Church Building Steps from Start to Finish: Funding

As we continue working through the church building process step by step, it’s time to talk funding. You should now have a good sense of how much money will be required to complete the church building process from the budget developed in the last step. Now it’s time to figure out where that money will come from.

Preparing a Church Building Stewardship Campaign

Obviously, you will need to ask for the funds required to fulfill your ministry vision of a new or remodeled church facility. The funds will come from three basic sources: gifts, pledges, and financing. In order to raise funds in a responsible manner, you will need to plan your stewardship campaign in a wise and thoughtful way. Whether you have knowledgeable attendees in your church who can conduct this campaign or if you hire a consultant (recommended in most cases) to guide and support your efforts, there are some basic elements that will need your attention up front.

Timing Your Church Building Stewardship Campaign

There are certain key elements  to a successful stewardship campaign, and one of them is good timing. You don’t want to raise money in winter because between the holidays and winter vacations, people are distracted by everything else going on — and are likely spending more money than usual, which could make them feel they don’t have funds available to support your church building project.

Summer is also not a good time for a stewardship campaign because many people are away on vacation. Therefore, the consensus of opinion is that the best times to ask for gifts and pledges for your new church design and building project are in the spring or the fall.

Preparing the Way for the New Church Design with Lending Institutions

Financing is an integral element of almost every church building project as raising enough money through gifts and pledges isn’t always possible. It’s important to begin thinking about the financing early, as there will be much financial information you need to gather in preparation for making the loan request. Here is a handy checklist of the different types of materials that you will need to have available when you begin conversations with lenders.

You’ll also want to find a lending institution that has worked with churches before. There are some elements to financing that are specific to churches. Lenders who are not familiar with the differences between thriving and struggling churches, for example, might tend to bundle all types of churches together. This can lead them to offer you either too much or not enough financing than your church’s financial health can truly support.

Much of this funding work can — and should — begin concurrently with the earlier, church design phase. It’s never too early to get a sense of what you can afford and how you will make that church design into a reality.

Stay tuned for more, as the next step in our start-to-finish series will address construction documentation.

It’s also never too early to tell us what else you’d like us to cover in our free i3 webinars. Our 2019 webinar series topics is almost done, so please contact us at to let us know what topics and questions you would like us to discuss.

2018-12-04T15:58:51+00:00 December 4th, 2018|Church Building, Church Design, Financing|

Answers to Church Funding Questions

Financing your church building project can be a challenge on many levels. In addition to learning all the finance terminology, church leaders need to consider how the realities of the construction market will impact their church funding. In a recent, free i3 webinar, we talked about the realities of financing a church building project in today’s economy. At the end of our presentation, there were some excellent questions about the material we covered. We thought those questions and our responses would be worth sharing here.

What’s the current rate of inflation, and how does that affect church building costs?

We track reports that show annual construction inflation for 2017 was between 4.25% and 4.75% and very recent data reports indicate a 2.91% cost increase through just the first two quarters in 2018. The specifics depend on your location. Here in central Ohio, the construction market remains very active and this translates to increased labor costs especially where there are not enough skilled laborers to fill available job slots. In other areas of Ohio, and of the country where construction is not booming as much, labor costs are increasing at a lower rate.

Another issue that will impact construction inflation is rising costs for materials. Last year, we talked about how costs for basic construction materials, such as gypsum and lumber, were on the rise. Recent news about tariffs on steel has already led to an increase in prices. Red iron steel went up 7% in March alone, while metal stud and sheet metal prices have risen a few percentage points each month this year. All signs say inflation is likely to continue to rise, and to affect church funding, budgeting and building costs.

Is church funding through bond sales a good idea?

During the 1980s, when interest rates were in the double digits, many churches funded building projects using church bond programs. In essence, it was a way to self-fund a church building through the sale of bonds that have a lower rate of interest than lending institutions were willing to give. Today we have the opposite problem, because lending interest rates are relatively low, so selling bonds would require offering them at higher rates of interest.

Another challenge is that a church selling bonds can confuse people. Because the typical church funding package includes donations, pledges and institutional loans, church members can be confused about why church leaders are also trying to sell them bonds. For these reasons, we discourage the idea of bond programs under current circumstances.

What tips do you have for successful fundraising campaigns?

We believe the primary key to a successful church funding campaign is always good leadership. There are two levels to this. We’ve recently shared our thoughts about the value of engaging a professional consultant for your fundraising campaign. However, that consultant isn’t being paid to do all the work. Instead, he or she will empower and train volunteers in the church community to undertake the fundraising campaign.

