Majority of congregations are in excellent or good financial health

More than six in 10 religious leaders report that their congregation is in excellent or good financial health, according to the Exploring the Pandemic Impact on Congregations research project released this week by the Hartford Institute for Religion Research.

Based on data from 2023 and 2020 and surveying congregations from more than 50 Christian denominations, as well as Jewish, Muslim, Hindu and other religions, the report found that leaders say their institutions generally are in good financial health, although a bit limited because of inflation, according to Religion News Service.

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Congregational leaders were asked in 2023 to assess the financial health of their congregation. About a quarter of congregations reported that they were in “excellent” financial health, more than a third reported “good” financial health and about 28 percent said it was “tight, but we manage.” Only about one in 10 reported being in “some” or “serious” financial difficulty (8 percent and 3 percent, respectively). By comparison, in 2020, only half reported “good” or “excellent” financial health, and more congregations reported that they were experiencing fiscal hardship.

Charissa Mikoski, Ph.D., primary author of the report, pointed out that it’s important to note the congregational health question was self-reported by congregations and thus subjective. Instead of doom and gloom, she found it “interesting so many viewed their financial health as good or excellent despite inflation.”

In 2023, the report found the typical congregation had a median of 60 in-person weekly worship attendees and an annual income of $165,000, with expenses of $160,000; an increase over 2020, when churches reported a median income of $120,000, with $108,000 in expenses. According to Hartford, 2023 saw the highest income reported by congregations in nearly 15 years, even as congregations reported the lowest average worship attendance since Hartford’s surveys began in 2000.

The survey asked congregations to reflect on their current (2023) financial health and that of five years earlier (2018) to determine which congregations were financially stable, which had improved and which had experienced financial decline over the past five years. About a quarter of congregations reported being worse off financially in 2023 than in 2018, a fifth had improved their financial situation and the largest share remained constant.

“This relatively positive assessment could be considered surprising given that this period directly spans the COVID-19 pandemic,” according to the report.

–Alan Goforth | Metro Voice