How Do Churches Make Money? — 9 Ways Churches Raise Funds (2026)

The next time you see a church building or church event, you may ask yourself: Who pays all this?

This is a common question. Churches are not for profit. They are aimed at assisting people and not collecting money on behalf of owners. However, a church needs to be run, and it takes money; lights, employees, assisting the poor, and it may take a lot of money.

Where does that money originate? Is it everything on the collection plate on Sundays? Is the government writing them a check?

In this guide, we will describe precisely How Do Churches Make Money. We shall see the old ways and new ways in which they are now used.

Introduction -Why Churches Need Money.

We must first of all know why they require money, before we discuss the source of their money. A church is not a building, it is a community center.

Churches require money because of three reasons:

Operations: this includes electricity, water, heating, insurance and building maintenance.
Personnel: remuneration of the pastor, administrators, janitors, and musicians.
Mission: The needy, food banks, orphanages, or aid to the needy overseas.

Main

Funding of churches is evolving rapidly. The following are some of the startling facts about church money going into 2026:

Digital Dominance- approximately 80 percent of giving is taking place online or via mobile applications, rather than with a cash plate.
The December Bump – almost 20-30% of all annual donations are raised in December.
Tithing Trends – 10 percent of the income that church members give only about 5 percent of the churches members actually give a tithe, which means that churches have to depend on few generous individuals.

How Do Churches Make Money : 9 Best Ways for Get Funds

The majority of churches do not make use of a single income source. To continue, they combine old giving with modern styles. The following are the nine prevalent methods of their fundraising.

1. Special Donations and Fundraising

In other cases a church requires numerous finances to complete a certain task such as roof repair, purchasing a van, or updating a youth hall.

Capital Campaigns: a concentrated campaign In which the church requests its members to commit a substantial amount within a period of one to three years to construct or renovate.
Crowdfunding: several churches utilize online (such as GoFundMe or the church apps) crowdfunding to generate funds to support families in need or urgent fixes.

2. Tithes & Offerings

The simple source of finance is the tithes and offerings. This has been the method through which churches have survived over the centuries.

Tithes – the word means “tenth.” The members are urged to donate one in ten incomes to the church. Not all of them do, and those who do provide a stable income.
Gifts- additional funds to the church on top of the usual tithe such as a twenty dollar bill in the basket or a single donation to a cause.

The following year in 2026 will have less collection plates. Rather, QR codes will appear on screens or “Text-to-Give numbers.

3. Facility Rentals (Halls, Events, Weddings)

The churches do have good buildings which remain vacant throughout the week. A large number of them rent their rooms in order to make additional money.

Weddings and Funerals: non-members will have to pay a fee to use the historic sanctuary to see ceremonies.
Community Groups: The yoga classes, Alcoholics Anonymous group or neighborhood association rent out the church hall throughout the week.
Parking Lots- in case the church belongs to a busy city centre, it is possible to rent out parking spaces during the day and generate a constant revenue.

4. Church-Owned Businesses (Cafés, Bookstores, Thrift Shops)

Have you ever purchased coffee in a church lobby? Not only in the case of hospitality, that is usually a source of revenue.

Coffee Shop: There are those churches which have full-fledged cafes that are accessible to the community seven days a week.
Preschools and day cares: It is among the most prevalent models of business. The churches already have classrooms and playgrounds, thus it is easy to start up a daycare.
Thrift stores: Churches usually receive used clothes and furniture to sell them at a low charge. This brings income whilst giving to the society.

5. Media & online revenue (streaming, books, courses)

The digital era has meant that the power of the church does not necessarily reside on its literal walls.

YouTube and streaming: Small churches (that have thousands of online viewers) can use the revenue of advertisements on YouTube or Facebook (however, many of them turn this option off to ensure that the attention remains on the ministry).
Merchandise: Sell t -shirts, mugs or branded journals.
Books and music: A lot of worship teams compose songs of their own, pastors write books. The sales of these royalties are frequently transferred into the church budget.

6. Investments & endowments

Mature or richer churches are likely to have a savings account which increases with time.

