Rural churches are facing a funding crisis due to poor internet connection and a series of bank closures, a survey has uncovered.

Ecclesiastical Insurance has found rural churches looking to embrace new ways of collecting donations are being held back by poor internet connectivity, with 32 per cent saying it is the reason they are not able to accept digital donations.

Another challenge is the discontinuation of 3G networks by mobile phone companies by 2025.

The issue is further exacerbated by a decrease in banks in rural areas.

Data from the government indicates the UK saw a 44 per cent decline in banks between 2010 and 2022, and the situation looks set to worsen with more closures planned by leading banks.

This greatly impacts rural churches as almost all - 95 per cent - said they take cash donations compared to less than three quarters in city centre churches.

With cash more difficult to access, churches in rural areas are experiencing more difficulty in generating funds than their urban peers.

Despite these problems, the survey revealed many churches, particularly rural churches, are not prepared.

Nearly half of churches have no fundraising plans, with this number rising to 54 per cent in rural churches.

When questioned why, half said they did not see a need for a formal plan, while 13 per cent stated no one was willing to shoulder the responsibility.

Church operations director at Ecclesiastical, Helen Richards, said: "As our banking habits have changed over the years, churches have had to adapt to make sure they’re keeping up.

"By embracing digital donations they’re able to safeguard their income generation, which is great news - helping to preserve the church now and into the future.

"There are challenges ahead though, not least the issue around rural connectivity issues and bank closures.

"It’s a concern that so many respondents to our survey said they don’t have a fundraising plan in place.

"From a future resilience of the church perspective this exposes them to risks – such as the loss of one revenue stream in cash donations."

In 2020, Ecclesiastical launched a church fundraising hub which contains fundraising resources developed to provide churches with steps to take to make fundraising easier and more successful.

The most effective methods of donation discovered by Ecclesiastical's study were monthly direct debits, followed by cash donations and bank transfers.