I’ve been in leadership in a lot of Lutheran churches, from a megachurch (St. Andrew’s, Mahtomedi, for you Twin Cities types) to the “well, it’s 10 minutes early but we’re all three here so we can start if you like” size. Plus, I talk to a lot of church leadership regularly.
I can say with some authority that all churches are running on the edge of their budget. (Some have foundations, but the foundations pay interest into the budget. I’m talking about income-outgo here.) Churches aren’t banks, and have a strong institutional bias to spend the money.
It goes for regular operating expenses, but also for programs that range from music and worship to feeding the hungry, opening the doors to the homeless, supporting missionaries, schools and hospitals, and whatever the local congregation feels called to do.
In general, people will support what they believe in. Most churches put a running total (expenses, budgeted income, actual income) in the bulletin and newsletter, and if it gets too far out of whack the pastor will point that out. There are sermons about stewardship (time, talent and treasure) when it seems appropriate from the readings. Tithing is mentioned, but not required.
There are regular updates on the programs supported by the church. Almost always, if a program is in danger of closing for lack of money, if the congregation supports it, the money will be found.
Congregations that don’t have the financial support to run their programs close, plain and simple. Either they find programs that the membership supports, and that draw in new people, or they don’t. It’s pretty darwinian actually. There isn’t money at any level to support congregations that consistently can’t balance their books, and they close.
I have never heard of a congregation with a savings account that would enable it to do without member support, and members know that. People support what they believe in. Our congregation is (as always) teetering, but we made the decision to call a new pastor that we technically can’t afford, and start a program feeding neighborhood people free dinners, because we believe that we’re supposed to, and that the money will be found to support worthwhile ministry. That’s the way church finance works.*
*My father is an economist, and tends to get tapped for the treasurer position. “Faith based accounting” gives him the heebie jeebies, but he admits that it does work, for certain values of work.