Press Room Item
New Research Sizes U.S. Church Finance Market at $28 Billion Annually
28 June 06
Mega-church Growth, Increased Attendance to Drive $40 Billion Market by 2010
GRAND RAPIDS, Mich., June 28, 2006 – Lambert Edwards Analytics (LEA), a leading research and consulting firm and recognized Christian market expert, has published a comprehensive market research report sizing the nation’s $28 billion church finance industry.
The research report, the first to fully define the scale and key drivers of the church finance market, projects a 40 percent growth rate in the industry during the next five years. To accurately gauge the church finance market, LEA developed a proprietary church finance market (CFM)SM model, which computes the size and estimated growth rate of the industry. This process included examining demographic and economic factors impacting the market, church construction data and giving patterns by faith and denomination.
According to LEA, three key factors are driving the growth potential in the industry:
- Exponential attendance growth : Average American church attendance grew 12 percent from 2000- 2005 and hit a seven-year high of 45 percent of Americans in 2005.
- Proliferation of “mega-churches” : Weekly attendance at mega-churches – defined as churches with weekly attendance of 2,000 people or more – is greater than 30 times the average church in the U.S., and average attendance increased 57.3 percent from 2000-2005, creating need for larger sanctuaries and campuses.
- Growth in financial contributions : Annual giving to U.S. Protestant churches equaled $93 billion in 2005, influenced by the uptick in church attendance and demographic shifts including basic population growth, the higher average giving rates of the large and growing Baby Boomer generation, and the proliferation of non-denominational churches attracting the younger, upwardly mobile attendee.
“Our findings speak to the magnitude and significant potential for growth within the church finance market, as well as the untapped potential for financing institutions and investors to take notice and participate in this increasingly robust industry,” said Noel Ryan, III, LEA director of research. “As awareness grows for this mature, but relatively undiscovered market, so too will the appetite of financing institutions. This, in turn, will lower the cost of capital for borrowers, allowing for incremental access to capital for America’s churches.”
The 27-page research report outlines the range of financing mechanisms currently used by churches due to the limited participation of traditional banking institutions. These sources include denominational loan funds, church bond offerings and faith-based lenders. The report also details the growth opportunity for financiers and the low-risk/high-return scenarios for investors active in the church finance market.
Interested institutional investors, analysts and the media may schedule a briefing or purchase a copy of the report by calling 616-233-0500. An executive summary of the report is available upon request and can be viewed at http://www.leanalytics.com.
About Lambert-Edwards & Associates
Grand Rapids, Mich.-based Lambert Edwards Analytics is an independent fee-based research, publishing and consulting firm with expertise in a variety of niche markets, including the Christian products and services industry. LEA consults with and provides research and other analytical products for clients in 18 states across a wide range of niche industries. LEA researchers and staff adhere to the highest ethical and legal standards and the views expressed in this research report reflect the analysts’ personal views about the industries reviewed and are not intended as an offering or solicitation.
