What can our church afford to build?

Financing is by far the most important aspect for a project. How large the building will be and what is included in the building is going to greatly depend on what can be afforded. A good place to start is to calculate your estimated budget. From here you can tell what you can afford and how to raise the funds.

How much money do we need before we begin construction?

It depends on how much equity you have in existing land and buildings. It may be that you do not actually need any cash if you have adequate collateral. Most lenders will require at debt-equity ratio of 70%, either in land, buildings, or cash. Most importantly they are interested in the ability of the church to service the debt.

How do we estimate the cost of a new building?

Building cost estimates can decrease or increase depending upon your location, resources, talents available in your congregation and so on.
Cost forecasting and budget control lies largely in the proper selection of an architect. Look for someone with extensive church design experience, as this can aid greatly in the forecasting of probable building costs. Failure here can result in catastrophic cost increases from the conceptual estimates to the final bids.
Often, improper information at this stage can actually derail the whole project. Be sure to ask specific questions of any prospective architect as to how they determine and control project costs and how they handle catastrophic budget problems. A church architect should be working for the church and with the builder.
As stated throughout, financial constraints will determine size of a building.

Raising Funds

As an initial step, we suggest contacting prospective lenders and asking them for information needed to enable them to determine the amount of money for which your church qualifies. At this point, you are not asking for a loan for a specific project. You are only establishing the financial boundaries that you will need to be operating within. Also, be aware of any limitations, guidelines, or restrictions placed on your congregation if you are affiliated with a particular denomination. In addition, the following options may add additional information:

Stewardship Funding -- Raising money from the congregation. There are many programs available. Some even with guarantees. ( We have this service)
Mortgages -- Borrowing from a bank
Click here to find information about bank loans.
Your Denomination -- Check with your church denomination about funding and funding resources that may be available to your church through your denominational headquarters.

Search the Internet for church financing. - There are a few companies that specialize in church financing.

Bonds --There are various bond programs available for each church. Again search the Internet for bond programs.

The financial evaluation tool is born from 25+ years of assisting churches build their buildings within their established budgets. You may find it helpful in the evaluation of your churches finances.

Click here to go to the Finance Evaluation Tool