Barna Research: Churches Stand to Lose Several Billion Dollars Due to Economic Downturn
- Posted by: Todd
- Posted on: Mon, December 01, 2008
- Viewed 202
- (31) comments so far
I guess I take issue with George’s premise that deficit spending in churches is commonplace during the first three quarters of the year because churches know that they’ll make up for it in year-end giving. I’ve been a part of church ministry for over 20 years, served on several boards, and watched church finances closely. I’ve never heard that theory in any of the churches I’ve worked in.
Now, according to Barna, last quarter giving will be down 4-6% in churches, amounting to $3-5 Billion (with a B) lose to the church.
Barna continues, “With a large share of congregants expecting the nation’s economic woes to drag on for several years, it would be wise for churches and non-profits to reconfigure their financial models and plan to spend more cautiously over the coming two or three quarters… Even if a congregation continues to grow numerically, this is not a good time to use dated financial projections and models. People’s attitudes about generosity have been altered, as shown by their immediate donation behavior. We anticipate that a greater percentage of church-goers will decrease both their giving levels and frequency over the next year or so. This is a time for church leaders to demonstrate restraint and wisdom in their financial decisions.”
In the end, Barna calls for wisdom and restraint. That is wise. Most of the churches I’m tracking are being prudent. Many are freezing spending and budgets for the next year. Many are cutting travel and extra expenses. Some are freezing hiring and salaries. But no leader I’ve talked to is taking quite as dire a reading as Barna.
Let’s face it. There is plenty of money out there to fund God’s work. We all know that. And it could be that the 22% of the 20% who have stopped giving entirely to the church are those who give way less per capita than most others. (In fact, that’s my guess… with no research to back it up).
Bottom line: I get tired of all the doom and gloom. Maybe it’s just my optimistic attitude., but I don’t see what value the study brings to the table. It’s an economic crisis. What do we expect? My guess is that the biggest effect this release will have is that pastors everywhere will use it as an excuse/crutch when their own giving goes down. It is a time to be pro-active, not re-active to be sure. And those who are, I think, will be just fine.
Case in point: the numbers are in from Black Friday: Black Friday Spending Up 3% There’s plenty of money for the mall. I’m sure God’s church will do just fine.
I’d love your input on this this morning:
1. Does your church spend more money than you take in during the first three quarters of the year since you know you’ll make up for it in the fourth quarter? If not, have you ever heard of this method of church budgeting before?
2. How concerned are you about effects of the current economic crisis in your church? What are you doing differently today than a year ago?
3. Do you think Barna’s read in this report is overly pessimistic, overly optimistic, or about right?
You can read Barna’s press release here...
As Joan Rivers would say, "Can we talk?" Headlines like this drive me crazy! There's nothing you want to hear more on a Monday morning than a dismal financial outlook for the church. But the new outlook from Barna Research, released this morning, is not very optimistic:
20% of households have decreased their giving to churches.
Of those 20%, 22% have said they have stopped giving altogether.
George Barna says: "Most non-profits and churches count on the fourth quarter of the year to produce at least one-third of their annual income. Deficit spending is common during the first three quarters, with the expectation that holiday giving will enable the organization to meet its budget projections. This year is likely to be very different. The giving patterns we’re witnessing suggest that churches, alone, will receive some $3 billion to $5 billion dollars less than expected during this fourth quarter. The average church can expect to see its revenues dip about 4% to 6% lower than would have been expected without the economic turmoil. We anticipate that other non-profit organizations will be hit even harder."
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