I’ve written before about the impact of the Great Recession on financing for ministries. Is it harder to qualify for a loan? What about interest rates? And when should a ministry say no to financing as an option for funding their ministry? David Lee is an ECCU relationship manager with two decades of experience working through these questions with ministry leaders. So I asked him to weigh in on them. Here’s what he said. [read more]
One thing many ministries discovered during the economic downturn is that they weren’t as financially solid as they thought. As revenue declined, their financial vulnerability became increasingly apparent. Loan payments, for example, that once seemed realistic suddenly weren’t.
One way ECCU responded to this situation was by forming a new team to help struggling member ministries become financially healthy again. I asked Don Hughes, who led that team and is now one of ECCU’s regional directors, a couple questions about what we learned from this experience. [read more]
“Over the past several years, many churches made the mistake of borrowing everything a bank was willing to lend them. As a result, many ministries are facing the strangling hold of lenders and interest payments. Seek to restructure the debt…and resolve to never again borrow an amount of money that would jeopardize the ministry.” – Joseph Sangl, Top 10 Financial Mistakes Churches Make
Yeah, that hits a nerve for me. So I would add this to Sangl’s advice: Along with resolving to never allow debt to jeopardize your ministry, align your ministry with a financial partner who cares about your vision as much as you do and will help protect you from such decisions.
Check out the rest of the list at Top 10 Financial Mistakes Churches Make. Has your church bounced back from making any of these common mistakes? How did you recover?