Should Churches Borrow?

Many believers would agree that churches should follow the same financial principles that God’s Word provides for individuals. 

But even within that agreement, there’s still plenty of room for debate. For example, should churches borrow for building and expansion projects?

Borrowing for church projects can be a sensitive topic, raising important questions about finances and faith. While the Bible does not declare borrowing a sin, it does offer several warnings about its potential pitfalls. Let's explore the biblical principles and guidance for churches considering debt.

Biblical Warnings About Debt

Proverbs 22:7 says, “The rich rule over the poor, and the borrower is a slave to the lender.” This warning reminds churches that while borrowing isn’t inherently sinful, it can create a burden and dependency on lenders. The late Larry Burkett emphasized that debt can be destructive if taken to excess, and it’s more about an attitude than an absolute rule.

Principles for Church Borrowing

Financial expert Ron Blue offers several key principles for churches to follow when considering borrowing:

• The benefit should outweigh the cost.
• A clear repayment plan should be in place.
• Church leadership should be unified in the decision to borrow.
• Borrowing should bring peace of mind, not anxiety.
• The debt should align with God-given goals.

These principles help guide churches in making thoughtful decisions about whether to borrow, ensuring that financial obligations don't overshadow their spiritual mission.

Three Biblical Principles for Borrowing

Dr. Art Rainer, Director of the Institute for Christian Financial Health, encourages healthy debate on the issue of church borrowing, outlining three key principles for churches grappling with the issue of debt:

1. Use Caution—Proverbs 22:26-27 advises against entering agreements without being sure of repayment. Churches must ensure they can meet their obligations to avoid damaging their witness.
2. Consider the Congregation's Burden—Debt limits funds available for outreach and missions. As Proverbs 22:7 reminds us, “the borrower is a slave to the lender.”
3. Debt Creates Opportunities for Sin—Psalm 37:21 warns against failing to repay debts. Churches should secure loans with collateral and ensure a repayment plan is in place.

Despite the cautions, many churches borrow successfully to expand their ministry efforts. If your church chooses to borrow, selecting a financial institution that shares your Christian values can be a game-changer. 

Christian Community Credit Union (CCCU) is a trusted partner for churches, providing over $1 billion in ministry real estate loans. CCCU aligns with Christian values and offers financial tools to help ministries thrive.

Making an Impact Without Borrowing

Even if your church decides against borrowing, you can still make an impact. By opening an account at CCCU, you support other churches and ministries through your deposits. To learn more, visit JoinChristianCommunity.com.

While borrowing isn’t sinful, churches must carefully consider the financial and spiritual implications before taking on debt. By following biblical principles and partnering with the right institutions, churches can make informed decisions that support their mission to advance the Gospel.

On Today’s Program, Rob Answers Listener Questions:

• I've been seeing many of these advertisements about debt cancelation on the internet, on Facebook, and in places like that. There's one going on right now: if you're a veteran and owe $20,000 or $30,000 or more, you can get it wiped out. Is stuff like this a legitimate deal, or is it a scam?
• I'm selling my home and will have a surplus after buying a new home outright. I just retired and want to stay retired. Should I use the surplus to live off of, draw my Social Security, or invest the money?
• My question is about my retirement investment with my employer versus my investment in a high-yield savings account. I've been with my employer for three and a half years. Its growth has been 2.47% during that time, and my high-yield savings account rate is 5.2%. I'm trying to understand which investment would be most beneficial.
• I heard you guys talk about a reverse mortgage and was thinking about it for my 90-year-old mother. We’ve been in conversation with Movement Mortgage and started the process, but I got cold feet because of the fees. So, I am wondering what your thoughts are about this and whether this is a good idea. 

Resources Mentioned:

• Christian Community Credit Union
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App

Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.