Sacred Places Fall 2016 | Page 6

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%). 6