Church Financing Alternatives

The Money Advantage Podcast

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. https://www.youtube.com/watch?v=cSnti9l_C40 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! Table of contentsFunding Not-For-ProfitsInfinite Banking Concept for ChurchesWill Infinite Banking Work For Every Not-For-Profit?You Don’t Need to Operate on a Razor-Thin BudgetWho Should Be Insured for Church Financing?Book A Strategy Call 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,