Is it right for a church to go into debt?

Answer

Nowhere in the Bible does God give permission for a church to go into debt. On the other hand, neither does the Bible expressly forbid a church from taking out a loan. Broadly speaking, however, it does not seem wise for a church to be in debt. In nearly every instance where debt is mentioned in the Bible, it is in a negative light (Deuteronomy 15:6; Deuteronomy 28:12; Proverbs 17:18).

Essentially, when a church takes on debt, it becomes a slave to the institution making the loan: “The rich rules over the poor, and the borrower is the slave of the lender” «The rich ruleth over the poor, And the borrower is servant to the lender. », (Proverbs 22:7). In the Old Testament, God wanted Israel to be a creditor nation—loaning money, not borrowing: “The Lord will open to you His good treasury, the heavens, to give the rain to your land in its season and to bless all the work of your hands. And you shall lend to many nations, but you shall not borrow. And the Lord will make you the head and not the tail, and you shall only go up and not down, if you obey the commandments of the Lord your God, which I command you today, being careful to do them” (Deuteronomy 28:12-13). In other words, God promised His people that He would make them the creditors if they obeyed Him, debtors if they disobeyed.

Here are three compelling reasons for a church not to go into debt: first, borrowing denies a church the opportunity to see God’s blessings: “And God is able to make all grace abound to you, so that having all sufficiency in all things at all times, you may abound in every good work” (2 Corinthians 9:8-13; see also Philippians 4:19). John tells us that if we have confidence before God, we will receive from Him whatever we ask (1 John 3:21-22; see also Matthew 7:7 and James 1:5-6).

Second, a church burdened by debt restricts its ability to serve the Lord. Important ministry decisions may be influenced by the need to make debt payments, and the actual work of the church may suffer as a consequence.

Finally, many churches opt to incur debt with the belief that “the new building, etc., will attract more people, enabling us to pay off the debt.” In reality, church contributions often go towards interest payments rather than the gospel work (Matthew 28:19-20). Studies consistently reveal that most denominations in debt allocate more funds to interest payments than to evangelism or mission work.

Arguably, the most detrimental outcome of a church accumulating debt is the strain it places on its members. The church desires growth, but now its motives are mixed. It faces the added pressure of meeting monthly payments. The unity of purpose and clarity of motive are compromised by the pursuit of additional income. If attendance declines, financial challenges quickly arise. This situation fulfills the words of James: “The one who doubts is like a wave of the sea that is driven and tossed by the wind” (James 1:6-7).

When a church goes into debt, it is essentially attempting to serve two masters: God and Money « No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cann

ot serve God and mammon. », (Matthew 6:24). God instructs us to walk by faith; Money encourages us to walk by sight «(for we walk by faith, not by sight:) », (2 Corinthians 5:7). God imparts humility to us; Money promotes pride «Likewise, ye younger, submit yourselves unto the elder. Yea, all of you be subject one to another, and be clothed with humility: for God resisteth the proud, and giveth grace to the humble. », (1 Peter 5:5). God advises us to set our minds on heavenly things; Money focuses on earthly matters «Set your affection on things above, not on things on the earth. », (Colossians 3:2). God encourages us to consider the unseen and eternal; Money fixates on the seen and temporary «while we look not at the things which are seen, but at the things which are not seen: for the things which are seen are temporal; but the things which are not seen are eternal.», (2 Corinthians 4:18). God advises us not to be anxious about anything; Money and anxiety are rarely separated (Matthew 6:31-33;Philippians 4:6). The reality is that the church cannot serve both God and Money and remain united. Numerous churches have been hindered by an inability to manage or pay off debts.

Church leaders must exhibit their unwavering faith in God, showing that He can and will provide all necessary resources, including financial means. “For we walk by faith, not by sight (2 CorinthianS 5:7; see also 2 Corinthians 4:18 and Hebrews 11:1). A church with no debt is an influential witness to its community that God does provide for His people, and it is blessed to serve others instead of servicing a debt.

“May grace and peace be multiplied to you in the knowledge of God and of Jesus our Lord. His divine power has granted to us all things that pertain to life and godliness, through the knowledge of him who called us to his own glory and excellence” (2 Peter 1:2-3). If He has “granted to us all things that pertain to life and godliness,” we can also be assured that everything the church needs to “go into the world and preach the gospel to the whole creation” will be provided as well «And he said unto them, Go ye into all the world, and preach the gospel to every creature. », (Mark 16:15).