Podcast Episode #418
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Even though the economy has rebounded some churches still struggle financially—and some members struggle with giving faithfully. Today we cover the five reasons giving often decreases.
Some highlights from today’s episode include:
- The healthiest church giving generation we know of was the builder generation. They are passing away, and their giving is not being replaced.
- Giving goes down as attendance goes down.
- Millennials give to organizations that are able to convey a distinct purpose and that follow through on that purpose.
- Giving is a spiritual discipline and pastors shouldn’t avoid preaching on it.
- You shouldn’t give on leftovers. You should give on the first fruits.
The five reasons we cover are:
- Lower attendance.
- Generational shifts.
- Giving to purposes rather than organizations.
- Little teaching on giving.
- Not as much discretionary income among churchgoers.
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Part of the issue may be that we are called to be good stewards, and it doesn’t always feel like good stewardship to hand over money to a particular organisation which we don’t think will use it wisely. Where our churches have become very insular there often appears to be no use for the money except for maintaining the church in its present ineffectual state. There are no ambitions to do anything differently with the church funds should they allow – they will always go to paying the pastor’s wages and maintaining the fabric of the building and paying the bills or to helping missionaries on the other side of the world, while having no plans to do anything evangelistically or charitably in the local community. It often seems futile to maintain a building and ministry where the purpose is no longer to spread the good news and glorify God in the world. Churches have often become places to barricade ourselves in from the world rather than beacons of light.
In my own church, apart from the above problem, we have the problem of lack of transparency. There are no longer any church officers, no church members’ meetings, and no financial reports. The pastor (or his wife) are the only ones who know what the church’s financial status is. The pastor used to ask one of the church members to countersign cheques. Then he started to ask him to sign blank cheques ‘for the sake of convenience’ and ‘saving time’. When that member refused to sign any cheque without knowing what it was for, the pastor simply went to another member instead, to someone very elderly and frail and more blindly trusting. It doesn’t inspire confidence!
When I was at university, at the church I became a member of, people were inspired to give because they could see how their money was being spent. The pastors had offices in the church building (which was open all weekdays at the very minimum) and people could see them working and studying and ministering and knew they weren’t shirking their duties. The senior pastor took a significant wage reduction when the church was undergoing a costly redevelopment in order to save the church money, and bought his own house so that the church could rent out the manse for extra income. People saw the sacrifices the pastor was making and were more willing to give sacrificially themselves.
That same church also embarked on various projects and had specific targets to reach – whether it be the redevelopment of the church premises, or a building project in Africa, or sponsoring one of the young people to go off to study, or funding some specific outreach to the local community. People could donate to specific causes wherever the church highlighted a particular need, and feel like they were making a difference. And because the finances were properly in order, people knew exactly how much was needed and didn’t feel like they were being asked to contribute to vague plans which hadn’t been properly thought through. Very often when people are fundraising they ask for round figures, whereas it is more inspiring to feel that a person has worked out the exact cost of a project and isn’t asking for more than is actually needed. If the projected cost is only $9,137, ask for that amount and don’t round it up to $10,000.
I know of a Christian charity in England which applied for a grant for a specific project from a (non-Christian) organisation. It got the grant but the final cost of the project came in under budget, so they sent back the remainder of the unused grant to the organisation, which astonished the organisation as it had never had money returned to it before. It was a good witness and gained the charity the respect and trust of that organisation and opened up evangelistic opportunities to people in that organisation which they would never otherwise have had.
As a church member while at university, the monthly church meetings would always highlight the state of the church’s finances and we knew if we were falling short of the end-of-year target to meet the annual expenditure, and people were always willing to give extra in order to try to meet those targets and cover the shortfalls. Each month we could go along to the church meetings in anticipation to see how much we had done to help things along and see whether we needed to do more. In my present church, with no members meetings or financial reports, it feels very much like the treasury is a black hole and no matter now much money is thrown into it, it will never see the light of day again. If there is a duty on church members to give, there is also a duty on the church leaders to be beyond reproach.
(Sorry to be so long-winded – again!)
