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2008-09-16 issue:

Impact of turbulent economy is muted

Half of Mennonite pastors say congregational budgets are holding steady.

by Teleios from MMA

Print Article

In times of economic turbulence, charitable giving has held fairly steady in recent history. According to Giving USA, on average, such giving only fell 1.3 percent nationally during the past five recessions, which reach back to the mid-1970s.

For the Fall issue of Teleios, 20 pastors were asked whether they expected to feel a financial pinch in their church budgets to match the pinch their members are feeling at home.

Half the pastors said their congregational budgets are holding steady. A few of them even said their congregations’ financial picture has improved in recent times. In one case, a church’s finances seem to be improving despite local layoffs in the recreational vehicle industry and challenges for farmers wrestling with greater expenses.

But this optimism is not universal. Four pastors said their congregations have been affected in some way by higher facility costs and rising gas prices. A “long-distance family” that drives 60 miles one way to church made a difficult choice to stop attending weekly worship, explained their pastor. Another pastor, Rachel Epp Miller in San Antonio, Texas, said the cost of renovations and utilities in their building is challenging the church budget.

Three pastors were not sure if the changing economy has affected their finances—at least not yet. Their churches are in a normal summer slump, but it’s unclear if it will extend into the fall.

Other pastors made varied observations about their church finances: Though some members have been laid off from jobs, the more significant negative impact on the budget has been retirement by older members, said one pastor. Changing economic times have affected the giving of some people, but other members have stepped up to cover the difference, noted another pastor.

Two pastors believe their budgets are holding steady but expect some changes. They replied “not yet” when asked if giving has been affected by economic changes.

According to Giving USA, the economic climate is not always the main contributing factor to giving rates. Those rates can be more affected by other factors, such as whether donors perceive a need related to a church or nonprofit and the charity’s (or church’s) current level of fund-raising activity. —Teleios from Mennonite Mutual Aid

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Additional Notes

Has giving changed recently due to economic turbulence?

Responses from 20 pastors:

Giving remains steady: 10
Giving has declined: 4
Giving has improved: 3
Unsure about giving trends: 3

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