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Are We A Profitable Church? And Shouldn’t We Be? – AOI – The American Orthodox Institute – USA

Are We A Profitable Church? And Shouldn’t We Be?

Then he who had received the one talent came and said, ‘Lord, I knew you to be a hard man, reaping where you have not sown, and gathering where you have not scattered seed. And I was afraid, and went and hid your talent in the ground. Look, there you have what is yours.’
“But his lord answered and said to him, ‘You wicked and lazy servant, you knew that I reap where I have not sown, and gather where I have not scattered seed. So you ought to have deposited my money with the bankers, and at my coming I would have received back my own with interest. So take the talent from him, and give it to him who has ten talents.
‘For to everyone who has, more will be given, and he will have abundance; but from him who does not have, even what he has will be taken away. And cast the unprofitable servant into the outer darkness. There will be weeping and gnashing of teeth.’

Matthew 25:24-30

Let me offer an admittedly radical, and maybe even frightening, thought experiment.

What if Orthodox parishes  and dioceses in the United States were to surrender their non-profit status and instead incorporate themselves as profit, or at least not for profit, institutions?

This came to my mind as I read an essay by John Médaille an editor at large for the blog the Front Porch Republic. A Roman Catholic, John writes on economic issues from a unique vantage point being both a successful businessman and a theology instructor (he teaches a unique course for business students on papal social encyclicals at my alma mater the University of Dallas). He writes from the perspective of “’Distributism . . . an economic philosophy that arose in response to the poverty of 19th-century England and to the first of the so-called ‘social encyclicals,’ Rerum Novarum, written in 1891 by Pope Leo XIII. It was developed by two English thinkers, G. K. Chesterton and Hilaire Belloc.” I would rather leave aside for now a debate about distrubutism and instead ask people to focus on what I think is a most interesting observation in Médaille post.

He asks an interesting question: “Who Owns Our Jobs?” For our purposes here, I am less interested in how the author answers his initial question and more in the secondary points his essay raises for me.

In offering an answer to his, the author looks at the Mondragón Cooperative Corporation, “a group of manufacturing, financial and retail companies based in the Basque Country and extended over the rest of Spain and abroad. It is one of the world’s largest worker cooperatives and one important example of workers’ self-management,” he reports that it was

Founded in 1953 by students of a rather remarkable parish priest, Don José Maria Arizmendiarrieta, it has grown from a simple paraffin stove factory into a giant corporate conglomerate with several hundred worker-owned firms involved in the manufacturing of the most sophisticated products, banking, retailing, research, education, construction, business services, and insurance. Today, the Corporation has €33 billion in assets, does €16 in sales, employs 104,000 workers, 81% of whom are worker-owners to whom they distribute 52% of the profits. But Mondragón is more than a mere “corporate success story.” It is a business model that is completely counter to the modern corporation.

He then goes on to describe the internal administrative structure of Mondragón as a volunteer associations of small businesses “ruled by the principle of subsidiarity; that is to say, the higher level exists to serve the lower levels.” As a result, “the individual cooperatives have the right to leave the corporation; participation is voluntary.” For these reasons it is “impossible for a centralized authority to ‘lord it over’ the member cooperatives” and as result the “corporation itself is ruled not by outside investors (there are none) but by the workers themselves. You might call this an inverted model of corporate organization. The firm is built from the ground up rather than the top down.”

When I read this description, I realized that (theological considerations aside for the moment) there is clear parallel between Mondragón and the situation of Orthodoxy in American. In both case (and again let me ask you to put ecclesiology aside for the moment) we are looking at volunteer associations of individuals. But where Mondragón is governed by a clear application of the principle of subsidiarity, this is not necessarily the case with the Orthodox Church here in the States. Rather what we see (at least in America) is a tension (and not always a healthy tension) between diocese and parish, between priest and parish council, between bishops and lower clergy, between clergy and laity, and between a monastic and a non-monastic model of the Church. It is I think the last tension that I think Médaille most illumines for me.

As I rule, I think it is better that we avoid defining things by an act of negation—call it a rejection of the “You throw like a girl” model of social discourse and criticism. While it may be accurate, mere negation is rarely helpful. And yet in the current pastoral situation of the American Orthodox Church, I think the phrase “non-monastic” is accurate. It is not all together clear I think that those who (justly and unjustly) criticize monastic life as the standard of parish life have an alternative model that offers a practical way to structure the life of the Church that is both consonant with the Tradition of the Church and compatible with the pastoral challenges facing the Church in America. Médaille’s comments on Mondragón offers us I think a provocative starting point to help move forward the conversation about how we can structure our life here as Orthodox Christians in an American context.

Médaille’s argues that Mondragón is built on two fundamental principles “subsidiarity and solidarity.” Both of these, he points out, are based in “Catholic social doctrine” and seeks to turn its vision of the relationship between person and society into a living reality. And a successful one at that.” What the company demonstrates is that while many in the business world

fear of implementing a “morality-based” system [because] . . . it might compromise the necessary business goals. . . . the opposite seems to be the case; the cooperative model doesn’t merely work, it works to produce a strong and growing network of firms that are fully profitable and competitive in local and world markets. Moreover, it lessens the need for big government by providing social services from its own resources. But more than these successes, what Mondragón really builds up is community, that sense of mutual caring and obligation that must be the real point of any sane economic system.

