At Wesleyan Investment Foundation, we empower the local church with flexible financing. If you’re thinking about expanding your footprint, here are some practical tips to prepare:
- Create margin. Budgeting toward 90% of last year’s tithes and offerings leaves more funds available for ministry or your next building project. After determining the total budget for your church, assign percentages to each major category of expense. We recommend 35%-40% for staffing, 30-35% combined for debt, building & operations, 20% for ministry costs, and 10% for missions & outreach. Check out our budget calculator to see how budget changes might impact dollars available for ministry.
- Set aside cash. We believe it’s wise for churches to keep 60-90 days’ cash on hand for operating reserves. If you’re thinking about a project, it’s recommended to set aside another 20-30% cash equity for building purchases, or 30-50% cash equity for renovations or land purchases.
- Tip: Utilize a WIF investment account to hold excess cash and earn interest while saving for the project.
- Plan for the future. Cultivate strong relationships with partners who share your vision and can support your ministry’s growth tomorrow. This may include an accountant, contractor, architect, or lender. If your church is considering a building or expansion project, connect with WIF to understand your debt capacity before investing significant design dollars on a project. Churches may qualify for a loan amount up to 3x their annual tithes and offerings. Questions about WIF loans? Check out our FAQ’s here.