Your comment was excellent. You might consider starting your own blog.
Agree.
Lack of transparency or lack of inspiration for ministry aren’t what is going on with your pastor. The practices you describe that your pastor employs are a huge red flag for embezzlement, mismanagement, or misappropriation of funds. There is NO reason for the pastor to have a countersigned blank check – that defeats the purpose.
On the up side, I like asking for “$9,317” for a project – that’s such a wonderful thing and shows an attention to detail that is often lacking.
JB-Certainly not long winded at all. Truthful, clear, precise, and on point.
SBC history: 98% of annual general fund (GF) budget receipts came via the Sunday School ministry (or equivalent title) of local churches (that ministry’s function #6: Support and undergird the work of the church and denomination); that percentage never came via worship attendance alone. There was no NEED to preach about money because of a lack of it OR in order to increase the GF receipts in churches with vibrant, on-mission Sunday School ministries because there was no decline in them (only preaching about biblical stewardship of personal and congregational money-related matters). More history, and a current trend: for a time, local churches decreasing in numerical attendance can actually increase in total annual GF receipts (the giving core of the congregation is all that remains for those few remaining years?). The other reasons listed above: did not matter during the times of earlier generations, and really do not matter now; comparing the eras, those things are equal across the decades (but they are comfortable excuses now).
SBC congregations today are a hodge-podge organizationally; in another decade, each might have figured out what it is going to be, if they still exist by that time. It is “RetroActive Church” to go back to tried-n-true principles of organizational administration for the sake of future biblical growth, to stop being afraid of the term “program” (which only means “a way”–each congregation must have “a way/program” it will use to sustain itself biblically; SBC leaders made us afraid of “program” about 15+ years ago), and to focus again on mission.
During our best days so far, the Sunday Schools of SBC churches were the only “program” (that scary word again!) with church growth-related functions assigned to it; Training Union/Disciple Training, Brotherhood/Baptist Men, WMU, Deacons, Worship–all of them had specific functions assigned BUT none of those functions were church growth-related directly (only indirectly). So: if SBC Sunday Schools did/do not accomplish their 6 assigned functions, the congregations maintaining them would/could/will not sustain their biblical growth (in spirit, in number, in ministry, in mission points) over consecutive years. And, that fact shows up in GF receipts annually. Do the research to see.
Again: the 6 functions assigned to Sunday School (or equivalent title) by SBC leaders wise concerning basic organizational administration were/are: (1) reach people for Bible study (same people; new people; all the time–never-ever stop doing outreach/inreach); (2) teach people the Bible (not the quarterly or a LifeWay discipling course); (3) witness to people about Christ, and lead people to church membership (again: no other SBC ministry/program had/has that function assigned–or gets its results directly); (4) minister to people in need (this is pastoral care–and a big help to busy pastors; cf. care groups, etc.); (5) lead people to worship (corporate and personal; not singing, but loving–pursuing always/unconditionally/despite all costs to myself the complete wellbeing of God and His plan of salvation [which might be expressed through song–and preaching weekly]); and, (6) support and undergird the work of the church and denomination (i.e., do not let your small group become a cancerous cell in the larger body; as important as they are, it is not about small groups primarily–instead, small groups primarily are about the larger body hosting them).
“RetroActive Church: Back to Your Church’s Future”
I agree with the points made above but there also seems to be more of a self-satisfying and sometimes “GoFundMe” mentality when it comes to giving. Giving often becomes a matter of voting your preference or support for a church or pastor or ministry, rather than an obedient and thankful response to the God of all creation. People have forgotten or don’t know that we give to the Lord, not in support of a particular church or a pastor we like. Failure to understand that basic fact will always impact the giving.
Well said.
What is wrong with giving to an organization or effort that is accomplishing something with low overhead? Why are church accomplishments not mentioned at all? Why are the one- and five-year goals of a church not written and mentioned?
The older generation had the benefit of being in an area for most of life. They dreamed and then backed it up with donations of support for building and sustaining a lot of churches. They were all in it together and weren’t told no, except when the money just wasn’t there. They were all allowed to participate because they were the church and did a lot of the work. Running them off would have hurt the whole. Even if someone weren’t well liked, their efforts weren’t going to be refused.
