What Are the Estimated Start Up Costs?						

There are two categories of expenses to begin a new Lutheran 
Church:
	• Initial expenses
	• Annual ongoing expenses

Initial Expenses – $55,000

	There are initial costs which are up-front, one-time expenses associated with beginning a new church.  These items include such things as sound system, songbooks, multimedia equipment, Bibles, worship supplies, chairs and tables, hospitality supplies, education material and supplies, office equipment (furniture, computer, software, etc.), cleaning equipment, extensive start up publicity, and pastor’s moving expense.
	If all of the above were purchased new, the total would be an estimated $55,000.  This amount would be less if local churches provide some of the needs or if used items are secured.  In addition, while most of the items will be needed immediately, a few could be postponed.

Ongoing Expenses – $115,000 Annually (based upon year 2002 estimates)

	There are budgetary items which will be annual expenses for the new congregation–the same kind of expenses existing churches have.  The 2002 estimates for these ongoing expenses total $115,000.
	Ongoing expenses include salary and benefits for a full-time pastor, compensation for part-time staff of secretary, musician, and volunteer coordinator, rent, utilities, water, sewer, garbage, insurance, phone, copier lease, office supplies, postage, etc.
	The actual amount in 2002 will be less than the full $115,000 because expenses will not be incurred until well into the calendar year.  However, the full annual amount is noted for illustrative purposes.  The pastor’s compensation is based upon synodical guidelines (five years experience level).  Other staff expenses could be less if volunteers are available or if local churches provide personnel for a period of time.  Facility expenses could change depending upon the location selected for temporary site.

Three Year Projection (5% increases for 2003 and 2004)

				             *2002   	   2003   	   2004   

	Initial Expenses		$55,000	$5,000	$5,000

	Ongoing Expenses		$78,000	$120,750	$127,000

	Total Expense
* Year 2002 numbers assume that staff costs start the beginning of April and facility costs start the beginning of August.