up for success.
3. Funding the Overlap Season
One of the healthiest succession strategies we’ve seen? An intentional overlap between outgoing and incoming leaders.
But that requires financial planning. If you’re going to pay two senior leaders for six months—or more—you’ll need to budget for it. That might mean pulling from reserves, increasing giving, or simply starting early with intentional savings.
The overlap isn’t a luxury. It’s a wise investment in your church’s future.
Succession isn’t just about leadership. It’s about stewardship. That’s why we’re grateful for partners like Generosity OS and Thrivent, who help churches think strategically about giving, lending, and long-term financial health.
And if your church is facing a transition, we’d love to help. Our SmartSuccession consulting walks alongside churches through every stage—from financial prep to board conversations to public communication. Reach out and let us know where your church needs support in this season.
Let’s lead smart—so the next chapter is funded, fruitful, and full of hope.
🎧 Listen to Episode 6 now, and don’t miss Episode 7 where we talk about communicating the transition well—because most churches don’t.