Have You Overlooked These 6 Things in Your New Church Building Budget?

Your church building provides the space in which your vision is realized and people are reached, developed, and launched into what God has called them to do. It is a holy space set aside for growth, relationships, healing, and restoration. Its structure reflects the very core of your focus, values, and priorities. And if walls could speak, one day they would tell of the miracles and wonders done within the space where God’s uncompromising Word was proclaimed.

When it’s time to dream of your next church construction project, dream big, then write the vision and make it plain—so you can run with it. Allow your unique church culture to be expressed in the choices you make in your building design. When the time comes to act on the dream and plan your next church building project, begin with the end in mind. See the purpose of the structure—souls! Next, put feet to your faith, and plan a realistic budget as well as funding sources for the project. Careful financial planning for the facility’s budget will set you up to build successfully without compromising the stability of your church.

Plan your budget

When planning the budget for your new church construction, keep in mind that there are three primary types of costs: hard costs, soft costs, and FFE costs. While hard costs include construction, labor, and materials—soft costs cover professional services, fees, and permits. FFE costs consist of the items that fill a building once it is constructed: furniture, fixtures, and equipment. Once these three areas are budgeted, calculate the cost of sustaining the building and maintaining the standard of excellence in which it was built. For example, plan for maintenance of items to ensure their need for replacement is delayed due to your good stewardship.

Live within your means

Resist the temptation to overspend on your new church construction project. If you want to spend more than you currently have, take more time saving toward the new building before beginning. Through faith and patience, you will obtain your dream. Consider all the resources necessary to take on a church construction project, such as time, focus, energy, and finances.

Funding sources

Saving toward a new church construction project from church income is the best place to start gathering the funds you need to build. Next, add the money you raise as you share the vision of the facility with your congregation. Once people catch the vision for the building’s purpose, they will want to be a part of its foundation and sow toward the vision. Remember, fundraising comes in all shapes and sizes. Check out creative ideas on a variety of ways to be successful at fundraising for your new church construction project. Finally, if necessary, go to a lending institution and borrow money toward the church construction project.

Define your borrowing limits

Plan your church construction project within the constraints of a realistic budget. A civil engineer will outline the parameters of your construction site. Your bank will define appropriate lending limits based on your debt capacity. Realistic projections of funds you can raise provide additional boundaries in which to plan. And your contractor establishes a realistic price per square foot for your building.

Monitor the budget throughout the construction process

Prudently organize the budget and monitor it throughout the church construction process. Common budget errors occur when either unplanned changes are made to a project, or overspending in a division occurs without compensating for it in another area. Errors also occur when a division was overlooked in the initial budgeting process, or the value of a division was underestimated. Throughout the church building process, check up on the income and output of finances regularly. Cushion the building budget with a contingency factor for unexpected costs that may pop up. Throughout the process, monitor the building expenses relative to your funding. As details are defined, adjust finances accordingly.

Work in phases and stages

Focus on a phase at a time for building success. Line the phases up in a single file in your mind, and deal with one at a time to ensure excellence in each detail. Divide each phase into realistic goals, and systematically complete each phase sequentially. Order always precedes increase, so order the steps and then take them.

Call us today

Churches by Daniels have built churches since 1980. We have served pastors from coast to coast, focusing on quality craftsmanship and customer satisfaction. Our commitment to excellence, integrity, vision, loyalty, and legacy is displayed not just in our projects, but also in our respectful communication with pastors and leaders. Call Churches by Daniels today at (918) 872-6006 and learn how we can make your vision a reality.