A CHURCH IS MORE than a building. It’s a gathering place. As such, it will need to constantly grow and evolve with its membership’s needs. Unfortunately, simply acknowledging when a church requires a change or addition is the easy part. The hard part is actually embarking on the change process – and the first headache a church will encounter is determining its construction budget.

The first thing a church must decide is what exactly needs to be done during the construction process. Is there going to be a particular focus – such as renovating the sanctuary – or is this going to be a larger project, such as adding a new facility to the existing church, or building a brand-new campus at a different location? In reference to time and money, the scale of the construction project will be a major factor, and success will hinge on how the church approaches this sizing decision.

“Churches need to balance two factors when deciding how large of a project to build,” says Scott Rolfs, managing director of the Church and School Financing Division at Milwaukee, Wis.-based Ziegler Capital Markets. “They must assess what the needs of the ministry are now, and what they will be in the future, as they relate to the physical plant; and how those needs can be reconciled with the church’s financial ability to pay for construction.”

In addition to sizing up the big-picture construction project, the church must look at the specifics of what is to be built and what will be needed in order for the construction goals to be met. This means that a church needs to be vigilant about researching the details of its construction project and factoring that information into the budget before beginning the building process.

“I cannot stress enough how important it is to know exactly what it is that the church wants to build before even meeting with an architect,” says Sherry Perkins, business administrator for Brownsburg, Ind.-based Connection Pointe Christian Church.

“And, once the organization determines what is needed, stick with the plan. Don’t start making changes. Change orders cost twice as much as the original order and cause extra expense at the end of the project because the original deadlines can no longer be met.”

Maintaining awareness of accessibility requirements and zoning ordinances from the outset is also very important, because lacking the proper permit can wreak havoc on the construction schedule, which will in turn wreak havoc on a building budget.

“Many things must be considered when putting together the budget for a building project,” Perkins reccomends. “People often forget to include costs associated with land surveys, the development of the master plan and acquiring permits from the city during the budgeting process.”

In addition, the suppliers and contractors who will be in charge of the construction will have a significant impact on how much the construction costs, how long it takes and how well it’s done – which is why a church must take its time when making hiring decisions.

“It is imperative that a church seeks the services of a reputable architect,” Perkins says. “We typically interview five or six architects before selecting one to work on our project because we’ve found that, while many architectural firms have the expertise and experience needed for a given project, it’s necessary to select one that fits the culture of your people. Relationships are important, as the church and architect must be a team in the construction process.”

Pre-emptive moves like these can reduce a lot of potential hassle during the building process, ensuring that everything gets done in an efficient and cost-effective manner. However, it is important to be aware that, regardless of how stringent a church’s planning is, unexpected costs may arise.

“Church budgets should include a construction contingency to pay for any unanticipated extras that result from the construction project,” Rolfs advises. “Ultimately, a church should never truly accept the construction budget as final until it has the final building permit from the municipality where the project will be located, because municipal requirements can add significant costs to a project that you may not anticipate.” One of the biggest dilemmas faced by churches during construction is how to attain and maintain the support of their congregations. Construction will inevitably cause disruption to the church, particularly if it is on-site, so those leading the project must be proactive about keeping the members of the church involved in and excited for the completion of the project.

To do this, many churches create an advisory committee for the construction project. This enables the church to incorporate members of the congregation in the building process who can provide feedback regarding the effect of construction on the church, as well as offer personal expertise on building- and budgeting-related matters.

“It is always very helpful for churches to enlist people in their congregation who have relevant experience in construction, fundraising and financial management because these people can assist the church in developing a construction and capitalization plan,” Rolfs says. “One experience profile that is helpful is that of a small- to mid-size business owner. These people generally have great real-world experience on what it takes to grow and fund an enterprise from the ground up – and growing and funding a church has many of the same characteristics.”

Perkins agrees and adds that having a church staff member act as the liaison between the advisory committee and the construction team is a way to alleviate any tensions that may arise. “As the business administrator for Connection Pointe, I actually led the construction team,” she says. “This worked well because I knew the direction the ministry wanted to go and could relate that to the team by drawing upon my construction background.”

Financial support from the congregation is also a key issue of building budgets, as the weekly tithe is often not enough to offset the costs of construction. As a result, churches must rely on fundraising efforts to garner the necessary money to pay for construction.

“There are many professional fundraising firms that can assist with how much money a congregation can realistically raise in cash or pledges to fund a project,” Rolfs says.

Overall, keeping the congregation ap- prised of the construction progress will ensure that they will be much more patient with the overall process – and willing to support it financially.

“Ultimately, let the church mission drive the type of building that will be done,” Perkins suggests. “Consider the costs, then begin to communicate with the congregation to see what they are willing to sacrifice for the project. This way, everyone has an opportunity to share in the mission and share the heart of ministry.”