Financial Strategies for Your Church

After two years of doing ministry and worshipping with the uncertainty of the pandemic, most churches have returned to in-person worship.  Church attendance at mainline churches had been experiencing a steady decline before the pandemic and that has been exacerbated because churches were forced to worship online for far longer than expected. We are learning to live with and protect ourselves from the Covid-19 virus, and discerning insights gained during the pandemic.  Churches will benefit by taking a realistic assessment of their financial health, as they plan for future ministry and financial needs.

Consider the following factors in your financial evaluation:

• Include an analysis of your pre-pandemic giving income and expenses in 2019 or earlier
• Determine how the church fared financially during the disruptive pandemic years of 2020 and 2021. Did congregational giving decrease, increase or did it hold steady?
• If your church received a loan under the Paycheck Protection Program initiated in response to Covid-19, how did that impact your budget in in 2020 and 2021?
• Is your church making payments on payroll taxes that were deferred through December 31. 2022 under the 2020 CARES Act? How will that affect the balance sheet?
• If your church adopted an online giving platform(s) in the last two years, what has been the impact on congregational giving?
• Has 2022 functioned as a stabilizing year financially?
• Are there any financial trends or expenses that emerged over the last two years that have become permanent?
• Note any shifts that have occurred amongst your church staff
• Ideally, you want to develop a three-year comparison and analysis to help your church finance committee determine how giving patterns and income and expense cycles may have shifted

This may be time-consuming for the financial team at your church, but the information gathered will be invaluable as you begin working on the budget for the coming year.

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The information contained herein is for informational purposes only.  While MMBB made every attempt to ensure that the information is accurate, MMBB is not responsible for any errors or omissions or the results obtained from the use of this information.  MMBB is not liable for any success or failure that is directly or indirectly related to the use of the information contained herein.  The information contained herein does not constitute any financial, insurance, investment, legal, or tax advice.  In no event shall, MMBB and/or its fiduciaries, directors, officers, employees, or agents thereof be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in action of contract, negligence or tort, arising out of or in connection with the use of the information contained herein.