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December 29, 2008
Era of easy money ends for churches too
Churches who borrowed money to buy and build bigger buildings are finding themselves in some very difficult situations these days.
What does it say about a church who is forced to seek bankruptcy protection because they can no longer afford the building payments? Do you think it has any impact - positive or negative - on credibility or reputation? Will this current recession have implications on church building projects in the future?
Personally, I think it could be a wonderful opportunity to publiclly admit the mistake of taking on too much debt, demonstrate your plan for recovery and invite people to rebuild their lives (including financial habits) as the church recovers too.
Your thoughts?
Posted by bstroup at December 29, 2008 1:03 PM
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Comments
Ben,
I was a bit surprised that no one has commented but then again maybe they are all still on holiday. I do think that you will see a rethinking on how much debt a church can and should take on. However, in my 10 plus years of helping churches raise funds for buildings I can think of only a handful of churches that did so without debt.
The cost of today's buildings are so high that without taking on some amount of debt it is impossible to pull off. The major mistake I see with regards to this is over estimating the old "if you build it they will come," belief. Most pastors are way too optimistic in their growth projections. In the end while more caution needs to be taken I do not think we should throw the baby out with the bath water so to speak.
Perhaps after the holidays you could repost this and get some discussion going.
Mark Brooks
Posted by: Mark Brooks at December 30, 2008 7:06 AM
Mark,
As always, you have some excellent thoughts. I didn't mean to suggest that churches will (or should) stop building using credit. I do think some pastors (and churches) have "closed their eyes" and hoped for the best just as many homeowners have.
What's important for church leaders to remember is that building buildings is a pure utilitarian exercise that comes as a result of growth; building buildings don't cause growth. Churches are a community of people, not a corporate location.
My hope is that churches would make the best possible decision and consult with experts to determine their needs, develop a plan and then build based on need.
I have a podcast on the subject that will be published after the first of the year. I'll make a note to mention this again in that post.
Happy New Year!
Blessings, Ben.
Posted by: Ben Stroup 
at December 30, 2008 10:00 AM