I have a confession to make. Sometimes, when I have spare time, I like to imagine some “what ifs” at our church and project what our budget could look like if people tithed. It’s more than just a pondering moment; I actually pull the median household income from our city and then calculate the number of “giving units” in our church. As an example (no, this is not data from an actual church):
- Annual Median Household Income in the U.S. (per the 2021 census bureau): $70,784
- A tithe (10%): $7,078
- Annual Giving Units: 350
- Total Potential Budget: $2,477,300
Then, I calculate the difference between our actual giving and the potential household median budget. For our church, giving falls about 35% less than a budget based on a tithe of the median household income. As much as it can be painful to see this reality, this data is helpful when building the church budget.
Giving Is In Decline
It may not be a news flash to many in the church world, but giving is in decline. According to a recent study by Nonprofits Source, it’s easy to see that tithing, giving 10% of your income back to God as an act of worship, doesn’t happen as often as it should. The study shows that Christians donate about 2.5% of their income. Even during the Great Depression, Christians were giving 3.3%. On top of that, 7% of regular church attendees have cut their offerings by 20% or more. It’s tough out there. Families are struggling with the impacts of record-high inflation, increasing interest rates to curb inflation, and what seems to be an actual financial recession.
Impact on the Church Budget
When I imagine a church budget based on a tithe of the median household income, it’s not so I can use it as ammunition to shame those unable to give at that rate. God’s word tells us in 2 Corinthians 9:6-7, “Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver“. And, it’s not to play the victim and mourn our church’s loss of ministry impact. I use it as inspiration to see what can be and determine the best path to help people get to a place where they joyfully trust God with their finances. And to guide our church through a realistic budget process based on actual giving and trends. Churches that have not adjusted their budget to match the current giving trend may find themselves on the cusp of a financial crisis. But how do you know?
Lessons from Experience
Experience is a great teacher, and in all my years of ministry, I’ve been through some financially challenging situations. God used me to navigate our church through a split that placed our church in the unenviable financial position of a mortgage and no lender. A few years later, the new Lead Pastor abruptly left, fracturing our church – which always impacts giving. Then, globally we dealt with the COVID-19 pandemic and its divisive impact on congregations that chose to follow the guidance of healthcare and epidemic professionals. And, of course, now working through post-pandemic times of inflation, skyrocketing interest rates, a recession, and what seems to be spiritual apathy toward the church. As I reflect on these situations, God’s provision is unmistakable. Of course, there was still hard work and sacrifice along the way, but remembering His track record from the past gives me renewed confidence in our future. Here are a few lessons from my experiences that may help.
Review the Church Budget to Actual: Keep close tabs on the actual giving and spending amounts. We live in a dynamic and fluid world that demands we, as leaders, pivot when necessary, and having the correct data makes it easier to make critical decisions.
- Compare the church’s current giving trajectory to see if it aligns with the budget target. It’s best to look at in quarters because of the seasonality of giving. For example, December typically has the highest giving of the year; it would be unwise to use December alone as the baseline. But the combined giving of October, November, and December gives a much more accurate picture.
- Compare expenses to the budget. I recommend using a detailed report that shows each category in the chart of accounts to determine if spending is on track with the budget. Again, just like giving, viewing this data in quarters provides a clearer picture. It’s crucial to consider budgeted events like camps that can skew the year-to-date percentage.
- Take corrective action if the reports substantiate a trend contrary to the budget. Ignoring the problem rarely resolves it. Always use the church’s mission, vision, and values when determining the next steps in reducing the budget.
Teach Biblical Giving: Although debt and inflation undoubtedly play a part in the decline in donations churches are experiencing, a lack of teaching may also be a contributing factor. When was the last time your church taught biblical stewardship during a service? Does your church offer financial management classes like Ramsey Solutions Financial Peace University? How does your church model generosity, and is it shared with the congregation? In Romans 10:4, the Apostle Paul wrote, “How then are they to call on Him in whom they have not believed? How are they to believe in Him whom they have not heard? And how are they to hear without a preacher?” This same logic applies to the discipline of giving. How can followers of Jesus know about giving if no one teaches them? Data shows that churches that discuss giving every month see significant financial growth. Boldly and confidently teach what the Bible says about giving.
Pray: Obviously, this needs to be first on the list. Don’t do anything with the budget until you pray. The Apostle Paul encourages us to “Be joyful in hope, patient in affliction, faithful in prayer.” Romans 12:12. Doesn’t that verse sum up the church budget experience, especially during difficult times? But, in the thick of the battle, it can be hard to be faithful in prayer. I often do the opposite of Proverbs 3:5-6. Instead, I lean on my understanding, forget to acknowledge God, and wonder why the path seems unclear. One of the most anxiety-filled times I encountered was when I was sure we would not find funding for our facility. It is not an exaggeration to say it consumed almost a year of my life. At times, I felt forgotten by God and that I was doing it alone. But that wasn’t true; He promised never to leave us or forsake us in Hebrews 13:5. Because of that promise, it was easier for me to cling to Philippians 4:6-7 “Don’t be anxious about things; instead, pray. Pray about everything. He longs to hear your requests, so talk to God about your needs and be thankful for what has come. And know that the peace of God (a peace that is beyond any and all of our human understanding) will stand watch over your hearts and minds in Jesus” (The Voice). In my experience, when I pray first and often, the anxiety wanes, and the peace rises. Pray.
That’s why I dream about what it could look like if everyone gave a tithe of their annual income; it inspires me to see the possibilities and the areas to improve. And when you’re passionate about the mission, you need to see both.
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