Churches cope with recession

As the American Dream slips toward the shadow of the valley of death, perhaps the recession will place its steepest demands on the steeple.

So, for many local churches, this is a time to brace.

According to a 2008 survey conducted by The Barna Group, a Christianity and spirituality strategy firm, 20 percent of the more than 1,200 respondents said they decreased their church donations last year as a result of the economic downturn.

In a statement accompanying the survey's results, which were released Dec. 1, the group's founder George Barna said American churches received between $3 billion and $5 billion less than expected during the fourth quarter of 2008. Most churches probably received between 4 percent and 6 percent less revenue than they would expect prior to the recession.

"People's attitudes about generosity have been altered, as shown by their immediate donation behavior," he warned in the statement. "We anticipate that a greater percentage of churchgoers will decrease both their giving levels and frequency over the next year or so. This is a time for church leaders to demonstrate restraint and wisdom in their financial decisions."

Bishop Michael Pfeifer of the Catholic Diocese of San Angelo said the deepening recession has begun to hit home in West Texas, and it is probably only a matter of time before its financial impact lightens the area's collection plates.

"I think people will be able to give, but they won't have the same amount to give," he said. "It's going to have an effect on us in the near future. That will be true, not just in the Catholic Church, but in all churches, because we're all in this together."

Fortunately, he said, a recent financial committee meeting relieved him with news that the diocese has not suffered any losses yet.

"Having said that," Pfeifer added, "we're seeing the impact already in the lives of people."
The hardest financial blow likely will land on the elderly, a group that relies on pensions and retirement investments that, for some, have "blown away," he said. That's the population he worries about most.

And with more people flocking from harder-hit cities to the Permian Basin's relatively lush job market, local churches also have more sheep in their flock to provide for, the Rev. Michael Mueller of Odessa's Lutheran Church of the Risen Lord said. 

Many do find employment, he said, but a 9-to-5 doesn't necessarily guarantee financial solvency.

"We have a food pantry that is specifically for transients and homeless," Mueller, a member of the Odessa Ministerial Alliance, said. "We see quite a few people come through, and more so now - the real thing we've seen so far is people are moving to Odessa because they see there are a lot of jobs here. But they don't pack up and move, many of them, until they're broke. They get here, and even if they get a job, they don't have a place to stay or food."

On a larger scale, Pfeifer said, the tightened lines of credit and nervous lenders have affected not just parishioners, but entire parishes in need of reserves for day-to-day upkeep.

The diocese's unity, however, has given its 72 churches a fiscal breather, he said. An internal loan network has been in place for years that pools parishes' excess money and loans it at a fraction of the interest to others that might be in need of a few repairs. Now, in a time rife with loan debacles, this internal system is proving to be a particularly handy insulator.

Unfortunately, Pfeifer noted, this system - which will not hold out forever - does not do much for the many other denominations and churches in the area. The diocese has it, but only thanks to the inherent centralization and tight structure of Catholicism.   

Mueller said his church recently paid off its mortgage and is "building up" reserve funds to keep around for a rainy day.

The Lutheran Church of the Risen Lord's investments are safe, he said. These funds have "taken a decent hit, but not as bad as the market has."

"We've done a little better than the market has," Mueller said. "That's for sure."

Both Mueller and Pfeifer said finances are a concern but not for lack of income.

The men said churchgoers do not seem reluctant to give to the church, so the collection plates have not come back empty.

"Our church has a lot of people who understand God has blessed them with things so they can bless others," Mueller said.

As for the future, Pfeifer said, the economic climate may get worse, but the diocese is doing everything it can to prepare for what may come.

He is thankful he hasn't been forced to cut any programs, he said. He is in no hurry to begin implementing new ones until the dust settles a little.

"I think our focus will be more on people and less on buildings," the bishop said.

If the bottom completely falls out - if the worst-case scenario occurs and an all-out depression hits - the church will not balk, Pfeifer said. The diocese and other churches will do everything they can with what they've got.

Regardless of money, he said, churches will always be able to do what they do best.

"We'll fall back on the basic teachings of Christ," Pfeifer said, "and take care of those who are hungry and thirsty and sick."

Online Poll

>> Do you plan to cut your donations to the church and/or nonprofits?:

>> No. We always find enough, no matter what.
>> Don't know. Times are tough, but we're hanging in there ... for now.
>> Yes. We have to put food on our own table first.

Vote online at www.oaoa.com.