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UK diocese finds only a fifth of churches ‘financially stable’

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Only one-fifth of congregations belonging to a Church of England diocese is considered financially stable, according to a report that calls on churches to be more innovative in their community outreach.

Cambridge Judge Business School and the Church of England’s Diocese of Ely released a report on Tuesday, which sought to audit the financial status of the 334 houses in the regional body. The researchers received responses from 244 of the congregations.

Their findings show that only around 20% of the respondent congregations were identified as “financially sustainable,” while nearly a third reported expenditures “exceed income,” and 41.5% say they broke even.

When surveying the congregations, the report found that “the churches that receive the largest offertory collections and donations organize the most community activities.”

As a result, the report recommends that churches “learn from the experiences of churches that organize community activities with the highest community participation” and “consider the provision of a range of cultural, social, educational and skills community activities.” Churches are urged to “increase the attractiveness of the church to younger people by exploring socially innovative community activities, e.g., farmers’ markets, IT clubs, and sports activities.”

Helen Haugh, associate professor in Community Enterprise at Cambridge Judge Business School and one of the report’s authors, said in a statement that the “research is about finding ways to keep churches open.”

“Evaluating the success of the church in terms of the number of funds it raises and the size of its congregation undervalues the contribution that churches and church buildings make to a community,” Haugh stated.

“There are options for churches that struggle with financial sustainability, the least preferred of which is to close the church.”

The report also found that in 2019, before the COVID-19 pandemic lockdowns, 75% of church buildings were being used for community activities, namely events that focused on cultural activities like art, dance, music, festivals, children’s educational visits and informal meetings, such as coffee meetups and “parent and toddler groups.”

“Post the Covid-19 pandemic, most of the audited churches plan to resume organizing community activities, but with the recommended safety guidelines in place,” the report states.

“However, 25% of audited churches remain undecided about the extent to which community activities will be resumed.”

The report is part of a multi-partner research project known as REACH Ely, short for Reimagining Churches as Community Assets for the Common Good.

In addition to Cambridge and the diocese, other project supporters include Benefact Trust, a prominent grant-giving charity, and Historic England, a historic preservation organization.

Over the past several years, the Church of England has experienced a considerable decline in membership and congregations, even though it is the established religion of the United Kingdom.

In 2017, a report found that, during October 2016, around one-quarter of Church of England congregations did not have any children present for worship services on average.

A National Centre for Social Research report from July 2019 found that only 38% of Britons in general identified as Christian, the lowest total in about three decades of polling.

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