Study suggests US gov’t loses $71 billion a year because of tax exempt religious institutions

A new study suggests tax exemptions for religious institutions cost governments $71 billion a year:

How much money does the U.S. government forgo by not taxing religious institutions? According to a University of Tampa professor, perhaps as much as $71 billion a year.

Ryan Cragun, an assistant professor of sociology, and two students examined U.S. tax laws to estimate the total cost of tax exemptions for religious institutions — on property, donations, business enterprises, capital gains and “parsonage allowances,” which permit clergy to deduct housing costs…

If history is a guide, the Free Inquiry article and any call for tax reform it may engender are not likely to have much effect. Since the 1950s, there have been several attempts to quantify religious tax exemptions — all of them wildly varied in their conclusions — and only a handful of legal challenges to those exemptions. Most were unsuccessful…

States bypass an estimated $26.2 billion per year by not requiring religious institutions to pay property taxes.

This seems like a lot of money but here are a few thoughts about this:

1. You would need to put the cost of these exemptions versus other areas of the tax code in order to know how this compares. For example, would repealing the mortgage interest deduction bring in more money? The study itself makes some of these comparisons:

To put this into perspective, the combined total of government subsidies to agriculture in the United States in 2009 was estimated to be $180.8 billion.38 Religions receive at least 40 percent of the subsidy that agriculture does in the United States. Another way to illustrate the size of the subsidy may be to illustrate how much tax revenue would increase at the state level if religious institutions had to pay property taxes. In Florida, where the state government’s budget was $69.1 billion in 2011, the amount of tax revenue lost from subsidizing religious property was $2.2 billion or 3 percent of the state budget. The additional revenue would have mostly prevented the $1.1 billion cut to firefighter and police retirement plans and the $1.3 billion cut to public schools.39

So is this a battle worth fighting instead of fighting agriculture subsidies?

2. I think we may see more calls for things like this during this period of economic troubles. The federal government as well as state and local governments need money so they are looking for ways to find “easy” money.

3. It could be interesting to look at how this affects local municipalities, particularly ones with more religious congregations that consequently don’t get the tax dollars they might if that land was occupied by homeowners or businesses. For example, a community like Wheaton, Illinois has a large number of churches (including a claim that the suburb has “more churches per capita than any other town in America”) and could have more tax revenue if that land was put to other uses.

“This [car] is bound for glory…”

Megan Garber of the Atlantic explains the car-centric origins of Robert Schuller’s Crystal Cathedral:

The efficiencies of the [Orange Drive-In Theatre where Rev. Schuller first held services in 1955 in Orange County, CA] were obvious: For cinematic purposes, the drive-in was useful only in the darkness, which meant that it could play an effortlessly dual role, theater by night and church by day. The architecture and technological system built for entertainment could be repurposed, hacked even, to deliver a religious ceremony for the golden age of the car. An early advertisement announced the new ministry’s appeal: “The Orange Church meets in the Orange Drive-In Theater where even the handicapped, hard of hearing, aged and infirm can see and hear the entire service without leaving their family car….”

The Schullers, and their contemporary entrepreneurs of religiosity, had happened into an idea that made particular cultural sense at its particular cultural moment: In the mid-1950s, Americans found themselves in the honeymoon stages of their romances with both the automobile and the television. And they found themselves seeking forms of fellowship that mirrored the community and individuality that those technologies encouraged….It was, with its peculiar yet practical combination of openness and enclosure, an improvised idea that happened to fit its time. The Schullers’ motto? “Come as you are in the family car.”

As the article goes on to note, Schuller eventually moved out of the drive-in and into his Crystal Cathedral, which has been “in the news most recently for its financial troubles — culminating in bankruptcy, a controversial shift in the the church’s leadership structure, and, finally, the sale of the Cathedral itself to a neighboring (Catholic) diocese.”  I guess things went a little off the rails at some point.

More seriously, however, I find Schuller’s integration of the automobile into Christian liturgy fascinating (and more than a little disturbing).  Megan’s article makes it clear that, by and large, Schuller’s drive-in congregants remained in their cars throughout services (“Church rubrics, the guidebooks for services, included instructions not only about when to sing, speak, and stay silent, but also for mounting the speakers onto car windows”).  It’s hard to understand how attendees could have Christian communion–in either the literal or general sense–by themselves from the walled-off comfort of their own cars.

