I attended a church planting Conference in Irving, TX a while back in which Todd Phillips shared that, according to current studies and using modern water purifying technology, $10 Billion could solve the world’s water crisis. This got me thinking about my earlier post related to Money, Missions, and Ministry.
Church Property Value is $500 Billion
I am not aware what the value of church property in America is currently, but I know that in 1931, the estimated value of church property in America was $4 billion. When you realize that the average home price in 1930 was $7,000, imagine how much churches are sitting on today? The average home value today is around $230,000, an increase of 3300%. So $4 billion in 1930 would be $1.3 trillion today. I have no clue how accurate this number is, but let’s say it’s less than half of that and call it $500 billion.
If only 2% of the churches in America sold their buildings, and put the money toward solving the world’s water crisis, we would have enough money.
But churches don’t want to sell their buildings. After all, where would they meet?
Churches Paying Taxes on their Property
Okay, then, here is another option. In 1930, it was estimated that since churches were tax-exempt organizations, they were being “subsidized” by the government at $250 million annually. In other words, if churches were being taxed, the government would receive $250 million from them annually (which is 6%). Again, I don’t know how tax rates have changed since 1930, but let’s say they haven’t changed at all.
If, in 1930, the government could have gotten $250 million by taxing church property (valued at $4 billion), then today, if our property value is only $500 billion, our taxes today would be over $31 billion!
So if churches in America decided that for ONE year, we would put aside only 1/3 of what we would owe the government in property taxes for that one year, we could solve the world’s water crisis in one year! Should churches do this (or something similar)?
Absolutely.
Will churches do this if made aware of the opportunity? Call me pessimistic, but probably not.
Maybe we could just spend less on sound systems.
Challenging my own Finances
So the question then becomes, “What am I doing personally to help solve the world’s water crisis (and similar needs) around the globe?” Rather than pointing the accusatory finger at the churches and their vast wealth, I need to take a hard look at my budget, and my possessions, and where my money is going. I may not have $50 million to put toward a building, but if I have $50 which I am going to spend on coffee this year (it’s probably more than that), maybe I should consider giving up my coffee so someone else can simply have water…
But that’s too convicting.
In David Platt’s book Radical (p. 118), he says that US churches spend $10 billion every year on church buildings, and the total estimated value of current US church property is $230 billion. If he is right, my estimates above were a bit high.
Oy Vey!
I found the following quote at a website on religion:
James Madison was in support of taxing church property, as was James Garfield. In 1875, President Ulysses S. Grant’s message to Congress included a 900-foot petition containing 35,000 signatures stating, “We demand that churches and other ecclesiastical property shall be no longer exempt from taxation.”
“I would,” said Grant to Congress, “also call your attention to the importance of correcting an evil that, if permitted to continue, will probably lead to great trouble in our land….it is the accumulation of vast amounts of untaxed church property….In 1850, the church properties in the U.S. which paid no taxes, municipal or state, amounted to about $83 million. In 1860, the amount had doubled; in 1875, it is about $1 billion. By 1900, without check, it is safe to say this property will reach a sum exceeding $3 billion….so vast a sum, receiving all the protection and benefits of government without bearing its portion of the burdens and expenses of the same, will not be looked upon acquiescently by those who have to pay the taxes….I would suggest the taxation of all property equally, whether church or corporation.”
Here is another great site with some statistics and numbers on this subject:
Pro/Con – Churches and Taxes
The church as an institution and as individuals is very, very wealthy indeed! I’d absolutely love to hear stories of churches (defined as institution) who have decided to live simply and share their wealth with the poor. I’d also love to hear stories of the church (defined as individuals and families) who have chosen to do this. How do they do it?
Removing the tax exempt status of church properties and church income, which would in effect give billions annually to local, state and federal governments would not solve our country’s problems. As my grandpa, a career politician, said “the government will piss away any amount of money it can get its hand on”.
Can the church do no better?
We definitely can do better. Yes, I am not in favor of losing our tax exempt status, but actually taxing ourselves at what we would be paying if we were taxed, and then using that money for things the local, state, and federal governments are trying to do (but failing), such as take care of the poor and sick.
The church could really be something awesome if it actually helped those who struggle financially. I recall in a church I went to how the same poor chap struggled year after year to make ends meet and still tried to tithe. With all the tithing you’d think the church would help him out, but sadly not. Ironic because the original function of tithing is to help those in need. Whatever tithes the church did get the monies often went elsewhere yet the same poor people remained in the congregation. It’s really odd!
Since churches don’t do it themselves, I’d like to see a law passed that demands every church give a public accounting of all money taken in. I can no longer see churches doing “God’s will” but filling their pockets. Living in luxury and demanding money from the congregation. Until I see accountability, I give to sites that take care of the poor.
I don’t know if a law would work. We cannot legislate morality. But people who see things the way we do can simply stop giving to organizations who misuse their money, and give it directly the poor ourselves, or to groups that will help take care of the poor and needy. Thanks for what you do!
Not every church is wealthy. Some churches barely survive financially. They’d disapear if they weren’t tax exempt. As for the big fancy churches, good luck convincing them to downsize to a less fancy church. People are people. We have a tendency to take great pride in our posessions. Maybe this is why humility is promoted so much in scripture. Instead of talking about selling buildings, maybe we should be promoting humility. I think more humble buildings and greater charitable giving would result.
If they can’t survive then maybe they should not survive. Why have the government keep them alive?
Bob Young Because statism, the biggest religion of all, presides over the other religions – religion, education, medicine, science, … justifying all religions, thereby. Remember – what you tax (property ownership, productivity, …), you discourage, and what you subsidize (religion, education, medicine, science, welfare, …), you encourage – economics 101 – somehow hidden from our “leaders” (supposed to be representatives)
The buildings might go away, but the true church wouldn’t. It’s kind of the point of the article and a very good article. I’d like to take it a step further and suggest we cut out the middle man with regards to tithing. Would would it look like if we gave tithe directly to the things/people Yeshua called us to give to and also personally got involved with those things/people. He didn’t command the rich young ruler to sell everything he had and give it to a church building or ministry.
The True Church that Jesus is building, is not physical and is not buildings made by human hands! If this is not clear, ask The Lord Jesus to reveal Truth to you, concerning this matter.