Half of pastors say the economy is hurting their churches

NASHVILLE, Tenn. — Individuals aren’t the only ones facing consequences of inflation and other negative economic factors in the U.S., as many pastors say their churches are being harmed as well.

A Lifeway Research study of U.S. Protestant pastors found that more than half say the current economy is having a negative impact on their churches. For 40%, the economic circumstances aren’t having any effect. Fewer than 1 in 10 pastors say the current economy is a positive factor for their churches.

The economic outlook among pastors has soured more in 2022 than in recent years. Last year, around half of pastors said the economy was having no impact. Only once in the previous five years, during the height of the COVID-19 pandemic in 2020, were pastors most likely to be pessimistic about the economic impact on their congregations. During this time, pastors had been more likely to say the economy was having no effect. The two years prior to the pandemic were the only two years in the study’s more than 13-year history when pastors were more likely to say the economy was having a positive impact than a negative one.

2022 marks the first time since 2016 that more than half of pastors feel the economy is having a negative impact on their churches and the first time since 2012 that fewer than 10% of pastors see the economy as having a positive effect.

“Outside economic forces are back to being a negative influence for most churches, according to their pastors,” said Scott McConnell, executive director of Lifeway Research. “As temporary assistance from the CARES Act expires and prices and interest rates rise, churches are noticing the impact on their finances.”

Giving remains stable

Despite reporting a negative impact, most pastors say congregational giving is at least staying around the budget and in line with the previous year.

Around 7 in 10 U.S. Protestant pastors say giving at their church so far this year is at or exceeding their budget, including nearly half who say giving has been about what was budgeted and almost a quarter who say it’s higher. Just under a third say giving is below their 2022 budget.

Almost 3 in 4 pastors say their offerings so far in 2022 are at or above 2021 levels..

“The souring of pastor attitudes towards the economy is more about rising expenses than declining income,” said McConnell. “Declining year-over-year giving is a factor for almost a quarter of churches, but this is a similar rate to what churches have averaged for over a decade.”

Small church struggles

According to pastors, the current economy is not having the same impact on all churches. Despite having recovered to pre-pandemic attendance levels more quickly, smaller congregations are among those most likely to say they are facing economic headwinds.

More than 6 in 10 small church pastors, those with congregations of less than 50 attendees,  say the economy is negatively impacting their churches. These churches are more likely than churches with more than 100 in attendance to say giving is about what they budgeted, but they’re the most likely to say offerings in 2022 are below 2021 levels. Meanwhile, pastors at the largest churches, those with 250 or more, are the most likely to say offerings so far this year are above last year’s levels.

“Churches with attendance of less than 50 have fewer people to cover the expenses of the church,” said McConnell. “When prices rise there are fewer people to spread that cost among.”

Other considerations also factor into who is more likely to report economic troubles. Pastors in the Northeast are the most likely to say the current economy is having a negative impact on their congregation. As it has been in recent years, African American pastors are more likely than their white counterparts to say their offerings this year are below what they were the previous year.