Chapter 2 Part 2: Finances

The Problem: Part Two - Finances

The school was considered a kind of “loss leader” in the normal synagogue budget, in that it was heavily subsidized by all the membership, even those without children or those with grown children. Educating children was seen as the basic purpose of a congregation. Since virtually all congregations had this kind of a policy, we created a community where the vast majority of Jews, at least at some point in their lives, had been a member of a congregation. The average membership for a family lasted, on average, about seven years, which would give these families time to celebrate the rites of passage with their two children and then, if the children did not get involved in a youth group, or the parents did not become involved in synagogue leadership, they would quit the congregation and move on to other things in their lives. Most formal Jewish education stopped at age thirteen and youth groups settled on a more informal kind of learning for those who stayed on.

The decisions regarding membership insured that the financial health of a non-Orthodox congregation depended upon the religious school. In the 1950's, during the height of the baby boom, there were more than enough children to fill the schools. But as that baby boom passed through to college and beyond, the birth rate of the American Jewish community began to fall. Jewish parents waited longer to have fewer children. As we stated before, today, many mainstream congregations still think that parents of children join the synagogue only to provide a Bar or Bat Mitzvah for their children. But as parents wait longer to have children, there is now a delay of some 20 years before these parents who still wish to join a mainstream congregation, find a need to join. Where once dues could be collected from parents in their twenties, now the parents are in their forties and after living 20 years without needing a synagogue, they are looking for new ways to avoid joining altogether. With the decline in membership, the decline in finances is inevitable. Since the balance of synagogue financing depends a great deal upon donations, without a membership, donations are also in decline. Thus, my colleagues at the JTSA forum I mentioned above, still were looking for parents to join their schools and then join their congregation. But the very young Jews they covet so much, are not parents, and are not even married! It is a demographic that has disappeared! As synagogue membership continues to age, the drop in donations and support gets more and more acute. Synagogues today struggle to cut budgets and staffing as their membership declines, but this only accelerates the drop in membership since without the funding for new programs and the volunteers and staff to run them, they get stuck in a downward spiral. Less funding for programs, less programs to reach out to the community, less members to the congregation, more budget cuts, less programs, less members etc. etc. The actual costs of running a synagogue are not all that flexible. Most of the real costs are fixed. This financial problem is a challenge that cannot be solved by merely cutting the budget. Synagogues should be enhancing the income by getting more members to join, but the congregations don't change their culture to attract the singles and families without children that they need. The financial crisis is so great in some communities that what may be needed is an infusion of “venture capital” to turn the spiral around.