THE CHURCH ECONOMY AS A DISTINCT SECTOR – EMPIRICAL ANALYSIS OF THE SOCIO-ECONOMIC CONTRIBUTION OF THE RELIGIOUS ORGANIZATIONS IN BULGARIA

ASEN ANGELOV
PhD, University of Insurance and Finance Sofia, BULGARIA
ORCID: 0009-0003-2609-6944
Email: aangelov@uzf.bg

DOI: https://doi.org/10.24818/cike2025.80

Pages: 653–659

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Abstract

Religious organizations in Bulgaria, and particularly the Bulgarian Orthodox Church (BOC), play an important yet underexamined role in the country’s socio-economic life. Traditionally seen as purely spiritual, they are often excluded from national accounts and policy debates. In practice, however, their activities extend well beyond liturgy and include charitable services, education, publishing, cultural heritage preservation, and small-scale business enterprises. Together, these form a “church economy” — a hybrid model that does not fit neatly into the public, private, or nonprofit sectors, but instead constitutes a distinct fourth sector of Bulgaria’s mixed economy.

This paper conceptualizes the church economy as a measurable part of national socio-economic activity and assesses its contribution using statistical and econometric methods. Drawing on National Statistical Institute census data, nonprofit sector reports, and diocesan accounts, the study highlights the demographic dominance of Orthodoxy and demonstrates that religious nonprofits generate revenues comparable to other areas of civil society.

The findings confirm that the church economy, though largely invisible in official statistics, leaves a tangible socio-economic footprint. Recognizing this role improves understanding of Bulgaria’s social economy and provides a basis for integrating religious organizations into European Union frameworks for inclusive growth, transparency, and innovation. By combining conceptual analysis with empirical evidence, the paper contributes to debates on the financial dimensions of the knowledge economy and the evolving role of faith-based institutions.

 

Keywords: church economy, socio-economic activity, internal control, Bulgarian Orthodox Church, non-profit organizations, knowledge economy

JEL Classification: Z12, L31, O17

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