Houses of worship take financial hit amid pandemic

The collection plate at Iglesia Metodista Ebenezer usually brings in about $1,500 a week.

But the Nashville congregation's financial contributions have dropped dramatically during the coronavirus pandemic, said the Rev. Myriam Cortes, who leads the United Methodist church.

"There are Sundays that we only have $10," Cortes said.

Iglesia Metodista Ebenezer is not alone. Several houses of worship have taken a financial hit as the COVID-19 virus spread across the country.

More than 50% of Protestant pastors said giving was down, a March survey by LifeWay Research shows. The numbers improved some the following month when 40% of pastors reported a drop in an April survey.

Compared to a typical year, about twice as many churches are seeing a lag in financial contributions, said Scott McConnell, executive director of LifeWay Research.

"This instant recession has quickly impacted church finances," McConnell said.

Virtual worship, fear, job loss potential factors

He pointed to three forces that may be contributing to the decrease in giving.

Since March, many churches have met exclusively online for worship. No in-person services also mean no in-person prompts urging members to put money in the collection plate, he said.

Some churchgoers may fear what their financial future holds, McConnell said. Others are already feeling the impact of of the economic downturn, he said. LifeWay Research's April survey found the majority of churches had attendees that lost their jobs or are working fewer hours.

"When individuals can't work, there is no income to share with their church," McConnell said. "The longer high unemployment and underemployment lasts, the greater the financial pressure it will place on churches."

In April, the U.S. economy lost more than 20 million jobs and the country's unemployment rate climbed to 14.7%.

Tennessee is not immune. Since March 14, workers across the state filed more than 500,000 new unemployment claims, the Tennessee Department of Labor and Workforce Development states.

Cortes pointed to several factors to explain the big drop in contributions at Iglesia Metodista Ebenezer. The first couple of weeks were especially bleak. The young, mostly Spanish-speaking congregation wanted to support the church, but the pandemic added a lot of uncertainty to their lives, she said.

"I understood," Cortes said. "They wanted to make sure they could pass these few months."

Churchgoers feared losing their jobs and no longer being able to support their families, Cortes said. Several did end up out of work, including those whose immigration status made them ineligible for government relief programs like unemployment benefits and food stamps, she said

Those who continued to work worried about getting sick, Cortes said, and some people connected to the church did end up testing positive for the COVID-19 virus.

Prior to the pandemic, Iglesia Metodista Ebenezer drew about 75 people to its in-person services. When physical gatherings were canceled, Cortes had to figure out how to move them online for worship. Not only did it hurt the weekly offering, but it also cut off the money the church made on Sundays from selling tamales and other food, she said.

Cortes said having so many young members was a real asset. They helped their parents navigate virtual platforms not only for worship, but for online giving, too, she said. As the weeks passed, members started making financial contributions although not at the same level as before, Cortes said.

Other United Methodists have also come to the aid of Iglesia Metodista Ebenezer. Their financial support is helping to cover Cortes' salary while also meeting the needs of struggling church members, she said. Cortes has cried joyful tears because of their help and moved to see so many embody their shared Wesleyan tradition.

"That it is the biggest joy in our heart," Cortes said. "We may have people that want to erase the immigrant community from the books, but on the other side, we have people saying, 'You're here. You're a part of us, you're a brother, you're a sister. I see you.'"

Other religious traditions face financial challenges

Churches are not the only ones facing financial challenges amid the COVID-19 crisis. Other religious traditions are, too.

Donations are down at the Muslim American Cultural Center, said Ali Aqeel, the imam at the Nashville mosque. He thinks people still have a desire to give, but closing the Jefferson Street location to in-person prayer has created a hurdle.

"It's not as easy for people to do now," Aqeel said. "It's just natural to be able to donate while you're there Friday."

The Muslim American Cultural Center had electronic ways to give in place before the pandemic hit Tennessee. But some of the older people connected to the mosque need help navigating the technology or do not trust it, Aqeel said.

"You just don't have the luxury of going over and setting it up for them and showing them how to use it," Aqeel said.

The pandemic has also disrupted how Ramadan is typically observed. One big financial factor is the mosque depends on a yearly fundraiser at this time to help support the center and its activities, Aqeel said. But the mosque has remained closed to the public during Ramadan, which ends soon.

The Muslims American Culture Center currently has a fundraiser underway on Facebook. The goal is to raise $10,000 of the center's roughly $50,000 annual operating budget, the fundraiser states. So far, it's brought in more than $2,000.

Some churches see giving increase

Not all places of worship have seen a drop in financial contributions from their members during the crisis.

More than 40% of Protestant pastors surveyed by LifeWay Research in April said giving was continuing at a similar level compared to earlier in the year. Nine percent said it had increased.

The Rev. Tim Stutler, who leads Goodlettsville Church, estimates giving is up by about a third. And he knows of other congregations who are also digging deeper into their pockets to support their churches and their ministries.

"I think just people love their church and really want to rally," Stutler said. "Where your treasure is there your heart is also. I think it's really been a wonderful demonstration as to the faithfulness of God's people."

When in-person worship is not suspended at Goodlettsville Church, the weekly services at the Cumberland Presbyterian church's two locations draw about 350 people. Among them are small business owners who are currently struggling and retirees who have taken a hit in the stock market.

Stutler is amazed by it, but does not expect the congregation's current giving levels are sustainable long term. It has been an unpredictable time.

Goodlettsville Church employs eight staff, including Stutler, who is the senior pastor of both locations. The church has been able to continue to pay all of them during the crisis.

But as the outbreak was emerging, church leaders worried the crisis would create financial struggles for Goodlettsville Church.

They weighed the religious freedom concerns, but ultimately decided to apply for and received a loan through the U.S. Small Business Administration's Paycheck Protection Program, Stutler said. These potentially forgivable loans are funded via the CARES Act that was passed with the aim of helping Americans weather the crisis financially.

"We felt like it would irresponsible to our staff to not do that," Stutler said. "We hope that we won't need it and we can pay it all back. If we do need it, we're thankful to know it's there."

USA TODAY contributed to this report.

Reach Holly Meyer at [email protected] or 615-259-8241 and on Twitter @HollyAMeyer.