Financial Sustainability in Resource Churches

Many churches struggle with financial sustainability, however, this issue presents a particular set of challenges for resource churches including:

• Traditional models of resource churches can be resource intensive
• Part of the giving base moves to church plants 
• Transitioning out of a period of SDF funding 

Lizzy Woolf, Rector of St George’s Leeds, and Dan Millest, Vicar of St Peter’s Brighton, joined Mark Powley, Archbishop’s Mission Enabler for the North, for a conversation exploring strategies to mitigate these challenges, and scope out further questions to explore. 

Key sustainability challenges

• St George’s Leeds: The church has faced a significant budget deficit in recent years. Key issues include: key givers moving to church plants; a growing congregation with limited financial capacity e.g. asylum seekers; and differing giving habits among young adults. Rebuilding income from hiring spaces since the pandemic has been difficult, costs have risen sharply, and the parish share has increased as the diocese shrinks. Additionally, SDF funding for two parishes is nearing its end
• St Peter’s Brighton: Planting in cities can be more expensive due to givers moving to the plants, an issue not accounted for in initial plans. Planting in deprived areas remains costly despite no diocesan expectation for parish share, as other expenses still need covering

Key strategies to respond to challenges

• Plant with smaller teams. St George’s has found it is easier to recover financially from sending teams of around 20 people or less, ensuring the sustainability of the resource church
• Invest in income streams. St George’s is investing in their capacity to hire out spaces in the church to build up their income streams 

• Increase giving in the next generation. Teaching about giving through a discipleship lens, rather than just vision, resonates more deeply, particularly with young adults. Framing giving as part of spiritual growth strengthens both individual faith and church finances

• Three year budget cycles. St George’s are moving from an annual to a three year budget cycle to try to get their deficit under control, and to facilitate longer term strategic thinking and sustainability

• Move from staff led, volunteer supported to volunteer led, staff supported. 

• • Resource churches have often had large staff teams running the ministries with some support from volunteers
  • Both St George’s and St Peter’s are increasingly empowering lay volunteers to lead ministries (such as Alpha and children’s work), whilst staff provide support (line management, safeguarding, systems and buildings). This transition has made these ministries more financially sustainable, and easier to multiply and recruit volunteers for. It also frees up resources for other ministries
  • This transition has been incredibly good and important, but it is difficult and requires careful upfront teaching and change management 

• Share resources across the network. Instead of seeing the network of church plants as a cost, it is possible to utilise their resources by dispersing ministries across them. This strategy helps resources stretch further as it reduces overlap 
• Discern whether to say yes to funding. It is always necessary to work out what impact a piece of funding will have on the church. For example, SDF has led many churches to have overly large staff teams, and other funding streams will prevent a ministry from being proselytising

Key questions for future conversations

• How do you achieve financial sustainability for resource churches and/or plants in low income settings?
• How can we learn lessons about financial sustainability in church planting from other denominations?
• More detail on:
  • How to implement a volunteer led, staff supported model of ministry 
  • Raising giving habits in the next generation through teaching and discipleship