If your church ended 2025 with a budget deficit, you’re not alone. Whether due to an unexpected expense, rising operational costs, or insufficient income, a deficit can feel discouraging. MMFA invites you to use it as an opportunity to strengthen your church’s financial foundation and deepen your congregation’s understanding of biblical stewardship.
Understanding Where You Are
Before moving forward, identify what led to the deficit. Was it a one-time expense like an emergency repair, or does it reflect deeper trends in giving? Gather your finance team, review monthly reports, and pinpoint specific factors.
Just as importantly, communicate openly with your congregation. Transparency builds trust. Share both the challenges and your plan for addressing them, framing the conversation around mission rather than crisis. MMFA is happy to help you draft the right communication for your church.
Addressing the Deficit
Create a realistic debt reduction plan. Some churches designate a portion of monthly income toward deficit reduction while maintaining essential ministries. Others launch focused giving campaigns. Consider what fits your congregation’s culture.
Look for immediate expense reductions that don’t compromise your core mission—deferring building improvements, renegotiating contracts, adjusting staff hours, or temporarily consolidating services. Explore creative solutions like renting unused space to community groups or partnering with other churches to share costs.
Building Financial Resilience for 2026
Recovery isn’t enough—you need practices that prevent future shortfalls. Start with realistic budgeting that includes contingency reserves. Even small steps toward building a reserve fund (aim for three to six months of operating expenses) create a buffer for unexpected needs.
Diversify revenue streams beyond Sunday offerings through planned giving programs, memorial funds, and endowments. Implement consistent financial reporting so your congregation sees how resources support God’s work in and through the church.
Cultivating a Culture of Generosity
Stewards aren’t born; they’re formed. Identify steps to take to preach, teach, invite, give thanks for, and celebrate stewardship all year long. campaigns to Help people see giving as part of who they are as followers of Christ and as part of God’s mission on this earth.
Tell stories of ministry impact. When people see their gifts of time, talent, treasure and more supporting real ministry, giving becomes transformative and not simply transactional. Make giving accessible through online platforms and recurring contributions, especially for younger generations. Never talk about the church budget without talking about the church’s ministry.
When Deeper Change Is Needed
For some churches, recurring deficits over multiple years signal more than temporary financial strain—they may indicate a fundamental mismatch between resources and ministry model. If your church has struggled with deficits for three or more consecutive years despite faithful stewardship efforts, it may be time to consider whether God is calling you to a different expression of ministry. This might mean exploring partnerships or mergers with nearby congregations to create a stronger combined witness, reimagining how you use your physical assets, or even the difficult but faithful decision to conclude one chapter of ministry so resources can fuel kingdom work elsewhere. These conversations require courage, prayer, and often outside facilitation, but avoiding them can drain resources that could otherwise advance the gospel. Legacy and faithfulness sometimes look different than we expected, and there’s no shame in adapting to serve God’s mission more effectively.
Moving Forward with Hope
Whatever path forward God is calling your church to take, lead with faith rather than fear. Involve your congregation in prayer and discernment, seeking wisdom for the specific challenges you face. Be patient—whether recovering from a deficit or navigating larger transitions, meaningful change takes time. Celebrate progress along the way, trusting that God is faithful to provide for the work your ministry is called to do.
MMFA partners with churches to strengthen financial leadership and stewardship practices. Contact Laura Watson, Vice President/Director of Programs, to learn about our resources and free stewardship coaching services.
This article was written with a little help from our friend Claude.ai.