This community based on subsidiarity and solidarity make Mondragón

more than just a business enterprise; it is a social one. It is of course a profit-making enterprise, but profit is not an end in itself, it is merely a means to a much broader set of ends. In addition to its normal business enterprises, Mondragón runs an education system, a university, social safety networks, retirement systems, research and training institutes—things normally provided by governments through taxes—and provides all on its own resources, without the help of government. The guiding principle is solidarity, people caring for each other with the help formal structures and institutions.

Reading this the thought I have is this: I wonder if one way to re-organize the inner life of the Church here in America might be to surrender our non-profit status? Granted this is a radical thought experiment, but as Mondragón illustrates, profit making and a social institution that is effective in helping people care for each other are not necessarily opposed. In fact, and again as Mondragón illustrates, profit making and care for others can even be mutually sustaining institutional goals.

In my own pastoral experience I have come to more and more suspect that what trips up the life of the Church is not that we do too little, our vision for ourselves and what Christ has for us is too narrow. While yes, we do engage in outreach and evangelism as well as philanthropic work, these often seem ancillary to the real focus, the Sunday synaxis. While I value the liturgical tradition of the Church, I think our non-profit status has forced us to see ourselves in terms of being merely one more religious community among others. By pursuing non-profit status we have, I think, unintentionally limited ourselves largely to liturgy, catechesis and internal social functions with a food festival through in now and then for good measure.

But what if profit making were added to the mix? What if our goal was not simply to keep the parish open, but actually run the parish and/or the diocese with the idea that we would turn a profit with the goal of re-investing those profits, as Mondragón does, so that the diocese had the resources to run “an education system, a university, social safety networks, retirement systems, research and training institutes”?

Whether or not any of this is possible, to say nothing of desirable or consonant with the Tradition of the Church, is a question I leave to others. But I would simply like to raise the issue that maybe, just maybe, there are better ways to structure the Church in America. And maybe, just maybe, a move from non-profit to profit making (or maybe a not for profit) status might be the starting point for such a restructuring.

As always, you questions, comments and criticisms are not only welcome, they are actively invited.

In Christ,

+Fr Gregory

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10 responses to “Are We A Profitable Church? And Shouldn’t We Be?”

  1. John Panos

    It is possible. It is desirable.

  2. John,

    That’s my question–is it desirable? I ask because I’m not sure non profit status works for us.

  3. Andrew

    Considering the speech and political restrictions that are presently placed on non-profits and the looming increase in those restrictions this may be the way to go.

    It certainly is worth serious consideration.

  4. John Panos

    Yes, I think so. Andrew makes an excellent point.

    At the very least, it should be considered an experiment – not IF it will work, but how BEST it will work.

  5. Fr Gregory

    Originally when I wrote the piece, I was interested in how our non-profit status might be limiting the Church’s access to resources and how this narrowing of resources might be constricting our educational and philanthropic ministries. Thinking about things a bit more, however, I see the value of Andrew’s comment (#3)–non profit status has some types of advantages, but it also has potential costs (such as limitations on some types of speech or political activity) that may out weight the benefits. Jon’s comment (#4) I think sums it up, it is I think worth considering as an experiment to find out how it might best work. Any ideas anyone?

    In Christ,

    +FrG

  6. DStall

    FrG, you begin your blog post with scripture which I think is key. In St. Nikolai Velimirovic’s homily on the Parable of Talents that you quote, St. Nikolai speaks of the talents not as money, but as Divine Energies (grace), which St. Paul refers to in saying Christians progress “from glory to glory”. If such Spiritual Maturity, described in more detail by Met. Jonah, is not that in which the parish priest has been formed, and is not being achieved at some higher level in the parish and is not held up as first and foremost priority, as the “profit” (spiritual treasure) which the parish seeks in being “profitable”, then I think making Church parishes “profitable” in a monetary sense will be disastrous, a potential spiritless, hypocritical fall into mammon worship.

    However, if spiritual profit is rightly comprehended and sought through the Church’s path of salvation, and a parish is at a higher point of realizing the Incarnation of Christ and becoming transparent in communion to the Kingdom of God, then and only then, might it be possible for the parish to make better use of the capitalist consumerist economic system in which we find ourselves to further necessary funding for parish outreach and ministry.

    What might be a more useful question to ask, is how a parish might manipulate the existing economic system to serve its first and foremost goals of spiritual maturity. Does having parish members “embedded” in the mammon worshiping secular culture, otherwise isolated from one another unless converging upon the parish in secular fashion of “auto” mobiles, further the goal of Spiritual Maturity? I think not, because I think it more important to BE Church than “attend” Church, and that no one can attend Church at a beneficial level sufficient to resist consumer culture when embedded in it.

