Financial Guidelines

Understanding your financial commitment

These guidelines are established by the Evangelical Lutheran Church in America. Your congregation is responsible for the following costs.

Expenses for internship site	Payable to	Amount
Administrative Fee	Luther Seminary	$1,000
Travel Pool Fee	Luther Seminary	$500
Stipend $1,800 monthly 1YR Full-time/$900 monthly 2YR Part-time For Interns beginning Fall 2023: $2000 monthly 1YR Full-time/$1000 monthly Part-time	Intern	$21,600 For Interns beginning Fall 2023: $24,000
FICA FICA is based on the total value of the stipend plus housing provided.	IRS
Car/Mileage Expenses Based on approved expenses incurred in their work.	Intern
Internship Cluster retreats Registration for both the supervisor and intern. Varies with location & length of event.	Host seminary	$1,000
Housing – Moving expenses Only if unfurnished housing is provided. This is in addition to the travel pool amount paid to seminary.	Intern
Housing and Utilities Varies based on location and family size.
Additional expenses to consider
Supervisor Training Required for all new supervisors, or if it has been more than 5 yrs since you last attended training at Luther Seminary.	Luther Seminary	$250 registration fee + lodging
Supervisor Healthy Boundaries Workshop Required for all supervisors, or if it has been more than 5 yrs since you last attended a healthy boundaries workshop	Luther Seminary	$35
Off-Site Supervisor stipend We strongly recommend that sites hosting an intern with an off-site supervisor pay a monthly stipend of $200 to the supervisor, to cover travel and other expenses.	Supervisor	$200/month

*June 1, 2020 start date or later

Stipend

The site will provide a monthly, undesignated stipend of $1,600 per month for a one-year/full-time internship and $800 per month for a two-year/half-time (concurrent) internship.

*Please note the stipend will increase to $1,800 for all internships beginning after June 1, 2020.

Housing and utility allowance

*For geographically restricted internship sites, the following housing or a housing allowance requirements are waived.

Geographically Open internship Site

Student interns who are available to move to and live in a community away from their current home, and serve a congregational context in this community are participating in a geographically open internship. At this site, the congregation will provide adequate furnished housing and utilities (including internet) or an allowance to provide for both housing and utilities. Separate, private housing is expected.

The intern is not to be housed together with a parishioner.

If housing is not secured in advance by the congregation, the congregation will assist the intern in locating housing and will pay a monthly housing and utility allowance directly to the intern. If housing has been secured but is unfurnished or under-furnished, moving expenses between the internship site and the seminary will be provided by the congregation.

Please note:

Housing is considered taxable income.
This additional moving expense is not covered by the travel pool fees paid to the seminary.
Moving mileage is paid to the intern for travel to/from the internship site by the seminary.
All moving costs are not covered.
Alternative housing arrangements must be negotiated with the Contextual Learning office.

Geographically Restricted Internship Site

Interns who require living in their current community, but are experiencing an internship context other than where they may be currently serving, worshipping, working or volunteering, are participating in a geographically restricted internship.

Geographically restricted sites are arranged by the Contextual Learning office and the area denominational leadership offices.

Considerations include:

the commuting capacity of the student intern
the fullness of learning desired for an internship
the ministry patterns and schedule of the contextual learning site

Geographically restricted interns receive a stipend, but do not receive housing.

Car/mileage

Business-related travel expenses are to be reimbursed to the intern at the IRS standard mileage rate or as a monthly car allowance.

Work expenses

The congregation will reimburse the intern for approved expenses incurred in his or her work.

Cluster retreats

Expenses for participation in cluster meetings by the intern and supervisor are the responsibility of the congregation.

Supervisor orientation

New supervisors or supervisors who have not completed Supervisor training in the past 5 years are required to attend Luther Seminary’s Supervisor Training session prior to the start of internship. The registration fee ($250) is the responsibility of the congregation.

Supervisor Healthy Boundaries Workshop

New supervisors or supervisors who have not attended the Supervisor Healthy Boundaries Workshop in the past 5 years are required to attend prior to the start of internship. The fee of $25 is the responsibility of the congregation.

FICA

All stipends are subject to income tax and FICA. Since the intern is considered an employee of the congregation, the congregation is also subject to FICA. Income tax and FICA will also need to be paid on the housing allowance or fair-rental value of housing that is provided. Thus, the financial implication for a congregation hosting a full-time intern is the payment of 7-plus-percent per month FICA on the stipend and housing allowance. The congregation may assist the intern by paying the employee’s portion as well.

For additional tax information related to your internship, each intern, supervisor, and congregation are directed to seek specific tax advice from your own licensed accounting professional.

Payment of Fees to Seminary

Internship sites will receive a combined invoice for the Administrative fee of $1000.00 and the Travel Pool fee of $500.00, a total of $1500.00 in December or June (depending on the internship start date). Two-year internship sites will be billed $750.00/250.00 at the beginning of each internship year.

Travel pool fee

Sites are required to pay an intern travel pool fee of $500.00 as set by the ELCA. This supports the intern’s travel costs to the site and back to the seminary.

Each internship site pays $500.00 to Luther Seminary.

Administration fee

Sites are required to pay an administrative fee of $1000.00 as set by the ELCA.

Each internship site pays $1,000.00 to Luther Seminary.

Moving expenses

Any agreement regarding reimbursement of moving expenses to or from the site must be in writing with a copy provided to the Contextual Learning office. All negotiations should be completed before the student leaves for the site.
If a congregation provides unfurnished housing, the student is entitled to some assistance in moving furniture and personal possessions. Normally this means the congregation will pay for the rental of a trailer or a truck. The student is responsible for negotiating this agreement with the congregation.
If the congregation has provided furnished housing, the congregation bears no additional responsibility to assist with moving costs for furniture or other personal items.

Day off and vacation time

Full-time and part-time interns will receive one day off per week and two weeks of paid vacation (including two weekends) per year. For a nine-month internship, the intern will receive one day off per week and 10 days of paid vacation (including one weekend).