Within the church community itself, you also need good leadership to fulfill that campaign as it’s being directed by the consultant. A good “internal” fundraising leader is someone in your church who is organized, gets along well with people, and understands what’s happening with your church building project. With an enthusiastic leader, your church funding campaign is much more likely to find success.

Do you have more church funding questions? Reach out with your queries at We also encourage you to sign up for our free i3 webinars, where we might answer more of your church building questions.

2018-07-10T16:01:52+00:00 July 10th, 2018|Advice, Church Building, Financing|

Church Funding Lexicon: Understanding Lending Terminology

Every new adventure brings with it new experiences—and sometimes new terminology. For example, if you decide to begin rock climbing, you’ll need to learn the difference between an anchor and a carabiner, among other terms.

When it’s time to construct a new church building or renovate an existing property, you will also encounter some specific terminology—having to do with church funding and financing.

To make the process easier, we have gathered together some of the more common and useful terms you may encounter when seeking funding for construction projects. We often use these words in our free i3 webinars, so this list will hopefully also make our webinars more accessible to you as you pursue your church building vision.

Church Attendance

This is the number of people in your church or congregation. Lenders want to know if your weekly attendance is growing, the age of your attenders, and the geographical area they come from. The age of the congregation is important because, for church funding purposes, different age ranges represent different giving habits, as well as different financial responsibilities that might affect people’s giving potential.

Giving Units

The number of different groups and individuals who are giving to a church is expressed in terms of giving units. Usually a giving unit is a family—even if both parents work, the family commonly gives one gift to the church, so they are considered one giving unit.

Annual Revenue

Annual revenue is the amount of money a church brings in over one year. The number includes not just money that has been given to the church but also other sources of revenue, such as church building rentals for birthday parties, income from schools or after-school programs, etc. Lenders will want to see three to five years’ worth of annual revenue numbers to get a sense of trends and what types of income are growing or decreasing.

Appraised Value

This is the amount that the lender thinks your new or remodeled church building will be worth when the work is done. Lenders will generally loan only about 80 percent of the appraised value—and that value will likely seem low. That’s because appraisers factor in the resale value of a building, and since a church building is usually seen as a “one-use” property, they anticipate it will be harder to find buyers.

Debt Service

The amount to be paid on the loan for your church building project is called your debt service. The amount of these mortgage payments over a year should not exceed 35 percent of your annual budget (or 35 percent of your annual revenue), except in a few very extraordinary circumstances. Many lending institutions also believe a church’s annual debt service should not exceed $1,000 per giving unit per year.

Dodd-Frank Act

The Dodd-Frank act was passed by Congress in 2010. It set strict guidelines for how appraisers did their work, requiring documentation, backup support, and historic resale information on similar types of buildings to justify their valuations. This caused problems for churches, since most church buildings are sold for a relatively low value.

Congress has recently rolled back many of the Dodd-Frank restrictions (on all but about 10 of the largest banks), so more lenders may be willing to work with churches in the future. We’re waiting to see what the practical effect will be for this rollback.

New Webinars for Your New Church Funding Vocabulary

We will keep you informed about the effects of updates to Dodd-Frank as we learn them, so keep an eye out for future posts. Also, Dodd-Frank and other facets of church funding and construction are frequently discussed in our free i3 webinars—which is why we encourage you to sign up for them today. Simply visit our home page to register.

2018-06-26T16:02:16+00:00 June 26th, 2018|Church Building, Financing|

Overly Generous Funding: The How and Why to Avoid it

In an earlier post, we talked about the importance of finding a lender that understands churches to insure getting the best possible church funding. As you put together the various parts of a funding package for a church building or renovation project, it’s important to find lenders who understand the particular issues and needs of churches.

Every so often, however, church leaders can find themselves in a situation where a lender is eager to be supportive and offers overly generous funding terms which a church can’t realistically afford. That may sound like a classic “good problem to have,” but it can cause serious repercussions down the road. Here are some considerations to help keep your church financially healthy in the long term while borrowing money.

Understanding Church Funding Maximums

After more than 40 years in the church building business, we’ve learned there is a general rule of thumb for how much debt church leaders should take on during a construction or remodeling project. This guideline is typically used by lending institutions that are experienced and well-acquainted with making loans to churches.

