Need Funds For Your Church? 4 Things You Can Do With A Commercial Loan

Finance & Money Articles

Religion donations have been experiencing a downward trend for approximately 30 years. The Christian Science Center explains that religious donations made up just 32% of all charitable gifts in 2014, a figure that has decreased by more than 20% since 1987. If your church's donation figures are dropping or you fear they might soon, consider a commercial loan. Here are 4 ways your religious organization can use a commercial loan.

Religious Staff

The average senior pastor has an annual salary of $55,983. Depending on the size of your church and its desired outreach, you may also want to pay the following positions:

  • Administrative assistants
  • Videographers who record church events
  • Youth pastors
  • Fundraising directors
  • Preschool teachers
  • Social media specialists

It's possible to reduce salary costs by asking church members to volunteer for receptionist duty or weekend childcare help, but even volunteers rack up expenses. For example, you may wish to buy special shirts for all of your volunteers or provide food and beverages for them.

Schedule a consultation with a company that offers commercial lending services to discuss the pros and cons of using a loan to pay staff members. A lending expert can help you calculate all of your current staffing expenses, plus factor in unexpected costs, so you know exactly how much to request for your loan. 

Community Outreach

Does your church play a significant role in your community's development? Here are some common methods of community outreach that churches employ:

  • On-site soup kitchen with free meals for low-income families or homeless residents
  • School supply distribution once a year
  • Christmas gifts to families in need
  • Assistance with rent or utility bills for members of the community
  • Financial help with medical bills
  • Substance abuse counseling or support groups
  • Career training or counseling

If donations decline, your church may have to eliminate some of its community outreach programs, which may cause unexpected hardship for recipients. 

Repairs and Renovations

As your church's membership grows, you may notice that the worship area becomes crowded during sermons. You may need to expand your parking lot or build additional rooms to accommodate the influx of new members. Your church may also need to repair or replace different parts of the church faster than it once did, such as carpets that receive heavy foot traffic or walls covered with smudges and dents.

Even if membership remains the same, your church may still need some of the following improvements:

  • New flooring
  • New pews, chairs, or benches
  • Overhead lighting upgrades
  • HVAC system repairs or replacement
  • Installation of an on-site dishwasher or oven
  • Outdoor playground installation
  • Restroom repairs or renovations
  • New roofing

If dipping into your church's current budget isn't an option for repairs and renovations, talk to a commercial lender. You can also discuss potential tax benefits, such as a deduction for installing energy-efficient upgrades.

Religious Education

Many religious organizations evolve over time, so it's wise to participate in religious education programs. These programs help ensure that staff members present the church's views in a modern, easy-to-understand manner without sacrificing compassion. Your staff may benefit from seminars, college courses, or weekend retreats that address the following topics:

  • Developing programs for single parents or teen parents
  • Discussing controversial topics without upsetting members of the church
  • Strengthening connections with a higher power
  • Encouraging community rather than exclusion in the church
  • Teaching children about religion in a fun way
  • Choosing appropriate worship music

Religious education helps your staff learn more about their relationship with a higher being and determine how to present the views of your church. If funds are tight, request a commercial loan for the cost of staff development.

You can also use commercial loans for benefits that are not listed above. If you have questions about what you can do with the loan or need help with the application process, contact a commercial lender.


5 August 2016

Budgeting For Real Life

As I see it, one problem with most budgeting programs is that they don't account for the "real life" factor. Anyone can tell you not to spend anything and to save everything, but when it comes to feeding your kids or dealing with a medical emergency, most budgets get thrown out the window. I realized that this was a problem, so I decided to start focusing on budgeting for real life. I decided to forget everything that I knew about budgeting and started working with a clean slate. This blog is all about budgeting for real life and knowing how to spend your money the smart way.