As church attendance continues to decline across the West, many have lamented the spiritual and social side effects, namely a weakening of civil society and the fabric of community life. What’s less discussed, however, is the economic impact of such a decline.
In a new study published by Cardus, Dr. Michael Wood Daly of the University of Toronto explores this very thing, researching the “economic value” of ten Toronto congregations, and finding “a cumulative estimated economic impact of approximately $45 million,” based on a combined budget of only $10 million. The study refers to this as the “halo effect,” noting the church’s value to the community, whether through social capital, community services, or physical resources and infrastructure.
The research builds on an existing framework from a pilot study done in 2010 by Partners for Sacred Spaces and the University of Pennsylvania, which resulted in similar findings. Focusing on 12 congregations, the Pennsylvania study found an economic contribution of roughly $52 million, concluding that local congregations can “now be viewed as critical economic catalysts.” Both studies evaluated a range of variables in the seven key categories, including (1) open space, (2) direct spending, (3) education, (4) magnet effect, (5) individual impacts, (6) community development, and (7) social capital and care. (more…)