Endowments: This is a considerable amount of money gifted by a person (usually in his will) which is invested in the stock market. The church does not spend the principal (the main amount) but it only spends the interest it generates annually.
Real estate: Some historic churches have land or additional buildings that they rent to apartments or offices.

7. Grants & sponsorships

Churches do not receive the government give-back in the form of a paycheck as a church but they can receive grant funds on special community projects.

Community service grants: In case a church operates a soup kitchen, a homeless shelter or an after-school tutoring program, it can solicit grants through either private foundation or local government programs to fund that operation.
Corporate sponsorships: Local businesses may sponsor a church 5K run or a summer festival and place their logo on the event banner.

8. Conferences, campuses and workshops.

Churches are also in business of education and community.

Summer camps: Most churches offer camps to children. Registration fees are paid, which cover expenses and normally leave the youth ministry with a small surplus.
Leadership conferences: The bigger churches will also organize conferences where pastors who are in smaller churches will attend workshops of leadership, which they pay to enter.

Do churches get money from the government?

The short answer is no.

In the United States (as well as in the majority of the Western democracies), a strict division of the church and the state is maintained.

The state does not provide tax money to churches to finance the pastor or even purchase Bibles.
The greatest financial gain that the government offers to churches is tax exemption.
Churches are not subject to federal income tax on the donation.
They do not pay property tax on their buildings in most of the states.
Donors are able to reduce their contribution to personal taxes.

The exemption: According to point number 6, in case a church forms an independent nonprofit organization to feed the homeless or offer employment training, the program may also be granted by the government. Nevertheless, the funds cannot be spent on worship.

How Do Churches Pay Pastors & Staff?

Most individuals believe that pastors work either without pay or receive payment at a central office. In most cases, neither is true.

Paid by the Congregation: The pastor is paid by the direct tithes and offering of people in the church. When the giving declines, the salary of the pastor may also decline.
Board of elders/ finance committee: The salary is determined by a board of elders or a finance committee. It typically relies on the church size, the education of the pastor, and the prices of the living in the city.
Bi-Vocational Pastors: In small churches (less than 50) it is frequent that the church is not able to pay the full salary. The pastor is bi-vocational -he or she operates the normal job of the week (such as a teacher or accountant) and preaches on Sundays.

Do Churches Get Grants?

Yes, however, in most cases, on conditions.

Grants: Building restoration, food banks, drug abuse counseling, disaster recovery.
What Grants DO NOT Pay: First time hymnal, remunerating the worship leader, or a revival.

To obtain such grants, it is the norm of churches to demonstrate that the funds would benefit all people in the community, irrespective of religious affiliation.

Are Churches Profitable? Financial Reality of Nonprofit.

This is a usual disorienting fact. When a church accepts $1 million and then only spends $800,000 is that $ 200,000 a profit? Legally, no.

Nonprofit Status: This does not mean that you cannot have money left over as you are nonprofit. This is to say that owners or leaders cannot take out extra money.

Shareholders of a business receive profit as reinvestment. The additional money should be invested back into the church in a savings fund to be used in case of an emergency, to repair the building down the line, or to start a new ministry.

Conclusion

The churches of 2026 get increasingly creative in terms of finances. Even though they continue to be dependent on tithes and offerings by members in large extent, many are diversifying their church income sources. Churches are trying to keep their doors open and mission alive by renting out facilities, establishing coffee shops and by submitting applications to community grants.

Finally, the values of a church are manifested in the budget. It is either a Sunday offering plate or a Monday daycare rental but either way the purpose is the same; to finance the mission of serving people.

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FAQs

1. Do church leaders pay tax on the salary?

Yes. The pastors are subject to the payment of federal and state income tax. They are allowed a tax deduction on housing (a housing allowance).

2. Will I be refunded should I walk out of the church?

No. A donation is a gift. When you donate it, it becomes the possession of the nonprofit organization.

3. Do churches pay property tax?

Generally no. Most states within the U.S. do not charge property tax on buildings that are utilized in worship, education or charity.

4. Who audits the books of the church to ensure that no one steals money?

The majority of good churches have an in-house finance committee and employ an external auditor to conduct an annual audit on the financial integrity.