We live in a time when data is everywhere. Organizations use surveys and statistics to tell all kinds of stories. Depending on who pulled and culled the data, it can look like charitable giving is up while donations to churches are down – but compared to what? Some reports compare today’s giving to 1980 giving trends, while others use pre-pandemic to post-pandemic data. And is the organization reporting the data using it to tell the story about dollars or percentages? And how does any of this impact “my” church?
Why It Matters
Even with all this data at our disposal, operating a church remains extremely difficult in today’s climate. And staying up-to-date on the overall trends, especially when it comes to giving, is extremely helpful when planning and strategizing how to accomplish the church’s mission. Knowing that the number of givers in America decreased from two-thirds twenty years ago to about fifty percent today is significant. But does it mean budget cuts are inevitable? How can churches move forward and make disciples of all nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit (Matthew 28:19 ) in confidence? The calling of the church is too important to ignore the data or give up.
What To Do
A church, just like any other for-profit or non-profit business, needs capital to operate. Necessities like compensation, mortgage or rent, utilities, supplies, maintenance, etc., all require money. Since donations are the primary source of income for churches, it’s essential to know the trends and how they impact your church. With that in mind, here are a few tips to consider:
- Budget Projections: Since a budget is a tool that assigns every dollar to a specific category to fulfill the church’s mission, it’s vital that the projection is as accurate as possible to prevent overspending or underfunding needs. Using historical attendance and giving data provides essential data points to forecast the budget. But they don’t always give a complete picture. Utilizing external church data trends can help guide the church’s existing data points (attendance and giving) and refine the projection. For example, many churches experienced an uptick in attendance and giving over the prior year immediately after the pandemic ended because on-campus services resumed. However, external data survey data shows that overall attendance is still down compared to pre-pandemic totals. This additional information suggests churches should avoid creating budget projections based on the current attendance trend alone.
- Monitor Income and Spending: Sometimes, even a well-executed budget projection is no match for unforeseen circumstances, making it essential to monitor income and spending on a monthly basis. If a trend develops, either upward or downward, have a plan to adjust spending accordingly. A word of caution: do not make major budget-changing decisions based on a single month; viewing key indicators like attendance and giving a quarter at a time best allows the church to account for seasonal ebbs and flows.
- Invest in Growth: Over time, church budgets tend to spend more and more to support existing ministries and initiatives, slowly becoming inwardly focused. Check your church budget and ask what line items are designated to bring new people into the church. Is there a marketing budget? Does the website target people searching for a church in your area? How is your church impacting the local community?
As church leaders, we all have our favorite church data outlets: Pew Research Center, Barna Group, Gallup, etc. These reliable resources provide invaluable insights into national and global trends, and it’s important to stay informed about matters that may impact your church. It’s equally necessary to know the essential data and trends about your church. Combining the power of your church’s trends based on actual data and viewing it through the lens of reliable resources allows churches to build better budget projections, monitor and adjust spending in a timely manner, and ensure the church is investing in growth.
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