So, your church wants to reach out to more people, but your sanctuary is too small. You want to offer a different worship and praise format to attract a broader demographic, but your core church members would prefer not to change traditional services. You have limited resources, financial and otherwise, to dedicate to relocating the church to a larger property and undertaking a campus build out. What to do? 

Welcome to the Multi-Site Revolution! A multi-site church is one church meeting in multiple locations, sharing the same core values, leadership, vision, staff and budget. It has become a brilliant strategy for church growth that not only reaches out to the unchurched, but also reaches out to other demographic and/or age groups the church may not otherwise reach. This revolution is taking hold, and the best method of financing it to ensure successful replication of the church should be carefully and prayerfully considered.

Most multi-site churches do not begin with the intention of becoming multi-site, but they come to the decision as a solution to a challenge. The primary reason many churches consider becoming multi-site is lack of space. When you can't add more services, parking spaces, seats or expand the sanctuary due to property size, building restrictions, neighbor or zoning issues, multiple locations allow the church to keep growing. It isn't always just an issue of space or a growth strategy, however; it can be a case of how efficiently and cost effectively to touch more people. Many fast-growing and large churches in the United States use multiple sites as the trend toward smaller sanctuaries and congregations continues. In taking more of an evangelistic approach to the 75 million unchurched adults in America, churches of all sizes are becoming more purpose driven than seeker driven.

There are some important keys to consider in finding a partner to finance your revolution and securing the best financing options for your church.  Plan early and decide what multi-site model works for your vision and whether to lease or buy property. A strategic plan and a well-developed policies and procedures manual will help maintain consistency for the different sites. Ongoing development of new teachers, leaders and leadership teams within the church will ensure effective replication of the church's DNA at another site. Keep it simple and develop ministry programs that allow for a lower financial investment and higher dependence on volunteers. Establish and maintain a strong organizational infrastructure. Real savings can be realized in the synergy of shared resources. One well-run and well-equipped business office can provide one bank relationship, shared software, global insurance, and one payroll system, to name a few. Web-based training, staffing, planning, accounting and financial systems in place with appropriate controls and up-to-date technology will ensure accurate reporting and tracking of many things, including contributions and expenses from all church sites. This will help in the preparation of financial statements as well as budgets. Request that your CPA audit your financial statements and financial control systems, as the cost is minimal relative to the detailed information provided, such as whether each site is self supporting or break even. The management letter accompanying your annual audit will also give you suggestions for operating improvements that should be evaluated carefully as you replicate further. When requesting financing, it serves you well for your financial partner to know you believe an audit is an important part of your best practices, as well as makes qualifying for any necessary financing faster and easier.

The amount of financing required will depend on the model you choose that best reflects your church's mission. Give your congregation the opportunity to participate in funding this special project, even if the cost is minimal. In addition to minimizing the impact on the budget to establish and equip a new site, it engages the congregation in the process of growing your church. People will give to expand the vision, if it is compelling one, not just to funding costs associated with a new site. How the new site will touch more souls and improve ministry and outreach should be incorporated into the initiative as well as the financial goals. Congregation and community "buy-in" is important no matter what the scope of the project to ensure success of the new site and expansion of your church. A plan and budget should be developed to ensure the site can be established and equipped in a timely manner and on budget. Consider the impact each new site has on your existing budget and core staff, whether paid or volunteer. While replicating your success may be economically viable, it is still more work for your staff until the new site is self sufficient. If the church becomes over burdened with too much debt, too many projects and too many sites requiring ongoing support, it stalls the overall growth of the church, as resources are redirected away from the mission.

Establishing a relationship with a bank that understands how to finance this unique paradigm is as critical as finding one that specializes in providing financial solutions to churches. Your financial partner must be able to provide a complete suite of financial services that consider the needs of a multi-site church that are cost effective, seamless and easy to manage. A partner who can provide loan, deposit, and cash management services to help you realize your mission is important. Do you have a line of credit available to quickly purchase property for your next site or to put down a deposit on leased space? Are funds available for purchasing the necessary furniture, fixtures and equipment? Can each site appropriately report, manage and deposit contributions received? Can you prepay the loan without a penalty with proceeds from a successful capital campaign, or, when the site becomes self supporting, can you spin off the loan along with the new church? Be careful of inexperienced lenders who may structure the financing based solely on the value of all real estate owned and not be mindful of the cash flow nature of churches. For multi-site churches, this can result in financing that is cumbersome, complicated and not flexible enough to build out the vision.

Joining the revolution provides the opportunity to not only touch more souls but to also expand programs, community outreach and increase volunteerism. Finding a bank nimble enough to finance your revolution provides peace of mind. While doing the necessary planning and preparation to determine if the multi-site strategy is cost effective for your church may be a lot of work, it is well worth the time and effort. Establishing a long-term relationship with the right financial partner will empower your church to fulfill The Great Commission.

Therese DeGroot has developed and managed religious lending programs for more than 16 years for many banks that now specialize in lending to churches and schools. She is Sr. Vice President of First Bank's Community First Financial Resources Division, www.cffinancialresources.com, which provides loans to religious organizations nationwide.