Church Financing Alternatives

Like a business, churches and other non-profits have a need for financing. Today, we’re discussing options to keep the church financing in-house.

So, if you want a strategic financing strategy that guarantees your church or other 501(c)3 would never lack the funding to accomplish the most important mission of all… tune in now!

Podcast: Play in new window | Download (Duration: 29:36 — 33.9MB)

Subscribe: Apple Podcasts | Spotify | Android | Pandora | RSS | More

Funding Not-For-Profits

If you’re running a church or other not-for-profit business, chances are you need funding. Funds allow you to create more good for your community and accomplish what is likely a big mission. Without the proper funding, especially consistent funding, those goals can seem out of reach.

Donations are a common source of funding for churches, as well as bank financing, yet relying solely on these methods of financing can be unreliable. If you’re seeking to achieve big goals and take care of a broader community, control of financing is crucial.

Fortunately, you can use Infinite Banking for church financing. However, in a church or other not-for-profit sector, it’s likely that much of what you do must include collaboration. In other words, there has to be some consensus. This can mean educating your peers and other church leaders, as well as discussing how privatized banking can benefit your church or not-for-profit. (Note: We recommend having your board or administration speak with a financial professional, as the conversation can be complicated.)

Infinite Banking Concept for Churches

Why might a church want to use infinite banking? If you’re considering the Infinite Banking Concept for your organization, this is a great question to ask. For many institutions, we believe the answer might be that funding a life insurance policy allows you to save money and finance projects without a third party, such as a bank. This can add more stability to your organization’s financing, beyond the tithe, donations, and banks. 

“If you have large reserves, and you’re trying to store that cash as effectively and efficiently as possible so it can do the most good for you, then infinite banking would be an ideal storage place.”

That’s because the cash value of a life insurance policy allows your cash to work as hard as possible while you’re waiting to use it. Not only this, but the death benefit of the policy will help you plan in the long-term for your church or organization. When that benefit is paid out, it can be used for ongoing financing for the church or organization.

Will Infinite Banking Work For Every Not-For-Profit?

If, however, your organization does not have a lot of cash reserves or has a lot of debt, you may not want to start a policy right away. That’s because you must still have a way to fund the policy, which is often with cash reserves. The first step to building a policy for your organization is to figure out how you will finance the policy.

Similarly, if your church has significant debt and you are struggling to pay off that debt, it might not be the best decision to open a new policy. An Infinite Banking policy requires debt management, and it’s not advisable to use a policy loan to pay off another loan. Working with an advisor can help you determine the best strategy for managing your organization’s finances and debt.

You Don’t Need to Operate on a Razor-Thin Budget

“Just because you’re non-profit doesn’t mean that you should not be financially responsible and that you shouldn’t be profitable.”

There’s a myth that not-for-profit companies should operate on a razor-thin budget because they’re a public service. However, in our conversation with Kris Putnam-Walkerly, we broke that myth wide open. 

The reality is, no business can reach its full potential on a razor-thin budget. The company itself may not profit, however, the company still provides a service. Those services often cost money, and it also costs money to maintain buildings and pay employees. Being financially responsible and generating profit helps non-profits retain good employees and accomplish the company’s wider mission.

Without money flowing in, these factors become difficult. 

Who Should Be Insured for Church Financing?

Pastors, administrators, and other church or non-profit leaders are great options to insure with a whole life insurance policy. Keep in mind that there must be an insurable interest for the church or organization. In other words, the person being insured must be integral to the success of the organization. 

The reason is due to the nature of life insurance. Aside from the cash value, the key component of life insurance is the death benefit. This is paid out to the beneficiary, in this case a church or organization, when the insured passes away. In a family structure, you can think of the death benefit as income replacement. The death benefit helps replace the income lost by the passing of that family member, for instance, the head of the household. This gives the family ample time to grieve and determine the next steps while keeping up with bills and expenses.

For a church or non-profit, the incentive must be similar. For example, insuring the pastor would give the congregation the funds and time to hire a new pastor, keep things running, and even fund a new policy. In this instance, the pastor is integral to the church’s mission. 

Whoever your organization chooses, they should be a key player in the company.

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.