Church finance ministry helps build church facilities and the kingdom

PAMPA?Cornerstone Baptist Church had a choice: let its building project sit unfinished until the church raised additional capital, or obtain a construction loan to complete it.

Located in the West Texas town of Pampa, Cornerstone averaged 85 in worship but was outgrowing the storefront it occupied. After six years, the congregation saved enough to purchase 20 acres of land and began building a new facility. But with rising building costs the funds quickly depleted, leaving an unfinished building frame on Pampa’s main thoroughfare.

Churches across Texas can probably identify with Cornerstone’s dilemma?continue building through financing or wait to raise the additional money. Doug Hixon, pastor of Cornerstone, was caught in a balancing act between good stewardship and expanding the church’s ministry.

“From a pastor-vision standpoint, I looked at all the possibilities. We were limited space-wise and running out of Sunday School rooms and of course with the shell of the building out there, I didn’t see it as good stewardship to let it sit for another six years,” Hixson said. “From a spiritual standpoint it would be advantageous to move out to our new location?to minister to a new group of people. From a business standpoint, it made sense for us to finish it out because of prices going up and uncertainty of what prices might be in another six years.”

At the urging of other pastors, Hixson contacted the Church Finance Ministry of the SBC’s North American Mission Board and was surprised at their competitive rate. After much prayer, the congregation decided a loan was the best route for the growth of its ministry.

NAMB’s Church Finance Ministry (CFM) has operated for more than 100 years and offers a range of services and products to Southern Baptist churches. Beyond mortgage and construction loans, CFM provides free advice and consultations related to all areas of finance.

CFM provides financial help and resources to SBC churches, assisting 600-plus congregations in the U.S. and Canada each year, including church loans totaling more than $130 million. The church lending of CFM began in 1900, and most of its interest income goes back to support missions in North America?primarily for church planting and evangelism.

For Cornerstone, discovering that the interest paid on its loan would support missions made a difference in its decision to finance the rest of the building project.

“When we found out the interest wasn’t going to buy the banker a Lexus, to know you have to pay interest but that it goes toward missions, it was a no-brainer,” Hixson said. “That was a deal-sealer for our people because paying interest was a struggle. You pay so much in interest when you borrow and to know that the interest was going toward missions took the decision out of our hands, and we felt like it was the will of God.”

Shawn Powers, CFM’s senior church finance consultant in Texas, said many of the churches that seek financial consultations with CFM have concerns about borrowing money. When the churches learn loan interest is funneled into missions, many reconsider financing, he said.

“Our goal is to save churches time and money by providing them custom financing options,” said Powers, a member of Fielder Road Baptist Church in Arlington. “We do that by helping pastors and lay leaders identify the means the Lord had given them. We provide a customized option based on the resources God has provided them and give them a financing recommendation. When they talk to local banks, they can see how each of those relate to the bottom line.”

But CFM recognizes that not all churches believe financing is a means of good stewardship. Karl Dietz, CFM director, says they encourage churches to be debt free.

“The more money that is not being used for debt can be used from ministry. Our primary interest is to help churches take on debt safely so they don’t fall into bondage,” Dietz said.