Religious change in America between 2000 and 2010

Results from the 2010 U.S. Religion Census show religious changes in America between 2000 and 2010:

The 2010 U.S. Religion Census, released May 1 on the Association of Religion Data Archives, found that The Church of Jesus Christ of Latter-day Saints gained the most regular members in the last 10 years, growing by nearly 2 million to a total of 6.14 million adherents in 13,600 congregations…

  • Taken together, nondenominational and independent churches may now be considered the third largest religious group in the country, with 12.2 million adherents in 35,500 congregations. Only the Catholic Church and the Southern Baptist Convention are larger.
  • The U.S. was home to 2,106 mosques nationwide in 2010. The figure includes 166 mosques in Texas, 118 in Florida and 50 Muslim houses of worship in North Carolina…

Mainline Protestant churches lost an average of 12.8 percent of adherents in the first decade of the 21st century; 5 percent fewer active members were found in Catholic churches.

There is an explanation for this growing diversity toward the end of the article: the religious economy approach. This school of thought in the sociology of religion suggests that religious groups in the United States have to compete for adherents, sharpening the appeal and “marketing” of some of these groups. This takes place because of the separation of church of state which is a contrast to state churches in Europe that tend to stifle religious competition.

Some of these changes are also interesting at the local level. For example, Muslims are the fastest growing religious group in Illinois and there are now more Muslims in the Chicago area than Methodists. [The actual numbers for this second fact are not in this online story but were in the print version of the newspaper.]

The church should respond to Going Solo

In Going Solo (a summary of the argument here), Eric Klinenberg documents a growing trend in American social life: more and more people are living alone. As I read this book and thought through the idea that this is an unusual trend in human history, I was somewhat surprised that there was very little about a religious approach to this issue. Klinenberg mentions at a few places how a few “singletons” are sustained by their faith and how a few religious organizations are serving elderly singletons but there is no bigger mention of how religious faiths address this issue. Although I don’t study this area, I believe this is a golden opportunity for evangelicals and others in the church to respond to this growing trend. Here are a few thoughts about the issue at hand and how churches can begin to tackle the issue.

Many churches, particularly the average evangelical church, are built around the family. Many programs are geared toward kids and families. Sermons are much more likely to be about family relationships that about living alone. In my own experience, you often don’t “fit” in these churches unless you are married and have kids. Even being married is not enough: I’ve felt this in multiple churches, that you aren’t fully a participant unless you have children who are involved in kid’s ministries. If I didn’t volunteer to serve or seek out relationships, simply being part of a married couple isn’t going to get me far. While we have been invited to some events and groups, we have rarely been invited to the house of a couple who has kids. (I am more than willing to admit that this may have more to do with me than my family status.)

This is not just a feature of the church. As Klinenberg points out, the societal expectation is that people will get married and have children. Not following that course leads to questions and sometimes bewilderment. I’ve heard the idea from others that having children allows one to more easily make connections with other adults. For example, having kids in school or in a neighborhood means that parents will inevitably meet other parents as their children interact. Without children (or perhaps a pet?), it can be difficult to strike up conversations even with people we see on a regular basis in the neighborhood, in public places, or at church.

I’ve thought at times that some churches verge on placing families higher than God. Which one is mentioned more? What are the subtle and not-so-subtle messages broadcast to people who attend? I wonder how much of this is driven by a perceived demographic need, a feeling among evangelicals that the best way to continue our churches and our faith is to raise children in this faith. A great example of this is a supposed statistic sociologist Christian Smith pointed out a few years ago: “only 4 percent of today’s teenagers would be evangelical believers by the time they became adults.” As Smith notes, this statistic is not true but it fits a mindset where there is a continuous battle between evangelicals and the rest of the world. One of the best ways to fight back is to have children who will continue the fight. Of course, Smith’s later work in books like Souls In Transition suggests that parents do indeed matter for a lasting religiosity.

While supporting marriage and families is a good thing (though I am reminded of sociologist Mark Regnerus’ arguments several years ago in an article titled “The Case for Early Marriage“), this leaves a lot of people out: younger adults, the widowed, the divorced, the separated, those who haven’t married. A common message is that once you leave these categories and get married, you are “normal” in the church’s eyes. Otherwise, you are more on the margin.

