What Am I Doing Wrong? The Question That Haunts Small Church Pastors

You stare at the giving report on a Monday morning and the same three words rise up: What am I doing wrong? The numbers feel thin, the building eats more than you'd like, and you wonder if a better pastor would have figured this out by now.

Let me offer you some relief before we even talk strategy. Most of the time, the answer to "What am I doing wrong?" is: probably nothing. You're just running into math that nobody taught you. Money is where hope meets math in a small church, and the rules of thumb are unforgiving even when your heart is right. So let's replace anxiety with arithmetic. Once you can do the napkin math, that haunting question loses most of its power.

Your church is more sustainable than you fear

Start here, because it's the encouragement you need. The median U.S. congregation runs on about $120,000 of income against $108,000 of expenses, and 56% finish the year in surplus. Only 24% end in deficit. Roughly half of congregations (49%) report "good or excellent" financial health, up from 43% five years prior.

Under-100 ministry is sustainable far more often than pastors believe. The margin is thin, yes, but thin is not the same as failing. If you've been carrying private shame about your numbers, breathe. You are likely closer to normal than you think.

The one piece of math that answers the question

Here is the most useful napkin math a small-church pastor owns: expect roughly $20 per attender per week, counting the kids. Multiply your average weekly attendance by $20 and you have a sane estimate of what your church should be generating.

Now locate yourself on the median income table by size:

1 to 50 people: about $65,000

51 to 100 people: about $150,000

101 to 250 people: about $300,000

If your income roughly matches the $20-per-head rule, you are not doing anything wrong. You're doing exactly what your size can do. If your income badly trails the rule of thumb, that's worth noticing, but even then the issue is usually giving culture, not poverty and not your worth as a pastor. (Try the sustainability calculator and tools to run your own numbers.)

"Why is so much gone before ministry even starts?"

This is the second haunting question, and again, it's math, not failure. Across congregations, the typical expense split runs: staff 44%, buildings 26%, program 11%, mission 13%, and other 5%. So in a 51 to 100 church with a $150k budget, nearly 70% is spoken for by people and place before a dollar reaches new ministry.

That's not mismanagement. That's structure. But it does give you a diagnostic: if your buildings cost climbs much past 26%, that's your growth governor, the thing quietly capping what you can do.

The pastor-salary question, answered honestly

Maybe the real weight behind "What am I doing wrong?" is your own paycheck. So let's be plain. A full-time pastor becomes realistically viable around 80 to 90 adults and roughly $30,000+ in income.

Below that, staying bivocational is not a failure to apologize for. It is wisdom. "The resources are in the harvest," and one church planter drew no salary at all for five years. Don't pay yourself a salary the church can't yet carry. Instead, map a path from bivocational to part-time to full-time, tied to attendance milestones, not to hope. You can connect this to your growth targets on the milestones page.

Build two budgets, then a reserve

Keep a separate start-up budget and operating budget, and build margin on purpose by raising income, setting goals, and limiting expenses. For launch planning, the benchmarks are sobering but useful: about $460 per first-year attender versus $1,667 per attender for ongoing churches past five years.

Then build toward a 2 to 3 month operating reserve to cushion giving dips and pastoral transitions. Once that's funded, start a capital fund for future facility and equipment needs.

Protect the church and yourself with controls

Nothing destroys a small church's credibility faster than financial mismanagement, or even the appearance of it. Controls aren't about distrust. They protect the church from theft and protect you from accusation. Put these in place:

No single person has unchecked access to funds.

Dual signatures over a threshold (around $500 to $1,000).

Two unrelated people count every offering together, sign a count sheet, and deposit within 1 to 2 days.

Monthly statement review by someone other than the bookkeeper.

An annual outside review as you grow.

Set up compensation correctly from day one

The day you pay anyone, do it right. The board should designate the housing allowance in advance and in writing (it must be used for housing and is capped at fair rental value). Budget for the full 15.3% self-employment tax ministers pay, and classify your pastor as an employee, not a contractor. A church-savvy CPA is worth every dollar here.

When growth makes giving look worse

Here's a trap that fuels the "What am I doing wrong?" voice. Faster-growing churches show lower per-capita giving ($1,336 versus $2,092 in stagnant ones) because new attenders haven't been discipled into generosity yet. That dip is normal and even healthy. Total dollars still rise: a 180-average church out-gives a 100-average church by more than 2x. A simple online-giving platform with recurring options also adds about $300 per person per year. So if your per-head numbers slip while your crowd grows, celebrate. That's a discipleship opportunity, not a verdict on you.

What to do next

Stop asking "What am I doing wrong?" and start asking "What does my math say is possible?" Run the $20-per-head number, locate yourself on the median table, check your expense split against 44/26/11/13, and decide the salary question by milestone instead of by anxiety. The numbers will calm you down.

Your challenge this week

Multiply this Sunday's attendance (kids included) by $20, compare it to your actual weekly giving, and write down the single gap. That one honest number will tell you whether you have a math problem, a culture problem, or no problem at all.