More hard times ahead for churches

The US financial problems are crippling a church building boom that began in the 1990s, when megachurches multiplied, turning many houses of worship into suburban social centers complete with bookstores, gyms and coffee bars. Lenders say mortgage applications are down, while some commercial lenders no longer see churches as a safe investment. Bank foreclosures on bankrupt churches go up as economy declines. Banks have no mercy during bad economic times, even on Christian places of worship.  

Churches were long considered good credit risks, weekly collections tend to be steady, even during recessions, and churches feel a moral tug to pay debts. But some churches, especially those not affiliated with major denominations, borrowed briskly to build or expand in recent years. The US Census showed spending on construction of houses of worship rose to $6.2 billion in 2007 from $3.8 billion in 1997. Now, churches are seeing adherents lose jobs and savings, as a result, church giving is down as much as 15% in some places.

Some lesbian groups in US have started to express their happiness about the financial troubles facing the churches saying they love to see churches go bankrupt.  They have begun to pass sarcastic remarks such as, “What’s the matter? How come Jesus didn’t provide you? Maybe God hates you?”  

Crystal Cathedral founder the Reverend Robert H. Schuller on Sunday tearfully begged his parishioners for help in overcoming the megachurch’s bankruptcy and tens of millions in debt. Schuller, 84, made the plea from the pulpit as he spoke publicly for the first time since the church filed for Chapter 11 bankruptcy protection.

The Orange County based Crystal Cathedral megachurch, birthplace of the televangelist show "Hour of Power," once attracted viewers in 156 countries, filed for bankruptcy in Southern California after struggling to emerge from debt that exceeds $43 million.

In addition to a $36 million mortgage, the church owes $7.5 million to several hundred vendors for services ranging from advertising to the use of live animals in Easter and Christmas services.

The church, founded in the mid-1950s by the Rev. Robert H. Schuller Sr., has already ordered major layoffs, cut the number of stations airing the "Hour of Power" and sold property to stay afloat.

Most churches have become spiritually and morally bankrupt because they attempt to hide assets by filing for bankruptcy when faced with paying compensation to victims of sexual abuse by priests.       

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Written by:Ibrahim Nazim
26 October 2010, Tuesday
18 Zulqaida 1431