How to Navigate Giving during Times of Inflation

Inflation is the silent predator that stealthily gnaws at the foundation of our financial security. It's a phenomenon that erodes the purchasing power of our hard-earned money and directly impacts our lifestyle, priorities, and perhaps most significantly, our capacity for generosity--especially in the church. As we find ourselves in the midst of rising prices and lower purchasing power these days, one question of profound spiritual and social importance surfaces: 

Should the stress of inflation impact our tithing?

Although our personal faith should stand unwavering, unaffected by economic uncertainties, it is undeniable that the economic landscape can influence our contributions to local churches, missionaries, and non-profit organizations.

But what kind of impact does inflation have, and what can we do about it?

Understanding the Metrics and the Impact of Inflation

To grasp the gravity of the matter of inflation, we first need to demystify it. In the United States, like several other major economies, inflation measures the increase in the average level of prices of goods and services in the basket of consumer expenditures.

Statistically, the U.S. inflation rate is ticking upward, currently approaching figures unseen in over a decade. This surge is not an American idiosyncrasy. Other countries globally are grappling with similar trends. As prices soar, so does the strain on household budgets, and therein lies the dilemma of giving amidst fiscal tightening.

Here's a snapshot of what inflation has looked like in the US over the last three years:

• 2023: As of January 2024, the annual inflation rate was about 3.1%. This follows a brief increase to 3.4% in December 2023 but remains lower than the long-term average of 3.28%.
• 2022: The annual inflation rate for the whole year was significantly higher at 8.0%, which marked a significant increase from 4.7% in 2021. 
• 2021: The inflation rate in 2021 was 4.7%, representing a jump from the low rate of 1.23% in 2020.

The average person doesn't think of inflation in terms of percentages, but more in how it impacts their wallet - at the grocery store, the gas station, and their home energy bills.

These areas have all experienced a notable increase in prices, reducing the extra money families have for anything beyond essential needs.

The Parable of Proportions and Priority

As inflation commandeers larger shares of our income for the same, often diminishing, goods, the act of tithing (or giving, more on that in a second) may appear to lose its luster in the priority of our finances.

The paradox is stark: How do we provide for the needs of others and the church when our own kitchen tables groan under the pressure of exorbitant prices?

In the economic hierarchy of a family, there are more than a few things wrestling for a slice of the monetary pie. From essential sustenance, housing, and healthcare, to the discretionary indulgences of leisure, entertainment, and vacations; to the necessity of planning for the future through savings and investments–the generosity portion of the monetary pie can easily tumble perilously down this ordered list during inflation.

In a non-inflationary time, the average Christian family's priorities and proportions might look something like this:

1. Give to God first (10% of income)
2. Mortgage / Rent (20% )
3. Food (8-12%) 
4. Home energy & transportation Fuel (8%)
5. Savings & Retirement (10-15%)
6. Fun & Leisure (10-15%)
7. Left Over (15-20%)

In a high-inflationary time like now, it might look something like this: 

1. Mortgage / Rent (30-40% )
2. Food (20-25%) 
3. Home energy & transportation Fuel (15%)
4. Savings & Retirement (10%)
5. Fun & Leisure (10%)
6. Little or no leftover to give to God. 

These percentages are based on the affordability of the average median household income in the United States of $74,580, which was a decline in income from the previous year.

Without trying to sound hyper-religious or like a pastor teaching on the stewardship of God's resources (which I am): The challenge, now more than ever, is to outmaneuver the material necessities and luxuries that scream for attention, and through the power of faith, reallocate the weakened dollar towards the intangible, yet deeply gratifying spiritual investment into the local church, into missionaries, and worthwhile non-profit organizations.

Legalism, the Tithe, and Giving: Insights from Biblical Teachings 

The Bible is replete with examples and exhortations to honor God with our resources, even as all people have needs at all times of life. "Honor the Lord with your wealth, with the firstfruits of all your crops," Proverbs 3:9-10 encourages, etching out the template for a harmonious coexistence of spiritual and material economy.

We need to talk a bit about tithing though, as its installment in the church has been a bit antiquated and legalistic.

At our church, we use the term "giving" rather than tithing, as we believe and follow the viewpoint of the tithe as an Old Testament concept, rather than a NT one. In contrast, we ask people to practice radical generosity, and give joyfully out of the joy God has placed in their hearts, rather than because we tell them they have to give based on an OT concept (you can read a bit more on the tithe as an OT concept here.

While we may suggest 10% as a good starting point or a point to get to, our goal isn't a percentage, but an attitude of generosity and stewardship that says to God and to our church “I'll give what's necessary for God to work and move in our church and in our community as the needs arise.” 

Ensuring this principle's significance, especially concerning inflation and our offerings to God, is crucial as it liberates us to prioritize giving to God, even if that initial contribution falls short of 10% of our income.

