When To Borrow And When Not To - Essay Example

There has been a tremendous growth in church attendance which prompts the church ities to expand the facilities for the visitors. It is argued that in doing so they would be following the will of God in providing facilities for those who wish to attend the church. Attendance at megachurches in the US has also increased manifold thereby creating the need for larger sanctuaries and campuses. Hence the church finance market is expected to reach $40bn by 2010 (Reid, 2007). Debates abound on the issue of church borrowing and various organizations and groups discuss the pros and cons in doing so. Those against church borrowing argue that of churches start borrowing they are doing what most people do – take credit or loans for home, car and other personal requirements. Besides, according to Bible, Believers are to avoid getting into a position of financial bondage (Proverbs 22 :7) and We are told we cannot serve two masters, both God and money (Matthew 6:24) (cited by ECCU, n.d.). Borrowing amounts to violating the principles of the scriptures. Borrowing is always done on the presumption that the asset against which money is borrowed will be able to pay off the debt. This in other words binds the church to the organization that lends it the money for building, which according to the Bible is not permissible. The Holy Spirit thus becomes indebted to another Master but serving two masters is also not permissible. Hence borrowing money for building church is primarily violating the principles of Bible. Debt is a burden and God does not supply our need to repay a debt (Rapidnet, n.d.). Believing that God will provide for our material in the form of a debt is like saying that God provides forgiveness for our sins through sins. The opponents contend that believers are trying to find a refuge in making others believe that God is providing funds through loan for a church building. The New Testament firmly forbids believers to have debts and it also tells we should not even expect to be paid back if we lend (Luke 6:34). On the other hand, if a church lacks funds to build a building, it should be accepted as the will of God. Jones (n.d.), however contends that debt is not a sin although the exit plan should be in place before taking loans. This means the church should be in a financially sound position before it plans to borrow. Jones suggests that borrowing should be for the least amount for the shortest period and at the cheapest rate of interest. The church should not already be in debt at the time of taking a fresh loan and the loan should be payable in a maximum of seven years. There are others who point out that borrowing affects ministry. Members of the church are accustomed to borrowing in their personal lives and carry the same mind-set in the affairs of the church as well (CFM, 2008). This has led the local congregation to assume huge amounts of debt that resulted in high debt-service payments. These debts also affect the ministry resources to the extent that even staffing needs have to be kept aside to in order to pay the mortgage. Planning and executing debt takes up so much of time that the ministry has to compromise in its service to God. Most of the decisions are based on the need to meet the debt payments and not on funding the current ministry needs. Over-ambitious building projects have led to stress in churches. With a view to draw a huge gathering at the churches, such projects are undertaken but ultimately huge amounts have to be kept aside for interest payments. This interest amount could have been used for fund God’s kingdom instead of the material world. Other disadvantages of borrowing include the mistakes made or the wrong decisions taken at the time of incurring debt. Different schools of thoughts have emerged as believers seek to find alternatives to borrowing. One suggestion is that the people and the members can contribute generously according to their might. This would save the church from debt repayment, which in any case is not permissible. In every society there are people who keep funds separately for such projects and would only be too willing to contribute. If people could come forward and contribute neither would the church ever need to borrow nor would these people themselves ever face shortage of funds. Examples can be cited of many churches in the US that have expanded only when they could manage funds from internal sources and never had the need to borrow. Emotional statements are used to convince people that borrowing is essential for the expansion of God’s kingdom. Churches should borrow otherwise the growth stops, says Bowman (1999). If they have space and they do not build, there is no growth. Today visits to churches has increased manifold and parking space and halls have to be added. The men and women attending churches are far more sophisticated and knowledgeable. They themselves give suggestions to the pastor on improvements. Borrowing is better than renting because if the church faces hard times, it can sell its property and raise funds. The rental money is lost forever and they would have to move out if they are unable to pay rentals. Buildings are the tools to do the work of the lord but borrowing must be within limits. Today churches too have to engage in strategic planning like any other business or industry. Building expansion would help churches to incorporate certain facilities and counseling rooms that is necessary in today’s situations. According to ECCU, growth is inevitable and funds are necessary to sustain growth. Instead of borrowing, churches should opt for financing. Financing implies the management of money and assets that the church already owns. Through the use of the loan these assets are better utilized. Financing helps provide a safe and economical means for purchasing church property. If a building is financed wisely, the interest payment can be offset by more space for a larger congregation, elimination of lease payments, and added utility. The lenders too benefit from the interest received on their investment. If it is thus managed, if building projects are financed instead of being built on borrowed money, then it falls within the precepts of the scriptures. What has to be ensured that total assets of the church should exceed the liabilities. In this way the church is not having any financial bondage. It is not a sin to borrow for the expansion of the church but it does demonstrates that one does not trust in God. If God willed the church should undertake expansion, funds would be available even without having to borrow. Borrowing puts the church under heavy debts and the people become preoccupied in ensuring that debts are repaid on schedule. Nevertheless, as numbers at churches have increased, and as it is felt necessary to serve the people as it is service to God, it is necessary to expand and add services. This is a humanitarian task as Go0d willed and with this prayerful thought, alternatives to simple borrowing should be worked out. If possible as much funds as possible should be raised from internal sources like from members or through reserves of the church. Secondly, financing would allow the church to carry on the expansion plans without violating the precepts of the Bible. Hence, while expansion is necessary, while adding facilities is necessary, there are ways that this need can be met and all attempts should be to avoid borrowing as far as possible. References: Bowman, R. (1999). When To Borrow -- And When Not To. CHURCH MANAGEMENT NEWS. Retrieved online 06 February 2009, from https://www.bankofthewest.com/BOW/assets/vcmStaticContent/attachments/pdf/Winter99.pdf CFM. (2008). Borrowing to build. Retrieved online 06 February 2009, from http://www.crown.org/library/ViewArticle.aspx?ArticleId=298 ECCU. (n.d.). Borrowing and the church. Retrieved online 06 February 2009, from https://www.eccu.org/assets/white_paper_pages/2/pdfs.pdf Jones, R. (n.d.). SHOULD A CHURCH EVER BORROW MONEY? Retrieved online 06 February 2009, from http://www.onelifejourney.net/participate/borrowing.html Rapidnet. (n.d.). Church Debt. Retrieved online 06 February 2009, from http://www.rapidnet.com/~jbeard/bdm/Psychology/eccl/debt.htm Reid, C. (2007). Church finance market projected to $40 billion in three years. Retrieved online 06 February 2009, from http://www.nacdb.com/articles%20pdf/CE-STRONGTOWER-0107.pdf Read More