Despite Financial Strains, Fewer Pastors Say Economy Is Hurting Churches
Giving at local churches is not keeping up with inflation, but pastors feel better about the economy than they did last year.
Half of U.S. Protestant pastors (49 percent) say the current economy is negatively impacting their churches, according to the latest tracking survey from Lifeway Research. Two in five (41 percent) don’t feel any economic impact, while nine percent say the economy is a positive factor for their congregation.
“Pastors’ general impressions of the impact of the economy on their churches have noticeably improved since a year ago, but pastors are still five times more likely to be seeing negative effects as positive,” said Scott McConnell, executive director of Lifeway Research.
Last year, 66 percent of U.S. Protestant pastors felt a negative impact from the economy, the highest since 2011. Additionally, the 14 percent who said the effect was very negative was the highest in the 17-year study. This year’s numbers fall more in line with 2022 and 2023.
In general, pastors feel more pessimistic about how the economy affects their churches. Over the 18 studies conducted since 2009, only four times has a plurality of pastors felt the economy was not negatively impacting their congregation, including just once, in 2018, when a plurality said it was having a positive impact.
This year, pastors in certain circumstances are more likely to feel an impact. Specifically, African American pastors (63 percent) are the most likely to say they’re facing negative economic effects.
Those leading churches in the Northeast (58 percent) are more likely than those in the South (47 percent) to say the economy is hurting their congregations. Pastors at churches in rural areas (50 percent) are more likely than those in urban areas (39 percent) not to feel any economic impact.
Smaller and average-sized churches are feeling the brunt more than large congregations. Pastors at churches with a worship service attendance of fewer than 50 (55 percent) and those at churches of 50-99 (53 percent) are more likely than pastors of churches with 250 or more in attendance (42 percent) to say the economy is having a negative impact.
“Smaller churches have less ability to flex when external factors influence their finances,” McConnell said. “With a small overall budget, inflation in one ongoing expense may not be able to be met with additional giving from the small number of givers in the church.”
Mainline pastors are more likely than evangelical pastors to feel the economy is hurting their churches (55 percent vs. 45 percent).
Denominationally, Methodist (64 percent), Holiness (64 percent) and Presbyterian/Reformed (56 percent) pastors are more likely than Baptist (41 percent) and non-denominational (41 percent) pastors to see a negative impact.
Church giving
Pastors’ reduced economic pessimism does not stem from a significant increase in giving. The average church saw offering levels rise 2.1 percent compared to 2024. Meanwhile, inflation grew 2.9 percent.
In fact, only slightly more than a third of U.S. Protestant churches (37 percent) saw any increase in giving over last year. Almost two in five (39 percent) say their levels are the same as 2024, while 20 percent say their offerings are down.
Specifically, 20 percent grew giving by less than 10 percent over 2024, 14 percent increased by 10 percent-24 percent and 5 percent jumped by 25 percent or more. On the other end of the giving spectrum, five percent saw offerings fall by less than 10 percent, 10 percent dropped by 10 percent-24 percent and two percent fell by 25 percent or more.
“The percentage of churches seeing growth in offerings matches the average of all the years surveyed, but it has been seven years (2017) since the percentage of churches with declining offerings was at 20 percent or less,” said McConnell. “One in five churches contracting financially is still a large number who are facing difficult financial decisions.”
Many of the same types of churches that reported feeling more of an economic pinch are also among those that say giving is down.
African American pastors (33 percent) are more likely than white pastors (19 percent) to say this year’s offering is below 2024’s. Also, pastors at churches with attendance of fewer than 50 (29 percent) and 50-99 (23 percent) are more likely than those at congregations of 250 or more (12 percent) to say giving is down. Pastors at the largest churches (53 percent) are also most likely to say their offering is above last year’s.
Giving levels among some church demographics don’t mirror their reported economic impact. Pastors in the Northeast (43 percent) and West (41 percent) are more likely than those in the Midwest (31 percent) to say giving is up compared to 2024.
Denominationally, non-denominational (44 percent), Lutheran (39 percent) and Presbyterian/Reformed (39 percent) pastors are more likely than Methodists (27 percent) to report an increase in offerings.
Budget numbers
Almost half of U.S. Protestant pastors (46 percent) say their giving levels were about what they budgeted for 2025.
More than a quarter (27 percent) report lower than budgeted giving, while 24 percent say they collected more than what they budgeted for the year.
“The financial pessimism that was common a year ago may have led to more conservative budgeting for some this year. More pastors report exceeding budget in 2025 than 2024 (24 percent v. 16 percent),” said McConnell. “The negative outlook in 2024 could have been influenced by post-COVID inflation or sentiments influenced by election debates.”
Again, African American pastors (41 percent) are more likely than white pastors (26 percent) to say giving is below budget.
Pastors at churches with attendance of fewer than 50 (34 percent) and 50-99 (29 percent) are more likely than churches of 250 or more (20 percent) to report giving that doesn’t meet their budget. Pastors at the largest churches (39 percent) are the most likely to say giving exceeded the budget.
Holiness pastors (39 percent) and Methodists (37 percent) are more likely than Baptist (26 percent), non-denominational (24 percent) and Presbyterian/Reformed (21 percent) pastors to say their offering so far this year is below what they planned for in their budget.
For more information, view the complete report and visit LifewayResearch.com.
Aaron Earls is a writer for LifeWay Christian Resources.