Relational Economics: How Faith Communities Can Partner With ESEs to Help Neighborhoods Thrive

When ESEs work in partnership with other local anchors, like faith communities, their impact grows exponentially.

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If you’ve spent any time in community work, you know one truth: relationships are the foundation of all lasting change. Programs matter, resources matter — but in the end, people transform communities.

Employment social enterprises (ESEs) are built on this idea. They’re community-based organizations rooted in proximity, belonging, and opportunity. Meanwhile, faith institutions — churches, synagogues, mosques, temples, and interfaith groups — share these same qualities. They are also often among the most trusted and consistent spaces where relationships within a neighborhood are built. 

When ESEs work in partnership with other local anchors — nonprofits, government, small businesses, and especially faith communities — their impact grows exponentially.

How Can Faith Institutions Best Support Their Community ESEs?

A few months ago, I attended the Neighborhood Economics conference in Chicago with a few colleagues from REDF. Although it isn’t a faith-based conference, it intentionally brings faith leaders into conversation with real estate developers, impact investors, entrepreneurs, and philanthropists to explore how they can work together to strengthen local communities. 

As part of the convening, we co-hosted a panel exploring how faith communities and ESEs can strengthen one another. We were joined by two incredible partners, Katie Mulcahy, whose father, Tom Owens, founded ESE Cara Collective, and Laura Zumdahl, President & CEO of ESE New Moms. 

To help leaders imagine what this can look like, we shared a simple framework called GIVE, which outlines the many ways faith communities can support ESEs beyond financial gifts:

GIVE Framework

Goods — in-kind items or space
Investment — seed capital or purchasing ESE products/services
Volunteering — skills, mentoring, and relationship-based support
Employment — hiring ESE participants into open roles

This framework helps faith communities support ESEs by matching what they have to offer with what ESEs need, creating partnerships that benefit everyone.

Abundance, Partnership, & Possibility

Neighborhood Economics reminded me of something fundamental: real change starts when we choose to see abundance where others see scarcity.

With nearly 375,000 churches in the U.S. — and a quarter projected to close by 2050 — we’re standing at a once-in-a-generation moment. What happens to these sacred spaces matters deeply. Instead of selling buildings to the highest bidder, faith communities are asking: What if this space could be a source of life for our neighborhood?

Across the country, congregations are reimagining unused or underutilized spaces as:

  • childcare centers
  • transitional or affordable housing
  • kitchens for small businesses
  • community gathering spaces
  • office spaces for ESEs

We can recognize the assets we already have — church buildings, small businesses, community talent — and reimagine them for shared flourishing. In this effort, we are working with, not for, communities. After all, economics at its best is built on relationships, not transactions.

And here’s what gives me the most hope: when faith and social enterprise meet, something transformative happens. This isn’t charity — it’s partnership. It’s congregations living out their values in a tangible way while gaining renewed purpose and connection. 

If any of this sparks something for you, here’s a simple prompt:

Take one action in the next month to strengthen the ecosystem around you.

  • For everyone – this holiday season, buy a gift that matters from an ESE.
  • If you’re a part of a faith community, connect with an ESE leader in your community to ask them what they need and how you could develop a long-term partnership to support their mission.
    • Offer space or resources to an ESE in your neighborhood.
    • Recruit volunteers to engage an ESE’s employees through mentorship, resources (e.g., diapers, food), or volunteering (e.g., resume review, interview prep)
  • If you run a small business, explore how you can hire talented ESE participants as they’re ready for their next step.

You can start by finding ESEs near you.

Because when we choose relationships over transactions, abundance over scarcity, and partnership over charity, we can turn our support into lasting neighborhood change.

REDF team members (from left) Maggie, Megan, Nicole, and Debbie (right) gathered at this fall’s Neighborhood Economics event in Chicago, alongside local social impact leaders Katie Mulcahy (middle right) and Laura Zumdahl (second from right).