6 Approaches to Church Financing with Integrity

posted by Chris Valentine

Religion and politics are the two most dreaded subjects at any gathering. But a close third is money.

No one wants to talk about finances, especially when it involves religion or politics, too. So church finances are about the best way to be sure and offend someone.

But what if there was a way to approach church financing without a big tiptoe around people’s feelings? Using our 6 best approaches outlined below, you can help your church on its way to a healthy financial status and keep the healthy relationships, too.

1. Giving and Donations

While asking for money is always uncomfortable, a pastor often isn’t trained for the financial aspects of church administration, which makes it even harder. Putting together an appeal to the congregation to finance a new project means explaining why you didn’t plan ahead for the project and feeling guilty even if you did nothing wrong.

But one way to approach church financing is to take up a special offering for the need. Many times a healthy church has a body willing to give above and beyond their normal tithe, especially if it’s for a person or project they know and love. It’s a way to get the entire church involved and feel more like the unified community you already are.

Rather than focusing on asking people to give a certain amount or percentage to the church, ask them to consider how they can experience transformation. What amount are they called to give and how will it impact their lives in a positive way? Being generous almost always does more for the giver than the recipient, if it’s given with the right attitude behind it.

2. Borrowing the Money

You can borrow the money you need to finance a project, especially if you see a way to be able to pay it back in regular installments. Cash loans for churches make it easy to borrow the funds to get the job done, without the complications of asking for pledges and donations.

Some lenders can even help your church with a no-credit-check loan if you don’t think you’ll get approved for one with a full credit check. As long as you have a bank account, your church should be able to get the funds it needs. Make sure to make a plan for how you’ll pay back the loan, too.

3. Getting A Church Mortgage

If a new building is the project you’re hoping to get started on soon, then a mortgage is another way to finance it. Whether you’re building a new place or purchasing a location that’s new to your organization, a mortgage can help with the big hurdle you have before you can start.

Refinancing is also an option. Churches can lower their payments and interest rates by looking into refinancing their current mortgage.

4. Church Financing with Endowments

An endowment is a fund with a large sum of money that grows each year and gives away the interest it makes. In this way, the lump sum of money is protected and there is still usable cash flow to use for projects and improvements.

Many universities use their endowments for scholarship funds and much, much more. If you have investors with a large lump sum they want to donate, starting an endowment is a great way to create a legacy and name the fund after someone who means a lot to your church history. It’s also a great way to ensure that the money lives on and continues to do good, even after the project has been completed.

5. Ask A Financial Planner

Sometimes it seems the last idea to come to you is the best one. Asking for help to figure out the church finances is never a bad thing. Another set of eyes can help you be more objective than you would be on your own.

Make sure that you are hiring someone who has the experience you need. While a volunteer can save you a lot of money, you don’t always get to choose the right person when you allow volunteers to help. Why not put a volunteer to work in another part of the church office, and hire a professional with an outside perspective to help with the financial planning.

This ensures that there are no personal hangups as you discuss plans and snags along the way. You also make sure to get an honest opinion, instead of someone who wants to either impress you or cushion any bad news.

6. Selling Bonds

A church can sell bonds that mature with interest. Most of the time they sell the bonds to their congregation, who end up being the investors. The church can use the money they raise from the bonds to fund the current project, and then after the bond matures, they pay it back with interest.

Make sure the people know how long the bonds are for when they purchase them. They can start anywhere from a few months to many years. The investors need to know the details before they invest large sums of money.

Options for Church Budgeting with Integrity

You don’t have to be on tenterhooks when you’re dealing with church financing. Even if you’re used to having an uncomfortable time when addressing money issues, try something new.

Approaching the funding options with confidence can help you succeed. Whether you go through giving and donations, cash loans, a new mortgage, endowments, or the advice of a financial planner, your church’s new project is closer than you think.

For more perspectives on church financing and other aspects of faith around the world, read more on our blog.

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