Churches anxious about troubled giving season

Presbyterians call it "Dedication Sunday." Methodists call it "Commitment Sunday." Some Baptists call it "Stewardship Sunday."

Regardless of the name, the annual ritual in which church leaders ask members to commit to an annual financial donation often takes place during November.

But with the stock market reeling and the economy in a nose dive, many church leaders are bracing for the worst -- and praying for grace.

At Raleigh's White Memorial Presbyterian Church, pledges for next year are significantly lower than at this time a year ago. At Millbrook Baptist Church, plans for renovating the church offices have been frozen. And at St. Francis United Methodist Church in Cary, plans for a new community life center will most likely be postponed.

As finance committees at each of those churches cobble together a 2009 budget, they often must make educated guesses about how many members might be laid off and how many more home mortgages could go into foreclosure.

"Anybody who depends on voluntary giving is in uncharted waters," said Art Ross, pastor of White Memorial Presbyterian.

Not only are church leaders awaiting pledge cards for next year, they're wondering if they'll make this year's budget.

In many congregations, up to 30 percent of the year's donations come in between Thanksgiving and New Year's. Donations to religious congregations are tax-deductible. Members typically make end-of-the-year contributions with an eye toward April's income tax returns.

Stock incentive muted

Although church leaders say they do not foresee budget crises, they already know they won't be getting much in the way of stock transfers -- investments that members sometimes donate to their churches to avoid paying capital gains taxes. As the value of stocks has tumbled, there's less incentive to give it away.

"We're anticipating fewer stock gifts, because capital gains won't be there," said the Rev. Rodney Hamm, pastor of First United Methodist Church in Cary.

Roman Catholic churches are not immune. Though many local Catholic churches use a fiscal year running July 1 to June 30, members of finance councils are watching the budgets scrupulously.

"We're keeping all expenses 10 percent below budget," said Ben Whitehouse, director of parish operations at St. Francis of Assisi Catholic Church in Raleigh. "We have a stringent set of cost controls."

Like Protestant congregations, Catholic churches reap a windfall during the month of December. At Cary's St. Michael the Archangel, the largest church in the Triangle, December's collections usually bring in $400,000 -- about double any other month of the year.

But church economics often defy conventional wisdom. An economic downturn doesn't always result in less cash in the collection plate.

"The history of the church is that God's people have done the most remarkable things during difficult times," said the Rev. Joe Harvard of Durham's First Presbyterian Church. "One of the things about times like these is that it forces you to examine where you put your trust."

Churches might postpone building plans and delay salary raises, but they often divert more money back into the community. Many churches give between 10 percent and 30 percent of their budgets back to the community in the form of assistance to individuals who show up at their doors and donations to soup kitchens and homeless shelters.

And many church members give more than their pledges. At Cary's St. Francis United Methodist, the Rev. Pat Lykins often puts a notice in the weekly bulletin asking members to donate gas and food cards to people experiencing hardship. Without exception, she says, she gets what she needs.

"If they know what it's going for, people at church are extremely generous," said Lykins, pastor of missions and evangelism. "They'll give sacrificially."