A new study conducted by the Indiana University School of Philanthropy and Lake Institute on Faith & Giving at Indiana University School of Philanthropy, in partnership with the Alban Institute, the National Association of Church Business Administration (NACBA), Indianapolis Center for Congregations, and MAXIMUM Generosity finds that congregations are starting to recover financially after multiple consecutive challenging years. The research shows:
- Nearly two-thirds of churches increased donations from 2010 to 2011 and
- Younger congregations were more likely to have increases in donations than those comprised primarily of older members (88% of churches with congregation members who were mostly 35 or younger increased donations in 2011, while only 60% of those with members who were mostly 55 or older did so).
So What?
While the increased health of the economy is likely the biggest factor in the recent growth in church budgets, congregations with growing budgets were more likely than those with flat or declining budgets to:
- Recruit new members and persuade them to attend services regularly (or got everybody to go more regularly),
- Enlist clergy leaders to make personal requests for donations, and
- Make aggressive efforts to ensure that church members who had promised to give fulfilled their pledges.
Additionally, the percentage of congregations offering participants the opportunity for e-giving continues to increase. This option is increasingly attractive to those who live in a post-check-writing world.
Giving to religious organizations remains the number one way that people engage in charitable giving. In 2011, charitable contributions to religious organizations are estimated to have totaled $95.88 billion, which is roughly two and a half times as much as giving to the second highest category: education (p.9, “The 2013 Congregational Economic Impact Study”).
- Compare your congregation’s budgeted and actual figures for 2010 and 2011. What was the percent change between these two years? What are the most significant factors that contributed to the growth, stability or decline?
- How good of a job does your church do when it comes to the “3 common characteristics” (recruit, enlist, make) shared by most congregations with growing budgets?
- What is your congregation’s greatest financial challenge for 2013? for the next 5 years?