Ask Chuck: When a church needs a financial turnaround

Dear Chuck,

I am a new elder at our mid-sized church, serving on the finance committee. I’ve learned that our church is on the verge of financial trouble. We need a turnaround to survive the next five years. Can you give me some counsel from your experience helping churches?

Feeling the Burden for Our Church

Dear Feeling the Burden for Our Church,

Outreach Magazine published the results of the 2024 State of the Church Giving Survey. This was one of their key findings: “Despite an overall increase in giving, the report showed that 55% of churches reported a decrease in giving due to inflation.”

I shudder to think of the impact on our nation and the world should Christian generosity decrease as our economic challenges increase. This is an important issue for all of us who care about the Gospel and sharing God’s truth with the world, whether it is support for small, mid-sized, or large churches or strategic missions and ministries.

Steps for a financially troubled church

Over the 48 years of our existence, we have served hundreds of thousands of churches in the United States and around the world through our materials and programs now available in more than 60 languages. God has shown us what will be helpful to the transformation of your church. I will lay out a few of my suggested steps and offer helpful resources.

First, meet with your elders, pastors, and church staff to pray for God’s wisdom and direction. There is usually no quick fix. Seek to get everyone aligned in trusting the Lord and following a plan together.

Second, it is vital to roll out a vision to the congregation while maintaining credibility and hope.

Integrity with donors, suppliers, the community, employees, and staff is key. If the church makes promises, deliver on them. Otherwise, credibility will rapidly decline, and it will take years to reestablish what was lost.

Third, be sure systems are in place to control cash flow. Positive cash flow is essential. The first priority should be payroll, followed by utilities, rent, or mortgage. After these obligations are met, partial payments should be made to vendors who provide vital goods and services, who threaten to pursue collection procedures, or whose survival is threatened because of payments owed by the church. Sometimes, a difficult decision is made to eliminate or restrict money to certain ministries or departments that consume cash but produce very little.

Next, review the overhead carefully. You may need to suggest that a hiring freeze is implemented until revenues are improved. Do not quickly add new staff or replace those who leave. Employees may have to take on multiple responsibilities; consider using volunteers. Examine the spending practices, attitude, and dedication of staffed positions. Is each needed to fulfill the ministry goals of the church?

Clear and honest communication is essential. Leaders, staff, department heads, and the congregation should be informed and updated regularly. Offer suggestions on ways to improve the situation, encourage their commitment to help, and allow them to voice opinions.

Look for ways to generate cash without putting pressure on your congregants. Sell unnecessary assets and temporarily eliminate any activity that involves a financial obligation. Retreats, trips, outings, etc., must be restricted until the crisis is solved.  

Seek outside help and counsel. Be careful not to be taken in by consultants who may or may not be able to help. Receive, evaluate, pray over, and discuss all ideas and suggestions; then vote to move forward in faith and unity.

Stewardship training is essential

It is a pastor’s responsibility to help the congregation learn Biblical financial principles. The topic of money, possessions, and management is addressed in the Bible more than any other subject except that of love. It seems quite obvious that God emphasized financial stewardship training as an integral part of a well-rounded spiritual education. Christians should be the best managers of money because of the guidelines provided in His Word.

The church must first recognize that God owns everything. All blessings come from Him. Money is not our possession; it is God’s. We are merely stewards (managers). He allots different amounts to us based on His plan and purpose for our lives, and we will be held accountable for the way we manage it. When leadership understands this, they will more effectively project that truth to those whom God has placed under their spiritual care.

A pastor must challenge and motivate his flock to apply God’s method of handling money. Many are not equipped and silently suffer from personal financial challenges. There are a number of financial lessons on which to concentrate, but four are particularly important for churches:

• Warn about the dangers of debt, like buying on credit, cosigning, surety, and the financial pitfalls associated with borrowing.
• Teach what the Bible says by using our guidelines of money management — the virtuous cycle of working, giving, saving, spending, and investing. Train (or get a qualified volunteer to train) on budgeting.
• Provide transformational financial training. God’s principles can help people pay their bills, live on a budget, and become more generous. By reducing their financial stress, marriages, health, relationships, and service to others will all improve.
• Offer financial management skills for crisis situations or major life changes: job change or loss, moving, starting college, planning an affordable wedding, retirement planning, death of a spouse, prolonged sickness, elder care, and more.

One way to radically impact a church is by training a dedicated group of people to lead small groups. A church-wide rollout on biblical financial training can be taught at all age levels for all socioeconomic groups. Crown.org provides online small group facilitator training here. More materials can be found here.

Additional resources for pastors or elders

• Randy Alcorn’s Money, Possessions, and Eternity –Here’s an excerpt.
• My books: Money Problems, Marriage Solutions and Economic Evidence for God?
• Shawn Eaton’s article: “Stewardship ... for the Purpose of Godliness”
• Determining and funding the church budget

Thank you for your question. Let us know if we can be of any direct help in implementing these suggested steps. We have seen God completely transform lives and entire congregations following these guidelines. I pray it will be the same for you.

Do you want more tools and tips on financial stewardship? Are you interested in receiving ministry updates from around the world? Sign up to receive the Crown Newsletter emails by using the form on the homepage at Crown.org.