Photo Courtesy of You Unlimited
You Unlimited | April 01, 2025
Unless you have been living on a deserted island, you have likely at least been introduced to the idea that the healthy, vital church of the future will need to develop multiple revenue streams. While this may not be a popular strategy for some, the need is grounded in reality and cultural trends. Let’s explore a few of the reasons why the shift to developing multiple income streams is required.
Change in Middle Class - The average middle class family a generation or two ago largely depended on one income stream, one paycheck. The middle class of today typically has two income sources and sometimes even three. The expenses compared to income have greatly shifted causing budgets to be crunched and therefore the percentage of non-profit giving has decreased. Just like people, churches are finding it more difficult to survive on one income stream (the offering plate).
Values and Beliefs - While older generations were/are more inclined to tithe based on a sense of obligation and tradition, younger generations donate based on their values, the impact the dollars will have, and personal connections. Younger generations, such as Millennials and Gen Z, also believe that money is not necessarily what changes the world. These younger generations believe (and have witnessed) instead that volunteerism and product endorsement change the world.
Rise of Non-profits - The increase in the number of new non-profit organizations have out-paced new for-profit organizations by nearly ten-fold. The options for people to invest in has increased significantly. I believe the reasons for this are multi-faceted. These include the church’s lack of a vital connection to their greater community, deteriorating trust, the church’s internal focus, and younger generations not feeling the church’s resources are being invested in meaningful and impactful ways.
Sheer Numbers - The average congregational size is shrinking. Facility and staff expenses are increasing. Fewer dollars are available for ministry. The percentage of Americans that associate with a religious community has plummeted to less than half. The average age (typically 60 or older) of congregations is increasing. Churches are aging out through death. If the average church size is now 55 people, it will take more than the offering plate for financial stability let alone sustainability and the ability to thrive.
The idea of developing multiple income streams is not a question of if, it is a question of when. Too many churches wait until they are in a desperate financial situation before they begin to address this issue. By then, it is likely too late. The resources that are available dwindle away, riding the ship down while the faithful few hang on until the last funeral is held and the lights are turned off. The doors of the church close. The church has become irrelevant, disconnected, and invisible within the community. The facility is in disrepair, creating a liability and barrier for a new church plant to launch. No one desires this outcome, but it is growing ever more common.
Who will you contact today to share this information? How might you begin conversations in your church regarding the development of multiple income streams? What community partners might be helpful to invite into these conversations?
SUSUMC
Kay Kotan
Kay Kotan
Kay Kotan’s purpose is to Equip and Empower Leaders of Faith Communities How to Engage in More Effective Ministry. Kay Kotan is the founder of You Unlimited (coaching, consulting and training company) and The Greatest Expedition – a collaboration of more than twenty thought leaders providing resources and insights for a congregational journey to develop new MAPS (ministry action plans) to reach new people in your community. Kotan and her co-author Bradford published their third version of the best-seller, “Mission Possible: Simple Structure for Missional Effectiveness.”