Church Groups Form Firm to Pool Blacks’ Buying Power
Five of the nation’s largest African American religious organizations said Monday that they have formed a corporation that will pool blacks’ buying power to give them greater clout in obtaining loans, goods and services.
The effort, believed to be the first of its kind on a national level, is similar to local efforts by minority communities in Southern California and elsewhere to pool members’ resources.
Revelation Corp. of America, based in Memphis, Tenn., will offer a range of services to consumers, from homeowner insurance to discounts for retail goods and services.
The company hopes to reach the 20 million members of National Baptist Convention of America, the African Methodist Episcopal Zion Church, Christian Methodist Episcopal Church, the National Baptist Convention USA and the Progressive National Baptist Church. These groups represent 43,000 churches nationwide. Other organization have been invited to participate in the business.
Members of the five denominations will be able to buy products from businesses that will be chosen by Revelation.
The companies will offer rebates in an effort to have “product exclusivity” with the members of Revelation, said John Lowery, executive vice president of Revelation and president of Lowery-Riggan Co., which owns 30% of the new venture, which backers expect to be fully operational by the start of spring.
Revelation will sell coupon books for retail goods through an 800 number and will use 30% of the proceeds to funnel money back into member churches’ local communities. The rest of the money will be set aside to provide for the creation of a national housing fund to assist African Americans in acquiring housing and commercial loans.
“If we can pull this off, it will mean a significant breakthrough in acquiring mortgages” and other services for African Americans, said Henry Lyons, president of the National Baptist Convention of America.
He said this represents the first time the five black religious denominations have set aside their philosophical differences to work to achieve greater economic leverage for African Americans.
Black Americans have an estimated buying power of $400 billion, making them the ninth-largest consumer market in the world, according to Operation Hope, a Los Angeles-based foundation that helps homeowners acquire bank loans.
“Revelation follows Dr. [Martin Luther] King’s vision of black Americans helping themselves through the leadership of the church,” Lyons said. Announcement of the effort coincided with the national celebration of the slain civil rights leader’s birthday.
African Americans and other minority groups have had trouble gaining access to capital from major banks. According to a study by Operation Hope, only 35% of inner-city Los Angeles residents pay a mortgage, but 65% pay as much rent as would carry a home loan, if they could get one.
Lyons said Revelation will be able to help that group of people who pay rent regularly but cannot get mortgages, by pooling the economic resources of the black community.
The Rev. Norman Johnson of First New Christian Fellowship Church in Los Angeles said he expects his church to participate in Revelation’s business. He said local church leaders met after the Million Man March in October and made economic development in the black community one of their top priorities.
Associated Press contributed to this report.