One possible solution to some of these issues is to have more intergenerational classes and activities. Churches often group people by life stages, often literally separating groups from the main activities from the church (like in youth groups). I’ve never been a fan of this: both personally and as a sociologist, I see a lot of value in interacting with and learning from those who have more experience and wisdom than I do. There is much to be gained by building relationships with those who are experiencing similar issues related to age but it also emphasizes certain landmarks. For example, singles’ ministries or small groups based on childless couples can be odd in that the unstated goal is to leave these groups. Why not treat people as whole people who can learn from other whole people rather than pushing ourselves into easily defined and sorted groups? Simply worshiping together in a large service doesn’t lead to deeper relationships in the way that consistent intergenerational interaction can.

Another possible solution is to broaden the focus away from nuclear families and to a more expansive definition of “families” and “neighbors.” This does not have to look like the final scene from the movie About A Boy where the lonely teenager Marcus and the lonely middle-aged man Will have found a group of people they like and that like them who they now define as their “family.” Rather, this could and should include people we wouldn’t immediately gravitate to, people who aren’t necessarily easy to make initial connections with. We can be reminded that the suburban nuclear family that many churches are built around is a relatively recent invention in human history. The Biblical characters we uphold in church would have seen themselves as part of larger families, clans, and tribes. As historian Robert Fishman points out in Bourgeois Utopias, William Wilberforce and friends, renowned persons of faith, contributed to this in the late 1700s by moving their families to one of the first Western suburbs, Clapham outside of London, in order to preserve their wives and children from the evils of the city (much more could be said about this topic). Retreating to a suburban family life with limited contact with the world may limit some dangers but it might also introduce some others.

Third, this trend presents a chance for the church to push for and truly live out the ideals of “community, ” a word oft discussed in Christian circles but much harder to put into practice. What does this really look like? How many people are really striving for this? Or is it something that tends to come up in times of trouble? Even further, Klinenberg argues that behind the trend of living alone are American cultural values are self-reliance and individualism. Neither of these are Christian virtues and yet we Americans need to be reminded, as one of my former pastors was fond of saying, “there are no solo Christians.” This broader Christian community should care for all, just as the sociologist Rodney Stark argues the early Christians effectively did. Sure, this is an uphill battle in a world of many single-family homes, cars, long work hours, and growing opposition to organized religion but it is a battle worth fighting.

In sum, this is an opportunity for Christians to uphold values of marriage and family while also addressing the trends of American social life toward singleness. It will not be enough for churches to argue that people should simply get married and then support those people. In dealing with issues like loneliness and searching for meaning that Klinenberg suggests are common along those living alone (and frankly, most people), the church should be leading the way. The church can be a place where close relationships with others are created and nurtured. The church can challenge ideas about self-reliance and independence, ideas about having to be tough to face the world as solitary people. If there is any place where the single and married, young and old, people of different classes, races, and ages should be able to come together, it should be in the places that claim that “God so loved the world” and whose followers are called to “love their neighbors as themselves.”

Argument: Tebow actually now in more religious yet less Christian city

Since Tim Tebow was traded from the Denver Broncos to the New York Jets, a number of commentators have suggested that Tebow was headed for the secular or even “heathen” city. However, some statistics suggest that the New York City region is more religious than the national as a whole though it is less conservative Protestant:

While New York has a reputation for godlessness, both city and state actually have higher rates of membership in organized religion than the country as a whole. In 2000, the proportion of state residents who belonged to some religious body was 76 percent — compared with 61 percent in the United States as a whole — according to an analysis by Queens College sociologist Andrew Beveridge. Even higher numbers specifically for the tristate region put it in the top 9 percent of urban areas in terms of religiosity, ahead of Salt Lake City and Little Rock.

Still, those who raised their eyebrows about Tebow’s arrival had a point. While New York is very religious, it isn’t religious in Tebow’s way: conservative Protestant. The state has proportionally far more Jews and Catholics than the rest of the country. The percentage of Muslims is only 2 percent — but that’s double the figure in America at large. In contrast, while the national proportion of conservative Protestants is 28 percent, the state population is 5 percent.

So it may not be Tebow’s being religious that raises eyebrows. Rather, it could be conservative Protestantism’s tendency to involve public proclamation. New Yorkers believe just as much, but they are less likely to talk about it openly.

It will be fascinating to see what happens. While the New York City region may be familiar with religion, it is a different mix of religions compared to other places.

The measure of belonging to a religious body could be telling – is this less about religious beliefs and practices and more about the social activity of being a member of a religious congregation or institution? If so, I wonder if this is tied to education levels. Several recent studies suggest that attending church is more common among those with higher levels of education. Other studies suggest that religion is not uncommon or unknown among professors and scientists.

