Fewer churchgoers giving more to cover church expenses as pastors contend with inflation: study
Though churches have reported ongoing declines in worship service attendance, their fiscal health has not suffered as significantly because the faithful who continue to attend have been giving more to cover operating expenses, a new study from the Hartford Institute for Religion Research suggests.
In "Finances and Faith: A Look at Financial Health Among Congregations in the Post-Pandemic Reality," researchers highlighted data from the Exploring the Pandemic Impact on Congregations research project and the Faith Communities Today research initiative.
The data was collected mainly from the 2023 survey of over 5,000 congregations and the 2020 survey of over 15,000 congregations, representing more than 50 Christian denominations and five faith traditions.
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"While the pandemic painted a distinctive portrait of giving in congregational life, it has not dramatically altered the fiscal health of faith communities at this point," researchers noted in the findings. "Increased financial need (due to the trauma of the pandemic, attender decline, and other factors) resulted in greater individual giving, but also a smaller number of total contributors, even while attenders generally gave more than previously."
Fewer than 50% of Americans currently hold formal memberships in churches, and more Protestant churches are closing than opening nationwide. Further decline also appears inevitable, according to estimates made by the Nashville-based Lifeway Research.
In 2019, well before many churches were forced to close in 2020 due to the coronavirus pandemic, Lifeway Research found that approximately 3,000 Protestant churches were started in the U.S., but 4,500 Protestant churches closed.
Researchers for the Hartford Institute for Religion Research said that although the lowest average worship service attendance was recorded in 2023, it was also the highest income churches reported in 15 years.
"In 2023, the typical congregation had a median of 60 in-person weekly worship attendees. In this average sized faith community, the median income was $165,000 and the median amount spent in the most recent fiscal year was $160,000," researchers wrote. "These figures represent increases compared to the amounts reported in 2020 ($120,000 income, $108,000 expenses) and is the highest income reported in nearly 15 years, even though 2023 saw the lowest average worship attendance since the survey began in 2000."
Despite the increased giving of churchgoers helping the fiscal health of their congregations, researchers noted that when the current giving level is adjusted for inflation, the picture does not look as healthy.
"This perceived increase in giving is deceiving as it does not account for inflation. Looking back over the past several years with this perspective, the picture is a bit more bleak. From 2010 to 2023, the cumulative rate of inflation is about 39.7%," the report explained. "The median total income reported by congregations in 2010 was $150,000. To have the same purchasing power in 2023, a congregation would need to bring in over $209,000 — about $45,000 above the actual median income reported in 2023."
When asked what their top concern for the future is, pastors frequently pointed to the challenges of inflation and how the cost of running their churches has outpaced the level of giving.
While church members have been slow to adopt online giving, researchers found that churches that offered opportunities to give to their ministry online experienced an increase in the amount of money they collected per capita.
"The pandemic had both direct and indirect effects on the amount of funds coming into a congregation. It is not entirely clear whether the changes introduced such as online giving, increased giving, and virtual attendance will continue over the long run or generate the revenue needed to match or overtake inflation," the report concludes. "One thing that is certain for congregations and non-profits generally: this is a time of challenge and transition which requires creative thinking about the ways an organization's mission can be funded and sustained into the future."
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