Churches and Economic Development

Archive for Research Studies
Churches and Economic Development
March 13, 2009
Filed under Research Studies
Tagged Churches and Economic Development, Entrepreneurship

Most people don’t think of churches and other houses of worship as drivers of economic development. After all, the separation of church and state in the U.S. means that not-for-profit religious institutions do not pay property and other taxes. A community that depends on property taxes to drive government revenues will lose money on the property owned by a church or other house of worship (temple, synagogue, mosque, or shrine).

But looked at from another perspective, churches and other houses of worship contribute to the local economy in a variety of ways. Most churches employ at least one person, and many have upwards of 20 employees, especially if they operate a childcare facility or school. Since they generally operate a facility, churches are consumers of energy to heat and cool the often large, open spaces. They also use insurance, maintenance, landscaping, and construction services (albeit sometimes as volunteer labor), and they consume office supplies, furniture, curriculum materials, and specialty church items.

Participants in religious organizations represent a significant market for religious goods and services. According to the 2009 annual edition of the Yearbook of American & Canadian Churches (edited by the National Council of Churches and published by Abingdon), membership of the top 25 churches in the U.S. totals more than 146.6 million. A 2004 Gallup Poll reports that six in ten Americans consider religion to be a “very important” part of their lives and another 26 percent responded that religion was fairly important. More than eight in ten were affiliated with a Christian religion, and half of the respondents said they were Protestants. The largest single religious denomination was Catholic, accounting for about 25 percent of Americans. Some 2 percent were Mormons and another 2 percent were Jewish.

In 2006, a Packaged Facts report on religious markets predicted that the overall religious market for publishing, inspirational merchandise, and audio/video/software product would grow to $9.5 billion by 2010.

On a more personal level, many entrepreneurs report that the religious community has been an important source of moral support for them as they start and grow their businesses. The connections made in a worship community can lead to financial opportunities as well.

Beyond their role as consumers of goods and services, however, churches and their members can also be a force for economic development in their local communities.

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