Cash Giving Rebounds Among Churches in 2023

After record giving in 2020 and 2021, cash giving declined last year. But churches are seeing giving rebound in 2023 and remain optimistic.

By Marissa Postell Sullivan 

After a dip in giving in 2022, churches have seen an increase in giving in 2023. And most expect that growth to continue into the new year. 

Although nonprofit ministries showed little change in cash giving from 2021 to 2022 (-0.2%), churches saw a decline in cash giving last year (-3.8%). That seems to be changing in 2023, according to the 2023 State of Giving report from Evangelical Council for Financial Accountability (ECFA). 

This report evaluated 2022 CPA-prepared financial statements from 2,000 ECFA members, including churches and nonprofit ministries. The study considers historical insights alongside data on 2023 giving to offer benchmarks for churches planning for the new year. It also looks forward to 2024, uncovering insights into the impact of inflation and levels of optimism for next year. 

What happened to cash giving in 2022? 

Looking back on 2022, this report provides churches with a picture of what brought them to where they are today. Cash giving (cash, checks, online giving, etc.) makes up 80.7% of annual revenue for ECFA members (churches and nonprofit ministries). Because ministries tend to reach a broader audience of varying denominations and faiths than churches that primarily receive cash gifts from their members and congregants, there are often large fluctuations in cash giving changes between nonprofit ministries and churches. 

In 2022, giving lost ground among churches and nonprofits for the first time in 10 years, as donors pulled back to adjust for rising costs of living. This came after two exceptionally high years for cash giving in 2020 and 2021, particularly among nonprofit ministries.

In 2022, giving lost ground among churches and nonprofits for the first time in 10 years, as donors pulled back to adjust for rising costs of living, according to the @ecfa.  Share on X

Although the typical ECFA member experienced a 5.7% increase in cash giving in current dollars last year, the average church and nonprofit ministry experienced a 0.7% decrease in cash giving, after adjusting for inflation. Donors have experienced record inflation and rising costs and are still giving generously. But their giving is not keeping up with inflation. 

Overall, churches (-3.8%) experienced a sharper decline in giving in 2022 than nonprofit ministries (-0.2%). Churches with annual revenues of $20 million or more were the only segment that saw increased cash giving (2.3%). Although most segments of churches saw a decrease in cash giving, giving did not take as deep of a hit in 2022 (-3.8%) as in 2021 (-6.5%), bringing the three-year annualized decline to -3.4%. 

How is giving shaping up in 2023? 

In a recent survey, ECFA asked members about 2023 realities and 2024 expectations. Fortunately, churches’ downward trend in cash giving seems to be reversing in 2023. 

“In contrast to the slight dip in 2022’s cash giving, 2023’s cash giving is positive and stronger, at least for the first nine months of 2023—and the financial outlook for 2024 is likewise optimistic,” the report explains. 

This increase in cash giving is particularly evident among churches. Thinking of the first three quarters of 2023 (January-September) as compared to the first three quarters of 2022, most churches (60%) say cash giving is up. One in 10 churches (10%) say cash giving is nearly the same. And 1 in 3 (30%) say it is lower in 2023 than in 2022.

60% of churches say cash giving was up in the first three quarters of 2023 compared to the same time period in 2022, according to the @ecfa. Share on X

Churches say other revenue (investment earnings, tuition, government grants, and other types of revenue not considered as donations) has stayed roughly the same for 2023 (55%). Still, 35% say other revenue is higher this year. And only 1 in 10 (10%) say other revenue is lower in 2023. Most churches (57%) said they had a higher number of individual donors in 2023 compared to 2022. And 56% of churches said they had more donations that were $100 or less in 2023 compared to 2022.  

Among nonprofit ministries, only 43% say year-to-date cash donations are higher than they were this time last year, 19% say they are nearly the same, and 38% say they are lower. Ministries are also less likely to be experiencing growth from other revenue sources this year, with 20% saying other revenue is higher than this time last year, 38% saying it’s nearly the same, and 42% saying it’s lower. 

Whereas only 22% of ministries say more than half of their giving is recurring (a fixed payment sent on a specific day), 41% of churches say more than half of their giving is recurring. 

Churches continue to be optimistic as they approach the end of the year. Looking toward the close of 2023, most churches anticipate December 2023’s total revenue will be higher than 2022’s (56%). One in 4 (26%) anticipate it being lower, and 18% expect it to be the same. 

What’s expected in 2024? 

Overall, 55% of churches and ministries continue to be optimistic about total cash donations as they look forward to 2024. This is slightly lower than the 57% that were optimistic about 2023 near the close of last year. Over the past three years, churches and ministries were most optimistic coming out of the pandemic in 2021 and looking ahead to 2022 (65%). 

Churches are particularly optimistic about cash giving in the new year (64%). Around 1 in 5 are uncertain (17%) or pessimistic (19%) about giving in 2024. Although slightly less likely to be optimistic, the majority of ministries are also optimistic about cash giving in 2024 (56%).

55% of churches and ministries are optimistic about total cash donations in 2024, according to the @ecfa. Share on X

Despite inflation, most churches plan to maintain (58%) or increase (30%) their programming in 2024. Likewise, most churches have maintained (49%) or increased (36%) their staff size in 2023. And they plan to maintain (59%) or increase (31%) their staffing in 2024. Few churches decreased their staff size in 2023 (15%) or plan to in 2024 (10%).

Still, a Lifeway Research study of U.S. Protestant pastors found 50% say the current economy is negatively impacting their churches. According to the State of Giving, in 2023, the average church made a 3.3% cost of living adjustment for staff wages and plans for a 3.0% adjustment for staff wages for the next budget year. 

More than attracting or retaining donors, churches have struggled to recruit enough volunteers in 2023 (74%). Only 40% of nonprofit ministries say the same. Lifeway Research’s Greatest Needs of Pastors study reveals this is an ongoing challenge for churches, as more than 3 in 4 pastors say developing leaders and volunteers (77%) is among their greatest needs.

Additionally, 7 in 10 churches say they struggled to retain existing major donors ($10,000 a year or more) in 2023 (71%) and to retain existing donors/givers (67%). Others struggled to attract new donors/givers (46%), recruit enough new staff (46%), and attract new major donors (33%). For ministries, the biggest struggles dealt with attracting new major donors (73%), attracting new donors/givers (62%), and recruiting enough new staff (51%).

For permission to republish this article, contact Marissa Postell Sullivan.