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Be Realistic About the Future Growth of the Church
Churches typically seek new or improved facilities as a result of membership growth. Many churches estimate future growth patterns based on the past. Then they overbuild and find themselves burdened with too much debt. Pastors should understand the natural laws of growth and realistically assess the potential for their church’s expansion.
Oftentimes, the major factor in church growth (or the lack of church of growth) is not how dynamic a ministry is. Rather, it is the location and demographic makeup of the neighborhood where the church is located.
For this reason, pastors should carefully study census tract data for the church location to determine average age, income level, housing values, etc. Before purchasing or adding to a building in an older or declining neighborhood, a church should look realistically at their growth potential.
Cash Accumulation is Necessary in the Purchase of a Building
Banks expect churches to have a cash down payment when borrowing for a new building project. This reinforces the importance of beginning a “building fund” with accumulated cash long before a new facility is needed.
Bond Financing May be an Option For Larger Churches
Larger churches that have needs in excess of one million dollars for a new facility may consider bond financing as an option to traditional bank financing. In bond financing, less down payment is typically required, but there are significantly higher fees and pilfering costs.
Conclusion
A church that plans well and is aware of financial constraints can most efficiently carry out its ministries and further Christ’s Kingdom. As a church leader, a pastor should recognize the role of a knowledgeable banker in helping to maximize the church’s effectiveness.
A trusted banker can help obtain financing for needed assets. Perhaps more importantly, he can serve as a financial advisor to a pastor who must make important financial decisions affecting the future of his church.
A pastor should take seriously the choice of a bank and a lending officer, realizing that much time will be invested in developing a strong working relationship. Close communication, accurate recordkeeping, and prudent planning on the part of the church can cultivate a banking relationship that is beneficial and lasting.
by Gary L. Tipton President and CEO, Inwood National Bank of Dallas.
Excerpt permission granted by Faith Library Publications
Kenneth W. Hagin, President of Kenneth Hagin Ministries and pastor of RHEMA Bible Church, ministers around the world. Known for calling the Body of Christ to steadfast faith, he seizes every ministry opportunity to impart an attitude of “I cannot be defeated, and I will not quit.”
Rev. Hagin began preparing for his call to ministry—a ministry that now spans 50 years—at Southwestern Assemblies of God University. He graduated from Oral Roberts University in Tulsa, Oklahoma, and holds an honorary Doctor of Divinity degree from Faith Theological Seminary in Tampa, Florida.
In his early years of ministry, Rev. Hagin was an associate pastor and traveling evangelist. Later, he went on to organize and develop RHEMA Bible Training Centers in Broken Arrow, Oklahoma, and in other countries around the world.
Kenneth W. Hagin’s array of responsibilities also includes International Director of RHEMA Ministerial Association International. He hosts the annual A Call to Arms® Men’s Conference, and with his wife, Lynette, cohosts RHEMA Praise, a weekly television program, and Rhema for Today, a weekday radio program broadcast throughout the United States. They also conduct Living Faith Crusades, spreading the message of faith and healing around the world.
Recognizing the lateness of the hour before the second coming of the Lord Jesus Christ, Rev. Hagin has expanded his speaking schedule beyond his regular pastoral duties. To fulfill the urgent call of God to prepare the Church for a deeper experience of His Presence, Rev. Hagin delivers messages that reveal key spiritual truths about faith, healing, and other vital subjects. He ministers with a strong healing anointing, and his ministry leads the Body of Christ into a greater experience of the glory of God!
Kenneth W. Hagin and his wife live in Tulsa, Oklahoma. He is the son of the late Kenneth E. Hagin.