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Fresh Research from Leadership Network Details How the Economic Slump Is (or Isn’t) Hitting Churches

April 23 , 2009

DALLAS, TX (April 23, 2009) — The nation’s leading churches so far are weathering the economic storm more successfully than other segments of the economy. And many are reaching out in especially innovative and generous ways to help their congregations and their communities through these difficult times.

Those are among the key conclusions of new research findings from Leadership Network.

“Leadership Network conducts a detailed economic study of large churches every other year,” said Warren Bird, Ph.D., Leadership Network’s Director of Research and principal writer of the report. “Our last comprehensive survey was completed in June 2008. However, as the economy has continued to suffer, we decided to conduct a special, interim survey to identify any changes that may have occurred in the past few months.

The new report is based largely on a nationwide survey of 555 executive pastors from Protestant churches conducted in January 2009. Overall, the survey suggests that current effects from the downturn are minimal. In fact, 49 percent of the respondents say the economic slowdown has had no impact at all on their church—down only slightly from the 56 percent who reported no impact six months earlier. And only 7 percent reported a “very negative” impact from the slumping economy. Eighty-nine percent expect to meet their budget for 2009.

At the same time, churches are more cautious about the future. In June 2008, 74 percent of surveyed churches said they expected their church’s income to rise in 2009. In the January survey, only 53 percent were so optimistic.

In addition to Leadership Network’s own statistical analysis, the full report, which can be downloaded free at www.leadnet.org/salary, includes summaries and references to other recent research on church economics.

Additional findings in the study include the following:

• Almost all churches are budgeting with greater caution and transparency.
• Churches with growing attendance are least likely to be affected by the downturn.
• Greater financial difficulties are reported in the “sand” states (Florida, Arizona, Nevada, California) and the “rust” states (Michigan, Indiana, Ohio) than in other sections of the country.
• Older executive pastors tend to be more optimistic than younger ones.
• Large churches (weekly worship attendance of 2,000 and up) are faring slightly better than smaller churches
• Church foreclosures continue to be rare. One leading provider of loans to churches, the Evangelical Christian Credit Union (www.eccu.org), reports seven foreclosures in its 1,100 loan portfolio in 2008, as compared to two foreclosures in 2007.
• 85 percent of churches are planning at least two initiatives in 2009 to help their congregations better manage their finances according to Biblical principles.

The study also includes specific examples of churches that are creatively and generously helping their congregations and communities weather financial hardship. Among others listed in the report are:

• Cross Timbers Community Church, Argyle, Texas, (www.crosstimberschurch.org), which gave away its entire Easter offering to local assistance programs this year.
• Healing Place Church, Baton Rouge, La., (www.healingplacechurch.org), which implemented a large-scale Wal-Mart gift card giveaway to help those in need.
• North Point Community Church, Alpharetta, Ga., (www.northpoint.org), which developed a deep support network for those who are seeking employment.
• Vineyard Church of Columbus, Ohio, (www.vineyardcolumbus.org), which offers a wide range of employment and life-assistance programs, including free health care at two heath clinics.

Readers are invited to share comments and questions by emailing Leadership Network’s research department at research@leadnet.org. In May, a Leadership Network podcast will respond to key submissions and provide additional perspective on the research. For more information on the study or to schedule an interview with Warren Bird, contact Rick Long at 1.800.477.6698 x 102 or rlong@source-mpi.com.

About Leadership Network: Based in Dallas, Texas, Leadership Network is a nonprofit public charity that fosters church innovation and growth through a variety of programs, resources and strategies in furtherance of a far-reaching mission to identify, connect and help high-capacity Christian leaders multiply their impact. For more on Leadership Network, see www.leadnet.org and www.halftime.org, or contact Rick Long at 1.800.477.6698 x102 or rlong@source-mpi.com.

 

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