How Much Money Do Churches Make?

Churches, just like any other organization, require financial support to function effectively.

In other words, they need to make money!

But here’s the challenge: Christian churches don’t run like traditional businesses or even like nonprofits. Churches are established to provide a place for believers to worship, learn, and fellowship, and for seekers to learn about Jesus in a safe environment. Still, believers in Christ and church leaders alike want to know: How much money do churches actually make?

In the following article, we’ll talk about the typical amount of money a church makes over the course of a year (including giving statistics), as well as why churches need money, and how they can generate more funding (hint: online giving is a critical tool!).

Ready?

How Do Churches Make Money?

The average American church needs funding for basic operations. This includes expenses like payroll, maintaining facilities, acquiring necessary resources such as curriculum, and funding various ministries and outreach programs.

While sources of income may vary somewhat, most churches across multiple denominations depend on tithing for funding. This can be a Protestant or Catholic church, with congregants across a span of demographics. In other words, the tithe is for everyone!

But what is the tithe?

According to the Bible, the tithe includes 10% of a believer’s income.

A tenth of the produce of the land, whether grain or fruit, is the Lord's, and is holy. (Leviticus 27:30)

Later on, the New Testament affirms and endorses generosity to the church.

Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. (2 Corinthians 9:6-7)

Of course, tithing amounts may vary from person to person. But 10% is generally considered the standard for tithers.

If a church is operating wisely, it will use the tithe to plan a church budget for the entire year–this can include planning for expenses for regular church services, special events (like Christmas or Easter), and hiring any new staff needed.

Now, let’s get to the important part: What percentage of Christians tithe?

What Percentage of Christians Tithe?

Regardless of size and demographics, most churches advocate some form of tithing. But do most Christians actually tithe regularly? Let’s take a look at some specifics.

• One in five Christians in the USA tithe. According to a report from the Barna group, one in five Christians in America regularly give 10% (or more) of their income. This is great news! But the number should be higher. After all, all Christians are called to be givers, regardless of their income.
• Most giving comes from small gifts. Tithely’s study on the 2023 State of Giving found that most financial donations to churches come in the form of small gifts (less than $500).
• Christians are most likely to give on Sunday. The tithes and offerings portion of your church service is still very important; tithers are more likely to give on Sunday than on any other day during the week. Weekly donations given during the weekend service are still critical to the income of most churches!

In short, many church-goers do give regularly to their house of worship. But their giving patterns might look a little different than we expect.

How Much Do Churches Make?

Let’s get down to it: How much is church revenue for the average church?

Well, to answer that question, we need to look at the church budget. Here are a few interesting stats.

According to Tithely’s 2023 State of Giving report, about one-third of all churches require between $100k-$259k a year to operate.

Only 18% require over $500k to operate, and around 15% require under $50k annually for their budget.

Of course, these numbers largely depend on the size of a church and its demographics. But you can safely assume that most churches in America make over $100k and less than $1 million a year!

A Note on Tax-Exempt Status

Do churches pay taxes to the IRS? The short answer is no, although there are exceptions. Most churches gain a tax-exempt status, and many are even exempt from paying property taxes. However, some churches may have unrelated business income that will require them to pay taxes.

How to Increase Giving

How can churches encourage their members to give more generously? Here are a few strategies:

Talk about Tithing

Churches can educate their congregants about the biblical principles of tithing, including relevant scripture passages. This can help congregants understand the significance of giving. Here are a few ideas for tithes and offerings messages for your church.

Give Vision for Generosity

When people understand the impact of their giving, they are more likely to contribute. Churches can share stories and examples of how contributions are making a difference in people's lives and advancing the church's mission (video is an especially powerful medium for storytelling!)

Offer Online Giving

It’s more important than ever for churches to offer convenient online giving options. This makes it easier for members to give regularly and even set up recurring donations.

Tithely is a free online giving platform that makes digital generosity a breeze, with six options for giving. Learn more about boosting generosity at your church with Tithely here.

Potential Uses for Church Funding

So, what can churches do with the funds they receive? Here are a few examples:

• Acquiring a New Building: As congregations grow, there may be a need to either expand the current facility or move to a new location. A building campaign can be a great way to get this fundraising effort off the ground.
• Missions: Many churches allocate a portion of their budget to support both local and international missions.
• Starting New Ministries: Funding can be used to start new ministries or enhance existing ones, catering to the needs of different groups within the church and community.

Partner with Tithely

Understanding and navigating church finances can be a complex task, but it's crucial for the growth and sustainability of any church.

For churches looking to boost their giving, Tithely can help them get the job done, with powerful tools designed to make giving simple and easy for everyone (donors and church admin!) With Tithely, donors can give with a credit card, on their mobile phones, and even with a text message!

To learn more about how Tithe.ly can help your church increase generosity with easy, intuitive giving, check out our free online giving tool right here.

Ultimately, churches have a unique opportunity to foster a culture of generosity that not only supports their own growth but also contributes significantly to the health of the community and of their church members. Remember: Money isn’t evil; the love of money is the root of evil (1 Timothy 6:10). When churches prosper in the hands of healthy leadership, everyone thrives!