Facing what could be the greatest economic recession since 1933, South Carolina Baptist Convention staff members plan to resource churches through community assessments, community partnership-building and services to better understand economics.
Hunter Howard, retired president and chief executive officer, South Carolina Chamber of Commerce, met in January with convention field service staff to provide an economic update and launch staff discussions about service to churches as churches serve their communities.
“South Carolina is on the verge of the worst recession since the Great Depression,” Howard said. “The local church has an opportunity to be the hub for bringing people together, saying, ‘Here are our community problems, here are our opportunities, and together let’s figure out what to do.’ “
To that end, convention staff members identified goals to assist churches:
? Help churches with community needs assessments, and help move resources to Baptist associations and pastors.
? Help churches move toward cooperating with one another through community meetings of South Carolina Baptist pastors and church leaders, and also meetings with interfaith, government and civic constituencies.
? Help financially struggling churches look for alternatives to dissolution through revitalization, restarts or mergers.
? Provide an economic summit for church leaders, helping leaders better understand the global, national and state economy, and its impact on families and communities.
? Publish resources that show how convention staff can serve churches facing economic crisis in the pew and community.
? Help churches with administrative services to better budget and manage finances, including refinancing.
Howard, who is a member of First Baptist Church, Simpsonville, said churches will feel the economic downturn in two ways: the effect it has on church giving, and the effect it has on community members looking to churches for aid.
“Empty Tomb, a Christian research and service organization, looked at the country’s recessions from 1968 forward to determine the impact on church giving,” Howard said. “The research showed that giving was not necessarily affected by a recession; churches might be shielded because of the tithe and the desire to honor it. My opinion is that might hold true early in a recession, but if unemployment continues climbing, 10 percent of zero is zero.”
Howard said current state unemployment is about 8.4 percent and that the South Carolina Board of Economic Advisors is predicting that it will get much worse – that it could reach double digits sometime this year. He also said retail sales were down an estimated 20 percent from October 2007 to October 2008 based on state sales tax revenue. Howard said consumer debt is at an all-time high, housing values have dropped and are dropping, automobile sales are stagnant, and stock values are down one-fourth from 2008.
“What got us in this mess, and will get us out of this mess, is the availability of credit,” Howard said. “We went from easy credit to no credit in a matter of months. Unless you have pristine credit – in the 700 scoring range – the credit market is now closed. And I don’t expect a big turnaround. We have an economy that’s stagnant, combining recession with deflation. It’s going to be a longer, more painful problem and it’s going to affect almost everyone.”
He predicted the economic problems will continue through spring 2010 but warned that some experts predict a recession that will last 36 months. “The longer the recession, the more potential impact on local church giving,” he said.
But, church giving aside, Howard said communities are being impacted across the state, providing great ministry opportunities for local churches.
“Local churches will experience more of a demand for ministry aid,” he said. “People are, and will be, out of jobs, they will lose their homes, and they will have no place to turn. Social services and unemployment benefits are a Band-Aid solution, but it’s a Band-Aid. The government reserves are gone. There’s going to be a churning in our communities as businesses are affected by unemployment. Churches will be where people turn for help.”
A former member and chairman of the South Carolina Tax Commission, Howard said local governments may “get creative” regarding local tax assessment. “It’s possible that some church-related tax breaks will now be at risk. Churches need to call on experts to help them plan through difficult times.”
“These are times that bring communities together,” Howard said. “And churches need to be leaders in that. There will be unemployed people; how can that time be turned into ministry? What initiatives can local pastors take, together, within their networks and within the influential members of their congregations? How will we create partnerships between churches, governments and organizations to meet the needs of people who are hurting? People’s lives will slow down and many will now be open to faith discussions. We need to be ready for those opportunities.
“Churches must turn the negativity of finances into the positive of service,” he said.
‘Economy Watch’ related stories:
Special Section: Economy Watch
SCBC taking steps to absorb economy’s punch in ’09
South Carolina Baptist institutions prepare for economy’s effects
SBC agencies, institutions cut staff, tighten budgets
South Carolina WMU anticipates ‘high level of service’
Convention staff prepares to serve churches assisting communities during recession
Churches can protect pastor even in tough economy