Church Funds Dry Up in Hard Times

When the stock market soared, the worldwide network of United Methodist missionaries thought big.

"Next year will be one of the worst," said Randolph Nugent, who manages the agency, called the Board of Global Ministries.

Other denominations also are feeling squeezed by the recession these days. Money for good works, once plentiful in the 1990s, has been drying up.

Adding to the churches' woes are a steep increase in health insurance costs and a post-Sept. 11 drop in contributions, as the faithful have redirected their giving to victims of the terrorist attacks.

In Boston, that means the Roman Catholic archdiocese is scaling back some programs, though it won't say which ones. Both Boston and the Erie, Pa., diocese have imposed hiring freezes.

The Presbyterian Church (U.S.A.) expects a deficit of about $2.5 million in its $136 million budget next year.

Beyond the recession, that denomination is losing money because of a fierce debate over whether to repeal a ban on gay clergy. Some conservative congregations are withholding payments to headquarters while the issue remains unresolved, though no numbers have been released.

Brad Hewitt, chief administrative officer of the Lutheran Church-Missouri Synod, among the few faiths not facing losses, met last week with financial administrators from other large, Christian denominations.

"I would describe the mood as concerned, not alarmed -- more of a wait-and-see attitude," Hewitt said. "Although I would say that a few of them, if their numbers were as bad as they sounded, would have to take some layoffs."

The Presbyterians plan to cut up to 15 jobs and reduce administrative expenses, said the denomination's chief financial officer.