A recent report by the Hartford Institute for Religion Research found that almost a quarter (24%) of congregations in the United States are financially operating at a deficit. However, only 11% report experiencing financial difficulty, down from a high of 20% at the beginning of the COVID-19 pandemic in 2020.

The report, funded by the Lilly Endowment, compared data from the Exploring Pandemic Impact on Congregations (EPIC) and the Faith Communities Today (FACT) studies. Over 15,000 congregations participated in the study, which included representation from over 50 Christian denominations and across five faith traditions. 

The study found a rise in actual income for congregations, with a median of $165,00. However, this is almost $45,000 short of what would be needed to account for inflation.

Around 85% of congregational income flows into the coffers through member contributions (tithes, offerings, etc.), with the rest coming from fundraising events, rental income (4% each) and other sources (6%).  

On average, staff salaries (43%) and building operations (26%) comprise the lion’s share of expenses. This is rounded out by program support and materials (11%) and mission and benevolence (13%).

Leaders have been feeling better about the state of their finances since the height of the pandemic. In 2020, about half of respondents said their financial situations were in “good” or “excellent” condition. 

In 2023, those sentiments rose to 61%. In 2020, 6% reported being in “serious difficulty.” In 2023, that rate was halved at 3%.

The report also measured per capita income and broke down data by church size and religious tradition. More information from the report, including methodology and financial recommendations for congregations, can be found here.