Today, no one save the ruling class is allowed to dream. Even simple purposes/projects require an extraordinary amount of effort to be implemented if permitted at all. It is like running a race with a ball and chain around your ankle. Rarely do churches have an open discussion of anything. The masses may come there and worship and donate money (and may be preached to on why they should be giving more) but still aren’t really wanted by the “in crowd” and are going to be relegated to second-class and will give accordingly. Why is it easier to volunteer for Habitat for Humanity than it is to volunteer in a church?
Bingo, Mark! And then the masses will just give up and leave the local assembly like I did recently. I was a long time member pursuing my calling directly in the community but was rebuffed when I requested to start a ministry or class without their funding. Just needed a supportive church and a small space. I left and began attending another church that is self-proclaimed dying. Unfortunately, the disdain dripping from the lips of the power group regarding the least of these showed me that I could never bring these people that I minister to who trust me into the church for fear that these attitudes would push them away from Jesus. So, what now? I could bring them as a group into my home for bible study (I currently go house to house to visit, help, and minister to them individually.) Unfortunately, I really couldnt fit all the families, not even close to enough space. I know alot of people. But, the church doesnt want my kind of people. It is very hard on me mostly because I have nobody who will help me or just be a supportive friend in this Christian ministry. Sad. The church may not want single moms, but Jesus does. I am really having my doubts about how many true Christ followers are in the church. Side note: my pastors have been great! My pastor from my old church has had some success with purging a few that were very hostile to single moms and has invited me to come back and start my ministry there. But, I am not sure if they are really ready. Maybe it just scares me that there are those still there who may treat these women and children badly. He said that there will always be people like this in the church. These women and children are very vulnerable.
Any advice or encouragement would be helpful. Thanks
I think equally important is the fact that just because we increase in numbers doesn’t mean our giving goes UP.
People who are new believers or who come from more liberal churches don’t always know about giving.
Thom,
With a great deal of respect for the research you do and the ongoing assistance to God’s people, the first four are on point but I am not so sure about the 5th. It seems that families have more discretionary money than ever, but are using it on themselves for their weekend trips to the beach, the mountains, sporting events, and competitions for the kids. In my over 40 years of ministry, I have never witnessed such extravagant lifestyles. My words are not popular but just the other day I heard it said, “Saturday is the most NONNEGOTIABLE day of the week (it’s for self) while Sunday is THE MOST NEGOTIABLE day of the week.”
I would love to see a study (not sure we can do it) of the amount of money spent by families on these weekends that serve as an alternative to corporate worship. It would be interesting and possibly, revealing.
Jerry hit the nail on the head.
I deal extensively with ‘millenials’ and quickly observed they do not give to church or charities (unless compelled to via payroll deductions to a community united fund).
The elderly no longer received 6,7,8,9% or higher on their investments and living expenses rise. And then they die and their giving is gone forever.
Sometimes elderly give without consideration as in the church that spent a member’s $10,000 gift to put a new top on their steeple. (church attendance rung 30-50 per week in a 600 seat sanctuary)
When a full time minister, I never knew who gave what and giving amounts were published (ranges of how many gave X and how many gave Y.) My own mother quit church when they started publishing individual amounts. (she made .50 per hour)
Treasurers get upset when I ask about a published deficit amount. Turns out they are not $10,000 in the red and overdrawn at the bank, but in reality are only XXXX$ below budget.
nuf said!
One aspect not mentioned here is method of giving. Younger generations do not carry cash or write checks. So when the offering is raised, or passed, they can’t give if cash/check is the only option available. Mobile is where they are and mobile giving in some form should be in place as well. It can be done through most CHMS(church management) systems now as well as a wide variety of stand alone mobile giving apps.