The formula is this: The loan amount should not exceed three times the church’s annual revenue. For example, if your church brings in $300,000 a year in revenue, you should take on no more than $900,000 in debt for your church building or remodeling project.

Factors That Influence the Maximum

Bear in mind, though, that the above formula is used only in “ideal” situations. Other factors can alter that optimum situation.

These include whether the church is well-established; the type of growth the church been experiencing both in attendance and the amount of giving; and church leadership factors like the senior pastor’s length of service. If any of these aspects are less than ideal, the amount of church funding will be adjusted downward by the lender to fit the relative risk involved in lending money to the church.

Why Avoid Overly Generous Funding for Your Church Building Project?

If a church is thriving and has a great vision for its ministry in the community, occasionally a local lending institution may want to be supportive by loaning more than the established standard of three times annual revenue—say, maybe four or five times.

As attractive as that may sound, it could also adversely affect the church’s debt service for that loan. Debt service is how much a church has to pay on all its debt each month. If that number goes over 35 percent of a church’s budget, the church runs the risk of not having enough money left over to pay bills, salaries, and other costs necessary to minister to the community.

Learn More Through Our Webinars

We’ve seen a lot of church funding proposals over the years while working with churches to help them find that balance between their vision for ministry and the financing necessary for a church building that will support their vision. One way we share what we’ve learned is through our free i3 webinars. To register for one or more webinars, simply visit our home page.

2018-06-19T15:52:55+00:00 June 19th, 2018|Church Building, Financing|

Getting Professional Support for Your Church Building Projects

We, at The McKnight Group, have been immersed in the church building business for over 40 years. We’ve walked alongside church leaders as they’ve sought funding, developed innovative church designs, and successfully completed many, many renovation and building projects.

Among the professionals those church leaders often work with are church funding consultants. Read on to learn how such experts can improve your chances of success, and about other professionals you may want to consult with to ensure your new project is completed according to your specific church vision.

Why You Should Use Professionals for Your Church Building Stewardship/Capital Campaign

In our prior post, we discussed the importance of finding the right lender for your church building project when you seek traditional funding. Another aspect of the church funding process is often the stewardship campaign. A stewardship campaign lets you reach out to your church community and invite them to invest in your vision for future ministry.

Engaging professional church funding consultants for the campaign makes a big difference. In our experience, we’ve seen that professionally led capital stewardship campaigns can raise two to three times the amount of annual giving pledges over the course of a three-year church funding process. Churches that self-direct their pledge campaigns, on the other hand, typically raise up to one times the amount of their annual giving pledges.

A Further Impact of Engaging Church Funding Professionals

Using professional fundraising services has another, less obvious, benefit. Traditional lending institutions will typically look more favorably on a loan application if they know that professional consultants will be working with the church to raise funds to pay back their loan. This can lead to a more advantageous financing package than a church might receive if it were intending to raise all the funds on its own.

Where to Find Church Funding Professionals

Naturally, finding honest and effective professional consultants can be a concern for church leaders, especially since church funding isn’t necessarily their area of expertise. That’s why we’ve developed a resources list where you can find a number of reputable capital stewardship organizations.

Groups are on this list because church leaders we have worked with have had successful working relationships with them. To be clear, this does not mean that we endorse the organizations, nor do we have any official affiliation with them. Based on the successful work we’ve seen them do, however, we feel they can be helpful resources with which to discuss your church funding needs and what might be a good fit for your particular church building project.

Additional Resources Available on Our Website

Beyond our Capital Stewardship list, you’ll find lots of other useful information on our website’s Resources page, including links to church funding resources, audiovisual professionals, and church health consultants who can support and guide you through every stage of your church’s development.  

This is also where you’ll find a link to our i3 webinar page. Our free webinars on the church building process provide you with church design ideas and share other innovations you can use when considering a church remodeling or building project. Visit our webinars page today to learn more and sign up.

2018-06-12T15:57:17+00:00 June 12th, 2018|Church Building, Financing|

Doing Your Due Diligence: Preparing for Church Funding with Traditional Lenders

Unless you’ve received a truly magnificent bequest, if your church is thinking about a major church remodeling or new building project, funding has to be part of the picture. When it comes to modern church funding, know it will likely involve a mix of different options. In this post, we will take a closer look at traditional lending.

