How did the Medieval church contribute to the economic structure of Europe?

The church collected tithes, or money representing one tenth of income, from each Christian person, from peasants up to lords. Tithes could be paid in goods or money, and many peasants provided the church with animals, seeds, or crops that were stored in tithe barns. Even though many people struggled to pay tithes, they believed failure to do so would cause them to be sent to hell. Some peasants worked for free on lands owned by the church. Churches also collected fees for conducting rites such as baptisms and burials. 

By collecting so much money, the church became an economic power and controlled a great deal of land. They played a major role as landowners and landlords in medieval Europe. Many people willed lands to the church, and they collected large holdings and built magnificent structures such as cathedrals that reflected their wealth. In addition, churches did not have to pay taxes, leading to their increased wealth. Finally, many churches in Medieval Europe played a role in establishing borough rights, which were given by the king to enable that town to trade and have guilds.