The landscape of church finance continues to evolve, and staying abreast of emerging trends is crucial for congregations to successfully navigate the path ahead. As we step into 2024, several recent financial trends are poised to shape the financial dynamics of churches.
Let’s take a look at each of these shifts and how to successfully use them to help your church grow stronger.
1. Wealth Transfer to Millennials: A Paradigm Shift in Church Finances
The first key trend that demands attention is the unprecedented generational wealth transfer taking place. As the Silent Generation and Baby Boomers (born before 1964) begin to leave behind their inheritances, Millennials (born 1981-1996) are positioned to inherit $84 trillion by 2045. This shift in wealth ownership brings both challenges and opportunities for churches.
Millennials, as a generation, are characterized by their unique values and preferences. They are known for prioritizing experiences, social impact, and transparency in financial matters.
As this demographic inherits wealth, churches must adapt their financial strategies to align with these values. Congregations may find it necessary to enhance transparency in financial reporting, invest in technology for seamless giving options, and focus on community engagement initiatives that resonate with Millennials.
Churches that effectively communicate their missions and community impact to younger generations stand to benefit from their philanthropic enthusiasm. Understanding the needs and aspirations of Millennials will be pivotal for churches seeking to harness the positive aspects of this wealth transfer.
2. Remote Congregations: Reimagining Outreach and Finances
There is no doubt that global events have accelerated the adoption of virtual platforms, and churches are witnessing a paradigm shift in the way congregants engage with their faith communities.
The accessibility and convenience of online services allow individuals to participate in church activities from the comfort of their homes. As a result, traditional sources of revenue, such as in-person offerings and events, may experience shifts as virtual attendance becomes more prevalent.
Adapting to this trend requires a strategic reassessment of financial strategies. Churches must explore innovative ways to facilitate online giving, leverage virtual events for fundraising, and foster a sense of community among remote congregants. Embracing technology also opens up new avenues for cost savings.
3. Sustainable and Ethical Investing: Aligning Finances with Values
The third noteworthy trend in church finance for 2024 is the growing emphasis on sustainable and ethical investing. As awareness of environmental, social, and governance (ESG) factors continues to rise, congregations are exploring investment options that align with their values and principles.
Church leaders are increasingly considering the impact of their financial investments on the broader community and the world. This trend reflects a desire to be responsible stewards of financial resources and to contribute positively to societal well-being.
Congregations that prioritize sustainable and ethical investing may find that it not only aligns with their mission but also resonates with the values of their members, fostering a sense of shared purpose.
What’s your next step?
The financial landscape of churches in 2024 will be marked by dynamic shifts influenced by generational wealth transfer, remote congregations, and a commitment to ethical investing.
Having financial experts like Finch in your corner will help you strategize and safely navigate through these changing times. You’ll get the best bookkeeping services for churches, along with professional accounting, payroll, and budgeting—all at a percentage of the costs of hiring a church accountant.
Corey has 10 years of professional experience in financial planning and analysis. His previous areas of focus involved helping launch the Financial Services department of a large government contractor, where he developed the various reporting and budgeting systems.
Corey also actively manages Shorebird, a Registered Investment Advising firm that focuses on Financial Advising, Planning, and Investment Management for clients. He is also an adjunct finance professor at the University of California, Riverside for their graduate-level programs.
Corey received a B.A. in Business Administration at the California State University, San Bernardino; a Masters in Business Administration and a Masters in Finance from Indiana University’s Kelley School of Business.
Jonathan has more than 7 years of professional experience in corporate taxation and strategy with both public and private companies. His industry experience includes entertainment, church finances, medical device, and technology. Jonathan is also an adjunct professor at the University of California, Riverside (named a Best Business School by Princeton Review and named a Best Undergraduate Business School by Businessweek) and speaks at conferences on topics such as leadership and management.
Jonathan is a graduate of the University of California, Riverside and an MBA candidate at UCLA Anderson School of Management. He is a licensed Certified Public Accountant (CPA) in California.
Jonathan previously worked at PricewaterhouseCoopers, LLP where he specialized in corporate taxation.
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