As economic pressures continue to mount, church donations across the United States are experiencing a decline for the second consecutive year, despite an increase in attendance. A recent report from the Evangelical Council for Financial Accountability (ECFA) highlights that 70% of member churches are struggling with inflation, which has raised operational costs by 23% over the past five years. While church attendance has risen, many congregations are reporting flat or declining tithing. For instance, a church in New Jersey noted stable donations despite a 20% increase in attendance, while an Indiana church cited economic factors as a significant contributor to reduced donations. The ECFA's State of Giving report, released on November 19, 2024, indicates that 56% of churches anticipate higher giving trends in 2024, with 63% expecting more donations in December 2024, a crucial month for year-end giving [4d25711c].
Interestingly, megachurches with over 8,000 attendees have seen growth in their giving, and churches with revenues under $2 million reported a 2.4% increase in donations. However, the overall sentiment among churches remains cautious, with 73% expressing concern about volunteer recruitment and the sustainability of their financial health. Digital giving platforms are emerging as a solution, facilitating larger donations and making it easier for congregants to contribute. Tax deductions continue to be viewed as a vital incentive for charitable giving, and many churches are optimistic about a potential rebound in donations in 2025, particularly in light of the upcoming presidential election [4d25711c].
This decline in church donations mirrors broader trends in charitable giving across the country, where total contributions fell by 2.1% in 2023 after adjusting for inflation. The impact of inflation and economic uncertainty has been felt across various sectors, including nonprofits, which are also grappling with similar challenges. The recent analysis indicates that tax cuts from the Tax Cuts and Jobs Act of 2017 have led to a significant reduction in charitable contributions, with individual donations decreasing from $376.4 billion in 2017 to $374.4 billion in 2023. As Congress considers revisiting charitable giving tax incentives, the implications for both churches and nonprofits remain a critical concern [b2af3545].
In light of these challenges, charities are looking to make up for weak revenue during the upcoming GivingTuesday on December 3, 2024. This annual event is seen as a crucial opportunity for fundraising, especially as 2023 donations increased by only 0.6% after inflation adjustment. Notably, 8 in 10 affluent individuals donated, with an average income of $524,000 and a net worth of $31 million. High-net-worth households are contributing more, while older generations are donating at higher rates. The average age of first large gift donors has now risen to 66, and there is a reported growth in bequests according to Giving USA. Younger generations, however, are showing a preference for donating their time over money. Charities are hopeful that GivingTuesday will see a projected increase in donations by 11%, providing a much-needed boost amid ongoing economic challenges [1d54cff5].