wfn.org | National survey finds financial difficulties in the black church

[NewsDesk <NewsDesk@UMCOM.UMC.ORG>]

Nov. 11,  1998	Contact: Linda Green*(615)742-5470*Nashville, Tenn.
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By United Methodist News Service

Many black congregations in the United States are suffering from
financial difficulties and have little money left over for outreach
ministries once their basic needs are met, according to a new study.

The findings are included in "Financing African-American Churches," a
groundbreaking study on giving within black churches. The study was
released recently by the Institute of Church Administration and
Management, the church management training and research arm of the
Interdenominational Theological Center (ITC) in Atlanta. 

The two-year national study examined the factors that influence giving
to the black church. The expansive study involved all of the traditional
black denominations and surveyed 3,636 church members from 141 churches.
The results included reports from urban, suburban and rural
congregations. Pastors of each of the congregations also were
interviewed to gain information on membership size, church budgets and
other areas. 

The ITC is a consortium of six seminaries of different denominations
serving the black community and is the nation's leading academy for
African-American religious training and graduate education. United
Methodist-related Gammon Theological Seminary is part of the center's
denominational constituency. 

More than 54 percent of black church members surveyed reported serious
financial problems in their individual congregations. A disproportionate
share of United Methodist and Disciples of Christ churches indicated
monetary difficulties, while the least financially troubled reported by
members were nondenominational, Presbyterian, Church of God in Christ
and African Methodist Episcopal churches.

A typical African-American congregation, with an average attendance of
250 people, spends 77 percent of its income to maintain basic church
operations and programs, leaving little extra for outreach ministries.
The total median amount that a black church annually spends is $181,500,
the survey said.

The black church, "the only really independent black institution in
America," has been both a longtime supporter and sustainer of African
mericans, especially throughout slavery and the civil rights struggles
of the 1960s, according to a briefing paper released by ITC.

Since the church's survival has not depended on outside sources,
individual contributions are the lifeblood of the black church, the
paper said. The study examined how use of the donations has become
significant not only to congregations but to the broader
African-American community.

The study  also was initiated to discover whether black churches are
capable of increased outreach efforts since governmental assistance
programs have been cut back, corporations have downsized and affirmative
action opportunities are being denied, said Walter Collier, lead
researcher for the study. He owns a consulting agency with offices in
Oak Bluff, Mass., and Alexandria, Va.

In recent years, financial accountability in the church has become a
sensitive issue, according to the study.

"With frequent headlines about less-than-honest church leaders, members
of congregations are demanding greater accountability from their
pastors, trustees or financial committee persons about how church money
is spent," Collier said. 

The fact that the black church has traditionally responded to the
spiritual needs of the community has never been an issue, he said. An
increase in the education of people and a change in mindset has led
African mericans to demand their leaders be more accountable in handling
organizational resources and reporting what the church is doing, its
plans and how it intends to be of help in the community.

When asked if they receive sufficient church financial information, 59
percent of the church members surveyed said "yes" and 41 percent said
"no." 

Questions about management of their church finances led 59 percent to
respond that they were properly handled, while 21 percent said they felt
somewhat comfortable with how funds were being handled; 5 percent were
not satisfied with how church funds are being managed; and the remaining
15 percent had no opinion. 

Although researchers discovered that many churches do not keep
sufficient financial records of its members, they found that most
churches surveyed had an annual income of $200,000. About 63 percent of
this money is derived from offerings, tithes, and the balance from
fund-raising campaigns, rents, fees, wills and investments. Twenty-six
percent of the churches had annual incomes below $100,000, and 10
percent had incomes of $1 million or more. 

Based on 1995-96 annual figures, the median amount of money given to the
church by survey respondents' households was $1,930, the survey found.

That "disturbing finding" does not bode well for the ability of black
churches to provide outreach services to their communities, Collier
stated. The survey determined that given the present financial
situations some black churches are experiencing, "it does not look as if
they can afford to support further community outreach programs without
some serious re-examination of their stewardship programs and infusion
of funds," he said.

Collier also said that research data did not indicate whether the
financial difficulties were related to church income or high expense
levels or if there were other factors. 

The survey found  that while black people attend church for spiritual
reasons, they also take seriously how well church leaders manage
operations and finances. "Pastors should take heed and improve their
church's financial management and accountability as a means of enhancing
congregational giving," Collier said.

Church members with annual household incomes between $10,000 and $60,000
tend to tithe and give offerings more than other income groups, the
survey found. Ninety-five percent of the respondents said tithing is
important, with the most generous contributors being members of the
Baptist, Pentecostal and Church of God in Christ denominations.
 
While finding that black churchgoers were committed to giving to their
churches, the survey also revealed that church members over 40 years of
age tend to give more, while members under 30 tend to be more critical
of church services and management.

"African Americans who give money to the church say they do so primarily
in order to keep the covenant with God to support the church through
tithes and offerings," Collier said. The reasons for giving are more
spiritual than financial, he said. "African Americans take the church
beyond the church doors and they take God beyond the sanctuary because
the importance of God is conveyed throughout our daily lives."

Research also discovered that churches increase their income when they
use pledge cards to gain a financial commitment from members. Collier
said black churches that use pledge cards are likely to receive more
offerings and tithes than those that do not because "the use of pledge
cards appears to have more of a binding effect on giving in that it
commits the congregant to give."  

Once there is a commitment on paper, a person is more likely to feel
obligated to give more to the church, he said. "Our recommendation is
that those churches that do not practice using pledge cards ought to
reconsider doing so as a way to increase congregational giving."

Collier noted that churches in urban areas tend to receive more in
offerings than churches in suburban and rural areas, and members who
hold positions within their church tend to give more than those who do
not.

Overall, congregations are satisfied with their pastors, the worship
service and the level of involvement in the community, the survey noted.
Sixty-nine percent reported satisfaction with the church buildings,
parking and church operations; 26 percent were partially satisfied; and
5 percent did not agree.

The survey has implications not only for the black church but for
academia as well, Collier said. The clear message from those in the pews
is that "while we are spiritually nourished, we are concerned about how
well the church is managed financially and organizationally," he said. 

With regard to academia, the study has filled a void and has provided
useful information for seminaries, where pastors are given the skills
for running a church, he said. The study shows a need to expand the
emphasis on church management, he said, so that pastors in training not
only graduate as spiritual leaders but also come out as "sophisticated"
organizational leaders and better managers.