When embarking on a journey to raise funds for a church building project, it can be difficult to know where to start. There are many different ways of fundraising, and there isn’t a ‘one-size-fits-all’ approach, as every project and every audience is different.

1. Members Giving

Any church building project will need the backing of their congregation, as their enthusiasm will be an essential part of raising the necessary funds for the project. While the church will likely need funding from outside of their membership, it is vital that the members do contribute, especially in the early parts of the project. Personal, sacrificial giving will unify them to the building project’s vision, goals and objectives. It’s so important that the church family are excited about what the building project will enable, and how it will benefit their ministry. It also sets a precedent as it demonstrates to external fundraisers that there is a clear intent and focus for the project rather than an expectation on external communities to fund the project. This is also important as the church congregation will likely be the project’s biggest beneficiary.

However, it is crucial to differentiate where these donations will be going. Are all donations from members going specifically to the building project, or will it be used for general church use? Often it would benefit the church and its members to continue other church projects and not let all donations become consumed by the building project, but this should be clear before asking people whether they will consider giving. This is also a useful time to ensure members of the church have the same goals for the building, as it is important to not get distracted from the original vision. But it’s also worthwhile to hear from the congregation on how they could see the building being a blessing for church ministry.

2. Community Fundraising

Community fundraising can be a mixed bag of various methods and will often be an essential tool churches looking for fundraising outside of church membership. It will be invaluable if you can mobilise your community to buy into the project. If the building project benefits the community, this should be highlighted in any campaign you use to reach them. It is common for church spaces nowadays to be used for community events which is an excellent advertisement for your appeal and helps to get people excited about the part your church could play in the wider community.

There are numerous ways to engage with your community online, through social media sites, events pages, and fundraising pages. This can be valuable in reaching members of the community who may not have links to the church. Managing your online presence can be time-consuming, and it is important that you have the right people in place to be able to utilise these tools. If people in your church have experience raising funds through online processes, it’s a great chance to get them involved in the project. It is important to get this right, so make sure it is planned well and executed correctly.

3. Mortgages

Taking out a mortgage can be advantageous for funding part or all your building project, depending on the size and cost of it. Before approaching a lender, it’s good to have a business plan in place, showing them your plans for the building, and your financial documents which demonstrate your ability to pay the loan back. For some churches it is preferential to raise the money outright, but a mortgage can be another good option to consider.

Kingdom Bank are a Christian Bank who specialise in providing mortgages for churches, charities, and ministry workers, so that they can continue to grow and share the good news of Jesus with others. With any mortgage, it is essential to be able to demonstrate that it is affordable and that monthly repayments can be maintained. Kingdom Bank’s mortgage team are experts in finding innovative ways to serve Christian ministries, and they are always happy to have a conversation with potential borrowers, to see if a mortgage would be feasible or appropriate.

4. Local Authority Grants

Grants from local authorities can play a part in funding your church building project, but with their budgets continuing to be squeezed, it is unlikely to be a significant amount. In order to be considered for a grant, you will need to convince them of the benefit it will bring to the local area, so if the project is purely for worshipping purposes, it is unlikely they will give you any funding. If the building project is used for the benefit of the community, then you may be able to obtain a grant. Grants from local authorities are useful because you will not need to pay the money back, but it is worth ensuring that there are not stipulations in place that will contravene your Christian beliefs, for example, using it as a multi-faith building.

5. Gifts In Wills

Gifts in people’s wills have provided funding for countless projects around the country and can be a precious source of income for churches. Donations to Charities can be tax efficient for the donor when considering inheritance tax, but discussions around leaving gifts in wills can be sensitive. The other drawback is that there is no timescale of when the legacy payment will be received; therefore, planning a building project based on money received in potential wills is problematic. However, this approach is not to be disregarded, and it would make sense to sensitively encourage your church congregation to remember the church in their wills, as it can help fund big projects within the church.

Raising funds can be a challenge, especially when the pressure is high and deadlines are tight. With so many different types of fundraising available, it can feel difficult to discern the right fundraising strategy and funding model. It is crucial to stay focussed on God throughout the project. Continue to ask for his guidance, and always remember to call upon people in your congregation who can use their gifts and skills to help complete the building project efficiently and promptly.

Kingdom Bank does not provide financial advice. Please seek independent financial advice before embarking on a building project.