The Round Table

Fred Smith

Fred Smith

Founder

December 3, 2024

Bare Ruined Choirs

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In 1990, I participated on a panel hosted by a seminary to discuss potential futures for local congregations. One of the trends we explored was the decline of churches reflecting community and demographic changes. This was before the widespread church closings we've witnessed over the past twenty years. During our discussion on closures, a member of the audience—a CEO of a Fortune 100 company and a longtime leader in his denomination—argued there was no justification for closing a church, even if the congregation had dwindled to the point where maintaining the building was hopeless. He agreed it made sense to shutter a non-viable business or even a non-profit, but not a church.

Sixteen years after that conversation, the American church reached a peak of congregational growth. Sociologists now believe that 2006 marked the highest number of congregations, followed by a plateau and then an accelerating decline. Since then, the number of churches closing each year has increased. On average, between 4,000 and 8,000 churches close, merge, or withdraw from their denomination annually. In 2022 alone, my own denomination, the Southern Baptist Convention, lost more than 1,200 churches to closure, not counting the many hundreds that chose to disaffiliate. While approximately 3,000 new Protestant churches are planted each year, this is insufficient to offset the losses.

Numerous studies have examined the causes of this decline, including an aging population, political divisions within churches, long-term effects of COVID-19, younger generations moving away from traditional church membership, new ways of accessing spiritual resources, growing mistrust due to scandals, and leadership failures. Some view this decline as "creative destruction," a concept described by economist Joseph Schumpeter that suggests old structures must fall to make way for new growth. Others lament the loss of mainline churches that once served as pillars of American society fostering social harmony and stability. Nondenominational churches may not offer the same civic energy as Mainline Protestants and could unintentionally deepen divisions.

Some churches have tried to create alternative revenue streams to reduce their reliance on declining donations by opening coffee bars and bookstores or adding nonprofit entities to their operations for attracting grants from foundations hesitant to support religious organizations. A few historic congregations have received grants from The Fund for Sacred Spaces. While creative, these efforts rarely succeed in halting the decline; they merely delay it. The traditional church business model was never designed for sustainability as we typically define it today. Without a significant endowment or unexpected windfall in a bequest, churches struggle to survive without donations.

The growing number of empty churches has led to various interesting options. Buildings can be torn down and the land redeveloped or repurposed into commercial and residential spaces. These churches often have unique architectural features with ample vertical space and natural light, making them ideal for art galleries, museums, community centers, performance venues, restaurants, breweries, retail spaces, and offices. Residential developers see them as perfect for loft apartments, student housing, or even single-family homes while preserving original elements like stained glass windows and wooden beams.

On the other hand, there is an emerging trend where new churches are integrated into for-profit developments from the outset. Instead of waiting for a church to close and then repurposing it, investors design multi-use properties that include church spaces as part of larger developments. These developments might also house daycare centers, retail shops, or other businesses that can utilize the church's meeting space. This space can also be rented out for public and private events or used by other congregations who prefer not having the financial burden of owning property. This model creates what might be called a "for-profit church" that shares risks and rewards with other ventures while reducing reliance on donations and encouraging adaptability to changing business conditions.

While existing congregations may continue to close for various reasons, these new models illustrate the resilience described in the old adage: "The Church is an anvil that has worn out many hammers."

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