FinancE REsources & Year end info
Action Items:
Submit 2026 Church Budget to our Office by December 31, 2025.
Submit the 2026 Church Employee Payroll & Benefit Form by December 31, 2025.
Confirm that you have SMC, Shoreline Conference, and FMCUSA listed as "additional insurers" on your Property and Liability Insurance. Please ensure that Shoreline Conference is added as an “additional insurer” on or before January 31, 2025. Email proof of Insurance to our Office.
Submit your church’s 2025 annual financial statements to Jenny Rivera by March 31, 2026.
We invite our churches to boldly step into the mission of multiplication by making Partnership Commitments. Below, you’ll find details on our ministry partners.
Helpful Resources:
The Acts 1:8 church reached Jerusalem, Judea, Samaria, and to the ends of the earth. SMC churches also work to reach beyond their own city, to extend their reach around their region and world.
It is our collective mission to partner together to ignite a spirit-fueled movement of disciples, leaders, & churches. We encourage every church to participate fully in this mission. Consider partnering in our connectional system by committing funds in several ways for church multiplication:
Investing in your own church's multiplication initiative;
Giving towards the SMC Church Multiplication Fund;
Partnering directly with a New Church Plant
Giving towards Somerset Beach Camp Ministries
Partnering with Free Methodist World Missions
Invest in your Church's Multiplication Initiative
We're asking every church to multiply every 3-5 years. Be intentional about setting aside funds for future multiplication initiatives.
Church Multiplication
Church Multiplication funding goes to support New Church Matching Grants and the oversight of new churches in the Southern Michigan Conference.
Partnering Directly with a New Church
We encourage every established church to directly partner financially with a new church plant or request to be involved when making a commitment. Dustin Weber is available should you desire help developing this partnership.
To financially give to an SMC Mission Igniter Church Planter:
Set up your recurring gift online: https://www.smcfmc.org/churchplants
Give by mail, designated gifts for a new church or church planter pastor should be made payable to “Mission Igniter” with your designation clearly identified and sent to: Mission Igniter, Southern Michigan Conference, P.O. Box 257, Spring Arbor, MI 49283
Commitments to Somerset Beach Camp
The SMC encourages each local church to consider a financial partnership with our conference camping ministry. Gifts can be given in two ways: directly to Somerset Beach campground http://somersetbeach.org/about/give or by mail to Somerset Beach Camp, PO Box 307, Somerset Center, MI 49282.
Commitments for FMC Global Partnerships/World Missions
Every SMC Church partners with FM global ministries around the world as we endeavor to be Acts 1:8 churches. It is important for every church to update/re-affirm their commitments to their global partners each year. Please consider partnering with both Missionaries (MSAs) and Country Planting and Development Funds (CPDs formerly CSAs).
Choose your Partners and Download the Global Impact Report that includes the FMWM 2024 Report and visit FMWM.org for information regarding partnership possibilities. For help in developing your global partnerships, contact our office (office@smcfmc.org).
Set up your church's giving to be automated online here: https://give.fmcusa.org/
or mail checks payable to:
Free Methodist Church - USA
PO Box 51710
Indianapolis, IN 46251
For help making or setting up a gift contact Debra Hancock a 800.342.5531 or debra.hancock@fmcusa.org.
For FMCUSA:
For Individual donors, to be included as a 2025 gift, the check must be dated in 2025 and postmarked no later than December 31, 2025. Online gifts must be made no later than December 31, 2025.
For churches, checks for World Missions that qualify as a deduction from income for the Conference Ministry Share must be dated in 2025 and postmarked no later than January 7, 2026, to be counted as 2025 gifts. Online gifts must be made no later than December 31, 2025.
For SMC:
To receive giving credit for donations made to SMC and Mission Igniter Church Plants, the check must be dated in 2025 and postmarked no later than December 31, 2025, and received in the SMC office by January 15, 2026.
Salary and Housing
Churches must determine in collaboration with their pastoral staff what their salary and housing compensation will be for 2026. Please report every pastor's salary package to the SMC office using this form before December 31, 2025.
Clergy Housing
There are three potential Housing/Parsonage Allowance options for pastors. The benefits should be reported according to the option that best applies.
1. Pastor owns/rents home and pays all expenses
2. Pastor lives in church provided housing and CHURCH PAYS some/all utilities
3. Pastor lives in church provided housing and PASTOR PAYS all utilities
Please consult the ECFA, "Ministers' Tax & Financial Guide” for further assistance.
Pension Contribution
The FM Pension program is administered by the HR department at the FMC-USA World Ministry Center. Please note the following criteria for eligibility:
All ordained, appointed pastors (Elders) who receive compensation are required to be enrolled in the FMC-USA Pension Program.
CMCs who are appointed as a Lead/Solo pastor are also required to be enrolled in the Pension plan.
CMCs who are appointed as a “Staff Pastor” or “Associate Pastor” are eligible, but not required to be on the plan.
Questions regarding the pension plans and accounts should be directed to the FMC-USA HR department (800.342.5531).
For information regarding the Defined Benefit Plan visit: https://hr.fmcusa.org/defined-benefit/
The pension benefit rate is 13.5% of Salary plus Housing for eligible personnel.
Click HERE for Resource on Pastor's Compensation Reporting for Pension
Health Benefits
Conference Policy expects that the health needs of our pastors are cared for. Every church should be familiar with the SMC Health Insurance Policy and should provide adequate health insurance coverage for all appointed pastors. You can view the Health Insurance Policy in the Southern Michigan Conference Policy Book.
Health Savings Account (HSA)
HSA contribution limits for 2026 are as follows:
$4,400 for a single participant
$8,750 for a family (2 or more)
$1,000 Catch Up Contribution (for individuals 55 and older)
Churches are encouraged to consider contributing to an employee’s HSA and/or allowing employees to voluntarily withhold additional funds from salary to be contributed to the HSA under a “Section 125 Cafeteria Plan”.
Life, Long Term Disability (LTD), Supplemental Insurance
All full-time, appointed pastors (any status) are required to participate in the SMC Group Life Insurance plan and Long Term Disability Insurance plan. Employees may also elect to purchase additional Supplemental Life Insurance. Contact Bonnie Philson at Bonnie.Philson@smcfmc.org in the Southern Michigan Conference Office for help in completing the enrollment forms or with questions.
The following are current rates/coverage for life insurance:
Basic Life $7.05 per month for $15,000 coverage
At age 65, cost is $4.58 for $9,750 coverage
At age 70, cost is $3.50 for $7,500 coverage
At age 75, cost is $2.47 for $5,250 coverage
LTD: .0039 x monthly compensation (use the same compensation amount as with pension)
Supplemental/Voluntary Life Insurance
Only paid by church on special arrangement. (Based on age with Regular 5-year increases)