Tag: Church

The Uncertain Future of the Ministerial Housing Allowance

~ Evan Lenow ~ 3 Comments

267px-logo_of_the_internal_revenue_service-svgU. S. District Judge Barbara Crabb issued a ruling on October 6 declaring the ministerial housing allowance to be unconstitutional. This was the second time that she has issued such a ruling, the first coming in 2013. The lawsuit was brought by the Freedom from Religion Foundation (FFRF) challenging that excluding the housing allowance from taxable income is unfairly biased toward religious leaders.

Judge Crabb ruled in part that the housing allowance exemption “violates the establishment clause because it does not have a secular purpose or effect and because a reasonable observer would view the statute as an endorsement of religion.” This is the same conclusion she reached in 2013 but was overruled by the Seventh Circuit Court of Appeals on the grounds that FFRF lacked standing to sue since no one affiliated with that foundation had ever filed for a housing allowance exemption from the IRS. During the intervening years at least two employees of FFRF have done just that. Therefore, Judge Crabb essentially invoked her previous ruling since she believed that the FFRF now had standing to bring the lawsuit.

The law in question is 26 U.S. Code § 107, which reads:

In the case of a minister of the gospel, gross income does not include—

(1) the rental value of a home furnished to him as part of his compensation; or

(2) the rental allowance paid to him as part of his compensation, to the extent used by him to rent or provide a home and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.

Of particular importance is the second paragraph which allows ministers to exclude a portion of their income that is used to provide for a home when a church does not provide a parsonage. Prior to 1954, ministers could only exclude from taxable income the fair rental value of a parsonage provided by the church. The Internal Revenue Service code was amended by Congress in 1954 to allow the same exemption for ministers who provided their own housing.

Judge Crabb believes this is an unfair benefit for ministers that does not also apply to non-ministerial employees. She writes, “Ministers receive a unique benefit under § 107 (2); it is not, as defendants suggest, part of a larger effort by Congress to provide assistance to employees with special housing needs. A desire to alleviate financial hardship on taxpayers is a legitimate purpose, but it is not a secular purpose when Congress eliminates the burden for a group made up of solely religious employees but maintains it for nearly everyone else.”

Much of the defendants’ case is built upon the idea that ministers have a unique challenge for housing because they are expected to live in the general vicinity of their churches and be on call at all hours of the day. Similar housing allowance deductions are given to federal employees working overseas and members of the military. Judge Crabb rejected this argument in her decision.

Another element of the defendants’ case addresses the ecclesial differences among denominations. Not all denominations have a practice of providing parsonages, and some do not provide them for theological reasons. Joe Carter offers a good summary of this distinction as he writes, “The parsonage exemption, for instance, provides a preference for institutional churches whose ecclesiastical properties are owned by a central governing body (e.g., Roman Catholic). Smaller, independent, local churches often have less money to provide a parsonage. It also presents a bias in favor of wealthy, established churches over younger congregations and church startups. Many church plants that can’t afford a church building would be unable to afford to buy a parsonage.”[1]

The similar case from 2013 was ultimately overturned by the Seventh Circuit Court of Appeals, but a similar outcome may not happen this time. The case will undoubtedly be appealed to the same appellate court, but the issue of standing will not be in play this time. In an interview with  Baptist Press, Mississippi College law professor Matt Steffey states that the precedent of interpretation of the establishment clause by the Supreme Court may bind lower courts to decide in the same way that Judge Crabb did.[2] This could lead to a showdown at the nation’s highest court.

Why should we care about the future of the ministerial housing allowance? First, many ordained ministers depend upon this tax benefit to make ends meet. When churches are unable to provide adequate income, this tax deduction may make it possible for ministers to stay at a church. In fact, many churches include a housing allowance as part of an overall compensation package.

Second, the focus on the ministerial housing allowance is likely the first step in a larger plan to remove even more significant tax benefits that churches receive. The next set of lawsuits may attempt to overturn property tax exemptions for churches. If churches were not able to claim property tax exemptions, many would have to close their doors rather than pay large tax bills for commercial property.

