Why should churches pay attention to which financial resources may be at risk?
For many congregations, things have often “just worked.” Budgets are built, ministries are funded, and over time, people give, move, join, or pass on—and the financial picture adjusts along the way.
But faithful stewardship requires more than reacting. It requires looking ahead.
One important part of that forward-looking work is assessing gifts at risk—those contributions or income streams that may not continue in the next three to five years.
What Are “Gifts at Risk”?
A gift at risk is any source of income your church currently depends on that may reasonably change or disappear in the near future.
Some of these are easy to identify:
- Contracts with clear end dates
- Rental or lease agreements
- Program-based income
Others require more careful discernment:
- Changes in donor circumstances
- Shifts in giving patterns
- Broader economic or community trends
Understanding Your Givers
A key part of assessing risk is understanding the people who give.
Several factors can influence future giving:
- Age and health
- Relocation (retirement, job changes, family needs)
- Seasonal residency (members who split time between locations)
- Life transitions (children, education costs, employment changes)
It is also important to avoid assumptions. While older generations are often strong supporters, younger households may also be among your most generous givers—and may face mobility or life changes that affect long-term giving.
The Role of the Pastor
Accurate assessment requires insight.
In many congregations, giving information is tightly held—often limited to the financial secretary. While confidentiality matters, it can make it difficult to understand the full picture.
Pastors often have pastoral awareness of life circumstances that affect giving. For this reason, they should play a role in helping leadership understand trends and potential risks.
This does not mean violating trust—it means using appropriate insight to support faithful planning and wise stewardship.
External Factors That Impact Giving
Beyond individual donors, several broader dynamics can affect your financial outlook:
- Local employment and economic stability
- Market conditions and investment performance
- Congregational engagement and satisfaction
- Alignment with leadership and direction
These factors do not dictate mission—but they do shape financial sustainability and should be considered.
Assessing Predictable Income Streams
Some income sources are easier to evaluate:
- Rental income
- Lease agreements
- Investment or endowment distributions
These often come with defined terms, making them more predictable—but not risk-free.
For investment income, a helpful tool is a 3–5 year rolling average, which smooths out market volatility and provides a more realistic forecast.
It is also important to review:
- The percentage being drawn (often around 5%)
- Whether that rate remains sustainable over time
Even small changes in draw percentage can significantly affect long-term financial health.
Using Caution with One-Time Withdrawals
Occasionally, churches draw additional funds to cover shortfalls.
While this may be necessary, it is important to remember:
- Reducing principal reduces future earning potential
- The impact is immediate and ongoing
What feels like a short-term solution can create long-term constraints.
Evaluating Rental and Contract Income
Leases and rental agreements provide valuable income—but they also carry risk.
When assessing these, consider:
- Contract length and renewal terms
- Financial health of the tenant
- Whether your space meets future needs
- Market trends in rental pricing
This awareness allows you to:
- Prepare for potential changes
- Negotiate proactively
- Explore alternative options if needed
Why This Matters
Assessing gifts at risk is not about fear—it is about faithful preparation.
When congregations understand:
- Where their resources come from
- What may change
- How to respond
…they are better equipped to make wise decisions about ministry, budgeting, and mission.
This kind of clarity:
- Strengthens financial stability
- Reduces anxiety about the future
- Supports sustainable ministry
Knowing our vulnerabilities does not weaken us—it prepares us to meet the challenges ahead with wisdom and faith.
This article should not be construed as financial or investment advice. The Center for Faith and Giving is not a licensed financial investment service provider or counselor. You should consult with a trusted and proven financial professional before making this decision.
Related Articles: How Much Is Enough; Restricted vs. Unrestricted Gifts