Recession crimps budgets, U.S. church services

Michael Newberry’s refusal to seek financial assistance from his church isn’t because he wouldn’t love to - it’s because the place known for its giving needs help itself.

The 52-year-old member of Grace Evangelical Lutheran Church has remained jobless, though he has interviewed for 25 to 30 jobs in the past nine months - evidence of the nation’s recession. Mr. Newberry said he suffers from a leg disease that keeps him on crutches. He receives financial help from the government, including food stamps, but when it comes to asking for help from the Northwest Washington church, he doesn’t bother.

“I know there have been people who have been helped, but I know there have been some that have been turned away because there’s just not enough money,” Mr. Newberry said. “There’s barely enough money to keep the lights on sometimes.”

Church budget problems run deeply enough that the Rev. Clinton Kersey, the church’s senior pastor, refused to specify just how much trouble the congregation is in. Mr. Kersey would only say that the budget is down 20 percent so far this year, and he indicated it might get even smaller.

It’s a vicious cycle - people are forced to limit donations at a time when the church needs them the most.

According to a report on annual charitable contributions released earlier this month by the Giving Institute, religious organizations took in an estimated $106 billion in 2008, a 5.5 percent increase over 2007. Nevertheless, several of the nation’s largest religious charities are reporting declining donations and budget cuts.

Catholic Charities USA saw a $300,000 decrease in income from June 15, 2008, to June 15, 2009, said spokesman Roger Conner, who attributed this loss to decreased donations.

Jewish National Fund spokeswoman Jodi Bodner said that while the fund’s income remains on par with last year’s, the organization still decided in October to cut its national and regional fundraising department budgets by 20 percent as a preventative measure, given the state of the economy. While no employees have been fired, Ms. Bodner said JNF has frozen both hiring and salaries and cut travel and mailing expenses.

David Beckworth, an assistant professor of economics at Texas State University, called a study that revealed a rise in religious charitable donations “a puzzle that defies common sense or intuition,” and wonders where the number in the study came from - how it was measured, what churches were measured, and other specifics.

“You can give more time or you can give more money,” Mr. Beckworth said. “If unemployment goes up, then suddenly I’m not as able to give as much money, and instead it might be easier to give more time.”

Indeed, Mr. Newberry said that although he hasn’t been able to donate as much money as he wishes, he contributes in other ways, such as ushering and lectoring.

The beginning of the year saw the biggest cuts to hit some organizations, as the Catholic Archdiocese of Washington cut 18 positions from its 200-employee operation, including administrative and management positions. Budget cuts in various departments ranged from 15 percent to 20 percent, in hopes of bridging last year’s nearly $2 million operating deficit.

Despite the deficit, donations have remained steady, and the archdiocese has increased its tuition assistance, giving out $4 million - more than four times what it was able to provide parents with in 2008.

The Episcopal Diocese of Washington laid off four employees at the beginning of the year, including one senior staff member - an administration director - two support staffers and a property manager. From its $3.9 million budget, the diocese made a series of staff and budget cuts to make up for a $400,000 shortfall from initial revenue projections, which included $357,800 less in pledges than anticipated.

Rabbi Shmuel Herzfeld at the National Synagogue in Northwest said he also has noticed a decrease in donations.

Story Continues →