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PraiseBuildings Articles


A library of useful articles on every topic impacting your PraiseBuilding.

The Church Borrowing To Build: Let Borrowing Serve You

Certainly the concept of borrowing money has been abused. Many have become slaves to debt (defined as excessive borrowing) rather than making debt (defined as reasonable borrowing, better identified as loans) serve them. I believe the church project can be partially funded through borrowing without violating biblical principals governing interest and payment of loans. Borrowing should never replace stewardship. Challenge your people with the Word of God to an enlarged faith that would encourage giving beyond the visible assets of the moment in trust agreements with God. Accept the possibility with God of sufficient cash gifts for the project. Raise all you can. However, waiting for cash to build in some instances is costly. You may miss the opportunity to purchase a suitable building site when it is available. Inflation could increase building costs more rapidly than your building fund is increasing. A congregation usually becomes weary and disheartened if they see little progress. Capacity crowds in the present facility may eliminate your ability to grow. Occupying a new facility may allow you to reach more people for Christ who can also give to eliminate the ...

Funding The Local Church: Borrowing For Building With Bonds

(No church project I have been involved with has failed when the church followed my conservative guidelines.) Now state and federal regulations have added more registry controls that further safeguard the churches and the investors. Why do churches borrow with bonds for building? a. Long-term fixed interest rates are possible with bonds, while most banks offer variable or adjustable rates with balloon balances. The fixed interest rate removes the uncertainty of having to refinance at a higher rate of interest and additional fees when the balloon comes due. b. Bonds provide the opportunity for members to earn a higher return on their investments than banks pay on certificates of deposit. To the extent that bonds are purchased by the membership of the church, the interest is retained by the church members. c. A graduated payment schedule is an option. The loan payment can begin low and increase as church membership and giving increase. But the graduated payment schedule would pay all interest and principal within the specified period for loan maturity without a balloon. d. There is an open-ended deed of trust for future expansion loans. Unlike most conventional loans, if ...