Churches usually make money from traditional sources such as collection plates. However, traditional income sources for churches have declined in the past few years. The impact of COVID has affected the number of tithes and plate donations. Then, how do churches make money?
If you have the same question in your mind, then we have come up with the answer. Churches now have adopted some additional sources of income besides those traditional ones. For example, churches make money through memorials, pledged drives, sponsorships, and more.
Let’s check out how churches raise money.
How do Churches Make Money?
A church is a religious place or building for public Christian worship and other religious activities. How do churches make money? Previously, churches earned most of their revenue from pledges, offerings, contributions, and donations. However, things have changed; nowadays, churches are making money through crowdfunding, sponsorships, etc.
Even some churches rent out their property to get some extra cash. Let’s find out how churches generate revenue now.
1. Tithe & Offerings
Let’s start with some basic and traditional ways of how a church still can make money. Local, state or national church groups maintain this funding collection. If the church teaches tithing, you can give a percentage of your income as an offering to God. it’s a theological outlook. This money gets directly deposited into the church fund.
2. Plate Offerings
Most churches add a ballpark plate offering, and it’s included in their annual budget. During 2020, this offering system was disrupted due to the pandemic and other reasons. However, churches have come up with alternative sources of income. For example, churches set up weekly online campaigns to encourage in-person plate offerings or giving.
3. Online Donations
The credit goes to innovative online digital platforms, and churches can now make more money through online donations. How do churches make money online? People can now initiate a donation with a few clicks on their smartphones or computers.
So, churches now use online applications and websites to post events or donations. Churches can inform community members about offerings, new events, tithes, and upcoming occasions.
4. Crowdfunding
This is one of the easiest and top sources of income for churches. Churches organise the following activities to raise money:
- Mission trips
- Youth group activities
- Special programs
- Renovation or construction
Reportedly, crowdfunding has proven to be the best way to raise money for churches. Additionally, such crowdfunding activities keep community members encouraged and engaged throughout the year.
5. Church Property Renting
This might sound like something new to you. Churches may operate like a business. In that case, a church might rent out the space that is currently not in use. This overall method can be profitable for a church.
However, not every church can rent out its property. It depends on the size and condition of the church building and premises. On the other hand, churches don’t rent out their properties for any causes or events. For example, you can find out churches renting out for businesses, co-working space purposes, and other events.
How much money can a church make from renting out? The overall rent amount might vary. However, churches in the US rent out to businesses at a minimum of $8,000 per month. With this money, churches can pull off their monthly mortgage payments. In addition, it can help churches renovate and construct more efficiently.
6. Selling T-Shirts
This is one of the top sources of income for churches all over the world. Selling T-shirts in a fundraising way can be a fun event for everyone participating. This has become a common charitable strategy for people beyond any age bar.
Churches generally customise t-shirts, a straightforward approach to making money for churches. Then, churches sell them to community members, friends, family, and other Christian people. Interestingly, you can find inspirational and motivational quotes, words from the Bible, and more on these t-shirts.
Therefore, t-shirt fundraising serves 2 purposes. It raises church money and spreads positive messages among youth and community people.
7. Text-to-Give Campaign
Recently, many churches have started a text-to-give campaign through dedicated software in the United States. They usually deploy it during a Sunday morning church service.
How do churches make money via this campaign? For example, we carry our phones everywhere we go, but we may need to remember our wallets nowadays. With this text-to-give campaign, people can give money to churches with their smartphones. On top of that, churches can collect them from any location, if it’s a huge building or premises.
8. Live Streaming
People generally donate money to churches every week during a visit. However, churches have found another interesting way to enhance their income. Now, churches can raise funds by hosting live streaming.
For instance, churches can arrange an online service via live streaming in the middle of the week. They can request donations like the usual collection plate during the online service.
9. Sponsorships
Another wide source of church revenue is sponsorships. A sponsoring request can be related to church activities. For example, many churches accept specific donations for acquisitions such as flowers, furniture, pews, and more.
Churches can also arrange family missionaries and campaigns to raise money. For example, a church might seek sponsorships for college or similar students to pursue their academics at a particular university. Not to mention, sponsorships can provide value to the church for expenses and reconstructions.
10. Special Religious Events
It’s impossible to imagine celebrations like Christmas, Easter, and other religious events without the church. Churches hold these ceremonies every year. Since people gather at the church during such festivities, the church can collect some cash from them.
Additionally, churches arrange to crowdfund on these special occasions to gather money from community and non-community members.
11. Hosting Sing-A-Thons
If you are a community member at some particular church and want to know how to generate income for the church, then you can try this. However, you can implement this plan if your community has a group of songbirds.
Be it any occasion; you can ask the songbirds’ group to perform in a concert-like atmosphere. Sing-a-thon is a unique fundraising event that churches can use to make extra money. Additionally, churches can collaborate with the concert organiser. They will take care of the entry tickets and sell religious and inspirational items at the sing-a-thon.
12. Organising a Talent Show
Apart from arranging a sing-a-thon, churches are seen hosting talent shows. A talent show organisation can be entertaining for all community and non-community members.
On the other hand, fundraising can be performed at such talent show events. In addition, churches can place a donation box here and there in the event area, and interested people can generously donate to the church.
13. Family Fun Day
Now, churches arrange a family fun day event at weekends and holidays to strengthen bonds between families, friends, and neighbours. This type of event can be quite effective for churches to gather some extra cash.
On a family fun day, you can bring your family, friends and others to a church to spend quality time with them. Mostly, churches organise a family fun day on Sunday afternoons. During the event, the church can raise funds. In addition, different fun activities, such as outdoor games, gossiping, etc., are allowed on a family fun day.
14. A Swap Shop
What’s a swap shop, and how do churches make money from them? A swap shop is particularly a fundraising event to help Church members clean up their closets, basements, and garages.
On top of that, community members can arrange a Sunday school office or classroom at the church as a fun activity. On the other hand, people can come to the church with their belongings and donate books, clothing, home decor, and more through swap shops. Then, the church can sell those items to other church and community members and raise money.
15. Charity Auctions
Charity auctions are another remarkable source of income for churches. This can raise funds for churches quickly. Moreover, you can personally interact with the parishioners as a community member. Thus, you can build a good relationship with specific businesses for the sake of the church soon.
Church authorities can ask local businesses to arrange auctions to help attendees create a friendly atmosphere. A charity auction can give a church a chance to hire an auctioneer. Also, churches must provide attendees with food and drinks and send invitations accordingly.
16. Establishing For-Profit Organisations
No doubt, churches are non-profit organisations. However, it doesn’t stop churches from establishing for-profit organisations. Church authorities can add their profit to the church funds. Many churches own such for-profit companies.
After deducting the tax, those companies donate money to churches. If a church doesn’t want to establish a business independently, the authority can partner with business people.
To Summarise….
These are the leading and rending ways how churches can raise money. Churches are expanding possibilities to collect money from devotees, community members, and common people worldwide. However, charitable donations are not fixed.
After all, church properties require regular maintenance, and activities need fundraising. That’s why churches are looking for alternative sources of income to achieve a sustainable fund through ups and downs.
