Giving to church ministry funding is changing rapidly. There was a time when giving to the work of the church was more frequently modeled in the home and regularly taught in Sunday Schools, discipleship programs, and from the pulpit. In this time, the church received over 60% of all charitable giving, but since 1980, giving to religion has experienced an increasingly rapid decline, hitting a new low of just 23% of total U.S. Giving in 2024.
Unfortunately, many church leaders have failed to understand and adapt to the changing realities behind this decline in giving to the local church. In this blog, I will focus on a few changes that are having the biggest impact on church funding:
Depending on your own experience, you may view the impact of these shifts differently. They must be understood, appreciated, and addressed strategically and compellingly. Otherwise, churches will continue to experience a decline in ministry funding.
Two distinct worldviews are influencing the rapidly growing complexity of giving in churches. Church leaders need to appreciate and reflect on the impact both are having on giving habits.
One perspective maintains an organization-centric view of the local church as an institution. Those who subscribe to this thinking essentially believe their responsibility is to give to the church, and then the church will know how to use the funds best to achieve its ministry goals and mission.
The alternative perspective is more impact-centric. This point of view subscribes to the idea that there should be a clear, compelling, and measurable connection between giving and its impact. This perspective is rapidly gaining traction among church leaders each year, introducing new challenges that they must consider and address.
The builder generation was largely satisfied if their church delivered an acceptable on-site worship experience, offered a variety of attractive on-site programming, and interesting missions and service opportunities. This was largely true of the Boomer generation prior to 2019.
As people, especially those under 60, Generation X, Millennials, and Gen Z, became more aware of the economic and social challenges within their communities, they increasingly want to see evidence that their church is committed to being part of the solution, reflecting an impact-centric view of giving. In Horizons’ work with a wide variety of churches each year, we have observed a strong correlation between churches that are consistently experiencing growth in giving and those that embrace the idea that their givers want to see a constant stream of evidence demonstrating the impact of their giving. This does not mean that these churches do not also communicate with those donors who hold an organization-centric view, but rather that they understand the need to communicate effectively with both perspectives.
There are more than 1.6 million nonprofits in existence today, and the number continues to grow significantly each year.
This means that each new year brings more organizations competing for the same 2% of GDP and after-tax income Americans have given for 40 years. Church and nonprofit giving doesn’t need to be a zero-sum game. Church leaders who recognize this reality will rise to the challenge and clearly communicate why their local church is the best option for donors wanting to see lives changed.
Churches that fail to communicate the impact of their ministry effectively are seeing a steady shift in the pattern of their donors giving a higher percentage of their financial resources to nonprofits. Sadly, this trend is often led by those who are most financially generous in their congregations. Like a ball rolling downhill, with each year this goes unaddressed in a church, the more momentum this trend gains. The days are gone when leadership can assume Christians will give freely and sacrificially to its budget, missions, and ministry without a clearly defined and effectively executed strategy to grow disciples, impact lives, and fund ministry.
With each passing generation, Christians view giving to the church as just one option for the spiritually motivated and increasingly expect church leaders to clearly communicate a plan for how the church addresses the challenges, obstacles, and opportunities in the community and beyond. It does not stop with a plan; they are also requiring measurable evidence of the impact of their investment of time, giftedness, and financial resources. Even if church leaders are not hearing this expectation verbally articulated, donors are sending a loud and clear message in how and where they choose to give.
It’s no longer enough to hope that the weekend experience, the church bulletin, or the announcement time will reach and motivate your congregation to higher levels of giving to your ministries. You must utilize a range of communication channels and address various motivations and perspectives to foster members’ confidence that your ministries are delivering an excellent return on their investment.
Evidence of failing to address these shifting giving patterns is far too often found in the concentration of giving in the builder generation, the youngest of which is over 80. Over time, unless new givers emerge and existing givers grow, a church cannot survive.
The good news is that this challenge can be addressed. It takes planning, intentional leadership, and a disciplined approach to grow a culture of generous giving. When church leaders see this shift take place, they will recognize that the difference is much more far-reaching than simply increasing giving to the budget. Church members will be invested in the outcome. That’s why rethinking church giving and adopting a focus on growing generous givers can transform your congregation into a force for change in the world.
There is no institution better positioned to meet the needs of local communities than the local church. At our best, we provide help to the hurting, love to the suffering, and hope to those who have lost their way. We are an instrument in the hand of our Creator, and with this empowerment, there is no nonprofit ministry that has the same connection to people, families, and communities.
The next big thing in church giving is learning how to build a culture of generosity. It is a process of helping God’s people understand how to utilize best their time, giftedness, financial resources, and voice to bring about the world that God desires. It is one in which church leaders prioritize and embrace discipleship and spiritual formation as the means by which all people are invited to experience a journey of spiritual growth that shifts focus from themselves to how they can leverage all the resources God has powerfully entrusted to them.
The finance team cannot create a culture of generosity in an annual giving campaign. It is a cultural change that must involve the pastor, key staff, communication, and church leadership, all operating off a single theology of generosity and a year-round generosity plan, in support of your church's strategic ministry plan. At Horizons, we refer to this as an Integrated Funding Strategy.
Churches of all shapes and sizes are making these changes and seeing the results. The best and most exciting days of local church ministry are certainly ahead, but the future will look very different from the past.
It’s time to take your church ministry and giving to the next level. The world is waiting and watching to see if we will live into our divine design, becoming instruments of change in the world.