Components of the
Economic Halo Effect
The research was based on a study of 90 randomly-selected
congregations with older and historic buildings in Chicago, Fort Worth,
and Philadelphia, and included lengthy interviews with the clergy and lay
leaders of each congregation. The sample included 41 mainline Protestant
churches, 28 evangelical or independent Protestant churches, 14 Roman
Catholic churches, 4 Jewish synagogues, and 2 Eastern Orthodox churches.
More details on our research methodology are provided in Appendix A, and
a complete list of participating congregations appears in Appendix B.
We learned that the average congregation made a contribution to the
local economy valued at $1,707,249. We found no statistically significant
differences between the three cities regarding the overall contribution to
their local economy, with Chicago having a higher average ($2,050,550),
followed by Fort Worth ($1,595,303), and finally Philadelphia ($1,505,747).
Given that any calculation can be affected by
extreme observations at either end of the
Average Annual Economic Halo Value per Congregation
spectrum, an alternative way to determine value
would be to remove the top docile and the lowest
docile, i.e., dropping nine congregations
reporting the lowest overall economic
contribution and nine reporting the highest
overall economic contribution. If this approach
were taken, the total sample size would be 72
congregations, with a mean economic value of
$1,269,780.
Congregations benefit their communities in
many different ways, so we grouped them in three
broad categories: 1) direct spending (operational,
program, and capital budgets); 2) the value of day
care and K–12 (Kindergarten through 12th grade)
educational programs; and 3) a range of
catalyzing economic values, such as Magnet Effect
(spending by visitors coming to the sacred place), Invisible Safety Net (the
full value of volunteer time for community programs and value of space
that is shared), and the outdoor recreation space used by the community.
The largest economic value was provided by education (40%of the
total), followed closely by direct spending (32%). Catalytic effects accounted
for 28%of the total (including the magnet effect—valued at 22%of the
total, followed by invisible safety net—valued at 5.9%). Finally, recreation
space accounted for a small percentage of the overall congregational
economic contribution (.1%).
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