Lifeway Study Finds More Churches Feeling the Economic Squeeze

Lifeway Research’s latest nationwide study shows that economic pressure remains a significant ministry concern for U.S. Protestant congregations, even though pastors’ assessments have improved from the sharpest recent reading. In the survey, 54% of pastors said the economy was negatively affecting their congregation: 47% described the effect as somewhat negative and 7% as very negative. Another 36% reported no impact, while 8% saw a positive effect. The negative reading was 66% in 2024, fell to 49% in 2025, and rose to 54% in 2026, indicating that the strain has eased from its peak without disappearing. The experience is not evenly distributed. Eighty-two percent of African American pastors reported a negative impact, compared with lower shares across the full sample, and mainline pastors were more likely than evangelical pastors to describe economic harm. Denominational results also varied, with Methodist and Presbyterian or Reformed pastors reporting higher negative effects than several other groups. Giving data helps explain the concern. Pastors reported average giving growth of 1.24% from 2025, while the median church saw no increase at all. That gain lagged the 3.7% year-over-year inflation rate reported for September 2026, meaning that even some churches receiving more dollars may have less real purchasing power. Thirty-six percent said giving had increased, 37% said it was unchanged, and 22% said it had declined. Half said giving was on budget, 25% were below budget, and 23% were above it. The survey therefore describes a mixed national picture: many churches remain stable, but a substantial minority is trying to sustain ministry with resources that are shrinking in real terms.

For church leaders, the study is a call to join sound stewardship with pastoral attentiveness rather than treating budget pressure as a purely administrative problem. Smaller congregations may feel the squeeze first: among churches averaging fewer than 50 in attendance, 31% reported a giving decline. The findings were especially sobering for African American congregations, where 47% of pastors reported lower giving and 55% said receipts were below budget. Those figures should encourage denominational networks, stronger congregations, and ministry partners to ask where practical support, shared resources, or emergency assistance could preserve essential gospel work. Local leaders can respond by building conservative revenue assumptions, reviewing recurring expenses, protecting ministry that directly serves people, and explaining financial choices with unusual clarity. A church budget is not a statement of fear; it is a visible record of priorities. Leaders should distinguish between temporary restraint and a loss of mission, invite members to understand the real cost of ministry, and make room for generosity toward households that are themselves under pressure. Reserve policies, multiple giving options, routine financial reporting, and scenario planning can reduce last-minute decisions. The data also cautions against interpreting a flat offering total as financial health when prices are rising faster than giving. Boards can compare year-over-year income with inflation, examine whether designated funds are masking weakness in unrestricted support, and monitor cash flow rather than relying only on an annual budget. Most importantly, pastors can keep money conversations grounded in Scripture, gratitude, integrity, and care for people. Economic headwinds may require hard choices, but transparent leadership can help a congregation face those choices together while maintaining confidence in God’s provision and preserving a credible witness in its community.