Different Sources of Financing

While some of your church project funding will come in the form of outright gifts, much of it will come in the form of pledges that will be paid over time. Still more of it will come in the form of a loan that covers the balance of the funding so that you can begin work on your church building sooner rather than later. If you wait until you have every dime in hand to begin building, and this will take years to achieve, your church will miss out on opportunities to live out its vision for ministry in the community today, not to mention having to deal with rising costs of construction over the time it takes to gather all the funds.

Finding a Knowledgeable Church Funding Lender

The most important component to maximize the chances of getting a church funding package is to find a lender that understands churches. Not all traditional lenders will.

When you are a church leader, you know well that there are many different kinds of churches. Not just different denominations, but also churches in various stages of health and at different places in their life-cycle. These variations are not so obvious to many traditional lenders. That is why before you do all the work necessary to get loan approval, you should be sure the lender you are working with understands all the nuances.

If a lending institution thinks all churches are alike, it can be problematic.  For example, if a lender has read some national statistics about how some traditional denominations are losing members, they might think that all churches are dying and want to be hard-nosed about the terms for a loan. If they don’t understand the difference between a stagnant church and one that’s active and growing, you are not going to receive the most favorable of church funding packages.

On the other hand, by finding a lender who has helped various churches successfully fund a church building project, you are much more likely to receive favorable terms and develop an encouraging, supportive relationship for the duration of your church building project.

Find the Right Lender, then Prepare the Right Documentation

Once you’ve identified a traditional lender who understands the unique aspects of lending to churches, you can move on to preparing the documentation that will be needed to secure the funding. We’ve covered some of the preparation you’ll need to do with a funding checklist here.

In our free i3 webinar series, we talk about finance and other real church building issues that are facing leaders today. Please go to our home page now to register for our upcoming webinars.

2018-06-05T14:55:32+00:00 June 5th, 2018|Church Building, Financing|

A Cautionary Tale About Keeping Your Church Building Finances Flexible

We don’t often quote scripture on this blog but that doesn’t mean we don’t think about it. Since our mission is to support church leaders with their church building and renovation projects, there are some scriptures that speak directly to our ministry.

One of those is Luke 14:28, where Jesus says, “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?”

It’s hard to image better guidance for church leaders as they prayerfully consider what kind of church remodeling or new building project they can truly afford.

Be Realistic About Church Building Costs

Philip Tipton, vice president of architecture, says this about church finances today. “My heart breaks when we receive these phone calls occasionally: A pastor, a leader that’s hoping to build a church building for $50 per square foot or $70 per square foot, and we really have to break the bad news that that’s not reality anymore. It’s not even possible.”

As we discussed in a recent post, the realistic range for a new church building project here in the Midwest is $200-$250 per square foot. Other sections of the country might have different costs—some lower and some higher.

Understand That ‘Smaller’ Doesn’t Mean ‘Less Expensive’

Choosing to start with a small part of a larger church remodeling project isn’t always the best solution if money is tight either. That’s because there are economies of scale that come with larger projects.

If you have to cut a door into a wall to get from room to room, the cost of cutting the hole, re-supporting the wall, and installing the new door, frame and hardware is a fixed cost regardless if you are making it a room for a one-person office or a classroom to seat forty-nine.

Therefore, a piecemeal approach to your church renovation or building project means the cumulative cost over time may more than offset the cost to finance all the work, all at once. However, taking out a loan for church building today is a serious topic, and borrowing money should not be automatically accepted or dismissed without carefully considering what is best for your church.

Be Flexible About How You Finance Your Church Remodeling and Building

Estimating cost is only part of the equation. Church leaders also need to be flexible in setting goals for their church financing. Here’s another of Philip Tipton’s cautionary tales that illustrates the point so very well.

Several years back, there was a very large church that, frankly, could afford to do a lot.

This church’s leaders had made a promise to their congregation early in the planning process, saying that they would not start any projects until they had commitments for one-half of the needed funds; the other half would be financed through a loan. In other words, they wanted 50 percent committed in their church financing pledge campaign.

A problem arose, however, when they had a very successful campaign, yet only raised pledges for 47 percent of the cost of the church building project. At that point, they could not get to 50 percent.

We encouraged those church leaders to consider financing the last three percent and get started on the project, but they felt they couldn’t. They believed they had to honor the commitment they made to the congregation to the letter and couldn’t be flexible on that point.

Unfortunately, this all took place before the 2008 recession when inflation was high. It took them six months to raise that other three percent and, during that time, inflation also went up three percent.

