Inflation has risen postpandemic, and churches aren’t immune to the fallout. These days, “diminished attendance, virtual participation, online giving, and new avenues for funding ministry all impact the bottom line,” according to “Finances and Faith: A Look at Financial Health Among Congregations in the Post-Pandemic Reality,” a 2024 report from the Hartford Institute for Religion Research.

In 2010, the median total income of congregations was $150,000, per the report. To have that same purchasing power in 2023, accounting for the time period’s cumulative rate of inflation of about 39.7%, a congregation would need to bring in more than $209,000.

The actual median total income reported in 2023 was only $165,000, according to the report, which draws from the Exploring the Pandemic Impact on Congregations (EPIC) research project and the Faith Communities Today (FACT) research initiative.

Even though giving has increased since 2010 and the median income of congregations has reached a 15-year high, “the income that churches are receiving is not keeping pace with inflation,” said Charissa Mikoski, lead researcher and visiting assistant professor of research with the Hartford Institute for Religion Research.

Managing inflated expenses can be a source of anxiety for faith leaders, as congregations must pay for staff salaries and benefits, buildings and operations, program support and materials, missions and benevolence, and a variety of other expenses.

“Most congregations are funded either exclusively by their participants or by participants and just one other source of revenue,” the report notes. And while other funding sources may include fundraisers, space rental, investments, endowments, capital funds or school tuition, the amount of money these sources contribute is, on average, no more than 15% of a congregation’s total income, per the report. Therefore, giving remains a key income source for churches across the country.

How leaders can support their congregations and grow church income

So how can churches increase their income in the face of inflation, encourage their congregations and communities, and manage funds for necessary expenses and programs?

With respect to increasing income, the Hartford report discusses the benefits of online giving, with an emphasis on making it easy to use. More than two-thirds of congregations had implemented online giving as of 2023, but “just because a congregation offers online giving does not necessarily mean that participants are using it,” according to the report. Still, usage is gradually rising. In 2020, 10% of financial gifts received by a congregation were from online giving; by 2023, that had risen to 30%.

The report encourages faith leaders to think about online giving — “how much is it talked about, how user-friendly is it, and perhaps how can they strengthen that presence,” Mikoski said. “As we see hybrid worship becoming more popular as well as attendance patterns shifting — of people maybe coming only once a month instead of every week like they maybe did a couple decades ago — this online giving option can really help support the ministries even in light of these other changes.”

If a congregation does not currently offer online giving, the report encourages adding it, as “online forms of giving do increase the per capita amounts collected.”

The report also encourages increasing the visibility of online giving methods. For instance, now people can give via scannable QR codes, “text to give” requests and automatic bank transfers, along with pledges, sponsorships and special offerings.

Churches should also consider diversifying their own income streams — and consider educating their congregations about financial literacy.

There is both personal stewardship and church stewardship, said the Rev. Loxley O’Connor, the chief financial officer at Kingdom Fellowship AME Church in Calverton, Maryland, where staff offer free training on faith and finances (including sessions on establishing multiple streams of income and understanding credit) with biblical underpinnings, open to the community.

Since Kingdom Fellowship’s program rolled out, the church has seen growth in membership and individual giving, O’Connor said. The church also diversifies its income streams through substantial rental revenues from an office building as well as from local grants, he said. Today, its income helps the church serve as a community hub offering social services and food — with programs now serving up to 1,700 people per week, O’Connor said.

The bottom line

As inflation rises, churches should consider how to better manage or trim church expenses. But if they can make giving easier, help their congregations grow and be more financially literate (and potentially in a better position to give), and diversify church income streams, then they can both help their congregations and increase church income.

“We want to build a church of generous givers, and that’s not going to happen without also helping you to better manage your finances,” said O’Connor, who is also a CPA and real estate investor. At the same time, church leaders can bring together experts in specialized fields (such as law, accounting and real estate) from their congregations to help strategize about increasing church income, he said.

“I think the discipleship programs that we do must also address all the needs of your congregation. And we all know finances [are] a significant need,” O’Connor said.

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