Third, there is a growing trend to view churches as value-neutral institutions for a community. However, churches have been viewed historically as providing great value to communities. They often meet the needs of the sick and poor without placing a burden upon tax payers. They are organizers for community service to benefit their neighborhoods and cities. They provide a moral foundation for their members that often make them better citizens of the community. Viewing churches as value-neutral is shortchanging the role of churches.

As this case progresses through the appeals process, we may see significant changes for ministers and churches.

[1] Joe Carter, “Explainer: Why clergy get tax-free housing,” Ethics & Religious Liberty Commission, October 12, 2017.

[2] David Roach, “Clergy housing allowance struck down again,” Baptist Press, October 9, 2017.

To Marry or Not to Marry: The Question for the Next Generation

~ Evan Lenow ~ 1 Comment

Thisft_17-09-14_marriage_halfof week is Unmarried and Single Americans Week (September 17-23), so it seems appropriate to contemplate the changing landscape of marriage in America and its potential impact on our churches.

According to a recent Pew Research Center study, half of all American adults today are married. This number is down from 59% twenty-five years ago and 72% in 1960. In addition, the median age for first marriage in 2016 was 29.5 for men and 27.4 for women. This age has risen 2 years over the past decade and nearly seven years over the last half century.

Pew Research also reports some interesting data regarding the desire to get married on the part of those who are unmarried:

Among adults who have never been married, 58% say they would like to get married someday and 27% are not sure if they want to get married. Still, 14% say they do not want to get married.

Even those who want to get married offer various reasons why they are not yet married. Pew Research notes:

Among adults who have never been married but say they are open to marrying in the future, about six-in-ten (59%) say that a major reason they are not married is that they haven’t found the right person. . . . About four-in-ten never-married adults (41%) who say they may want to marry in the future say that not being financially stable is a major reason they are not currently married, and 28% point to this as a minor reason. Fewer – but still a substantial share – say that a major (24%) or minor (30%) reason they are not married is that they aren’t ready to settle down.

ft_17-09-14_marriage_mostnevermarriedThe growing population of unmarried individuals in the United States has significant implications for the church, and it would behoove us to take note of both the positive and negative impact.

Positive Impact

There are several potential positive benefits that unmarried individuals bring to the life of the church. Here I will highlight two of them.

  1. Unmarried individuals have more time to devote to the work of the Lord. The Apostle Paul gave great encouragement to those who were unmarried in the church at Corinth. He said, “But I want you to be free from concern. One who is unmarried is concerned about the things of the Lord, how he may please the Lord;but one who is married is concerned about the things of the world, how he may please his wife, and his interests are divided. The woman who is unmarried, and the virgin, is concerned about the things of the Lord, that she may be holy both in body and spirit; but one who is married is concerned about the things of the world, how she may please her husband. This I say for your own benefit; not to put a restraint upon you, but to promote what is appropriate and to secure undistracted devotion to the Lord” (1 Corinthians 7:32-35). Paul knew that unmarried individuals could focus more time on serving the Kingdom of God because their attention was not (rightfully) drawn to serve a spouse. Churches should not lose sight of this. There is an entire population of unmarried people in the church who can provide a great work of ministry while undistracted by the concerns of marriage.
  2. Unmarried individuals can move more quickly in fast-paced ministry settings. Both Texas and Florida were recently hit by devastating hurricanes. Calls went out form disaster relief organizations all over the country to provide supplies and volunteers to meet immediate needs. In many cases, unmarried individuals (particularly in my church) were some of the first to volunteer because they are able to act more quickly in these circumstances. Without the obligations of caring for a spouse or children, they can respond and serve when immediate needs arise that demand quick attention. Thus, churches would be well-served to cultivate this ministry mindset among the unmarried believers in their fellowship.

Negative Impact

As with the positive impact, there are potentially several negative consequences of a growing unmarried population in the church, but these two demonstrate some of the issues the church must address.

