Clergy report surprising financial optimism, but experts caution about hidden struggles
News Story by Tracy Simmons | Exploring the Pandemic Impact on Congregations
Faith leaders are reporting a surprisingly positive outlook on their personal finances, with a new study revealing that they rate their financial health significantly higher than the general public.
According to a fall 2024 study, titled, “Finances and Faith: A Look at Financial Health Among Congregations in the Post-Pandemic Reality,” the median financial health score for clergy was 7.1 out of 10, more than a full point above the general population’s median. The study, by Exploring the Pandemic Impact on Congregations, found that 65% of clergy consider themselves to be in either “good” or “great” economic health, painting a picture of relative financial stability among religious leaders.
Elise Erikson Barrett, coordination program director for the National Initiative to Address Economic Challenges Facing Pastoral Leaders, emphasized that pastors often overestimate their financial stability when self-reporting. She attributed this perception to a prevalent “God will provide” mentality among clergy, which can mask the true extent of their economic vulnerabilities.
Shame, faith and fiscal reality
It can be quite a different picture, she said, when one talks to spouses or partners handling the household budget.
“I think that maybe pastors are reporting doing better (than others financially) not just because they’re feeling hopeful about it, but also there might be some shame involved,” said the Rev. Bere Gil Soto, a former pastor who now works as a non-profit consultant.
If they are following God’s calling, she said, they may feel guilty complaining about their fiscal situation.
“I grew up hearing, even when I was struggling with responding to my own call to ministry, that the God who calls is the God who is going to supply for it. So your duty is to respond to it and believe that God is going to sustain you through the process,” she said.
When faith meets financial reality
The realities, though, are that clergy face the same financial burdens as the rest of society: inflation, student debt, medical bills, etc.
Gil Soto said she didn’t receive a raise during her final two years of serving as a part-time pastor of a Disciples of Christ congregation in Indianapolis. Her husband, who currently is a lead pastor of a Methodist church in the same town, hasn’t had a raise in three years.
In 2023, the average annual inflation rate was 4.1%, according to Investopedia. The year prior, it was 8%.
Gil Soto said it’s not easy for pastors to advocate for themselves.
“They’re going to think that I’m doing it for the money and not for the Lord right? Well, we’re doing it for both,” she said, noting that bills still have to be paid.
Empowering clergy and congregations
Barrett, though, said she’s hopeful programs like hers are making a difference. The National Initiative to Address Economic Challenges Facing Pastoral Leaders is a grant program that helps clergy develop stronger financial literacy skills and provides direct aid to help them reduce or eliminate debts.
“There’s some hope in my heart that it’s normalizing the conversation,” she said.
The program opens up the space for faith leaders to talk about money on a congregational level.
“If pastoral leaders have the capacity to be open and provide a sense of relief of shame, and tools and collective care around that issue, then I feel like that’s good for everybody,” Barrett said.
Breaking financial taboos
Dr. Charissa Mikoski, author of the EPIC study, said she feels that similar to talking about mental health, talking about money is becoming less stigmatized in church.
“So, I hope people are more open to being transparent and real and that it’s not as taboo of a subject anymore,” she said.
Other findings from the study, Mikoski noted, are that congregational income varies widely by denomination. Mainline Protestant clergy, for example, tend to be in better financial health than other denominations. This could be due to having more resources, she noted.
Data for the report came from EPIC’s research project and the Faith Communities Today (FACT) research initiative. Most of the findings were from a 2023 survey of over 5,000 congregations and the 2020 survey of over 15,000 congregations, representing more than 50 Christian denominations and five faith traditions.
This content was originally published by Hartford Institute for Religion Research and Exploring the Pandemic Impact on Congregations.
