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The Financial Issue

  1. INTRODUCTION

    1. Buildings do cost.
    2. Church buildings are “public buildings.”
    3. Church buildings cost more per square foot than dwellings.
      1. Large capacity
      2. Safety fire protection, accessibility
      3. Higher ceilings, wider halls, brighter lights
      4. Provisions for special equipment
      5. Design
    4. Costs vary
      1. Design
      2. Planned use
      3. Type of materials
      4. Planned life-time
      5. Location
      6. Topography and soil conditions
    5. For churches costs will be 5% - 10% higher than for other buildings of comparable design, size, and quality.

  2. FACTS NEEDED

    1. Total cost of project.
    2. Amount of cast on hand.
    3. How much can be realized from a fund-raising campaign?
    4. How much can be borrowed?

  3. SOURCES OF FINANCES

    1. Cash on hand
    2. Intensified fund-raising campaign
    3. Mortgage loan
    4. Bond issue

  4. HOW MUCH TO BORROW

    1. Eighty percent (80%) appraised value of church property available for mortgage.
    2. Two times the annual church income.
    3. Amount of payments no more than 30% of undesignated income.

If we can assist your association or church, or if you have a question, please contact our department at 1-800-748-1651 or 601-968-3800 or by e-mail kmcdonnell@mbcb.org.