Which are the best sources of funding for faith based organizations and their real estate today?
How can faith based organizations overcome the hurdles in their way, raise the funds they need and maximize their potential for creating a positive impact and fulfilling their missions?
Despite individuals re-embracing faith in huge numbers today???s anti-Christian climate is making it incredibly difficult for many to see their visions become a reality.
So is it possible to raise that money, and if so what are the best sources and strategies, and what alternatives are out there that you might not have considered yet?
Seeking capital for a new business? See: 6 Ways To Raise Cash
Faith Based Real Estate: Wrestling with God & Man
One of the largest and most significant challenges facing new and established faith based organizations including non-profit charitable organizations and churches is real estate.
Mainstream banks and government programs can often derail applications for grants and loans because of their beliefs, and it???s no secret that many individuals are still catching up from the last seven years of economic downturn.
However, sometimes raising the money they need is only the first obstacle in the path of these organizations. The anti-Christian climate can also make it tough to get acquisitions approved, building permits and zoning variances. Such is the shocking case of one Southwest Florida church which has been facing resistance from one seller and neighboring property owner who actually claims to be a Christian himself.
Then there are concerns with keeping ongoing costs down, and being faithful stewards when it comes to empowering premises to be fully maximized and ensuring money raised is being put to full use a building which maximizes connectivity and impact on the community in a positive way.
How many empty churches are there out there today, or churches worth millions, but which are only open one day a week ??? WHAT AN OUTRAGEOUS WASTE! Is this even a sin?
So how can funding be successfully raised, ethically, and be put to the best possible use?
4 Sources For Funding Your Faith Based Real Estate Acquisitions & Developments:
There are piles of cash out there for funding charitable and faith based initiatives, with millions easily being raised by some organizations. So where are they finding it?
1. Commercial Real Estate Loans
Commercial real estate loans from major lenders are the first place that many entities turn to. However, if no joy is found from banks consider niche mortgage lenders specializing in church loans. Other options for those that don???t want to take on long term debt could include debt investors like Apollo Financial Group in NY which offer short term funding to secure contracts and begin due diligence while additional capital is raised from other sources.
2. Capital Campaigns
???Capital Campaign??? is the new buzzword being thrown around in this arena today, and there are consultants and other miscellaneous third parties which can provide strategy, materials and logistics.
3. Web Based Crowdfunding
Crowdfunding portals like indiegogo provide an established platform on which to raise funds from the ???crowd??? for all types of projects including real estate.
Find out more about crowdfunding in the recent report:
4. Community Crowd Funding
Rather than soliciting contributions from the whole world via the major crowdfunding platforms many are increasingly recognizing the benefits of community crowd-funded initiatives. Locals have more to gain by investing in community developments and are more likely to respond. In addition to just gaining capital this strategy also gives investors or contributors more ???ownership??? and motivation to make it a success.
The Game Changer: Switching The Dynamics Of The Status Quo
While some are doing an extraordinary job of maximizing the resources and property at their disposal, there is no question that many other buildings used or owned by churches and charities are horrendously underutilized.
This may not be willful waste. Often it is just a matter of following tradition and the status quo, without ever giving a thought to trying to do something new.
So instead of stagnant charity offices or typical church building, what about a community building which simply houses a church or faith based organization, and is open for a variety of other initiatives too? This could range from computer access for finding jobs to a caf?? to fitness classes, employment training, feeding the needy and more, but offers the advantage of majority control and ownership.
The added here value is fewer obstacles and objections; ongoing addition streams of income, more help with maintenance, and increased community engagement, while fulfilling all the missions on the hearts of the church and its members.