Even though they raised the needed percentage, they found they were still three percent short due to rising construction costs. As a result, at the end of three years, when their campaign had run its course, the church voted to move forward with the cash they had in hand. The three-year delay cost them $500,000.00 in construction cost and denied them the ministry space they needed for another three years.

The moral of this story is that financial flexibility is important. Setting an arbitrary goal can cost you in the end. Covering the initial three percent through a loan would have meant a very small monthly mortgage increase for that large, healthy church.

Expand Your Knowledge

If you would like to hear more of the wisdom—and cautionary tales—that our team has to share, visit our website today and sign up for our i3 webinars. Unlike building costs, we’re pleased to inform you our webinars will never go up in price—because they are always free.


2017-08-15T15:18:44+00:00 August 15th, 2017|Advice, Church Building, Financing|

A Financial Planning Checklist for Your Church Building Project

Over our last several posts, we’ve been talking about the financial planning necessary to ensure a successful church remodeling or church building project. While it’s always better to start on one of these projects sooner, rather than incurring the increased cost of waiting, some churches aren’t ready right now financially. There are, however, steps church leaders can take immediately to be ready when the time is right.

We’ve put together an easy to follow checklist to help prepare your church’s finances for a future building or remodeling project.

When it comes to building financial strength, the first steps are common sense things.

Getting Ready:

  • [  ] Operate within the church’s income. If you spend more than you take in, it will obviously be difficult to get needed financing in the future.
  • [  ] Create and grow a church building fund. Put money aside now, before you’re ready to build to get a head start.
  • [  ] Keep good records. Lending institutions respond better to detailed financial information.
  • [  ] Grow your church both numerically and financially. Increased income from new members and from current membership can quickly improve a church’s financial position.
    • [  ] Do this by increasing the church’s number of giving units,
    • [  ] And increasing the amount per giver, and giving unit.

Eventually the time will be right to approach a bank or lending institution to secure financing for the anticipated church building project. Here’s what you should have in hand:

Leadership History:

  • [  ] First include the Pastor’s résumé. Financial institutions need to know a church is well run.
  • [  ] Provide backgrounds and details of the governing church body members.
  • [  ] Indicate what type of governing body the church uses, whether it’s a board of trustees, elders, church board, etc.

Project Information:

  • [  ] You’ll need a written summary of the project. Lenders need to know your vision and how the building project will benefit the church community.
  • [  ] You should provide a comprehensive budget and estimate of costs. There are four main components of a comprehensive budget.
    • [  ] The biggest chunk of dollars will be the building itself. It’s also the least difficult to estimate, relatively.
    • [  ] Next is site work: the sidewalks, parking lots, utility lines, dirt work, etc.
    • [  ] Don’t forget you have architectural and engineering fees, and building permit fees to consider. Make sure they’re included.
    • [  ] The fourth component is furnishing, fixtures, and equipment. Added together, these four areas will give you a comprehensive budget to present.

Funding Plan

  • [  ] How much cash is on hand?
  • [  ] How much do you need to borrow to complete the project?
  • [  ] Where will other funds come from? Provide details of the current capital campaign, its projections, pledges, and results so far.
  • [  ] Detail any help you’re getting to run the capital campaign stewardship. Hiring a consultant typically means greater prospects of success to lenders.
  • [  ] And then provide a historical campaign collection if you’ve done them in the past.

Being prepared with all of these items will put you well on the path to secure funding for your project in today’s economy.

Learn with Our Webinars

If you have questions, we’re here to help. Just give us a call. And for other great church building and church remodeling resources, sign up for our free i3 webinars—simply visit our website.

2017-07-18T18:52:21+00:00 July 18th, 2017|Church Building, Financing|

Looking at Church Financing Issues from a Big-Picture Perspective

No two church building situations are the same, which sometimes makes it complicated when answering people’s questions about church financing and budgeting. In this post, we address some specific church building and renovation questions that have come our way, recognizing that it’s not always possible to pull back and generalize.

Estimating Basic Church Building Costs

Many times, when church leaders begin investigating the idea of a new building or renovation project, they contact us with questions. At this point, before they can consider church financing or capital campaigns, we hear the most basic query: “How much does it cost to build a new church building?”

As you can imagine, there is a lot to consider when answering that question. The best estimates are based on square footage, so churches need to have a vision—a basic idea of what they want to do—and figure out how many square feet they would need to accomplish those goals. This doesn’t mean they need to have architectural drawings already, but they do need to think through what spaces they need.