    The lost of ability for political activism that may come with non-profit status may be no real “loss” in that evangelism is more successful by showing the world how Christians “love one another” than in rhetorical discourse over ideology, or worse, morality. Non-profit status may actually turn out to be helpful in creating parish owned housing for its members without incurring burden of taxation.

    See: What chores would Jesus do?, Consumerism & Modern Fast Food versus Fasting Food & Ancient Faith, and what’s been Done Before (see links on page that opens).

  7. Fr Gregory

    DStall,

    Thank you for your comments. I certainly agree with you that what is most important is the spiritual maturity of the faithful–clergy and laity and that absent that maturity we risk disaster. I think you also make a good point about how the Church has not exploited the potential in our non-profit status–though I’m not sure about the legality of parish owned housing for the members of the parish.

    Thank you as well for the links to the different articles and your own blog. Having read the information there and having listened to Metropolitan JONAH, I’m not sure how what is discussed on these links fit with what His Beatitude’s understanding of spiritual maturity?

    In Christ,

    +FrG

  8. DStall

    In the absence of opportunity to live in a multi-generational traditional village setting in an Orthodox Christian land, where the land and Church has shaped one’s family and one’s family and spirituality has shaped the land, communal living puts modern parishioners in more of a monastic setting, and more intensely in contact with one another and their priest (spiritual confessor and elder). In such communal setting is where the rubber can really meet the road so spiritual growth and community can occur, not in modernism’s smorgasbord of “choices” where anonymity is facilitated, wherein if one’s pride (ego) gets wounded, they need only pick up stakes and move to another parish without having to deal with spiritual immaturity at any depth, other than a quickie “confession”if that.

    In a rural area, communal living can further sensitivity to God through sensitivity to His Creation. There (where monetary income is hard), sharing becomes even more important.

    Typical modern parish phenomenon only perpetuates spiritual immaturity as does living immersed in the consumerist world with its transient lifestyle encouraged by nuclear “family”, suburbia, etc., where individual choices revolve around money (“economics”) not family, much less Church. Predators, such as the evil one and his minions, isolate their prey from the group (herd; community) to facilitate capture. Community helps to offset modern living that facilitates downfall as prey to temptors through strength in numbers with those dedicated to same spiritual goal, as opposed to isolated individualism.

    Few take time to really ponder how effected by consumerism they are. It takes incredible determination, drive and strength to really resist consumerism, so that few do what it takes to resist on an individual basis. What a waste (as evident in all the landfills) for every “nuclear” family to have to consume all of the same trappings of modern culture that could otherwise be shared in a group setting. Such wastefulness and willingness to give oneself over to materialism surely has spiritual consequences. One cannot look at pornography extensively without being spiritually effected. Likewise, no one can live an uncritical, unrestricted modern consumerist life without being spiritually effected either.

    In an extended family setting (which the Church is meant to be), no one should be bored and prone to shop for ego gratification, nor be in need of individual distractions. In community, there are plenty of brothers and sisters with whom to socialize, converse and “play”. There is also possibility for deep bonds of unity that make interaction meaningful instead of superficial, which isn’t possible in secular pluralistic society. As opposed to such real community, loneliness, depression and mental illness are growing side effects of individualistic modern society, the canary in the mineshaft.

  9. CyranoRox

    if we elect to give up the limits imposed by non-profit status, where will we go? There are people, even today, who would make of the Holy Church a PAC for the party of property, gun, and dominion – which is fundamentally at odds with the Gospel. I do not want this; neither do I want all my energies absorbed into the struggle to prevent it; thus, I want the Church to remain non-profit, with all the limits thereof.

  10. CyranoRox,

    Thank you for your comment.

    I am, forgive me, a bit confused by your assertion that there are some “who would make of the Holy Church a PAC for the party of property, gun, and dominion – which is fundamentally at odds with the Gospel.” Specifically, I am unclear about the phrase “the party of property, gun, and dominion.” To the best of my knowledge (private?) property is not contrary to the Gospel, neither is gun ownership as such (though what we do with those guns is an all together different matter!).

    As for “dominion” this all together stymies me–we call Jesus Lord and so, in the sense, not only the Church but all Creation (including the government)is under His Lordship. This does not, to be sure, demand a theocracy (and I would argue against such a form of government for reasons that are at once practical and theological), but it does (I think) require of Orthodox Christians living in a free society to make a compelling case where appropriate to advocate for laws compatible with Gospel and to oppose those laws that run contrary to it.

    But maybe I have misunderstood your intent here–can you fill me in a bit more please?

    As for your broader concern that surrendering the Church’s nonprofit status would allow open the door to transforming the Church into a PAC. Well maybe, but why is that necessarily a bad thing? While I can appreciate that there is always a risk that some will strive to use the Church to further their own political goals, this (or so it seems to me) has NOTHING to do with the Church’s status under American tax codes. Actually given recent events, I am tempted to say that it might be BETTER if we were a for profit endeavor since absent fraud committed against the general public (and even then) religious non-profits are given a great deal of more latitude by the US government than is given to for profit businesses.

    Your thoughts please?

    In Christ,

    +FrG

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