1 / 13

Funding Options for Churches: Loans, Bonds, and Capital Fundraising Strategies

Explore diverse funding options available for churches, including traditional loans, church bond programs, and upfront cash strategies. Traditional loans may involve credit qualification, mortgage requirements, and closing costs. Church bonds can include faith bonds and mortgage bonds, providing unique funding mechanisms with specific repayment arrangements. Upfront cash approaches are beneficial for smaller projects, enhancing cash flow during construction. Learn about the Baptist Foundation of Oklahoma's commitment to serving Southern Baptist Churches through competitive rates and a streamlined loan process aimed at efficient debt management.

hedy
Télécharger la présentation

Funding Options for Churches: Loans, Bonds, and Capital Fundraising Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Foundation Loan Services Jerry Vaughan Senior Vice President

  2. Types of Funding Options • Traditional Loans • Church Bond Programs • Upfront Cash, Pay As You Go

  3. Traditional Loans • Sources: • The Baptist Foundation of Oklahoma • Local Banks • Other Nationwide Lenders

  4. Traditional Loans • Characteristics: • Credit Qualification • Mortgage Requirement • Title Work (Title Insurance, Title Reports) • Appraisal of Property, Surveys, EPA Reports • Closing Costs

  5. Church Bonds • Characteristics: • Two Types of Bonds • Faith Bonds (unsecured, not very common) • Mortgage Bonds (secured by mortgage) • Loan funds generated by sale of bonds • Bondholders repaid, with interest, by church

  6. Church Bonds • In most cases church assumes responsibility for selling the bonds, which can be laborious and involves legal issues • Church settles for whatever amount of bonds are sold • Bond repayment arrangements may be more restrictive than other forms of financing • The actual cost of financing is generally greater than the stated rate

  7. Upfront Cash, Pay As You Go • Good concept for small projects • For larger projects requires a significant amount of funding prior to beginning construction • Can lengthen building process and risk rising construction costs as cash flow varies from month to month • Church may not have use of facilities as quickly (scheduling of contractors, purchase of materials, etc.)

  8. Capital Fund Raising • Can be used whether a church decides to borrow, issue bonds or build debt-free • Great source of upfront cash and cash flow during project construction and repayment • Teaches the congregation about planned giving above the tithe • Significantly reduces debt over a short period of time

  9. The Baptist Foundation of Oklahoma A Ministry and Business Partnership Between The Baptist Foundation of Oklahoma and Oklahoma Baptist Churches

  10. The Baptist Foundation of Oklahoma • Fast and easy loan process • Competitive interest rates and terms • We know Southern Baptist Churches…our only customer • No appraisal requirement and No prepayment penalties • All interest paid is distributed to Kingdom causes

  11. ALL INTEREST PAID ON LOANS BENEFITS KINGDOM CAUSES!! OBHC OBU BGCO CHURCHES OTHERS BFO SBC

  12. The Foundation is committed to: • Providing a fast, easy and convenient loan process • Competitive interest rates and terms • Low closing costs • Our goal is to help churches borrow wisely and service debt efficiently.

  13. “…through us your generosity will result in thanksgiving to God.” II Corinthians 9:11b

More Related