At times, individuals might believe that if they cannot tithe 10% or lack 10% in surplus, they are unable to give to God. By simply shifting our perspective to find joy in what we can and are willing to offer, we can approach our finances, gratitude, and situations with a mindset that allows us to prioritize giving to God without legalism or feeling financially inadequate in returning to God the resources He has entrusted to us.

This switch in thinking is highly important if we are to discover how we can, and should, give back to God even in uncertain financial times. Let's explore a few ways of how to do that below.

3 Ways to Maintain Generosity amidst Inflation

While acknowledging the heavy strain inflation exacts, it is crucial to recount the boons of giving in defiance of forces outside of our control. In fact, one could argue, giving out of financial distress is a far greater measurement of faith and discipline than out of abundance and ease.

It is when Christ's people are put in the most challenging positions that we have the opportunity to cement and live from our faith in ways that we couldn't in times of plenty and peace. Here are three ways to maintain generosity through your finances amidst inflation.

1. Give out of what you don't have, to show how much you do have in God.

Amounts don't matter as much as giving God our all, and that's not just a metaphor. Take the simple observation by Jesus below for example:

Mark 12:41-44 Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury. Many rich people threw in large amounts. But a poor widow came and put in two very small copper coins, worth only a few cents.

Calling his disciples to him, Jesus said, “Truly I tell you, this poor widow has put more into the treasury than all the others. They all gave out of their wealth; but she, out of her poverty, put in everything—all she had to live on.”

She communicated something simple and profound: All I have is God's, and He will provide what I need to live on. 

When was the last time you had to live like that? To truly depend on God for your next meal, place to sleep, clothing, or protection?

It takes a special type of desperation to honor God in that place. And while none of us would ever wish hardship or calamity of that magnitude on anyone, those of us who know that place will always be grateful to God for providing and getting us out of that situation.

Most of us have had some sort of hardship in our lives we can thank God for, and quite possibly the best way to say thank you, or to show where our help comes from, is to give back to Him when no one else but Him can help us.

2. Cultivate a generous heart to help others, even when you need help.

In a hyper-inflationary environment, the generous heart does not simply survive–it thrives. Generosity, care, and compassion towards others outlast the transient spikes in the standard of living by fostering a sense of contentment, even amidst material scarcity.

The joy derived from assisting others, the well-being from contributing to communal welfare, and the relational strengthening from simply giving someone another day to figure it out for themselves because you provided assistance, are currencies that never depreciate, regardless of consumer price indexes.

Helping someone else is always worth the time and expense that we can't afford to part with. In fact, we can never afford to not give of ourselves, because just like God's graces are limitless for us, our care and compassion for others must be limitless. Even in times of financial stress when it appears that our own resources may be limited, by making ourselves available through selflessness and generosity, He will ensure that our willingness to help others is rewarded. That may not be a monetary reward for us (though it often can be), but God does promise to reward us when we help those in need:

Matthew 6:3-4 But when you give to the needy, do not let your left hand know what your right hand is doing, so that your giving may be in secret. Then your Father, who sees what is done in secret, will reward you.”

Don't make a big deal about it, don't tell others, just help those in need and watch God work. Giving to others even as you need someone to give to you is one of the greatest forms of humility and compassion as you are literally putting the needs of others above yourself.

3. Lastly, give something to God first, even if you think you'll be left with nothing.

Generosity and giving back to God is a habit, like just about everything else about our faith. When we get out of the habit of doing any sort of spiritual discipline — gathering on Sundays, taking communion, giving from our finances, meeting in small groups, Bible reading, etc., — it can become a much greater challenge to get back into. 

Just like the motto: "The best way to get in shape is to stay in shape," the best way to be generous is to stay generous and not let it leave your life. Even the smallest forms of generosity God will honor. He sees your financial circumstances, He knows what you need, and He'll see you give even if you don't have the ability to do so. Everyone can give something, just like the widow did. 

The Call to Action: Embracing Generosity Amidst Inflation

The narrative of economic pressure should not wield veto power over our faithful giving. It is in such trying times that the tenets of faith and the imperatives of charity  intersect, urging us to be more, not less, generous. So here's a personal challenge to you:

Over the next three months, reassess and if necessary, reprioritize your financial commitments to rekindle the flame of giving. Look not just at your budget lines but feel the pulse of your compassion and act upon it as you give back to God, what He has already given to you.

Photo Credit: ©GettyImages/fizkes

Kile Baker is a former Atheist who didn’t plan on becoming a Christian, let alone a Pastor, who now writes to try and make Christianity simple. Kile recently wrote a study guide to help people “look forward to and long for Heaven.” You can get one on Amazon here. He also writes at www.paperbacktheologian.com. Kile is the grateful husband to the incredibly talented Rachel, Dad to the energetic London and feisty Emma and Co-Lead Pastor at LifePoint Church in Northern Nevada. He single handedly keeps local coffee shops in business.