The Real Reasons Giving is Declining

“I read your newsletter this morning and I wanted to know what you believe is the number one reason giving is declining?” My friend, Pastor Jason Bunger, asked me that question hours after the normal Monday morning send of this newsletter. I had to stop and say, “Wait, what did I write today?” Then I remembered the title was, The Real Reason Offerings Are Declining. The focus of that Coach was the act of taking up an offering. I put forward the idea that we, the ministers of the church, are the main problem for why the act of taking up an offering has declined. Jason’s question is related but also completely different. So, in this edition of the Coach I want to share with you, “The Real Reasons Giving is Declining.”

Whereas I believe there is one key reason offerings are in danger, there are multiple reasons why giving is declining. I break the reasons for the decline on both external and internal issues. First, let’s start with the easiest to clarify, the external pressures that contribute to a decline in giving. I wrote about this recently in Volume 9 Issue 19. I listed these external reasons:

• The secularization of America. Turn on your TV or go to the movies, and you can see we are more secular than ever. This has resulted in a…
• Decline in church membership and attendance. Simply put, fewer people attending or engaging with your church means fewer dollars for your church. At the same time, a decline in membership relates to a decline in giving, as those that join always give more than those who are only attendees.
• Our aging donor base. America is undergoing a huge demographic shift. Our best and most generous donors are dying off or entering retirement. Let me depart from quoting Issue 19 and expound upon this a bit.
  
  The generation that was the most generous is nearly gone. Those that remain are in their last days of retirement. While they still give generously, their numbers are declining daily.
  
  The real issue is that 10,000 Baby Boomers a day are turning 65. Baby Boomers give more money to churches than any other generation. Right now, they are at the height of their earning power. Yet, by 2030, this generation will be into their retirement years and will have less expendable incomes to give. They have watched the fears of their parents in terms of outliving their money and they too will guard their nest egg as they will increasingly live longer than previous generations.
  
  Gen X, or as my friend Jason likes to call his demographic, The Forgotten Generation, has not as of yet demonstrated a giving capability to replace the retiring Boomers. This must be a major area of focus.

Millennials are now the largest generation in America. Studies are showing that they have an aversion to institutions. On top of this, they have massive student loan debts for degrees that are practically worthless. The result is they find themselves in jobs that pay little thus causing their view of a future to be dim.

Millennials are now the largest generation in America. Studies are showing that they have an aversion to institutions. On top of this, they have massive student loan debts for degrees that are practically worthless. The result is they find themselves in jobs that pay little thus causing their view of a future to be dim.

Let me add to my Issue 19 list the following:

• Covid-19. Every church has and is experiencing giving stress related to the pandemic. How you reacted to the pandemic and how soon you opened back up are keys to understanding the long-term giving impact of Covid. While the pandemic caused an immediate decline in giving, that decline has been long in the making.
• Economic uncertainty has shaken the confidence of Americans. People have lost confidence in the economy and that is showing up in their giving. Sadly, many people, thinking they must cut something in their budgets, cut the one thing that will ensure security, their giving. With gas prices at all-time highs and the cost of everything rising, giving will be an issue.
• Trust in institutions has fallen and will continue to fall. The mistrust that so many have in institutions is carried over into the Church. If I mistrust the institution of the Church, why would I give significantly to your church?

What about internal issues? Here is my list with comments about what we are doing to contribute to the decline in giving. Let me start with three reasons from the list I quoted above that are internal:

• The failure to engage younger generations. This is the ticking time bomb that few are paying attention to. If we lose the next generation, how will we fund the important work of missions and ministry in the future?
• We have retreated from teaching stewardship as a part of discipleship. We have become obsessed with attendance, and in our rush to avoid anything controversial, we have jettisoned any talk of money.
• We have failed to communicate a compelling vision. We have not helped members see the connection between their gift and the life-change it can help produce.Let me add to this list a few other internal issues that I find stifle giving and threaten long-term financial health.

Let me add to this list a few other internal issues that I find stifle giving and threaten long-term financial health.

• Unresolved problems in the past. Someone said that the Christian army is the only army that buries its wounded. Left unresolved, problems of the past will continue to impact your present and your future!
• Problems with pastoral leadership. It might be hard to admit but sometimes we are the problem. Looking back, I realize now that how I led my church was the issue, not where I was leading them. I failed to build the necessary relationships with people ahead of time. Therefore, it is essential pastors continually work on building relationships with their members, especially those gifted with abilities and finances.
• Procedural problems. Often a church takes a new direction or starts a new ministry that some in the church object to. Sometimes it is how it is implemented and at other times it is simply what was proposed. Our procedure or process of reaching decisions can sometimes alienate donors. Sometimes simply stopping and listening to a complaint is all you need to resolve the issue.
• Directional Wars. A few years ago, this point was Worship Wars. While I find most churches have settled the issue of what style of music they will predominantly use. Now churches are being forced to decide the best direction forward and one difficulty is getting all generations behind that direction.

These are some of the most prominent problems that I find in working with churches. What about your church?

Knowing what is causing the decline is one thing. Doing something to counter the decline is another. Let me end with what I find is the number one reason churches are seeing a decline in giving, they do nothing about addressing the root elements of that decline.

Pastor, sooner or later you will be faced with a decline in giving. The time to act is now! That is what I am here for. Let’s get started.

Mark Brooks – The Stewardship Coach
mark@acts17generosity.com

Due Due to Memorial Day, there will be no Stewardship Coach on May 30^th.