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Gifts, donations to religious organizations declining

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Religious organizations such as churches and synagogues in the Des Moines area said donations are falling after years of annual increases, as the continuing economic malaise erodes the amount of money people can give.  

Many religious leaders throughout the city said the drop in their income was especially troubling because it’s coming at a time of heightened need, when the demand for social support services, such as clothing, temporary housing and food, is growing.

The trend is indicative of the depth and breadth of the current downturn, because gifts to religious organizations are often the last item cut from household budgets, they said.  

“We’ve definitely seen a decrease in tithing here,” said Richard Heger, an assistant to the parish priest at St. Augustin’s Church, which counts about 1,200 families as members. “We’ve never seen a period like this before.”  

The unemployment level continues to rise across the state. Last month, the Iowa Workforce Development said the state’s adjusted unemployment rate was 3.8 percent in January. That is lower than December’s 4.2 percent rate but it is higher than the 3.7 percent during January 2002.

“We’re running a bit behind last year,” said Rich Thomas, who as director of leadership development at Hope Lutheran Church oversees the church’s staff and budget.

“We’re starting to see the impact of the economic downturn where people just aren’t able to give more,” he said. “That’s something we haven’t seen before.”

“This year, we’ll be lucky just to hold our own,” said Bob Worth, who manages the finances at Sheridan Park United Methodist Church.

Some religious leaders said they aren’t experiencing fewer donations, but they are seeing sharper pain among some of their congregants. Officials at more than a half-dozen organizations said if the economy doesn’t pick up soon, income will likely fall, if it hasn’t already.

“This isn’t the type of downturn where some people didn’t get the raise they were expecting,” said Allen Pearlman, executive director of Temple B’Nai Jeshurun, which has about 360 families who are members. “There are congregants who are just flat out of work, and we’re seeing that it slices from upper-management positions to lower-level jobs. For those who are affected, it’s severe.”

The drop in donations is coming at a time when more people are drawing on social services. President George Bush has advocated a more prominent role for faith-based organizations in efforts to help the poor, but religious leaders said that responsibility is hard to manage without more funding.

“Certainly the demands have increased,” said the Rev. Stephen Orr, who as vicar-general of the Catholic Diocese of Des Moines is the second-most senior leader of the Roman Catholic church in Southwestern Iowa, behind the bishop. “More people need help and we have fewer resources available to meet those needs.”

Orr said, in general, giving to the 83 churches that make up the Des Moines Diocese has declined, but that it is hard to determine whether that’s because of the economy or because of last year’s sexual scandals.

“I would think that the scandals would affect people’s confidence and how they give to the church,” Orr said. “Evaluating that is very difficult. We also know that the economy hasn’t gotten any better and that the stock market is lower. There are many factors going on.”

The diocese raised $24 million for building improvements in 2000 and 2001, $4 million more than expected, Orr said. Collections on those pledges are ahead of schedule, and there are indications from some parishes that donations are ticking upward, he said.

At the end of April, the diocese will begin a $2.7 million drive to raise money for operations this year. Given the current environment, it isn’t clear how well the campaign will go, Orr said.

“We’re anxious to see what’s going to happen,” he said.

Temple B’Nai Jeshurun continually collects non-perishable food and donates it to local food pantries. Pearlman said he has started giving needy individuals access to the food before it is donated.

“We’re had more and more people, not necessarily congregants, come in for aid,” said Pearlman. “I’ve heard some heartbreaking stories.”

Despite the drop-off in regular giving, it appears as though fund raising for well-established and highly regarded charities is still setting records. Earlier this month, Variety the Children’s Charities of Iowa raised $3.7 million at its annual telethon, more than in 2002. The annual capital campaign for the United Way of Central Iowa, the state’s biggest fund-raising drive, collected $60 million last fall, a record.

And leaders at religious organizations that have recently raised large sums of money for special projects, such as new construction, said members who pledged money are meeting their commitments.

The amount that religious organizations receive in annual donations appears to vary widely, according to the number of members they have and their demographic makeup. Having a larger congregation, for instance, tends to diversify the stream of income.

At the 3,200-member Plymouth Congregation Church, one of the biggest churches in Des Moines, work continues on a $10 million construction project that includes a multilevel parking structure and an addition to the church itself.

The church had a surplus last year, and donations to the church are steady so far this year. Paul Johnson, who runs the church’s finances, said it was too early to make a prediction about the rest of the year.  

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