ON MY STREET, WE’RE NOT DOING THIS ALONE.

Finance Minister Bill Morneau has indicated that the government is “preparing a significant stimulus program” to help businesses and households facing economic hardship due to the coronavirus epidemic. Many expect that we will learn more about the government’s plan in the next day or so.

Economists broadly agree on the need for action. The goal of short-term, extraordinary public spending isn’t to “stimulate” business and consumer demand. Doing so would run at cross-purposes with the public health goal of minimizing the spread of the virus. Instead, the imperative here is to provide temporary, immediate relief to those who have been adversely affected by the economic costs of the new and evolving public health diktats we all find ourselves living under. Think of the businesses that are required to close and individuals who in turn are laid off.

It’s important, however, that the government thinks comprehensively about who will need support. Most of the discussion thus far has understandably focused on businesses and households. But other parts of Canadian society will also face financial challenges due to mandated closures, declining household spending and ongoing uncertainty.

An important case in point are places of worship, such as churches, temples, mosques, synagogues and so on. These institutions play critical roles in our society, including offering front-line services to needy people in many communities. Yet they’re likely to face significant financial hardship in the coming weeks and months. The challenges may even be existential for some institutions with small and aging congregations.

There are just over 27,000 places of worship across Canada. Many were facing financial challenges prior to the coronavirus epidemic. A combination of aging demography and rising secularism has contributed to budget shortfalls, mergers and outright closures. There are exceptions, of course. Some places of worship are thriving, including many in minority communities. But the overall trend is unmistakable.

Enter the coronavirus. Religious institutions are now being told to temporarily shut down. The chief medical officer in Ontario, for instance, has requested the closure of “all churches and other faith settings” as soon as possible. Many churches are halting public services until at least Palm Sunday on April 5. Other religious institutions, including synagogues and mosques, are taking similar measures.

Shutting down services for the foreseeable future will place further financial strain on these institutions. Although many have instituted monthly giving and come to draw on new forms of financial support, they still rely a great deal on weekly offerings during their services — particularly from older congregants.

The result will be that, like businesses and households, some places of worship will face a real cash crunch in the coming weeks and months. They will struggle to make payroll, pay bills and, most importantly, support individuals and households in their communities in the form of food banks, soup kitchens, refugee resettlement services and so on.

Research by Cardus shows that “for every dollar in a religious congregation’s annual budget, a city gets an estimated $4.77 worth of common good services.” These services will be especially important for the vulnerable communities hardest hit by the inevitable economic downturn.

What can the government do?

Remember the goal is to provide immediate, shortterm relief for those religious institutions facing a cash crunch. Tax-based options such as enhancing the charitable donations tax credit, while good, may not be immediate enough.

A better option is to establish a “matching fund” similar to what the federal government has previously done in response to humanitarian crises in Haiti and elsewhere, and what it does on a regular basis with organizations like the Canadian Foodgrains Bank, which has a funding agreement with the federal government that matches donations on a 4:1 basis, up to a cap.

The government could establish a funding envelope to match private donations to places of worship up until a fixed date. It could announce, for instance, that it would match private donations up until Canada Day, to sustain places of worship and other charities during this period of disruption.

There could be a cap on public dollars available to each institution, to ensure that public funding is broadbased and ultimately focused on helping institutions manage a cash crunch rather than pad their bottom lines. A reasonable limit might be $50,000 per institution. Funding could be dispersed in two tranches — one in April and another in July.

This approach would give places of worship confidence that financial resources are available to them. They could also use the availability of matching funds to canvass their parishioners and congregants to provide monthly contributions, in order to leverage public dollars.

It would ultimately help to ensure that these extraordinary circumstances don’t threaten the financial viability of our places of worship. As the federal government finalizes its “stimulus” plan, it mustn’t forget them.

MANY WERE FACING FINANCIAL CHALLENGES PRIOR TO THE CORONAVIRUS EPIDEMIC.