Calculating Square Footage Costs for Church Financing

Once they have a basic idea of their church building square footage, we can have a conversation about financing. However, we can’t guarantee a final cost without more detailed information. In a recent post, we discussed the elements of budgeting that information: site work, the church building itself, various drawings and fees, and the furnishings and equipment you will need to finish the interior spaces.

However, there is a very general rule of thumb: The square footage cost of those four components typically runs from $200 to $250 per square foot here in the Midwest (church leaders need to remember that construction costs differ depending on what part of the country they’re in). That’s for new church building construction, and it doesn’t include the cost of the land.

The price will likely increase if the church building is going to be closer to a large city or built in a union area. In the southern, more rural parts of the Midwest, or in the South, those cost-per-square-foot numbers can go down a bit. We still think it’s best for church leaders to estimate $200-$250 per square foot when attempting to arrive at a big-picture approximation of their church financing needs.

Options for Very Small Churches

We also hear from very small churches that want to understand their church building options. Some church leaders find themselves in difficult situations where they have very few giving units and building resale values are very low. They really can’t sell their building for what they think it’s worth, but they can’t afford to maintain it either. The building may not even be worth enough to be used as loan collateral.

In situations like this, while it might make sense to obtain financing for specific maintenance projects, such as a new HVAC system, it really isn’t a good idea or even possible to get church financing for general maintenance costs.

Sometimes when a church building is not sustainable, the only option is to consider all options. Some less tenable like selling their church building or more sensible like merging with another church that’s in a similar situation. Ultimately, it comes down to wise stewardship of what God has given.

Learn More

Wise stewardship is also about making good use of all the information you can get, in order to make the wisest decisions. That’s why we offer our free i3 webinar series: to inform church leaders about the best church financing, building, and renovation options available.

Sign up today for our webinars to make sure you have the information you need—simply visit our website.

2017-07-11T15:54:38+00:00 July 11th, 2017|Advice, Church Building, Financing|

Get the Church Financing You Need: 4 Elements of a Comprehensive Budget

There are many steps your church should take when preparing to construct a new church building or undertake a church renovation project. One is getting a church funding plan. Without it, your project isn’t going to get very far.

Chances are you’d think—in the beginning, anyway—that the cost is equivalent to the amount of money needed to construct the building.

However, there is a good deal more to any church building budget, and if you want to optimize your church financing, you need to know what comprehensive budgets entail.

4 Elements of a Comprehensive Budget

Essentially there are four elements to a comprehensive church building budget. The largest piece—the third element, if you’re looking at this chronologically—we’ve already mentioned: The cost to construct the building.

The first part, however, involves what we call “site work.” This is preparing the ground where the church will be built. It must be level and solid enough to handle the weight of the building, plus water, sewer, gas, and electric lines all need to be laid before the building goes in. Furthermore, site work must also be done for the parking lots and sidewalks including their actual installation.

Next, the second element, which involves the various fees that must be paid for drawings, approvals, and permits prior to the building being constructed. There will be architectural drawings to be drafted and approved, along with structural, plumbing, HVAC, and electrical engineering components that must be individually planned and integrated into the overall design. There are also building permits to be issued and soil samples to be taken and analyzed.

The final, fourth, element is everything that goes inside the church building once it has been constructed. We call it “FF&E,” or Furnishings, Fixtures, and Equipment. This includes the furniture, appliances, all your audio/visual equipment and technology such as servers, WIFI, and alike.

If you walk through your current church building and pay attention to everything that’s been installed in every room, you will discover there’s quite a bit of FF&E that must be either brought over from the old building or purchased for the new.

Taking it all into account

For example, let’s imagine a roughly $750,000 church building construction project. We need to budget approximately $61,000 in fees, another $18,500 for inflation (because no church building is built in an instant, and costs will go up the longer it takes), and another $101,500 or so for FF&E.

This means the total budget for the construction project is over $930,000.

Why a Comprehensive Budget Boosts Church Financing?

When you, as church leaders, approach a lending institution for church financing, that institution wants to know you’ve done your homework. A comprehensive budget, covering all four areas, shows you’re well-prepared and improves your chances of getting whatever financing is needed to complete the project.

Find Out More

We have more resources available for you regarding church design, building, and renovation. To learn more about better budgeting, see this post. To learn more about church financing and a whole lot more, visit our website, and sign up for our free i3 webinars.

2017-07-06T04:21:22+00:00 July 5th, 2017|Budgeting, Church Building, Financing|