Sociologist: seasonal or occasional church attenders will decide the fate of organized religion in Canada

A Canadian sociologist argues that the fate of organized religion in Canada will be decided those who attend church occasionally:

Indeed, a new report finds rumours of the death of religion have been greatly exaggerated, with national data suggesting about 12 million Canadians will attend church this long weekend. And it’s the unfamiliar faces — the 30 per cent who attend either monthly or seasonally — who will have the biggest influence on organized religion going forward, according to Reginald Bibby, a University of Lethbridge sociologist.

“Numerically-speaking, they will determine who constitutes a majority: people who embrace faith, or those who reject it,” said Bibby, who’s been studying religious trends since the mid-1970s.

“At this point in time, about 60 per cent say they’re open to greater involvement if they can find it worthwhile for themselves and their families. Which direction they go will depend largely on whether or not religious groups can demonstrate the value of greater involvement.”

National data, released by Statistics Canada’s general social survey and analyzed by Bibby, suggests the core 20 per cent of weekly church attendees will be joined this Easter by many of the 10 per cent of monthly attendees and a good number of the 20 per cent of seasonal attendees.

Interesting argument: these occasional attendees are like swing voters, capable of creating a majority if they continue to attend occasionally. Presumably, if this group stopped attending at all, religion could lose some social influence.

I’m intrigued by this statement: the “direction they go will depend largely on whether or not religious groups can demonstrate the value of greater involvement.” Are religious groups prepared to tackle this question? Which church approach works the best in addressing this group of occasional attendees.

How much does this describe the situation in the United States? Depending on what figures you look at, roughly 30-40% of Americans regularly attend church even as many more claim to be “spiritual” or “believe in God.” Generally, how willing are non-church attending yet spiritual Americans willing to talk about and/or defend religion in the public sphere?

Atheists rally but still have a long way to go in the field of public opinion

Atheists may have held the “Reason Rally” last Saturday in Washington D.C. but data suggests they have a long way to go in countering negative public perceptions:

Atheists remain an enigma for many people. In fact, a study released last year found that religious people distrust atheists almost as much as rapists (National Post):

Researchers at the University of British Columbia and the University of Oregon conducted a series of studies that found a deep level of distrust toward those who don’t believe in God, deeming them to be among the least trusted people in the world — despite their growing ranks to an estimated half billion globally. “There’s this persistent belief that people behave better if they feel like God is watching them,” said Will Gervais, lead study author and doctoral candidate in the social psychology department at UBC. “So if you’re playing by those rules, you’re going to see other people’s religious beliefs as signals of how trustworthy they might be.” … “It’s pretty shocking that we get the same magnitude of distrust towards atheists simply because they don’t believe [in God],” said the researcher, who is himself an atheist. “With rapists, they’re distrusted because they rape people. Atheists are viewed as sort of a moral wild card.”…

So, one rally didn’t change perceptions too much … that’s not hard to believe. Gregory Paul, an independent researcher in sociology and evolution, and Phil Zuckerman, a professor of sociology, are puzzled by the dislike of atheists, but they see some positive signs for the nonbelievers’ future:

More than 2,000 years ago, whoever wrote Psalm 14 claimed that atheists were foolish and corrupt, incapable of doing any good. These put-downs have had sticking power. Negative stereotypes of atheists are alive and well. Yet like all stereotypes, they aren’t true — and perhaps they tell us more about those who harbor them than those who are maligned by them. … As with other national minority groups, atheism is enjoying rapid growth. Despite the bigotry, the number of American nontheists has tripled as a proportion of the general population since the 1960s. Younger generations’ tolerance for the endless disputes of religion is waning fast. Surveys designed to overcome the understandable reluctance to admit atheism have found that as many as 60 million Americans — a fifth of the population — are not believers. Our nonreligious compatriots should be accorded the same respect as other minorities.

It looks like there will be plenty of material to study in this area in the coming years.

I’d be interested to hear Paul and Zuckerman’s argument about surveys being titled toward religiosity. Do questions about religion suggest that the socially desirable answer is to be religious or does this pressure come mainly outside the survey? What questions produce higher results?

Evangelicals and Catholics first joined forces in the suburbs

In the middle of an article about how Rick Santorum has appealed to evangelicals, one of the factors mentioned is geographic: evangelicals and Catholics both moved to the suburbs after World War Two.

