U.S. Churches Face Financial Hard Times

[Doug]

NEW YORK — Organized religion was already in trouble before the fall of 2008. Denominations were stagnating or shrinking, and congregations across faith groups were fretting about their finances.

The Great Recession made things worse.

It's further drained the financial resources of many congregations, seminaries and religious day schools. Some congregations have disappeared and schools have been closed. In areas hit hardest by the recession, worshippers have moved away to find jobs, leaving those who remain to minister to communities struggling with rising home foreclosures, unemployment and uncertainty.

Religion has a long history of drawing hope out of suffering, but there's little good news emerging from the recession. Long after the economy improves, the changes made today will have a profound effect on how people practice their faith, where they turn for help in times of stress and how they pass their beliefs to their children.

"In 2010, I think we're going to see 10 or 15 percent of congregations saying they're in serious financial trouble," says David Roozen, a lead researcher for the Faith Communities Today multi-faith survey, which measures congregational health annually. "With around 320,000 or 350,000 congregations, that's a hell of a lot of them."

...Enrollment in one group of 120 Jewish community day schools is down by about 7 percent this academic year, according to Marc Kramer, executive director of RAVSAK, a network of the schools. A few schools lost as many as 30 percent of their students. Many of the hundreds of other Jewish day schools, which are affiliated with Reform, Conservative and Orthodox movements, are also in a financial crunch.

Kramer says 2009-10 will be a "make or break" year for Jewish education, partly because of the additional damage to endowments and donors from Bernard Madoff's colossal fraud.

Overall, U.S. Jewish groups are estimated to have lost about one-quarter of their wealth.

"It's going to be painful," Kramer says. "There will be some losses."

The Association for Christian Schools International, which represents about 3,800 private schools, says enrollment is down nationally by nearly 5 percent. About 200 Christian schools closed or merged in the last academic year, 50 more than the year before.

At least 80 members of the Association of Theological Schools, which represents graduate schools in North America, have seen their endowments drop by 20 percent or more.

...Before the stock market tanked last fall, only 19 percent of U.S. congregations described their finances as excellent, down from 31 percent in 2000, according to the 2008 Faith Communities Today poll.

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