Churches may not feel the pain – yet

In times of economic turbulence, charitable giving has held fairly steady in recent history. According to Giving USA, on average, such giving only fell 1.3 percent nationally during the past five recessions which reach back to the mid-1970s.

In this issue of Teleios, 20 pastors we interviewed were asked whether they expected to feel a financial pinch in their church budgets to match the pinch members of their congregations are feeling at home.

Despite the unsettling economy, one half of the pastors said their congregational budgets are holding steady. A few of them even said their congregations’ financial picture has improved in recent times. In one case, a church’s finances seem to be improving despite local lay-offs in the recreational vehicle industry and challenges for farmers wrestling with higher expenses.

But this optimism is not universal.
Four pastors said their congregations have been affected in some way by higher facility costs and rising gas prices. A “long-distance family,” who drives 60 miles one way to an Oklahoma church, made a difficult choice to stop attending weekly worship, explained their pastor. Another pastor, Rachel Epp Miller in San Antonio, said the cost of renovations and utilities in their building is challenging the church budget.

Three pastors were not sure if the changing economy has affected their finances – at least not yet. Their churches are in a normal summer slump, but it’s not clear if it would extend into the coming fall.

Other pastors made varied observations about their church finances:

Though some members have been laid off from jobs, the more significant negative impact on the budget recently has been retirement by older members, said one pastor.

Changing economic times have affected the giving of some people, but other members have stepped up to cover the difference, noted another pastor.

Two pastors believe their budgets are holding steady, but expect some changes. They replied “not yet” when asked if giving has been affected by economic changes.

According to Giving USA, economic climate is not always the main contributing factor to giving rates. Those rates can be more affected by other factors, such as whether donors perceive a need related to a church or nonprofit and the charity’s (or church’s) current level of fundraising activity.

Has giving changed recently due to economic turbulence?

Response of 20 pastors

Giving remains steady: 10

Giving has declined: 4

Giving has improved: 3

Unsure about giving trends: 3