25 Advantages of an Orderly Funding
Effort vs. Church Mortgages or Bonds

Dear Christian Pastor or Leader:

For the past 20 years the Lord has allowed me the privilege of being involved in the financial, funding, and building plans of churches, Christian organizations, colleges, schools, camps, and missions.

In this article I would like to share with you some of the specific advantages I have experienced with ministries and churches that decided not to use long-term borrowing (mortgages or bonds) to fund their expansion plans. In place of long-term borrowing, these churches and ministries worked in an orderly manner to inform, inspire, instruct, and invite God's people to help pray for and provide the necessary resources to meet their building and expansion needs. It is my hope that these 25 advantages will be an encouragement to you as you make important building and expansion decisions.

Yours in Christ,

Brian Kluth

#1 — More people will be become better informed, inspired, and involved in the building project.

#2 — A greater number of people will make thoughtful, prayerful, and generous financial commitments to the effort.

#3 — There will be more LARGE gifts and financial commitments given to the project.

#4 — It is always easier to raise funds for something you "are going to do" (as the funds come in) vs. for "something you already did" (through debt financing). It is always more exciting when people give to the dream vs. having to pay off the debt.

#5 — You may endanger the future of your current ministry programs. If attendance does not grow as presumed, you will have to cut into current ministry operational budgets to finance the debt.

#6 — You will be a witness in your community and to unbelievers about the power of God to provide.

#7 — You will be in harmony with all all the examples of building projects in the Scriptures.

#8 — Other ministries who want to model themselves after you will be able to follow your example.

#9 — You will not be hurt by any of the ups and downs of your city or country’s economic changes.

#10 — You will not have to presume upon the future (things that you are "hoping" will happen or that will "have to" happen) in order to make required payments.

#11 — You will keep people more informed and there will be a greater emphasis on prayer for this project.

#12 — You will save hundreds of thousands of dollars in interest payments. For example, a 15-year mortgage at 10% interest requires you to pay $1 in interest for every building dollar you received!

#13 — You will have an ideal opportunity to teach and model to your congregation the faithfulness of God and His ability to honor His word in matters of stewardship, finances, giving, and building.

#14 — Your congregation will be appropriately invited to make a giving decision based on the resources God has entrusted to them (note: the full extent of these resources are often UNKNOWN to the church�s leadership). The bible teaches that these type of giving decisions will result in an increase in people�s personal faith, trust in the Lord, and treasure in heaven.

#15 — There will be a greater level of faith, excitement, and anticipation of how God will lead and provide among the leadership and congregation.

#16 — The ministry’s leadership will not have to violate the biblical principle of SURETY or CO-SIGNING (i.e. - not having a "sure way" to pay, having to put up additional collateral, or requiring leaders to co-sign the loan). This will keep your church and leadership from becoming a servant to the lender (Proverbs 22:7 says: "The rich rule over the poor, and the borrower is servant to the lender.").

#17 — You will see more of God’s "CREATIVE & MIRACULOUS PROVISIONS" to meet the specific needs you will face along the way.

#18 — The project will be divided up into clearer stages (and specific dollar needs) that will better help people understand the importance and value of their gifts.

#19 — When you work on cash basis from people’s offerings, more people (from inside and outside your ministry) will be inclined to donate or discount for needed materials, labor, services, and equipment.

#20 — You will be more careful, prayerful, wise, and realistic about what items you should actually include in the fund drive.

#21 — You will better use the gifts, skills, experiences, and resources of the people that God has put in your ministry.

#22 — You will create long-term financial freedom that will not hinder or hurt your on-going ministry and missions giving.

#23 — You will not only gain people’s treasure, but you will gain their hearts. This will greatly strengthen the depth and breadth of the body life in your church or ministry.

#24 — You will help more people make giving to the Lord a greater priority in their life.

#25 — And best of all, you will never regret the decision you made to not use long-term borrowing to meet your building needs.

IMPORTANT INGREDIENTS OF AN ORDERLY FUNDING EFFORT

INTENSIVE PLANNING

Written plans should highlight the specific project(s), the rational for these project(s), accurate cost projections, and needed level of financial commitments. An advance feasibility study should be conducted to help ensure there is the needed broad-base support and adequate financial resources to successfully launch and complete the drive.

INFORMATION

There should be a carefully detailed and organized agenda on how to effectively communicate the identified projects, purchases, and plans to the congregation or constituency. This can include large meetings, small meetings, personal presentations, mailings, etc.. These plans need to be laid in such a way that 90-100% of all the people receive some type of clear communications. It is normally best NOT go go into a public funding phase until you have successfully secured the needed lead gift(s) and leadership gifts for the drive. An experienced consultant or outside funding advisor may be involved in laying the ground work and/or helping a church or ministry to properly implement these funding phases.

INSTRUCTION & INSPIRATION

There should be a plan to provide people proper Biblical instruction on stewardship matters. This can be done through a sermon, a sermon series, tapes, handouts, pamphlets, booklets, guest speaker, etc..

INVITATION & INVOLVEMENT

There must be a specific plan on what you are asking people to give or to do. The following type of questions need to be clearly answered for people in the information phase of the drive: What size gifts are needed? Is there a pledge period or are there just one time gifts needed? How do I turn in my response (i.e. - is there a specific response card I'm to fill out and send/bring in?)? Where and when do I turn in my response (eg. - banquet, special commitment Sunday(s), through the mail, by phone, picked up in person, etc.)? Once people make a specific commitment there needs to be a plan in place to send regular communications concerning the progress of the work/purchases/projects along with updating them on their financial involvement.

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