It’s an unusual week for me when I write letters to our mayor, city councillor and member of parliament. But last week was one of those weeks. I wanted to share with them a recent study on the economic impact of churches on their communities. It’s an important issue because more and more secular people are of the mind that it’s a drain on the economy for the government to provide tax exemptions to religious institutions. The research shows that the opposite is, in fact, true. Even if you never intend to attend a church, you benefit from the economic impact that the church has in your city. Let me explain.
Building off similar research conducted in Philadelphia in 2010, the first Canadian study of the economic impact of churches was done in 2016 when a pilot study of ten congregations in the city of Toronto was conducted. Obviously, the needs in urban settings are particularly great and the impact of churches reflected that. Congregations were shown to have an economic impact of four to five times their annual operating budget. So, if you removed a congregation with a $250,000 annual budget, the study showed that you would need about $1.2 million annually to sustain their economic contribution to the community.
The study identified economic benefits provided by social programs, refugee assistance, support for seniors, youth programs, counselling and volunteer initiatives. It also looked at the impact made by congregations that provided parking, building rental, as well as daycare space, addiction recovery programs and after-school clubs. Additionally, it has been shown that Canadians who attend church regularly are more likely to volunteer and give to charity than those who don’t.
Seeing the results of the Toronto study, our church association, The Fellowship, commissioned a study of the economic impact of its membership. Between September 2018 and May 2019, 442 Fellowship churches were surveyed, with in-depth studies done with 26 representative churches. The research showed that the average Fellowship church contributes $785,922 annually to its community and for every $1 spent by a Fellowship church, there is a community impact of $2.68. That’s an amazing return! Furthermore, the report showed that churches provide 5.9 times more socio-economic impact than they would if they lost their charitable status and started paying taxes.
There are a few takeaways from this study for me:
We should be grateful for the tax exemption granted by the government in Canada. We can forget the benefit to us personally and to the churches we attend. In Japan, our church donations never resulted in tax breaks for us and the church wasn’t given any tax relief either. We should be grateful for Canada’s provision in this regard and not take it for granted.
The economic impact of a church results from the fact that it is, at its heart, a volunteer organization. Only a very small portion of a church’s ministry is done by paid staff. The job description of every pastor is to “equip the saints for the work of ministry” (Ephesians 4:11-12). The study shows the power of volunteer efforts and the impact that Christian service makes in a community. It also shows how much the church needs each one to serve in order to fulfill its mandate. If you’re on the bench, we need you!
Churches are a great investment. When you give to the church, you’re not just giving to a need but to an organization that trains and multiplies volunteer workers to meet needs. And the church, alone, has the capacity to minister to the whole person, including the deeper spiritual needs that underlie many other problems.
While this study taught me something about the church, it also taught me something about our government. I’m happy to report that each one of the politicians I contacted responded to me personally and promptly. Two sent emails and from one I received a two-page letter but each one showed that they had read and digested my email and the study that I sent. For all that people complain about our political system, we need to be grateful that we have politicians who listen and take the time to respond when we raise issues.
In awe of Him,
Paul