  1. Cohabitation rates are growing. One reason for a decrease in marriage rates and an increase in the median age of first marriage is that cohabitation rates have increased steadily over the last thirty years. The National Center for Family & Marriage Research (NCFMR) notes, “The percentage of women who have ever cohabited nearly doubled between 1987 and 2013. In 1987, one-third of women (aged 19-44) had ever cohabited, and in 2013, nearly two-thirds (64%) of women had cohabitation experience.” As I noted in a post earlier this year, the church is not immune to the problem of cohabitation. As more people cohabit, churches will be forced to address issues of church membership and discipline in a culture that is more accepting of cohabitation. And it is not simply the young about whom we must be concerned. NCFMR reports that the number of cohabiting older adults tripled between 2000 and 2014. In many cases these cohabiters are widows and widowers who choose to cohabit rather than remarry in order to avoid losing Social Security or pension benefits.
  2. Out-of-wedlock birth rates are growing. Just because people are waiting longer to get married or not marrying at all does not mean that there are no children being born. The National Center for Health Statistics notes that “the percentage of all births to unmarried women was 40.2% in 2014.” This means that 4 out of every 10 children in the United States are born to unwed mothers. CNN states that a third of women who give birth in a given year are not married. These are the children who will be coming through the children and youth ministries of our churches. In many cases, they will not have a father in their lives. Thus, the church will be called upon to fill in the gap for these children who do not have both mother and father.

Conclusion

There is no reason to fear the growing population of unmarried adults in our midst. But we cannot ignore them either. The church needs to minister to them and allow them to minister as a valuable part of the body of believers.

_________________________

U.S. Census Bureau, “Facts for Features: Unmarried and Single Americans Week: Sept. 17-23, 2017,” 14 August 2017.

Kim Parker and Renee Stepler, “As U.S. marriage rate hovers at 50%, education gap in marital status widens,” Pew Research Center, 14 September 2017.

U.S. Census Bureau, “Estimated Median Age at First Marriage, by Sex: 1890 to the Present,” November 2016.

P. Hemez and W. D. Manning, “Over twenty-five years of change in cohabitation experience in the U.S., 1987-2013,” Family Profiles, FP-17-02, National Center for Family & Marriage Research (2017).

P. Hemez and S. L. Brown, “Cohabitation in middle and later life,” Family Profiles, FP-16-20, National Center for Family & Marriage Research (2016).

National Center for Health Statistics, “Births: Final Data for 2014,” National Vital Statistics Reports 64 (2015).

Stephanie Coontz, “How unmarried Americans are changing everything,” CNN.com, 21 September 2017.

Debt and the Seminarian

~ Evan Lenow

student-loan-debtEvery spring semester I have the opportunity to speak to our Spiritual Formation students (mostly first-year master’s students) about stewardship. In that discussion, I explain to them that stewardship is about managing resources that belong to someone else. From a spiritual standpoint, God owns everything, and he has entrusted some of those resources—money, time, talents, etc.—to us to use for his Kingdom. Although I attempt to reinforce to my students that stewardship involves much more than money, I spend a significant amount of time talking to them about money and specifically the impact of debt on the ministry. For some of these students, it is the first time they have ever been confronted with how debt could impact their future.

I was reminded of this today as I read a recent article in The Wall Street Journal about student loan debt repayment. Here are some highlights:

  • “Many more students have defaulted on or failed to pay back their college loans than the U.S. government previously believed.”
  • “The new analysis shows that at more than 1,000 colleges and trade schools, or about a quarter of the total, at least half the students had defaulted or failed to pay down at least $1 on their debt within seven years.”
  • “No college saw its repayment rate improve under the revision, and some schools saw their seven-year repayment rates fall by as much as 29 percentage points.”[1]

In my experience teaching stewardship and working in financial aid in the seminary setting, student loan debt is one of the most crushing debts that seminarians face. While my seminary does not participate in any federal loan programs, many students still enter seminary carrying debt from their undergraduate programs. A recent study reported that 68% of graduates from public and nonprofit colleges in 2015 had student loan debt. The average amount of debt per borrower was over $30,000.[2]

If a seminary student enters with this level of debt, he is most likely to defer that loan until he completes 3-4 years of seminary. Over that time, that loan will have accrued interest, and it is possible that he may have even taken on further debt in the form of credit cards, vehicle loans, or medical expenses. Once he graduates from seminary, he may be in debt well over $40,000.

