Growth by Investment
In order to move a mission congregation into permanent facilities of their own, they must incur an average debt of $3M for land and facilities to accommodate 250 in worship and 200 full time equivalent students (PreK to 6th grade). Amortized over 25 years at 6%, this means that every month, this new congregation faces a mortgage payment of more than $19,000. In many locations in this country where land can cost up to $2M per acre, this same startup congregation could face mortgage payments of almost $57,000 per month . . . before any mission or ministry is accomplished and before any staff is hired or called!
Is it any wonder that our clergy, staff, and leaders are preoccupied with cash flow to the detriment of Great Commission ministry? Is it any wonder that we find many of our new churches located in the worst part of town or well away from the path of growth in the community? Is it any wonder that our called church workers are being asked to work for wages far below that of their peers, performing services for which they are not qualified, so as to save the church money? Is it any wonder that volunteers are asked to serve - not according to their calling but rather according to what the church could not afford to otherwise do? Is it any wonder that our 20th model for church planting is collapsing under the new cultural and financial realities?
We offer "Growth by Investment" as one such new model for planting and growing churches in the 21st century, using Biblical principles of stewardship and sound investment practices to utilize God's abundant provision for His church, according to His Great Commission.
Fundamental Principles
There are several principles that are foundational to Growth by Investment. These include:
Congregations grow in predictable phases, correlating with their ability to provide care for their members and the governance model used to make and implement decisions. Based on our observation, these phases can be generally defined at worship attendance levels of 100, 250, 500, 800, 1,500, and 3,000.
Land and facilities should be "right-sized" for the next phase of growth.
Financial engine(s) should be used to offset some or all of the debt service for the property and buildings.
A congregation's permanent home should only be acquired and developed after maximum growth has been accomplished.
"Sacred Space" for administration of Word and Sacraments must be present at each phase of growth.
There must be an "exit strategy" for disposition of the church property when the church has outgrown the facilities. In Growth by Investment, we initially design the buildings for future conversion to other uses (i.e. retail, offices, or industrial).
The building is designed to accommodate not only the needs of the church but also adequate space for the financial engine(s), sufficient to offset the cost of the space and place.
What does this mean?
"Growth by Investment" means that, using this model, the congregation will grow through several right-sized properties, paying as they grow with funds generated by financial engines, developing equity with each move. Then, when they are ready for their final church home, they will have accumulated adequate funds to buy the land and build the buildings with minimum debt. All the while, using more of their weekly offerings and gifts for ministry instead of for debt service.
So that . . .
This model, developed by SDG, can produce the following outcomes for today's growing church:
Land and facilities are acquired and developed according to the congregation's next phase of growth instead of guessing the eventual size of land and facilities needed.
Debt service is reduced or eliminated, allowing offerings to be used more directly for ministry services.
Congregational members are serving according to their calling instead of serving to offset operational costs of the church.
Churches can be located on premium property in the center of the community's growth.
Clergy can focus on adminstration of the Word and Sacraments and caring for their flock instead of real estate acquisition and development.
Congregational growth will not be limited by their land and facilities.
Conclusion
The current model for planting and growing congregations is creating cultural and financial distractions from Great Commission ministry. At the core of these distractions is the excessive debt service required to develop a congregation's final and permanent church home. Growth by Investment creates a path that accomplishes the same outcome with minimal debt service and maximum stewardship of tithes and offerings for Great Commission ministry, responding to God's provision in His time, to His glory!
Questions for further consideration:
What percentage of your current budget is dedicated to debt service?
What percentage of your current congregation is serving according to their calling?
How much of your pastor's time is spent on space and place issues instead of ministry?
What percentage of your existing land and facilities will NOT be needed for you to reach your next growth plateau?
In light of these answers, could your congregation benefit from more information about "Growth by Investment"?
For a FREE consultation, please contact: Soli Deo Gloria Group
A Faith Based Corporation
P.O. Box 6108
Orange, CA 92863
(949) 858-1166 (voice)
(949) 858-1143 (fax)
sdggroup@cox.net