Using Intelligent Debt to Fund Church Building Projects

As the head of an organization that helps churches navigate strategy and finance during big building projects, I’m often asked about the question of debt. How can you move into a bigger building without accumulating debt? How can you go multisite without a church mortgage or lease? 

There are ways to approach church growth on a budget, but let me say something here that I’ve said a million times before: Our team at Ministry Solutions Group has never seen a free building that doesn’t cost more than a million bucks.

Every church building project is going to take a significant investment, and unless you have donors writing blank checks, chances are that you’re going to need to take out a loan at some point along the way.

The question is, how can you utilize debt to build up your mission-driven ministry without turning everything into a numbers battle?

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Not All Debt Is Bad

Not all debt is bad. 

There, I said it.

It’s a controversial statement, I know. But here’s the thing, debt is a reality of a growing church, especially in 2025. Credit markets are tight right now. Interest rates are high (kind of — more on that in a minute). Uncertainty is everywhere. Are we entering a golden age? Or are we back at a 2008 crossroads?

With so many challenges and question marks out there, it’s important to push back against the “debt is bad” myth. I think a much better way to put it is that there is “good debt” and “bad debt.” 

Remember, money is a tool God has given us. It is a great servant and a terrible master. Used correctly (including debt in some cases), money can be a powerful agent of change and growth for a church. The problem some people have isn’t with debt, though. They have a problem with irresponsible financial strategies that lead to unmanageable debt — i.e., bad debt.

If you make an investment in a new campus or activate your building by adding a daycare or community center, and this shifts your culture to one where your top priority is paying your bills, that’s not a great situation.

That’s why I’ve come to focus on the kind of debt involved in any church move. 

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Going Into Debt as a Church the Right Way

The circumstances and methods you use to borrow money make a difference.

Does the debt you’re considering to fund a church building project come with a clear strategy for how you will get out of debt? That’s what I like to call “intelligent debt.” Others call it smart debt or responsible borrowing. The basic idea is the same. 

Intelligent debt gives you the chance to use the future to get something today. As with all borrowing scenarios, this should be done with a purpose. What are the opportunity costs involved? What can you accomplish through borrowing and fundraising now that you won’t be able to do later? A few common themes that our team sees include borrowing money to:

• Open a new campus.
• Merge with another church.
• Activate your existing building for outreach.

The question you need to ask with each of these scenarios is what are you specifically trying to do? Is it worth borrowing money to execute your vision? Have you prayed, and do you feel at peace about the option? If everything lines up, commit with confidence.

That’s when you need to bring clarity to your borrowing. This is what our Clear Path Forward service is about — identifying what you need and how you can affordably accomplish it. 

This approach helps you build a strategy that plans ahead and helps you get into debt the right way: with an exit plan. Look at the numbers and plan out how you can go from an episodic externally-funded model (debt, fundraising) to an ongoing internally-funded one (giving, tithes, offerings).

It also gives you a chance to adjust to some initially overwhelming elements. For instance, interest rates are high right now. I know. Everyone tells me. I’m feeling it, too. So is my church. But let me push back just a little bit by rephrasing the statement. 

Interest rates aren’t incredibly low right now. 

See the difference? We have been operating with unusually low interest rates for the better part of two decades. Now, they’re back to levels that were once considered normal — even a deal. 

Creating a plan for your church building debt helps you adjust to factors like interest rates and gives you the confidence to handle whatever new mortgage or other payment comes out of the process.

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Building Your Church With Confidence (Even With Debt)

I’ll say it again. Debt isn’t good or bad. Money, including borrowing it, is just one more tool God has given us to build his kingdom. As with all tools, it should be used wisely and with purpose. If you can do that, you can build his kingdom with confidence, even if that means paying some interest along the way.

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