Is it wrong for a church to borrow money?
Most churches make it a priority to get out of debt using capital campaigns, devoting extra offerings to principal payments or special fundraising emphases. Many of our churches take out a loan with a 20-year term, but the vast majority pay it back within five to seven years. That's good stewardship.
But it is also important to note the Bible doesn't encourage every church to go out and get a bunch of loans. We find three primary principles about debt in the Bible: 1. Be cautious about bringing a church into debt.
Proverbs 22:7 reads, “The borrower becomes slave to the lender.” Lending money can hurt a relationship. And that can happen whether you lend the money or not.
Biblical prohibitions on usury were later redefined as prohibitions on lending at excessive interest rates. Today, charging interest on loans is an everyday part of life. Modern Christian leaders condemn excessive interest rates, but not the lending of money itself.
How the church should handle its money. Those who lead in spiritual matters should also lead in financial matters (Acts 4:35,37; Acts 11:29,30; 1 Timothy 3:3,8). Money should be handled in such a way that is defensible against any accusation (2 Corinthians 8:21). Money stewards should be trustworthy people.
Henrickson suggests that borrowing money from members can deepen the relationship between the member and the congregation. If a loan is called early it needn't be a crisis, says Henrickson. “It can be planned for.” Says Clark, “Money should certainly be a part of the relationship between a congregant and the church.
Yes, churches can typically obtain mortgages to finance the purchase or new construction of property. Many financial institutions, including banks and credit unions, offer mortgages for religious organizations.
Deuteronomy 15:6 - If you are faithful in obeying God's commandments, you will be blessed and able to lend and not borrow. Deuteronomy 28:12 - You will lend to many nations but not have to borrow. Matthew 5:42 "Give to him who asks you, and from him who wants to borrow from you do not turn away.
The Bible has a lot to say about borrowing, but the primary message is simply that what is borrowed should be paid back. It doesn't prohibit borrowing, nor does it portray that borrowing is bad.
The belief that observant Muslims should not borrow or lend money with interest may appear to set Islam apart from the rest of the world, but all three major monotheistic religious traditions — Judaism, Christianity and Islam — historically had rules against using money to make more money.
What does Jesus say about lending money?
Matthew 5:42 Give to the one who begs from you, and do not refuse the one who would borrow from you. Luke 6:34 And if you lend to those from whom you expect to receive, what credit is that to you? Even sinners lend to sinners, to get back the same amount.
The scriptures tell us to owe no one anything. If you use your debit and credit cards according to the code of practice of the lender, you do not owe. Make sure you pay the cards off on time, to maintain your Christian testimony.
Gluttony. The "high" associated with spending money can be a tough habit to break, which is why compulsive buying disorder, better known as "shopping addiction," is a bonafide condition.
A Church's Board of Directors has a Fiduciary Responsibility
The reason the ultimate responsibility of financial oversight lies with the board is, all boards of non-profits have a fiduciary responsibility for organizational oversight.
So while there isn't a legal requirement to provide financial statements for many donations, doing so is largely beneficial for both the church and the donor.
Throughout the bible, we are asked to fund missionary work, pay our church leaders and ministry, and give to the poor. Several articles give specific percentages on where your church should spend money. Most of these articles agree that the largest share should cover salaries and wages for your ministry and staff.
Using church money for personal reasons is stealing. Intention, rationale, or even promises to return funds does not change this fact. While it's easy to believe fraud could never happen in your church, the truth is that no church is invulnerable.
A simple way to obtain a rough estimate of the amount your church can borrow is to multiply your annual undesignated income by three. In other words, a church with an annual undesignated income of $500,000 can generally borrow up to $1.5 million. Keep in mind, this is just a guideline.
For a sovereign church, the Pastor and Board Secretary must sign. The Pastor and Sectional Presbyter must sign for a dependent/mother church.
Deuteronomy 23:19 Amplified Bible (AMP)
“You shall not charge interest to your fellow Israelite—interest on money, food or anything that may be loaned for interest.
Does a church have a credit score?
Similar to your own personal credit, your church's credit history is essentially determined by how well you pay or have paid your bills, debts, and/or loans. In this blog I want to address how to build your credit history, even if you are just starting a newly planted church with zero history.
Debt is also similar to sin in the way it is creepingly dangerous. When you take on debt, it always seems manageable. And then something happens, and the person is a slave to debt, a slave to sin from which there is no redemption.
- Deuteronomy 15:6–11.
- Proverbs 22:7.
- Matthew 5:42.
- Mark 11:1–3.
- Luke 6:35.
Absolutely nowhere in the scriptures are we advised or commanded to use debt to accomplish God-given economic goals. On the contrary, the Bible has many warnings against the use of debt.
In 2 Kings 23:16-20, Josiah took the bones out of the tomb, burned them on the altar, and “defiled it.” However, nowhere in the Old Testament does the Bible command the deceased cannot be burned, nor are there any judgments attached to those that have been cremated.
