By Dr. Tim Orr
Over the years, connecting with Christians worldwide—whether in the UK, India, or various African countries—has deeply impacted my understanding of ministry. These experiences have shown me how ministry can differ from what we're used to in the more prosperous parts of the United States. It's made me think hard about how churches choose to spend their resources, especially when it comes to building projects. There’s a delicate balance between investing in physical spaces and staying true to the mission of outreach and service.
The Story of a Retired Megachurch Pastor
Let me share a story that made me think. This well-known pastor in the U.S. retired after more than 20 years of service at a large, respected evangelical church. During his time there, he was well-compensated, earning around $400,000 to $500,000 annually, plus a great benefits package, including a solid retirement plan. But when he retired, he did something interesting—he asked the church elders to evaluate whether he had been paid appropriately over the years.
The results were surprising: they found out the church had underpaid him by $4.9 million! The church will pay him $700,000 yearly for the next seven years to make up for it. Now, while it’s important to ensure pastors are compensated fairly, as too many pastors are not, this situation raises some tough questions about how we handle finances in the church. It’s a reminder that we must be transparent and thoughtful in our stewardship.
Balancing Compensation with Mission
But here's the thing: most churches I know don’t operate like that. The average pastor in the U.S. makes a modest salary, usually between $50,000 and $60,000 a year. Over a 40-year career, that adds up to around $2 to $2.4 million in lifetime earnings. Most churches are doing their best to be responsible with their finances, making sure their pastors are fairly compensated while keeping their focus on mission-driven activities.
The Challenge of Fundraising for Non-Local Missions
Historically, donors are more inclined to give to causes that directly impact them or their immediate community. Local projects often attract more generous contributions because donors can see and experience the tangible results of their giving. Whether it’s a new church building, a community center, or local outreach programs, donors feel satisfied knowing that their contributions are making a difference in their own lives or the lives of those around them.
Global missions, however, present a different challenge. While the impact is significant, it is often distant and less visible. Donors might find it harder to connect emotionally with global causes, especially when the benefits are felt by people in far-off places whom they may never meet. This emotional distance can make raising funds on a large scale more challenging.
Sign up for Dr. Tim Orr's Blog
Dr. Tim Orr isn't just your average academic—he's a passionate advocate for interreligious dialogue, a seasoned academic, and an ordained Evangelical minister with a unique vision.
No spam. Unsubscribe anytime.
What the Numbers Say: Budget Allocation in U.S. Churches
To statistically show how overspending on buildings can be justified by framing it as mission and discipleship, we can look at the allocation of church budgets and how funds are distributed between different areas:
- Staff Salaries and Building Maintenance: According to the Evangelical Council for Financial Accountability (ECFA), 60-70% of church budgets are typically allocated to staff salaries and building maintenance. This large percentage can often be justified as necessary for the church's functioning and growth.
- Missions and Outreach: On the other hand, only 5-10% of church budgets typically go directly to missions and outreach, a smaller portion but still significant in the overall mission.
Justification of Building Costs as Mission and Discipleship
Churches often justify the cost of building projects by framing them as essential for discipleship and community engagement. For example, multi-purpose facilities that can be used for small groups, training, and community events are seen as investments in the church's ability to serve and disciple more effectively.
A Barna Group report found that churches with dedicated spaces for youth activities, adult education, and outreach saw a 15-20% increase in engagement. This suggests that while the initial outlay on buildings may be high, the return on engagement and spiritual growth can be significant.
Learning from Scripture and Early Church Models
The Bible gives us clear guidance on how to handle wealth and resources. Jesus reminds us, "Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven" (Matthew 6:19-20, NKJV). When we think about spending money on church buildings, it’s important to ask if these investments are helping us fulfill our mission to spread the Gospel and serve those in need.
The early Church gives us a powerful example. In Acts 2:44-45 (NKJV), we read about believers who "had all things in common, and sold their possessions and goods, and divided them among all, as anyone had need." They focused on supporting each other and those in need, not building grand structures. This is a challenge for us to ensure we’re keeping our priorities straight.
The Good That Can Come from Church Buildings
I know that investing in a church building is sometimes necessary and beneficial. As congregations grow, the space can become too tight, and expanding or building new facilities can be crucial. A well-thought-out church building can be more than just a place to gather for worship—it can become a hub for the community. It can host events, support groups, educational programs, and outreach initiatives that make a difference in people’s lives.
Balancing Local and Global Needs
While local projects are often easier to fund, global missions remain critical to the church’s mission. Many churches understand this and have effectively found ways to balance local and global needs. For instance, some churches allocate 20-30% of their budget to missions while investing in local building projects. This approach demonstrates that it is possible to support both local and global missions successfully with careful planning.
Expert Insights on Strategic Building
People like Thom Rainer, a respected church consultant, advocate for thoughtful and strategic church-building projects. He believes that when done right, these projects can strengthen a church’s outreach and deepen its connection with the community. Rainer’s research shows that churches planning their building projects carefully—ensuring they align with their mission—often see great outcomes. These include more community engagement, higher attendance, and increased member satisfaction.
Strategies to Encourage Giving
To overcome these challenges and inspire generosity, churches, and organizations must develop strategies that create a meaningful connection between donors and the mission:
- Storytelling: Sharing powerful stories of transformation from local and global missions can help bridge the emotional gap. When donors hear firsthand accounts of lives changed through their contributions, they are likelier to feel a personal connection to the cause. Stories make the impact of global missions more relatable and tangible.
- Education: Educating the congregation about the biblical mandate for global missions and how their giving supports the spread of the Gospel and relief efforts can inspire generosity. Understanding their contributions' spiritual and humanitarian impact can motivate people to give, even when they don’t see a direct personal benefit.
- Transparency and Accountability: Transparency about how funds are used and regular updates on the progress of both local and global missions can build trust and encourage continued giving. Donors must feel confident that their money is being used effectively and responsibly.
- Creating a Shared Vision: Inviting donors to join a larger vision encompassing local and global missions can create a sense of ownership and purpose. When people feel they are contributing to something bigger than themselves, they are often more willing to give. This shared vision can unite the congregation around a common goal.
- Offering Multiple Giving Options: Providing options for donors to contribute in different ways—whether through one-time gifts, recurring donations, or planned giving—can make it easier for people to give according to their ability and desire. Flexibility in giving can increase participation across a wider range of donors.
Keeping a Mission-First Mentality
It’s easy for churches to get caught up in the numbers—attendance, revenue, and physical expansion. When considering a building project, wise church leaders evaluate the needs of their congregation and the community, ensuring that any project they undertake is mission-driven.
It’s essential to approach these decisions with prayer, seeking God’s guidance. By involving the congregation in the process and being transparent about the goals and funding, churches can ensure their efforts align with the Gospel’s call to stewardship and outreach.
Conclusion: Finding the Right Balance
Deciding whether to build is a big decision requiring careful thought. The church's mission, financial health, and the needs of the congregation and community must be considered. There are good reasons to pursue building projects, but churches must ensure these decisions reflect a commitment to wise stewardship and the Gospel's call.
Our treasure should be in our community's spiritual growth and the tangible ways we can serve others. When approached with intention and purpose, church buildings can be powerful tools for ministry, helping us spread the Gospel and make disciples of all nations. The ultimate goal is to foster a culture of giving that supports the church’s mission to spread the Gospel and make disciples of all nations, locally and globally. By asking the right questions and planning strategically, churches can create campaigns that inspire generosity beyond personal benefit and reflect a true commitment to God’s mission.