21 March, 2023

The Financial Impact of COVID-19 on Christian Churches

by | 22 July, 2020

(This article is excerpted from a longer feature article written for our October print magazine. We post some of the more time-critical information now for the benefit of our churches. The longer version—available at the end of September—provides a more comprehensive report.)

By Kent E. Fillinger

During the week of June 7, I conducted a COVID-19 Church Impact Survey to take a “snapshot” of how churches fared during the initial three months of quarantine (March to May) and what they anticipated would be happening over the next three months (June to August) as many have started regathering for in-person worship services. A total of 334 church leaders from 39 states responded, providing a balanced cross-section of all-sized churches from various locations. Survey respondents consisted of the following:

  • Megachurches (averaging 2,000 or more in weekly worship attendance): 6 percent
  • Emerging megachurches (1,000 to 1,999 weekly): 14 percent
  • Large churches (500–999): 17 percent
  • Medium churches (250–499): 19 percent
  • Small churches (100–249): 23 percent
  • Very small churches (99 or fewer): 20 percent

(One percent of the respondents did not provide their church size.)

These churches canceled their onsite worship services an average of 10.7 weeks overall during the preceding few months. Seventeen percent of the churches said they would be closed for an unknown length of time with no specific date set for regathering. Larger churches canceled in-person services for a longer period than smaller churches. For example, at the time of the survey, megachurches had suspended services an average of 12.8 weeks compared with 9.3 weeks for very small churches.

How Financially Prepared Were Churches to Survive COVID-19?

Almost two-thirds of the churches overall (63 percent) said that “finances were not a major concern” during the pandemic. Smaller churches were more likely not to feel a financial crunch than larger churches. About three-fourths (73 percent) of small and very small churches said finances were not a major concern, but only one-third (33 percent) of megachurches reported the same.

Fifty-eight percent of the churches in our study were debt-free. Unsurprisingly, these debt-free churches were more likely to report that finances were not a major concern than churches with debt (76 percent compared to 51 percent, respectively).

Only 7 percent of churches surveyed said they canceled or delayed budgeted expenses during the shutdown period. By comparison, an April State of the Plate (www.stateoftheplate.info) national survey of many denominations—mostly Protestant—found 40 percent of churches had postponed spending on projects or purchases. Again, larger churches were more likely to have canceled or delayed budgeted items.

Of the churches we surveyed, emerging megachurches were the most likely to report cutting or postponing expenses and medium and small churches were the least likely (15 percent versus 3 percent, respectively).

In our survey, two very small churches said they might have to close due to the effects of the pandemic, while one emerging megachurch and one large church said they had to make major cuts (such as staff pay cuts or layoffs) because of COVID-19.

How Did Church Giving During the Quarantine Compare with Pre-COVID-19 Budgets?

Church giving in Christian churches fared extremely well during the closures. Almost two-thirds of the churches overall (63 percent) reported that giving from March to May either met or exceeded their budgets. By comparison, the State of the Plate survey found the opposite to be true for churches. Their study revealed that 64 percent of churches had below-budget giving due to the pandemic.

The small churches in our study fared the best financially, with 73 percent of them either meeting or exceeding their budget during the initial phase of COVID-19; that compared with 56 percent for emerging megachurches and medium churches, which saw the lowest percentage in this category.

How Did Churches Respond?

With no on-site services, churches had to find new or different ways to collect weekly offerings. Mail-in giving and drop-off giving at the church were the top two new methods added by churches during COVID-19. Forty-one percent of the churches added mail-in giving (which included several churches providing their members with stamped envelopes to speed the process). Forty percent of churches encouraged their members to drop-off their weekly offerings, with some churches even installing special offering lockboxes outside their building.

Online giving, however, was the real driver behind giving success at churches during the closures. Most churches noted they already had online giving in place prior to the pandemic, which made it easier for people to quickly transition from offering plate to online portal. Sixteen percent of the churches in our survey added online giving after the pandemic started.

Almost half (45 percent) of churches said they mentioned the church’s financial needs more often during the closures to encourage people to keep giving and to give more to help meet special benevolent needs in the community. A slightly smaller number (38 percent) said they anticipated continuing to talk more about financial needs during the months of June to August.

During the closures, numerous churches (41 percent) cultivated new and additional givers, while more than half (51 percent) anticipate cultivating more new givers in the months to come.

From March to May, 15 percent of the churches tapped into some of their cash reserves to help survive the shutdown, while 1 percent used all their cash reserves and 3 percent accessed a line of credit and used borrowed money.

Similarly, 17 percent of churches anticipated using some of their cash reserves from June to August. Megachurches were the most likely to report plans to use some cash reserves (29 percent), while very small churches were the least likely (10 percent).

How Do Churches Feel about Their Financial Future?

The Christian churches in our survey were generally optimistic about the future financial health of the church for the remainder of the year. Overall, 83 percent of the churches surveyed said they were optimistic for their financial future. Fifteen percent said they were uncertain about their financial health for the remainder of the year and only 1 percent reported being pessimistic.

Kent E. Fillinger serves as president of 3:STRANDS Consulting, Indianapolis, Indiana, and regional vice president (Ohio, Pennsylvania, Michigan) with Christian Financial Resources.

Kent E. Fillinger

Kent E. Fillinger serves as president of 3:STRANDS Consulting, Indianapolis, Indiana, and regional vice president (Ohio, Pennsylvania, Michigan) with Christian Financial Resources.


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