Hearty credit to GuideStone for their fast action, research, and simple explanation of how the COVID-19 Pandemic Phase III Stimulus Package might affect you and your church or ministry. Great work also by Baptist Press (which carried GuideStone’s Q&A Friday and a FB live event yesterday with Jonathan Howe asking questions of GuideStone Chief Legal Officer and General Counsel, Harold Loftin, Jr.
- We all get checks or deposits, with an income cap.
- Churches are eligible to obtain small business loans for “payroll protection.”
- Church staff under many circumstances are eligible for unemployment benefits.
- You can tap your retirement fund (but I hope you don’t)
I’m beginning to see a few things on this: (1) lots of questions; try reading the Q&A and listening to the FB live event first. That might answer your questions, (2) some bad advice, but we can deal with that later, and (3) A lot of confusion.
In my church which has a small staff (one full time position, another full time position vacant, four part time staff), offerings are as much as or perhaps slightly better than before the crisis. We are now three Sundays without meeting and it looks to stretch out for at least another four.
What are you seeing? How is your church doing financially? What perplexes you about the stimulus package?
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Seems like just yesterday we were talking about problems with government giving churches money to buy scrap tire playground surfaces. So far, I haven’t read or heard any objection from any of the church-state watchdogs. GuideStone is in a consortium with dozens of faith groups to lobby for this.
Every answer that might be given here is opinion. I’d point you to GuideStone and Baptist Press. I see that the state conventions are talking, as are some self-appointed experts and consultants. Best case for us is that offerings hold up and we don’t have to cut or reduce hours for any staff. Since those who are laid off are eligible for benefits, that might be the route some churches take. I’ve never dealt with unemployment insurance or benefits. I don’t know what the time lag is or how simple or complex the process is.
I acknowledge there are unknowns here, many to me. I recognize there are unknown unknowns and unforeseen consequences also.
I’m not an active pastor, as in with a real church with budget, expenses, offerings and staff; thus, my stress level is quite stable. But then, I am in a high risk group for the virus.
Excessive entanglement.
It would be easier for individual church staff members and pastors to receive these benefits than the church itself. One thought some churches may want to consider is to lay off admin assistants and allow them to receive Unemployment. The act calls for an additional $600/week for four months to anyone on unemployment. This will be a major pay raise for most church admin staff! Once things are back to normal, they could be rehired. There is really nothing unethical about this that I can see. Seasonal Corporations routinely layoff employees during slower times and then rehire them.
The catch here is that unemployment benefits take weeks or months to pay out even when the system *isn’t* being crushed by 4,000% more applications than average.
And — although I’m sad to say this — I imagine that very few administrators will have the stones to just write a script that mass-approves all the new applications (or at least as many as possible). They’ll want legislative cover before they take a step like that, and it will not be swift in coming.
Normally, you apply, say on a Monday. The first week is always a WAIT WEEK, in which there is no entitlement to begin with (Except in this virus case, that is waived). So, apply, then you file your first weekly claim on the following Sunday. Other than this virus waiver for the wait week, the first week you get nothing, so, you file the following Sunday for your second week, get paid on Monday, Direct Deposit by no later than Wednesday…if all goes well with the initial application. If no decision has yet to be made yet, you still file… Read more »
This could get interesting. I’m already seeing things that make it look like a gold rush for churches. Have mixed feelings on it all. Calls for some rumination.
Totally agree. There is a document that must be signed that states the non-profit in good faith is stating that they will be unable to meet payroll and financial obligations due to Covid-19. I’m sure that some of our churches that will be true. But there are others that I don’t believe that will be true. Our integrity is on the line.
Chris, here is the exact language which the church must “certify in good faith”, as on the Paycheck Protection Program Application Form: “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” With a dozen employees (church & daycare) out of work, we are deciding whether to go this route or have them file for the CARES ACT Unemployment. As a non-profit, we don’t pay in to unemployment, but the CARES ACT is making it available. Either way, people would be paid while not working – another ethical issue?
Like I said, the certify in good faith will be applicable to some churches. But there are many churches that will apply and receive funds who don’t necessarily need it. The churches we never hear about, they are probably the ones who will need it. And I’m afraid they will not “be in front of the line” as advertised this week.
I would help every congregant apply for their own loan-grant, to make sure giving stays strong.
But I’m hard pressed to encourage a pastor to take a government loan-grant for their pay. Even if I could be certain that no strings would attach, we believe “the church should not resort to the civil power to carry on its work.”
But, that’s easy for me say, I suppose. It’s right for the government to offer it to all, and I’m sure I’ll continue fellowshipping with many Baptist churches and ministers that apply.
The trade off will be ceding power for the gov. cheese
Our church staff discussed applying for the government loan. In the end, the staff and deacons decided not to apply. I was happy with that decision. For one thing, I believe we have enough in reserves to weather the virus crisis. For another thing, I am quite uncomfortable with mixing church and state. I do not criticize those that apply, but it did not seem right for us. Several pastors of small churches have called our senior pastor to say that they are afraid their churches may not survive if this prohibition on meeting lasts for several months.
Churches can survive it. They may have to adapt, but it can be done