Churches have always risen to the task when faced with unique challenges. The current economic malaise might carry over to your donations at a time when people need the comfort of belonging to a community the most. How to serve your members and attract new ones in a time of diminishing budgets are just two more challenges. Postponing planned purchases, reducing expenses, cutting programs, increased fund drives, and decreased services are but a few possible remedies.  

One possible potential solution to ensure you meet your members' needs is to lease a purchase.   While some are diametrically opposed to debt and view it as a burden to their congregation, others see financing as a method by which to reach new members, meet needs, raise money with income-producing equipment, and expand services to their members.   

Leasing equipment is a practice common for businesses of all sizes, yet churches can also reap the benefits typically considered only in the corporate realm. Indeed, 80 percent of all U.S. companies lease equipment, according to the Equipment Leasing and Finance Association. It is unknown what percentage of churches finance equipment; however, it is enough to support a niche industry, and interest is growing as rapidly as the price of gas.   

Consider the following possible purchasing scenarios:

* A printer to reduce costs associated with outsourcing printing materials service charges
* CD/DVD Duplication system to expand your message to those not able to attend
* A van or bus to reduce rental expenses
* Video recording equipment to sell DVDs of your Christmas program
* Broadcast equipment to put your services online to vastly increase your audience
* Nursery monitoring equipment to put minds at ease
* Video projection system to add excitement to your services
* The sound system you've been saving for…in time for your next program
* Furniture for the new sanctuary that came in over budget

Almost anything can be financed, and, in some situations, the benefits of having the equipment far outweigh the associated costs. A typical equipment lease term ranges from 12 to 60 months, and, for most religious organizations, are structured with a $1 buyout at the end, so there is no balloon payment required and you'll own the equipment outright at the end of the term lease.   You can pick the term according to your budget and the life of the equipment. Most leases require a minimum of $1,000, and there is no real maximum amount you can lease. 

If you are interested in financing your next purchase, it is important to find a reputable leasing company. Leasing is an unregulated industry, and aligning yourself with trustworthy partner is critical. A good first step is to ask your supplier if they have a relationship with a leasing company and can offer you a recommendation. They might even have a special promotion running with their leasing partner and can testify to their experience in working with them in the past.  Additionally, these leasing partners are used to dealing with the payment terms of your suppliers and understand the benefit the equipment will bring your church. 

Once you have found a leasing company to work with, do a little research. Ask the leasing company if they are members of any industry associations that hold their members to a Code of Ethics. Ask for referrals and, most importantly, their experience in the worship market. Ask who will handle your customer service requests after the sale. Will your account be serviced by a large company unfamiliar with your church? Ask if you will need to provide written notification of your intent to exercise your stated purchase option at the end of the lease. Find out how they treat early buyouts, as leases have a different buyout calculation than loans do. You may also want to ask if they are willing to participate on a conference call with your board or finance committee to answer any questions.  

You might be thinking, "It does make sense to be more liquid in these uncertain economic times, but why not just go to my bank?" You could absolutely go to your bank and request a loan.   Dollar out leases are similar to a loan in structure, so why should you consider a lease instead of a loan? Leases happen much faster than loans. It's not uncommon for an application to get approved and documents sent to you the same day! There is typically no need for financial statements from the church for leases up to about $100,000, and usually a one-page credit application will suffice.

Additionally, leases present all kinds of flexibility that loans do not.  Do many of your members, attendees, and their offerings, disappear in the summer? Leases can be structured seasonally, to adjust your payments to coincide with your busy and slow seasons.  A lease can be structured with only one payment required at signing to minimize out of pocket expenses. In a lease, the documentation fees are much less than a loan. Leases come with fewer restrictions. There's no reviewing your financial statements annually or requiring you keep a minimum balance in your bank account. With a lease, there is no such thing as calling in your note. A lease is secured by only the assets on the lease, not by your land, your building, or your bank account. Lease documents are typically only a few pages and can be signed by anyone authorized by the church board. Leasing is done on a nationwide scale, and everything can be handled by fax, e-mail, and overnight service. There's no need to coordinate schedules and meet in person. It all happens on your timetable.

There are a lot of good reasons for your church to consider using leasing to finance your next equipment purchase. But, most importantly, churches that seize the opportunity presented in this economic downturn will emerge stronger and with more members. Separate yourself and attract new members by not retreating under the cover of safety and "waiting it out," but by doing all that is in your power to rise above the rest and thrive, a stronger community, with hope. Leasing can help you do this. 

Heather von Bargen is the president of Caladesi Capital, Inc., a nationwide leasing company that specializes in the worship industry, www.caladesicapital.com.