Is it right for a church to go into debt?

The Bible does not directly address the matter of a church going into debt or taking out a loan. Given the Bible’s silence on the issue, most churches have set their own policies regarding debt and what works best for their congregation or denomination. Some churches will sign a promissory note to fund a building project, for example, or a renovation or the purchase of new property. Other churches follow a no-debt policy: they receive donations, but no debt is incurred; if the funds are not available, then the work does not happen.

If a church is deciding whether to take on debt, there are some factors to consider. One is that Scripture contains warnings about debt. Proverbs 22:7 teaches, “The rich rule over the poor, and the borrower is slave to the lender.” The caution here is that debt creates a kind of servitude, binding the borrower to the lender. A church, whose purpose is to serve God and minister freely to His people, must be careful not to entangle itself in obligations that could limit its ability to fulfill that mission. A similar caution comes from Romans 13:8, which says, “Owe no one anything, except to love each other.”

In the Old Testament, God’s desire for Israel was to bless them so abundantly that they “will lend to many nations but will borrow from none” (Deuteronomy 28:12). Of course, the Old Testament economy has no direct bearing on church policy, but it’s remarkable that God’s blessing on Israel was associated with freedom from debt.

When a church takes on debt, there is a risk that its ministry focus begins to shift from dependence on God’s provision to dependence on financial management. A church encumbered by debt may begin to make decisions based on financial pressures rather than spiritual discernment. It would be tragic if a congregation’s energy and attention were directed away from teaching the gospel and ministering to the community and toward meeting financial obligations. Being financially free may position a church to better respond to opportunities for ministry and missions.

The Christian life is to be lived by faith, and believers are to trust God’s provision rather than lean on human strategies (see 2 Corinthians 5:7). Taking on debt may indeed help a church minister to more people and can be an important part of a strategic plan for growth. In such a case, the church takes a step of faith, trusting God for the future income. On the other hand, taking on debt may burden the church with a commitment that proves onerous and restrictive in the long run. Wisdom is needed. Is taking on debt an act of faith or presumption? Each church should pray for discernment and then answer that question for themselves.