Count the Cost
“It is a great blessing from God to be in a position in which you do not have to borrow. But does that mean that the Bible teaches that all borrowing is unwise?” Pastor, teacher, author, and respected theologian John Piper argues that it does not. Read more here.
Most loan projects result in multiple new ongoing expenses. Foremost among these expenses is the monthly loan payment. Calculate your estimated loan payment in advance, so you can count this cost and plan accordingly.
Other new expenses could include increased utility costs and increased property/casualty insurance costs, depending on the type of project. To estimate utility cost increases, we recommend accounting for any increase in property square footage as well as any increase in property usage throughout the week. To estimate property/casualty insurance cost increases, ask your insurance company for a quote; they will need property information related to your project.
Another cost consideration to be aware of is unrelated business income tax (UBIT). For more information on UBIT and/or to see if it applies to your ministry, click here.
As you consider the above costs, especially a monthly loan payment, it may be in your ministry’s interest to pursue short-term capital fundraising. If so, we recommend the services of CIF Campaigns & Consulting, a division of Christian Investors Financial. This consulting ministry specializes in church capital campaigns and has helped numerous Alliance ministries meet or exceed their short-term fundraising goals. For more information, you may click here to contact Steve Johnson at CIF Campaigns & Consulting. Be sure to let them know you are a C&MA ministry and were referred by ADF.