The Pennsylvania State University The Graduate School College of the Liberal Arts BEYOND THE CONGREGATION: CHRISTIAN NONPROFITS IN THE UNITED STATES A Dissertation in Sociology by Christopher P. Scheitle © 2008 Christopher P. Scheitle Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy August 2008 The dissertation of Christopher P. Scheitle was reviewed and approved* by the following: Roger Finke Professor of Sociology and Religious Studies Dissertation Advisor Chair of Committee John McCarthy Professor of Sociology Head of the Department of Sociology David Baker Professor of Education and Sociology Timothy Pollock Associate Professor of Management *Signatures are on file in the Graduate School. ii Abstract The unit of analysis in the organizational study of religion has primarily been congregations and denominations. However, a population of organizations with a religious mission or identity has developed that exists outside of these traditional structures. Many of these organizations have more resources than many denominations, but have received little attention theoretically or empirically. The following chapters rely on original data for over 1,900 hundred of the largest Christian nonprofits based in the United States. Drawing upon theory in the study of organizations, social movements and religion I address three underlying research questions. First, when and why did these organizations rise? While adjectives such as “new” or “proliferating” are often used when talking about religious non-profit organizations, little empirical research has explored these questions. Chapter 2 explores the historical roots and contemporary growth of the Christian nonprofit population. Second, what is the role of Christian nonprofits within American religion? Are Christian nonprofits competing with or cooperation with congregations and denominations, and how does the presence of Christian nonprofits help us understand changes within those more traditional religious organizations? Chapter 2 examines the often ambivalent relationship between churches, denominations, and Christian nonprofits. Chapter 5 looks at how the often ambiguous line between church and parachurch is reflected in how the IRS distinguishes churches from nonprofits. More specifically, what are the different roles or activities being filled within the Christian nonprofit population? Chapter 3 explores the nine primary activity sectors within the Christian nonprofit population. Third, how are these national religious non-profits run? That is, how do they acquire and allocate resources and what explains variation in these methods? Chapter 4 details the different fundraising and fund-spending dynamics within Christian nonprofits. Chapter 6 provides an analysis of leadership compensation in these organizations. Finally, Chapter 7 examines the role government funding has on the religious expression of Christian nonprofits. iii Table of Contents List of Tables .............................................................................................................vii List of Figures............................................................................................................viii Acknowledgements....................................................................................................ix Introduction: Christian Nonprofits & the Parachurch........................................1 Changing Meaning of “Religious Organizations” .........................................2 The New Public Face of Christianity.............................................................3 Mapping the Parachurch................................................................................6 Parachurch Pieces..........................................................................................7 The Three R’s................................................................................................12 A Note on These Data....................................................................................13 Theory and Literature Review Chapter 1: A Brief History of the Parachurch.....................................................15 The Proto-Parachurch ....................................................................................16 British Religious Societies.............................................................................18 Importation.....................................................................................................21 From Importation to Nationalization .............................................................24 From Nationalization to Denominalization ...................................................27 De-Denominalization: Rise of the 501(c)(3) .................................................28 Institutionalization of Nonprofits...................................................................29 Growth of Unaffiliated Resources .................................................................31 Denominational Loyalty and Outsourcing.....................................................35 Feedback Effects............................................................................................39 Chapter 2: The Ecology of Church and Parachurch...........................................41 Turf Wars.......................................................................................................42 Parachurch Ecumenism..................................................................................45 Money and Resources....................................................................................47 Organizational Niches....................................................................................49 Church and Parachurch Niches......................................................................51 Niche Overlap ................................................................................................52 Generalists vs. Specialists..............................................................................55 Attenuating Overlap.......................................................................................59 Local vs. National Ties ..................................................................................61 Overviews and Descriptives Chapter 3: Profiles of Christian Nonprofits ........................................................63 Nine Sectors...................................................................................................64 Charismatic Evangelism................................................................................66 Relief and Development ................................................................................71 iv Education and Training..................................................................................76 Publishing and Resources..............................................................................79 Radio and Television .....................................................................................82 Missions and Missionary ...............................................................................85 Fellowship and Enrichment ...........................................................................88 Advocacy and Activism.................................................................................92 Fundraising, Grant-making and Other ...........................................................97 Themes...........................................................................................................99 Chapter 4: Fundraising and Spending ................................................................101 Shared Needs, Different Strategies................................................................102 Revenue Sources............................................................................................105 Donation Revenue Sources............................................................................108 Commercial Revenue Sources.......................................................................112 Consequences of Revenue Source .................................................................114 Expenses ........................................................................................................116 Efficiency and Effectiveness..........................................................................122 Chapter 5: Churches, Nonprofits and the Tax Code ..........................................129 Church-Parachurch Fluidity...........................................................................130 Origin of Tax Exemptions .............................................................................131 A Split in the Code.........................................................................................133 A Two-Tiered System....................................................................................135 Defining a Church..........................................................................................138 Flexible Application.......................................................................................140 Churches, Nonprofits, and Nonprofit ‘Churches’..........................................143 Manipulation and Abuse................................................................................145 A Scientific Question.....................................................................................146 Tipping Points................................................................................................148