How is Haslemere Parish Funded?

The Church of England is often perceived as a wealthy, state-funded institution. However, the reality of its financial structure is quite the opposite.  Parishes and churches receive no direct funding from the UK government or the central Church of England; instead, local churches must operates on a model of charitable local self-sufficiency.

Haslemere is typical of most parishes in this way.  Here is a breakdown of how the 12,500 parishes across England are financed.

The Local Level: Where the Money Starts

The vast majority of money in the Church of England is raised locally. Each parish is a separate charity responsible for its own financial health.

• Congregational Giving: This is the lifeblood of the parish. Around £450 million is donated annually through "planned giving" (regular bank transfers), the weekly collection plate, and one-off donations.
• Gift Aid: As registered charities, parishes can reclaim 25p from the government for every £1 donated by UK taxpayers. This adds tens of millions of pounds to church budgets every year.
• Fees and Hiring: Parishes generate income through statutory fees for weddings and funerals, as well as the rental of church halls or the hosting of concerts and community events.
• Legacies: Many churches rely on occasional gifts in will (known as legacies) to fund major capital projects, such as roof repairs or new heating systems.

The "Parish Share": The Engine of the Diocese

The most significant expense for a local church is its contribution to the Parish Share (sometimes called the "Common Fund" or "Ministry Share"). This is a sum of money sent by the parish to its regional headquarters, known as the Diocese.
The Parish Share primarily covers:

• Stipends and Pensions: The salary (stipend) and pension of the vicar.
• Housing: The maintenance and costs of the vicarage.
• Training: The cost of training new deacons and priests (ordinands).

Crucially, the Parish Share is based on a principle of generosity and redistribution. Wealthier parishes often pay more than the actual cost of their own vicar to subsidize ministry in poorer, urban, or sparsely populated rural areas that could not afford a priest on their own.

The Role of the Church Commissioners

While the national Church holds a multi-billion-pound investment fund managed by the Church Commissioners, this money is not used for the day-to-day running of local parishes.  By law and policy, these funds are earmarked for:

• Supporting "Lowest Income Communities" through targeted grants.
• Paying the stipends of Bishops and some Cathedral costs.
• Funding clergy pensions earned before 1998.
• Investing in "Strategic Mission and Ministry" to help the Church grow.

Who Manages the Money?

Each parish has a Parochial Church Council (PCC). These are elected members of the local congregation who act as trustees. They are legally responsible for how the parish’s money is spent, ensuring the church building is maintained and that the mission of the church—from youth groups to food banks—is funded.