In this research process, my objectives were as follows; firstly, to explore the relationship between identity formation and poverty and secondly to explore the role of the church in combating the effects of poverty in the lives of those who live in poverty stricken communities. A Narrative approach was used to gather data from the community. I listened to the stories of those people who live in poverty. Seven movements were used as the methodology for this research (Muller 2005:81-86). As a practical theologian, I positioned myself within postfoundationalist theology. In this position I avoided foundation epistemology which seeks the absolute truth as well as anti or nonfoundational epistemology which promotes relativism. As I mentioned earlier postfoundationalist practical theology is always thinking in a specific context and can also go beyond that specific context into interdisciplinary thinking. Starting from a specific context into an interdisciplinary context, we found that the concept of poverty has been described as a discourse meaning that it went from poverty as a lack of resources into linguistic, poverty as lack of capabilities or poverty being political. By taking multidimension method to eradicate poverty one needs to apply a multidimensions approach. The stories from Nellmapius affirmed that poverty influences identity formation. The following effects were identified: low self-esteem, stress, depression, lack of self-acceptance and hopelessness. The church has the capacity as the biggest membership and with the most awareness organization in most communities that has the attention of many people. The church is able to preach hope for people in what seems to be hopelessness and encourage the poor to rise out of their poverty. It can facilitate the poor and the government to work together to change their lives.