Building Decisions for Your Church
Your building project should fit nicely into the following cost breakdown:
- Construction cost – 70 to 80 percent of total project.
- Furnishings – 5 to 10 percent of construction cost.
- Landscaping – 3 to 5 percent of construction cost.
- Parking Lot -- $700.00 per car, paved parking lot.
- Construction Loan Cost – 8 to 10 percent of construction cost.
- Financing closing costs – 2 percent of construction cost.
- Contingency – 5 percent of construction cost.
- Architect, other fees – 5 to 8 percent of construction cost.
Financial Records, Planning, and Analysis
Accurate financial record keeping is premium. Banks, financial institutions, and your architect need this information to provide a design and master plan for your church that will not create financial strain on your church. Entering into a building program or hasty financing program without proper planning can result in your church’s reserve funds being depleted, your building not being constructed correctly, or not being finished until a later date than scheduled.
Safe Debt Limit for the church:
Debt-to-income ratio: 2 to 3 times the previous year’s income
Debt service-to-income ratio: 35 to 40% of previous income.
Debt-to-collateral ratio: not to exceed 75% of appraised value
Total Amount of Financing Needed
Final Value of the Project [Buildings and Land]
Never get into a building program that will require financing that is more than two to three times the previous year’s income.
Banks like to see capital campaigns in place that are poised to eliminate 25 to 50% of debt within five years of origination.
Building Fund: The first step in raising money for expansion for many churches is to start a building fund. Putting the finance department on a strict diet to consistently set aside a portion of the weekly contributions for the building project is a must. These funds can be used to significantly offset funds that are financed.
Capital Gifts Campaigns: Asking church members to pledge a certain amount toward the building project on a regular basis over a one, two or three year period of time. Employing an independent company to launch and carry out the campaign may prove useful. A church can realistically expect to raise 1.5 to 2 times last year’s annual income over a three-year period.
Financing Your Projects
Investment Bankers: Full service lending institutions that offer consulting services to a church in the planning stages of its building program can provide technical assistance in the capital gift campaign, and provide the long-term financing through the issuance and sale of real estate mortgage bonds.
Denominational Sources: Some jurisdictional leaders help with financing building projects.
Conventional Mortgage Loans: Mortgage bankers sometimes have access to insurance companies and other investors who may have money available to loan. In some cases based on the legal structure of your church, they can secure loans that have better rates of return than the bank.
Loan Portfolio:
Loan request and description of project.
Your current church status.
History and projections of your church.
Financial statements and/or audit.
General statistics.
Description of property to be mortgaged.
Bond Programs: Using treasury notes that are purchased by church members, and national bond investors, are another form of financing for church building projects. Bonds work well for churches who understand the benefits of members earning a return from the monthly mortgage payments made by the church, and the fact that their investment is backed by the real estate and property of the church..
Build it Debt Free: Sometimes we can forget the Hand of a Supernatural God. God is able to send the landowner to your office with the deed in hand. He is also able to allow for a handful of the faithful to pay the whole note off
Building Committee and Advisory Team
Create a Team:
- Meet with your leaders.
- Talk to your congregation.
- Appoint the committee.
Choose leadership that can take the vision and apply practical guidance to the needs assessments, budget constraints, and ability of the congregation. Your committee should be led of the Lord; able to follow the vision of the church, and make decisions that they will stand behind.
Committee Purpose:
-Communication of the building program, needs, and strategy.
-Interviewing and selecting the architect and builder.
-Assisting in the choosing and purchasing of a site.
-Helping to secure finances.
-Handling contracts thoughout the building program.
-Working directly with the architect and builder, while meeting regularly during planning and construction.
-Authorizing payments.
-Staying abreast of progress, and providing regular status and progress updates to the pastor, church board, and membership.
Master Site Planning
Selecting the Site For Your Planting:
How does the land look? What is adjacent to the property lines?
How much land do we really need?
What is the Lay of the Land?
Types of Sites: Corner, Wide, Narrow, Irregular
Conditions of Site
- Easements for utilities and other services.
- Topography; contours; soil condition, water table.
- Building setbacks and code restrictions.
- Special site considerations; existing buildings, trees, etc.
- Off-street parking requirements.
- Allowed access-egress from site.
What you need before you purchase your land:
-Certified Survey, Soil Test, City Zoning Restrictions.
Analyze your city before choosing a new site. Don’t forget to ask God.
“Recognize and get a firm grasp of your needs and desires. Remember that they are two different things.” Pg. 95 Church Growth by Design Roe Messner.
Your Master Plan will guide your entire project and bring your vision to reality. Utilizing the finest expertise you can afford will provide a great peace of mind in the areas of space requirements, design, and money-saving techniques.
Your Master Plan should show at least a 10-year growth plan, including a time frame for every phase of construction.
Design to get in easy.
Design to sit easy.
Design to see and listen easy.
Easy does it. Make your plant work for you!
Developing a Master Site Plan requires a detailed integration of historical records and forecasting future growth. Having a written plan proves you have done due diligence in preparing for your construction project, and the labor of that is rewarded by the many pitfalls avoided.
Hiring the Right Professionals
“Starting the architectural service tab too soon will waste your money and his time.” Pg. 85 Church Growth by Design. Roe Messner.
Only hire an architect or designer after 1) you have your projections for growth determined, and 2) you know what you want, need, and can afford.