Now let’s couple that debt with a relatively low wage for pastors when compared to careers with similar education levels. According to LifeWay, the average full-time senior pastor of a Southern Baptist church with 75-99 in attendance is $46,981 per year.[3] For the typical seminary student, a salary over $40,000 may sound fantastic. But we have to remember that ordained ministers are considered self-employed by the IRS, so nearly 15% of that salary will be allocated for self-employment taxes (approximately $7,000). Then, the typical seminary student living on campus does not pay market rates for housing, so his overall housing expense goes up. Compound that with other expenses of moving and setting up a home, and the typical seminarian may find it difficult to make payments on his student loans. Then he will become one of the statistics mentioned in the WSJ article.

Helping students avoid the traps of bad debt is one of the goals in my Family and Church Financial Stewardship class at Southwestern Seminary. I don’t want students to question whether or not they can “afford” to accept a call to a church. I want them to be free to go where God calls them because they have been wise stewards of God’s money that he has entrusted to them.

In Proverbs 22:7 we read, “The rich rules over the poor, and the borrower becomes the lender’s slave.” I want my students avoid the slavery of debt and to serve God without the albatross of debt hanging around their necks.

If you’re a student at SWBTS, it’s not too late to sign up. The class meets on Mondays at noon, and I’d love to see you there.

[1] Andrea Fuller, “Student Debt Payback Far Worse Than Believed,” The Wall Street Journal, 18 January 2017.

[2] “Project on Student Debt,” The Institute for College Access & Success, 2016.

[3] “Compensation by Average Attendance of Church: Senior Pastor Full-Time,” LifeWay, 2016.

Interview with the Council on Biblical Manhood and Womanhood

~ Evan Lenow

Back in November I had the privilege of sitting down with Scott Corbin from the Council on Biblical Manhood and Womanhood (CBMW) for an interview. The interview is now available as part of the CBMW podcast series.

Over the course of about 20 minutes, we covered topics ranging from why I chose to study and teach ethics, the nature of marriage, the place of friendship, and the work of the church.If you endure to the end, you can even here a quick synopsis of the paper I presented at the annual meeting of the Evangelical Theological Society (aka, my nerd convention) about third-party gamete donation in assisted reproductive technology. Is the use of donor sperm and/or eggs adultery? Listen to find out what I concluded.

You can listen to the interview at the CBMW website or download it here.

The Threat to Religious Liberty from Inside the Church

~ Evan Lenow

prayerEven in our truncated news cycle where this hour’s breaking news is yesterday’s story in a matter of minutes, the issue of religious liberty has maintained a lingering presence in the American consciousness for most of the last few months. From the rhetorical flourishes of the Obergefell v. Hodges decision and dissents to the jailing and release of a county clerk in rural Kentucky for refusing to issue same-sex marriage licenses, much has been made of this “first freedom.” While we typically think of threats to religious liberty coming from an increasingly secular culture, the most dangerous threats actually originate from within the church.

The first threat to religious liberty from inside the church is ignorance. Like many Christians, I have found myself struggling to articulate a biblical basis for this freedom. There is no passage of Scripture to which we can turn and read, “Thou shalt not infringe upon the religious liberty of your fellow citizens.”

What should we do, then? Should we dismiss religious liberty as an American invention that conveniently serves those of us who sometimes find ourselves outside of the mainstream culture? This should not be the case if we remind ourselves of the historical and biblical basis for this freedom and overcome the ignorance that threatens to undermine it.