I’m 65. For the past five years I’ve figured out what my weekly tithe is, then gone to internet banking. I’ve added my church to get automatic weekly checks sent by my bank so whether I’m at church or not the church get’s my check every week. Same goes for missions. Another check is sent to the same (Church) address once a month by my bank, again whether I make it to service or not. It is a joy to give consistently.
I know members of the body of Christ that do this. The giving is consistent with this method.
I find it a common theme in a few churches where I communicate with the pastor on a regular basis that if and when the giving go’s down a many a times it is due to disgruntled leaders, or the leadership in the church is divided. In order to get the parish on board the leadership has to be on the same page.
True.
Just as we make time for what is important to us,our giving follows the same pattern.
I’m finding that giving decreases when leadership does not adequately provide and communicate a vision for the congregation.
It would be easier to garner support, not just financially, if it’s felt that the congregation has a long-term plan for growth and evangelism.
I’m an older millennial (early 30s). We are leaders in our church’s young adults ministry, so I spend a lot of my time with people 18-25. Here’s some things to consider about millennials in your church:
– They are cause-centric: They are more likely to give towards an articulated, others-focused goal.
– They aren’t getting good jobs until much later. Most of my young adults are still sledging it out at the local grocery store while they finish paying for college.
– They’re paying for college & it’s getting more expensive. Those who DO finally finish college, most of them are buried in student loan debt for the next 5-10 years.
-As one of the posters above said, they are trying to live extravagant lifestyles. It’s 100% correct, and here’s WHY (although I’m not defending them): they are spending 2-4 hours a day on social media, seeing all of their friends try this restaurant, that vacation, these new clothes. If you know what the Joneses are doing at all times, it’s hard not to want to keep up & that’s expensive. I imagine this is also partly due to their age (when you’re young and don’t have kids, you go have adventures.)
– They’re getting stable jobs later, getting married later, having kids later — all demographics that translate to them giving more.
– They are used to convenience. In a world where I can buy something off Amazon in 2 clicks from my phone, there’s no reason giving to your church should be more complicated.
– They are unfamiliar with benefits associated with a giving record (one of my 22 year olds just got her first good paying job, but she was still giving in cash without filling out any information. Once we told her there’s a huge tax break to charitable giving, and how the church would send her a yearly giving statement, she started filling out the envelope.) Perhaps consider allowing a person in your church to make themselves available to young people for questions about taxes, insurance, investments and other financial matters they are just dealing with for the first time.
– They are extremely protective of personal information. (They prefer to hide behind screen names.)
– Builders were brought up in WWII and the Cold War. Everyone sacrifices for a common good and goal. Millennials never had that, and they’ve thrown out the idea there is a common good and goal.
– Builder-generation are comfortable dealing with businesses that run according to hierarchy. Social media has allowed millennials to expect transparency and disregard hierarchy (every person and idea is just a tweet away).
Again, I think lots of good notes in the podcast & comments. We have to consider that millennials aren’t in the same phase of life that their builder generations are. We don’t have some of the non-cash resources older generations have. I hope I don’t have the same resource levels at 70 that I do now at 31, and so hope to be able to give more, too!
Great podcast!
Great comments, Alicia. Thank you.
Following along what Alicia said about millennials not getting stable jobs until later…
One of you said in the podcast (I think it was Jonathan) that millennials “gotta have this house or that car,” and maybe that’s true for some of the few who are making decent money.
The reality I see with my friends, though, is just wanting to continue having a room in someone else’s house. If they have a car at all, they hope it doesn’t break down and leave them stranded, unable to get to their job that doesn’t pay a living wage. I don’t expect my friends to give a 10% tithe when I’m giving them money just to ensure they have some beans to eat with their rice and some toilet paper for after it’s all done.
Poverty is the reality for a lot of us, and I don’t really know to what extent the church as an institution is there for people living with it. I’m sure almost every church budget has a line item to give money to the local food pantry, but what about supporting indigent members? Or (here’s one you’ll like, Thom) paying church employees appropriately? Some of these friends are ministers or sextons. And I know you’re talking about church budgets feeling squeezed, but I can’t help thinking that a church that’s exploiting the labor of its employees isn’t in much position to preach good news to the poor.