Exclusive. Grace Community Church Reducing Budget By 20%, But is There More to The Story?
Pastor John MacArthur of Grace Community Church (GCC) recently sent a letter to the congregation, updating them on his health issues, which have kept him from the pulpit, and the church’s financial difficulties, noting plans to cut the budget by 20%.
Praising the congregation for being “characterized by joyful generosity” MacArthur reveals that ” for the first time in more than a decade, we have faced the effects of a financial recession in our giving this past fiscal year. By God’s grace, He has provided for our needs through some large donations to bring us through the last two years. But as we look ahead to the coming fiscal year, starting July 1st, our elders recognize the need to reduce our budget at the church by about 20%.”
Many have speculated about the reasons behind Grace Community Church’s revenue drop and the need to reassess financial priorities. Some suggest dire scenarios, claiming an abusive culture is leading them to insolvency, while others argue that out-of-control spending at Grace to You, (GTY) a ministry associated with the church, is the cause. They cite GTY’s expenses rising by over $20 million from 2023 to 2024 with an annual deficit of nearly $11 million, speculating that this is causing the rift.
However, the reality is less sensational.
First, GTY is a separate entity from Grace Community Church and has been independent since 1985, with no budgetary connection to the church’s current shortfall. GTY is funded by global listener donations, while Grace Church relies solely on members’ offerings. According to GTY Executive Director Phil Johnson, as shared with Protestia, GTY’s finances do not impact the church’s budget.
The increase in our “expenses” last year reflects the fact that we donated $20 million to a trust that funds other ministries—including The Masters Academy International. They operate training centers worldwide, giving pastors and church leaders seminary-level instruction in a dozen or more languages. They translate a lot of our material, and we wanted to help.
GTY came out of the COVID years with a substantial surplus, and rather than bank or invest that money, we wanted it to go to ministry, so we made the choice to help fund some ministries that we have a spiritual partnership with.
One of the most prominent and well-loved preachers in the world, MacArthur has been kept away from the pulpit for more than a year as he battles health issues, setbacks, and complications stemming from multiple heart surgeries he had in 2024.
For this reason, it is only natural that the church would experience some attrition, which in turn affects attendance level and giving. Recall that Grace Church’s member numbers and financial donations swelled from outside sources during and after COVID, specifically to hear and see him. Johnson concludes:
There have always been people who came to GCC from 50 or more miles away because they wanted to be taught by John. Now that he is sidelined, people who came from east of Pomona are looking for churches in their own communities. That’s not a bad thing. But obviously, with any decline in attendance, you get a decline in the offering. The church is making necessary adjustments
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