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German Churches Receive Shower of Financial Blessing

by Wolfgang Polzer
March 15, 2007
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WETZLAR (ANS) -- The mainline Protestant Churches in Germany have received an unexpected shower of financial blessing.

After several years of decline, church tax revenue rose by six percent last year. It exceeded four billion Euros (US-Dollars 5.2 billion) for the first time in four years, according to research by the evangelical news agency "idea" in Wetzlar.
The increase is mainly due to the growing economy. Church tax is linked to the income tax of the 25.6 million registered church members; therefore any change in the economy and in state taxation is reflected in the church's finances - for better or for worse.

Church tax is a peculiar German phenomenon. The main line Protestant Churches and the Roman Catholic Church make use of the possibility to have church tax deducted by the Inland Revenue.

Church tax amounts to nine percent - in some regions eight percent - of a person's income tax. The so-called free churches - for instance Baptists, Methodists, Pentecostals - do not make use of this system.

The 23 regional mainline Protestant churches will use the unexpected additional funds to consolidate their budgets. The former "people's church" in Martin Luther's home country has suffered continuous membership losses since the seventies.

This decline is likely to continue, mainly for demographic reasons. If nothing changes, the total membership will drop from 25.6 million to 17 million by the year 2030. The annual church tax revenue will be halved.

This is one of the main reasons why the churches have launched a process of renovation and renewal which they hope will make them fit for the 21st century. The aim is to stop membership losses and raise the average worship attendance from four to ten percent.

© 2007 ASSIST News Service, used with permission.

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