How To Fund A Church Building Project

If your church is about to begin a building project, congratulations! You may be faced with many questions, one of which being, how do we get started? 

In order to steward God’s resources effectively, we highly recommend determining a plan for funding your project before contacting contractors, architects and other vendors. This will help manage expectations and stay within a budget in the midst of an otherwise hectic time. Below are a few methods of funding your church building project to consider.

1. Cash

It is possible that through the years, your church has accumulated a reserve fund that would be able to cover the full cost of the building project. If so, the funding should be relatively easy to manage, assuming the project stays within its budgetary guidelines.

2. Pledges

Pledges are contributions made by the church congregation specifically for the purpose of funding a building/remodel project. When a church holds a pledge drive or capital stewardship campaign, this is in an effort to raise funds to finance the upcoming project. Sometimes a church will raise 100% of needed funding from existing cash and pledges alone and will not need to take on additional financing or debt.

3. Financing

A third way to fund a building project is by financing through a trusted church lender. The church would apply for a loan directly with the lender and receive insight on borrowing capacity and expected project cost. We suggest partnering with a church finance company that has a history of working with churches and ministries. Church loans are not the same as commercial loans and it is important to seek a lender that understands and amplifies your church ministry.  For more information on how to apply for a loan with BCLC Church Lending, click here.