The plate tectonics of social mobility also figure into the Santorum surprise, note scholars like the political scientist John C. Green of the University of Akron. In the post-World War II years, many Catholics moved out of insular urban neighborhoods while many evangelicals left their rural and small-town homes for the suburbs and exurbs. In subdivisions, in office parks, in colleges, the young people of the two religions began to encounter one another as benign acquaintances rather than alien enemies.

It is no coincidence, then, that a Santorum voter like Carissa Wilson has grown up in the suburban sprawl between two cities with strong Catholic heritages, Dayton and Cincinnati. Like the Michigan autoworkers in 1980 who made a break with Democratic tradition to vote for Ronald Reagan, Miss Wilson just may be the embodiment of a new wave.

In other words, evangelicals and Catholics met and learned to like each other in the suburbs. United by suburban values and perhaps a dislike for both cities and rural areas, these two groups settled into the land of single-family homes and found that they could find common ground on some social and theological issues.

This brings several questions to mind:

1. Are Catholics and evangelicals more interested in preserving suburban values than finding common theological ground? Perhaps this is crassly put but the way the argument is written in the article, it suggests that the suburbs came first before the social and theological common ground.

2. How do race and class play into the process? In other words, while both groups came from different places to the suburbs, they were probably mostly white and the educational status of both groups was rising. Does this mean that the older city/rural divide was transcended by common status interests based on race and class?

Anti-urban hymn? “God, who stretched the spangled heavens”

Yesterday’s service featured #580 in the 1982 Episcopal hymnal, “God, who stretched the spangled heavens.” Beyond being a mid-20th century hymn (and they have some interesting quirks themselves), the second verse was very interesting:

Proudly rise our modern cities,
stately buildings, row on row;
yet their windows, blank, unfeeling,
stare on canyoned streets below,
where the lonely drift unnoticed
in the city’s ebb and flow,
lost to purpose and to meaning,
scarcely caring where they go.

It almost seems like this should be immediately followed by “Eleanor Rigby” by the Beatles: “All the lonely people, where do they all belong?”

This hymn tries to balance two images in this verse (and supported elsewhere in the song): on one hand, we have “stately buildings,” impressive demonstrations of modern capacities and on the other hand, these great cities are full of people “lost to purpose and to meaning.” On the whole, this is not a favorable view of city life, even if it is trying to be descriptive and demonstrate the issues modernists face. Are there any hymns that talk about vibrant urban neighborhoods?

I resolve to be on the watch for anti-urban messages in other hymns. I wonder if there is a large gap in hymn content in this area between more mainline denominations who retained a little more presence in the big cities during the post-World War II suburban boom and also tend to hold to political views that suggest engagement with the city while religious conservatives have more individualized songs and desire escape from the dirty, evil cities.

 

Banks are foreclosing on more churches

Houses aren’t the only structures being foreclosed on during this economic crisis. Churches have been hit hard in recent years:

Since 2010, 270 churches have been sold after defaulting on their loans, with 90 percent of those sales coming after a lender-triggered foreclosure, according to the real estate information company CoStar Group.

In 2011, 138 churches were sold by banks, an annual record, with no sign that these religious foreclosures are abating, according to CoStar. That compares to just 24 sales in 2008 and only a handful in the decade before…

“Churches are among the final institutions to get foreclosed upon because banks have not wanted to look like they are being heavy handed with the churches,” said Scott Rolfs, managing director of Religious and Education finance at the investment bank Ziegler…

Church defaults differ from residential foreclosures. Most of the loans in question are not 30-year mortgages but rather commercial loans that typically mature after just five years when the full balance becomes due immediately.

Its common practice for banks to refinance such loans when they come due. But banks have become increasingly reluctant to do that because of pressure from regulators to clean up their balance sheets, said Rolfs.

Several things strike me here:

1. It would be interesting to talk with banks about how they negotiate this situation where they don’t want to appear heavy-handed with churches and yet still need to profit off their mortgages. Where is the line – is it just about the amount of money involved or does the possible response from the congregation also factor in? The article hints that these aren’t strictly business decisions but include consideration of cultural and moral values.

2. While the article suggests these foreclosed on churches are often bought by other churches, what kind of market is there for people to buy former churches who want to use the existing building? I’ve seen some interesting pictures over the years of churches that are converted into residential spaces (either large homes or multi-family units) but this requires the extra time and resources for rehab. I assume newer, auditorium-type churches might be more attractive here.

3. Will there be any extra indignation about churches outspending their means and not being able to meet their mortgage obligations?