Some preliminary drawings can cost well over $50,000.00 and may not meet the church’s budget, requirements, and final desires. Be very careful not to enter into binding agreements with architects that do not specialize in church design and construction. It may cost the church a significant amount of their building fund.
Sancturary and Facility Space Planning
Foyer
Your church foyer, or narthex, should be the warmest, most welcoming, and accessible location in your entire facility. It is an important transitional area, a place for spiritual preparation, expectation, and fellowship. Your design must say all of that. We recommend the foyer handle 20% of the sanctuary space.
Sanctuary
No matter what culture or denominational variances exist, the sanctuary serves one purpose. Worship. To that we add teaching, evangelism, celebration, and yes, even entertainment.
Make seating a priority: Access into the sanctuary should be easy. Aisles should lead people to the altar. Seating should be comfortable, convenient to get to, and aesthetically pleasing.
Allow 10 to 12 square feet per person for a reasonable sanctuary allowance.
Plan for Worship: Rectangular seating may hold true to “tradition,” but it works against acoustics and uniformity. The platform is the focal point and seating should be designed to transfer everyone’s attention there. Seating that fans around the platform create participation, hearing, seeing, easy entrance and exit, and the ultimate desired feeling of participation.
Balconies: Balconies can alienate your members from the “feeling” of participation. One of your sanctuary’s main goals should be to eliminate the spectator-performer syndrome. Balconies are not recommended unless the congregation seating exceeds 1,000. The gallery concept, seating that starts on the same level as the main sanctuary and goes into the second floor area, eliminates the separation created by traditional balconies.
Overflow: Balconies provide good overflow space, but if your church is growing at the rapid pace you hoped for, you must provide even more space on the lower level. Fellowship halls, removable partitions, and additional classrooms should always be designed to provide closed-circuit television systems and a church leader for personal touch, if you are out of room in the sanctuary
Platform: The center for ministering, and focal point. The platform should be at least nine feet from the front row, elevated above the congregation for good sight, and large enough to accommodate musical instruments and choir.
Pulpit: Designed as the place for ministry and exhortation of God’s Word, the pulpit should be in close proximity to the congregation.
Altar: The most sacred part of the sanctuary should be large enough to accommodate the move of God your Sunday service expects.
Choir and Instruments: Your platform should allow for all the instruments that your style of worship requires, and provide good visual communication between the minister of music, choir directors, singers, and musicians.
Multi-media, Lights, and Sound: These three have become a tremendous part of the worship service. They work hand in hand to make the presentation of the worship in song and preached word more effective. Eight to twelve percent of your budget should be dedicated to these technologies. The innovation of multi-media allows for tremendous exposure at minimized costs, (i.e. web casting, web design, and graphic print).
Make sure your sound system is designed for your style of worship. Acoustics that eliminate echoes and reverberation are a must for effective sound presentation.
Lighting: Illumination must avoid contrasts and claustrophobia, while at the same time is conducive to concentration. Avoid glare and reflection from any surfaces, windows or light fixtures. The sanctuary’s total design should include specialized stage lighting for music and drama productions. Television broadcasts or video recording systems also require theatrical lighting and direction. For larger sanctuaries, it is important to have high ceilings to create effective and aesthetic lighting designs.
Visual performance increases with object brightness. People believe what they can see. Investing your money wisely with an electrical lighting designer who will maximize the visibility of your sanctuary will provide a return of your congregation’ s attention.
Education
Time in the Sanctuary is only a single factor in the development of believers. To have an effective body of believers churches must offer bible and discipleship classes. In fact, a vital educational program is the feeder for those new sanctuary pews. With good planning, your learning facilities can be the gift that keeps on giving.
A good measure for calculating total educational space is 30 square feet per person. In some cases, if you are using the same space for sanctuary and education, allow 45 square feet per person.
Divide your educational facilities into the following categories:
Children’s Division
Preschool, Nursery, Primary, and juniors
Youth Division
Intermediate and High School Departments
Adult Division
Weekday Programs
Media Library and Resource Center
Business Administration
The designated area of your new facility for administration should not be sparse. The operation of a church is a business, and the effectiveness of it Monday thru Friday produces the favorable results you want on Sunday.
Your administrative offices need to take into account the current space requirements and the additional staffing that media, community, and for-profit divisions will need. Allow for a minimum of 150 square feet per staff office, and larger areas for media productions.
Pastors’ offices (usually a minimum of 250 to 325 square feet) are now being designed with -a study, restroom with shower, and entire apartment/lofts adjacent to or above. This allows for more rest and accommodation for longer workdays.
Building for Fellowship and Recreation
George Barna reports in “Growing your Church From the Outside In,” that unchurched people say they don’t return to churches because of the lack of connection they feel to the congregation. Designing your fellowship areas should concentrate the space for participation for all family members.
Foyers and the Narthex are now one of the main stages for community and fellowship in the church. Churches are allotting space for coffee bars and seating arrangements large enough for small groups and informal meetings. Fellowship halls and dining spaces are hallmarks in the history of the church Today, large membership roles and rapid life cycles make fellwoship opportunities and intimate relationships hard to accomplish. Designing your space to attract and accommodate the membership of your church can help restore this mainstay of unity and bonding.
For a more detail coverage and understanding of the Church Planning Process order your copy of Church Growth by Design by Clicking Here.
|
