Churches & Religious Organizations

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 184,700 churches and religious organizations in the US provide spiritual worship, guidance, and education. Some organizations operate hospitals or schools. While such ancillary programs are generally managed separately from their associated organization, churches often provide financial support.

Slow-growing Membership

Church membership among major denominations has been flat or declining in recent years, challenging organizations to discover innovative ways to attract new members.

Ideological Conflict

Disagreements over controversial issues can cause congregations to split, significantly reducing revenue for the original organization.

Industry size & Structure

A typical church or religious organization operates out of a single location, employs fewer than 10 workers and generates about $956,000 million annually.

    • Churches and religious organizations consist of about 184,700 organizations, which employ nearly 1.7 million workers and generate $174 billion in annual revenue.
    • Religious organizations include temples, synagogues, mosques, and shrines.
    • Church size can be classified by average weekly attendance: Small (less than 200 people), medium (200 to 400), large (400 to 2,000), and megachurch (2,000+).
    • About 20% of Americans claim to attend weekly, and about 11% claim to attend nearly weekly or monthly, according to Gallup.
    • Large religious organizations include the Catholic Church (52 million members), the Southern Baptist Convention (12.9 million), the United Methodist Church (5.4 million), and the Church of Jesus Christ of Latter-Day Saints (6.8 million).
                                    Industry Forecast
                                    Churches & Religious Organizations Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 4, 2024 - Improving Relations Across Religions Proves Difficult
                                    • Approaches combining contact among members of different faiths with educational programs and/or skills training are the most effective approaches to countering negative attitudes about various religions and to promote religious pluralism, according to researchers at The Pew Charitable Trusts. The magnitude of the changes produced by programs of any design appears to be relatively small, however, with little evidence that the changes are (or aren’t) long-lasting because few researchers or providers track participants in these programs over a sustained period even though the explicit goal of this work is long-term change.
                                    • Christians made up an estimated 47% of all people living outside their country of birth as of 2020, according to a Pew Research Center analysis of United Nations data and 270 censuses and surveys. Migrants often take their religion with them, contributing to gradual changes in their new country’s religious makeup, according to Pew. Migrants may shed the religion they grew up with, however, and adopt their new host country’s majority religion, some other religion, or no religion. More than 280 million people, or 3.6% of the world’s population, are international migrants – meaning they live outside their country of birth. Muslims accounted for 29% of all living migrants, followed by Hindus (5%), Buddhists (4%) and Jews (1%). The religiously unaffiliated – i.e., those who say they have no religion, or who identify as atheist or agnostic – represented 13% of all the people who have left their country of birth and are now living elsewhere.
                                    • Many Americans who long to maintain some sense of spirituality and community outside of traditional organized religion are finding it in places both religious and nonreligious, according to USA Today. The exodus from mainstream religious paths has taken place over the past several decades: Nine in 10 Americans identified as Christian in the early 1990s but that figure dropped to 63% by 2023. The decrease has occurred largely among Protestants, 60% of whom are evangelicals. The portion of Americans describing themselves as agnostic, atheist or “nothing in particular” – the “nones” – has risen to nearly three in 10. The shift has recently been driven by young women, reversing patterns of generations past. Chosen alternatives to traditional organized religion come in many forms, according to USA Today. While some might find refuge in other Christian denominations or more progressive forms of their own faith, others seek to redefine their Christianity in places where they can voice doubts without judgment. Yet others look to shed religion altogether but still hope to find a community to help them navigate life’s challenges. “People do indeed still need places to gather, and their communities need them to have places where volunteer energy gets mobilized and inspired,” said Nancy Ammerman, professor emerita of religious sociology at Boston University. “There is no particular reason that spiritual, nonreligious practices should prevent them from doing so.” Sometimes their meeting places are in a building, other times online, other times just in the camaraderie with other people who have similar beliefs, according to USA Today.
                                    • Small church communities are increasingly threatened by decreasing membership and the greater popularity of ‘megachurches’, according to the authors of The Great Dechurching: Who’s Leaving, Why Are They Going, and What Will It Take to Bring Them Back? The authors point out that only 10% of America’s faith communities currently have more than 250 people at weekly services, yet around 70% of churchgoers attend such churches. The authors also note that once vibrant churches are slowly closing their doors. About 3,000 Protestant churches were officially opened in 2019 while 4,5000 closed. About 4,000 Protestant churches were officially opened in 2014 while 3,700 closed.
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