When a church feels that there is a need to construct a new church this is usually a sign that they have gained more followers hence it is a happy thing. However, getting the money to finance the building of the ministry is not as easy as it seems. Many churches find it very difficult to acquire church mortgages therefore they end up using their old buildings even when they desperately need another. The following is some important information that can be used by congregations.
Obtaining the required finances to successfully build or expand it may be very difficult. It sometimes even brings about misunderstandings between members. For this reason, the congregation must be prepared to choose among the available options for acquiring finances. They can either get the money from conventional loans or the bond program.
Churches can also acquire the money they need for construction through funding campaigns where the members of the congregation and other concerned parties will all contribute what they have and the money will be brought together to meet the construction requirements. There are also some grants that can be given to them for these purposes.
It is never that hard for churches to acquire a mortgage loan in the financial institutions because they collect a significant amount of money every year in form of offerings and tithes. If a church can be able to collect a million dollars every year, a bank can give them from three to five times that amount because they know they will have the capability to pay up.
In bond programs, churches are usually given a chance to buy a bond and invest it then get better returns in order to get the money they need. These are very different from the conventional bond programs because they involve many lenders while the conventional ones involve just one lender. This bond program also involves higher costs than the conventional ones because of the brokerage fees.
Instead of burdening themselves with the bank mortgage loans, the management can also be involved in some kind of a business so that the profits can be used for the construction of the proposed church. They can choose a certain product and sell it as this will help them to raise money without burdening themselves with future payment obligations.
Aside from the above methods, there are also some non-conventional sources of finances that can be chosen. Lease-purchasing is one of the options. This is a form of construction credit where the ministry will be built and paid for later. To minimize the stress of construction, the church can also buy a property that is already built if they are able to raise the full amount.
When the church management is not really aware of what they should do, they can get help from the capital stewardship companies. From here they will be able to get some advice on the best way to acquire finances and not putting their finances at risk. The above are just examples of the many options that will be presented for them.
Obtaining the required finances to successfully build or expand it may be very difficult. It sometimes even brings about misunderstandings between members. For this reason, the congregation must be prepared to choose among the available options for acquiring finances. They can either get the money from conventional loans or the bond program.
Churches can also acquire the money they need for construction through funding campaigns where the members of the congregation and other concerned parties will all contribute what they have and the money will be brought together to meet the construction requirements. There are also some grants that can be given to them for these purposes.
It is never that hard for churches to acquire a mortgage loan in the financial institutions because they collect a significant amount of money every year in form of offerings and tithes. If a church can be able to collect a million dollars every year, a bank can give them from three to five times that amount because they know they will have the capability to pay up.
In bond programs, churches are usually given a chance to buy a bond and invest it then get better returns in order to get the money they need. These are very different from the conventional bond programs because they involve many lenders while the conventional ones involve just one lender. This bond program also involves higher costs than the conventional ones because of the brokerage fees.
Instead of burdening themselves with the bank mortgage loans, the management can also be involved in some kind of a business so that the profits can be used for the construction of the proposed church. They can choose a certain product and sell it as this will help them to raise money without burdening themselves with future payment obligations.
Aside from the above methods, there are also some non-conventional sources of finances that can be chosen. Lease-purchasing is one of the options. This is a form of construction credit where the ministry will be built and paid for later. To minimize the stress of construction, the church can also buy a property that is already built if they are able to raise the full amount.
When the church management is not really aware of what they should do, they can get help from the capital stewardship companies. From here they will be able to get some advice on the best way to acquire finances and not putting their finances at risk. The above are just examples of the many options that will be presented for them.
