Wednesday, May 07, 2008; Posted: 09:32 AM
Since the pastor and his family moved from Charlotte to Prague three years ago to start a church, the falling value of the U.S. dollar has brought home a sobering reality: The money they raised to support themselves and their work overseas does not go nearly as far as it once did.
The dollar's decline has stung most expatriates who are paid in U.S. funds, but missionaries serving internationally are particularly at risk. Many depend on money raised years before they left, when exchange rates were more favorable.
As a result, the Davises and fellow missionaries are facing tough financial questions: Should they move to a smaller house farther from those they're trying to reach? Where can they save on groceries? Can they raise enough money to stay?
One Charlotte-area missionary had her family bring food and toiletries when they visited her so she wouldn't have to buy them in Sweden. In Armenia, an N.C.-funded service project needed an emergency grant to get by. And in Prague, the Davises are paying nearly $100 for a tank of gas.
It's unclear how many missionaries are from the Charlotte region, but more than 44,000 American Protestants are serving internationally for a year or longer, according to the Mission Book, published by a division of the Billy Graham Center at Wheaton College in Illinois.
"We're seeing our missionaries' accounts begin to struggle," said Paul Leary, director of ministries for Philadelphia-based World Harvest Mission, which works with 150 missionaries, including the Davises, in 13 countries.
EXCHANGE RATE DIFFICULTIES
After declining steadily for most of this decade, the dollar has dropped sharply in the past year. It hit a new low last month against the euro, the currency used in 15 European nations, before rebounding slightly since.
At home, a weak dollar can boost exports and encourage foreign investment. It makes the U.S. more affordable for foreign travelers. But it also makes living or traveling abroad more expensive for Americans.
Though the exchange rate has always posed a problem in a couple of countries, the issue is now almost universal, said Twila Schock, director of global mission support for the Evangelical Lutheran Church in America.
Missionaries still serve widely in developing areas in Africa, Asia and South America. But in recent years, Europe has become popular as missionaries seek to spread Christianity to recent African and Asian immigrants and reawaken belief among Europeans, who are less engaged in organized religion than their American counterparts.
The dollar has declined about 45 percent against the euro since 2002, and nearly 15 percent in the past year. It has experienced similar declines versus other European currencies.
Missionaries in poorer countries, particularly those in Africa with currencies linked to the euro or British pound, are also feeling the effects, said George Salloum, chief financial officer with Charlotte-based Serving In Mission, which has more than 1,000 missionaries in Africa, Asia and South America.
"If you had a 10 percent pay cut, that would be significant," he said. "Basically, that's what those people are feeling right now _ at the low end."
Though donations have not declined, it has become virtually impossible for contributions to keep pace with the currency drop-off, mission agencies say.
As a result, missionaries _ generally reluctant to talk finances _ are now mentioning the exchange rate in prayer letters to supporters, online and in conversation with other Americans abroad.
Mission organizations and pastors say they may have to bring people home early to raise more money. Some might even return to the United States for good.
"That's sort of the worst-case scenario," Leary said. "We're looking at 2008 as sort of a year of reckoning for that."
RISING COSTS
Hickory, N.C., native Lindsey Hendrix, 24, who works for Campus Crusade for Christ at Uppsala University in Sweden, said she is scrutinizing her purchases and eating dinner at home more. But her work requires socializing with students on campus and in the community, which means she can't simply pack a lunch.
In late 2005 and 2006, when she raised money to support herself and her ministry, she expected to need $3,600 a month. With the dollar down more than 20 percent against the Swedish krona since then, that figure is now $5,000. Her rent alone has increased $100 since she signed a lease last June, and she's had to seek additional donations.
Hendrix had planned to remain in Sweden three to five more years, but will come home for a year starting in June to recharge and raise enough money for a future stay. Until then, she's praying for the exchange rate to improve
The currency drop is also affecting outreach funded with American money. In Armenia, a service project supported by N.C. Methodists needed a $5,000 grant to make it through April and will have to cut expenses, said Michael Collins, mission and outreach coordinator for the denomination's Western North Carolina Conference.
The dollar has lost more than 30 percent of its value against the Czech crown since Phil Davis, his wife, Shanna, and their children arrived in Prague in 2005. It has fallen 21 percent in the past year.
Rent has jumped $664 a month. A gallon of milk averages $4.75, up from $3.25 a year ago. "It's kind of like the frog in the kettle thing," Phil Davis said. "It just creeps up on you."
The family is facing a $7,000 deficit and needs an additional $2,500 a month to cope with the exchange rate. They hope to raise money while in the U.S. this summer but have also begun explaining the situation to friends via e-mail. Though they are excited about the 50-member church they've established, they say it's frustrating to see money dwindling. As Christians, however, they and other missionaries say they are used to putting their trust in a higher power.
"(Missionaries) are totally dependent on the Lord to carry them through, and he does, and the work goes on," said Vince Eaton, who coordinates the missions/outreach leadership team at Calvary Church in Charlotte. "It's not going to stop the spread of the Gospel, believe me."
LEARN MORE
Lindsey Hendrix: lindsey.ministryhome.org
The Davis family: philnshanna.blogspot.com
World Harvest Mission
101 West Ave. Suite 305
Jenkintown, PA
19046-2039
215-885-1811
www.whm.org
SIM (Serving In Mission) USA
P.O. Box 7900
Charlotte, NC 28241
704-588-4300
www.sim.org
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