The question of how much a church can afford to build has plagued church building committees more than any single subject should. It has caused far too many headaches and placed a great many churches in debt beyond a reasonable level. The ideal, of course, is for churches to have all the money in hand before they start to build, but that ideal is seldom a reality in the great majority of churches.

On a “rule of thumb” basis, most financial institutions will consider a manageable debt load to be approximately three times a church’s annual regular income, with the range going from 2.5 times to 3.5 times the church’s regular offerings, excluding any building fund monies, and funds received from auxiliary ministries, like a Christian School, Daycare or Senior Housing units. Exceptional circumstances, however, may make the approved loan-to-income ratio either higher or lower.

But the answer to that question is far more than financial figures. Debt is only one aspect of affordability and should be the final consideration, not the first. Other issues should be considered first, including the amount of funds that can be raised, the possible sale of any current property, the cost of the proposed building, and the difference between the church’s “wish list” building and their “reality” building.

In addition to the figures, the need and urgency of the proposed facilities must be considered, along with the critical time for the building project, and the clarity of the church’s mission. Other factors include whether the church will accept debt, and how much, whether people are motivated to build, and whether they have developed a personal ownership of the church’s mission and vision.

When I first started in this ministry of church fund raising 20 years ago, most churches needed about three to five times their church’s annual income to fund their building project, and occasionally more. Today, however, most churches need four to seven times their church’s income, and it is not unusual to want even a larger project. This is a dangerous trend, for it will have a major negative impact upon the church’s regular ministry efforts. I have seen a significant number of churches become so overloaded with debt that ministry becomes secondary to finances, and they come pleading for help. There is a much better way to fund facilities.

What is a church to do when it needs to fund facilities that are too expensive? Here are a few suggestions.

Make sure the architect’s plans fit your church’s needs and budget limitations. We would all like things nicer than we can afford, but be realistic in your financial capabilities. Find an architect that will design a church for you, not a monument to themselves.

Consider doing the project in phases if possible. Realize that your people will give significantly more to a building project than to a debt retirement project. You will raise more money in the long term if it is possible to phase your project, because having a capital campaign for each phase will give your people a visible project to work towards. It will also give your people more confidence in your financial plans. They will support something better if they think it is not an impossible dream, or are not forced into the “what if a few key families get mad and leave the church?” mentality.

Phases maintain motivation. Everybody wants to be on a winning team. When you fund each phase as you go, your people will take confidence (and pride) in the victory of each phase and will be more likely to tackle the next project. On the other hand, a huge debt load will tend to discourage people’s giving because of its overwhelming size and unending duration – the struggles to pay the excessive debt will be a constant reminder to your people of an implied failure in their funding efforts. They will be less likely to tackle another project anytime soon, because they don’t want to enter another burdensome time.

Plan your projects to capture your people’s hearts. When you need to build in more than one phase, consider what will attract the most excitement from your people. People’s hearts will always be in their place of worship, but all your people’s hearts will not be in the multipurpose facilities or the educational area. So to raise more money, wait to build your primary worship area last, because their hearts will be supportive of a temporary worship area until the permanent one is built. Your people will give more for each phase of the project when you provide a temporary worship area than they would if you build your primary worship area first. If they have already achieved their worship area, many who do not utilize the other fellowship, educational and multipurpose areas will not give significantly to support them when it eventually comes time to build them.

Realize that people give more by motivation than by ability. Select a capital campaign company that addresses the real issues in giving, not one that focuses on administrative, marketing and financial issues. You will raise more money and do more good among your people.

Take into account an accurate expectation of the sale of your current facilities. Your people may have a lot of emotional ties to your current church and usually tend to ask too much for it. A realistic appraisal of its worth and the potential buyers in your area is essential to gaining a clear financial picture.

Start laying the stewardship foundation now – don’t wait until the need is urgent before you help people to see the bigger picture. Remember that people’s first steps in stewardship are usually baby steps, but even baby steps are steps in the right direction. You can build better on a stewardship foundation that has already been laid in the routine teaching of the Word than on one you incorporate just to raise money!

The issue of financial capabilities will need to be addressed in the early part of your planning stages. However, insist that your ministry efforts drive your building project, not the money. Be realistic in your financial situation and potential, and plan to build within those parameters. But be willing to consider other possibilities to accomplish your long-term goals, such as the ones noted above. Multiple building projects are not appealing to most church leaders, but it may be the best way to accomplish your objectives.

Keep in mind that the potential of your capital campaign is far more than the raising of funds. With a properly conducted campaign, you can build character and maturity traits in your people while your people are building the facilities. Building projects are not as much about buildings as they are about developing your people into committed followers of Jesus Christ. May it be so in your church!

Rev. Robert S. Hallett is the founder and president of TLC Ministries, www.tlcministries.com, which has been in the ministry of helping churches raise major funds since 1985.