The Anabaptists cited several texts of Scripture to support their claims for religious liberty. Matthew 13:24–30 is Jesus’ parable of the wheat and the tares. In this parable, we see that an enemy has sown bad seed amongst the field of wheat. Rather than pulling up the tares and risk destroying some of the wheat, the farmer tells his slaves to allow the wheat and tares to grow up together. It is at the time of the harvest that the tares will be thrown into the fire and the wheat will be stored in the barn. For the Anabaptists, this was evidence that there would be people who would arise in the community and even the church that were sown by the enemy. These are heretics and heathens who do not belong but are allowed to remain so that the true believers will not be harmed by their removal. This does not mean that believers neglect to share the Gospel with these individuals, but that the true judgment is left up to God. It is not the job of the government to judge and remove these people for their unbelief. God will judge them, and His judgment is final.

We also see the biblical foundation for religious liberty in the government’s role of ensuring civil peace, not doctrinal purity. This particular teaching can be found in Romans 13:1–7. Notice some key concepts about government that we see in this passage. First, government is ordained by God. It is God who has given government its authority. It does not have any authority that He has not given it. Second, we are to submit to the government’s authority because we submit to God. Refusing to submit is to oppose the ordinance of God. Third, government functions within the scope of authority God has granted it. The government is a minister of God for those who do what is good. It exacts punishment on those who do what is evil. This is not a theological function but a civil one. Its role is to keep peace and restore order when that peace is violated.

The final biblical foundation for religious liberty we want to consider is that we have the right to persuade others of the Gospel. In Acts 18:12–17, we see that Paul is brought before Gallio and accused of disturbing the peace in Corinth. Notice the specific charge: he is accused of persuading people to worship God in a way contrary to the law. Before Paul can even defend himself, Gallio dismisses the case. He is not concerned with Jewish laws or customs of worship. Paul is free to do as he pleases, persuading men to follow Christ. The Jews exact their revenge on Sosthenes, but the government official is unconcerned about the religious dispute that is brought before him. In the very next chapter, Paul spends months in Ephesus speaking out boldly, reasoning, and persuading people to follow Christ. When he can no longer do so in the synagogue, he moves to a public forum. Over and over, we see the apostles reasoning and persuading men to follow Christ. No one is coerced to confess Christ on threat of his/her life or livelihood. People are free to accept or reject Him.

These biblical principles set a foundation on which we build the idea of religious liberty. Implicit in the text of Scripture is the idea that government has a specific function. It cannot tell people what they are to believe about God. At the same time, the church does not have the authority to use force in converting unbelievers. Therefore, both heathen and believers coexist in this world until the day of God’s judgment. It is our duty to warn, exhort and persuade these unbelievers with the Gospel, but we cannot force conversion upon them.

The second threat to religious liberty originating inside the church is arrogance. This is the idea that Christianity (and particularly conservative, evangelical varieties) is guaranteed protection while all other forms of religion are not worthy of protection against unwarranted government intrusion or restrictions. This attitude stems from an arrogance that has been developed since the days when proto-evangelicals, and Baptists in particular, were not the favored denomination.

Recent examples of this threat have been seen as some Christian leaders have attempted to block the building of houses of worship and cemeteries by religious groups that do not garner the political favor of the citizens in those locales. The fear in some of these cases is that a particular religious group will gain a majority in the government and begin to restrict the liberties of others. As long as the liberty being granted does not infringe upon the liberty of other religious groups, then such restrictions can only be classified as arbitrary. Any attempt to have a government entity impose arbitrary restrictions against a religious group that happens to find itself out of favor with mainstream citizens at this time will result in restrictions against our own religious preferences in the future.

If this type of arrogance is not corrected, then we as evangelicals—and Baptists in particular—will face the consequences of our own arrogance. The tables will turn when our religious preferences are not the preferences of the culture. In fact, that has already begun to happen. However, when we appeal to religious liberty claims to protect our own consciences, our appeals will ring hollow because we fought for discrimination against others when their time had come. This may actually be the most significant challenge to religious liberty in our day, and we are the source of that challenge.

Should we be concerned about the infringement of religious liberty from a secular government and culture? Certainly. But we also need to address the threats to religious liberty coming from our own camp—inside the church. This is a battle on two fronts. We must be prepared to stand for religious liberty both inside and outside the church.

*This post originally appeared at Theological Matters, the blog of Southwestern Baptist Theological Seminary.