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Seller Beware
Posted by Josh Ellis in Church & Missions, IMPACT Features
The church is more than brick and mortar, steeple and pew, pulpit and altar. The church is the body of Christ gathered across the globe in physical locations spanning living rooms, board rooms, story trees, movie theaters, large public sanctuaries, and secret rooms owned by persecuted saints. Physical ownership of a designated space is hardly required to fulfill “where two or three are gathered in My name, I am there in their midst” (Mt. 18:20, NASB). However the issues regarding physical ownership of space are numerous. Occasionally, local congregations confront the desire or necessity to sell their facilities. This divisive issue requires constant prayer, careful thought, detailed planning, and—as this blog explores—a Kingdom-perspective of asset-management.
There are a lot of scenarios that lead congregations to sell their buildings, ranging from positive (the current property is landlocked and the church needs more room to accommodate expansion), to relocation (the church desires to move closer to their target audience) to distress (the church has shrunk and now cannot pay the bills). In most cases, the acquisition of new buildings or property in some way depends on the financial gain from selling the old property.
When it comes to the actual sale of church property, finding a buyer can be very difficult. Older churches are often grandfathered into zoning restrictions that would preclude a new buyer from the same advantages or even from continuing to use the property for that purpose. If the seller cannot afford to expand to the property around them due to cost or unavailability, potential buyers will likely not be able to expand either. And while churches can be converted into buildings for other purposes, they rarely are, thereby reducing the value of the property to the value of the dirt it sits on and making the building expendable. In the end, the best potential buyers are smaller churches looking to expand, though they frequently cannot afford the down payment on such a large sale.
Selling a church can also be traumatic for the vacating congregation. After all churches aren’t just buildings. They are locations where kids came to know Jesus at Vacation Bible School, where multiple generations gathered for Easter services, where couples were married, where babies were dedicated, and where a friend or neighbor found salvation after a lifetime of torment.
It can be painful to consider selling to a buyer who plans to demolish the building and repurpose the property. Conversely, churches must also decide how to respond if another religion wants to buy their property. I could take you on a tour of Buddhist temples, Hindu temples, and Muslim mosques that were all once evangelical churches. Churches can put restrictions on the new owners in some cases, but that reduces the pool of potential buyers. Emotionally, selling a church can often signal defeat for a congregation, and with defeat comes bitterness, sorrow, and hopelessness.
Because of the delicate business inherent to selling a church and the incredible leadership required to guide a church through such a tumultuous transition, this is not a process blog attempting to offer guidance on the nuts and bolts of that situation. Before entering into the process of selling, the question facing any congregation desiring to sell their facilities is: Is selling in the best interest of the Church—the body of Christ?
Losing a Foothold
There are parts of my city that are in rapid economic and demographic transition. Property that was purchased decades ago can now be worth ten times as much in the current market. With rising property values comes an economic barrier to entry for all but the most affluent buyers. Developers sense the shift in property values and seek to purchase homes and businesses in those areas including churches, offering churches a financial windfall and an incentive to move to a community more like the one they started in when the congregation originally formed. In the short term, this seems to be a win for both sides. However, should multiple congregations make the same decision, the emerging trend becomes devastating to the Kingdom. If a congregation were to leave those communities, it is unlikely that a future congregation would be able to afford purchasing property in those areas. The result over time is a community without churches- communities abandoned in the name of better utilizing Kingdom resources.
That scenario makes developers the bad guys, but what if the “developers” were good guys, like non-profit organizations or Christian universities? I attended a private Christian university for my undergraduate work and attend a different one while pursuing my PhD, so I have nothing against these institutions. These institutions can offer churches a legacy. “Donate your church’s property to us, or let the university buy your property, and you will make an investment in the future of Christian education and kingdom expansion.” Throughout the course of my private Christian education, I have undoubtedly benefited from such an investment.
Older churches that are shrinking are particularly drawn to this option because they often have property that is paid for and have no need for funds to reinvest in the next location. While I applaud churches that recognize the end is near and want to make a long-term investment in the future, why not donate the facility to an existing church, a church planter, or an association that will maintain the foothold in the community with a congregation that will seek to intentionally and missionally reach the community for Jesus Christ?
Of course there are congregations that, because of community transition, no longer relate to the worldview of their communities and therefore cannot minister to the needs of that community. The answer is not to give up, but to change tactics. In these situations, local congregations must ask themselves, “What are we willing to do to leverage these assets that God ultimately owns anyway?” Are you willing to let God use your valuable foothold in the community to advance the Gospel? Would you be willing to share your facilities, host a church plant, launch a church plant, or merge with another congregation for the sake of the Kingdom?
The brightest scenario for a moving congregation is simply that they have outgrown all the possibilities of remaining where they are. I am not against churches moving, and I know how difficult it can be to finance the building of a new physical location. All I ask is that you consider the footprint that you leave behind. If letting go of the original property is necessary, choose your buyer carefully knowing that they will not necessarily be as careful when they inevitably sell the property in the future. If possible, consider renting or selling your old facility to a like-minded congregation, helping them and the community you are leaving in one act of stewardship. Whatever decision your congregation makes, I pray that it be made with an eye toward the future and a careful understanding of Kingdom-oriented asset-management.
For an interesting story about one church’s decision to sell their property but remain in the community, see this 2009 story about Rolling Hills Baptist Church in Fayetteville, GA.
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Josh,
That should be part of an ongoing preparation and training in every church from day one. I would like to see a church with property that is paid off to seek an associate pastor of the nationality that is rising in the community. Then, the remaining church begin more of a mission type evangelistic work to help build a body from among the local residents with the intention of leaving them the property once it is self supporting. Since no one has written a book on this (that I know of) it may not have been tried.
Unfortunately, our churches do not prepare to replace their property or the pastor until the last minute. This is a very good topic and needs years of preparation before the time comes. Try to split up an oversized Sunday School class and you will see why preparation is essential.
Great topic.
Bruce, I agree with your comments wholeheartedly. I also think that there are a variety of strategies that churches, associations, and conventions could employ to keep from losing these properties. But your comment about Sunday school is dead on. I have been in a number of conversations with churches when that congregation is either dying and cannot maintain their facility, or churches that are moving and cannot see a way to finance their new structure without selling the old one. As with most church issues, it is intensely personal. With time, perspective, and Biblical teaching, those personal conflicts can be mitigated. But that requires a lot of intentional planning on behalf of the church leaders.
Thanks for your kind words.
Josh,
Just as 2 Tim. 3:7 says that we are “always learning and never able to come to the knowledge of the truth.”, our leaders do not intentionally prepare their congregations for what lies in the future. When it is time to make the next move in the church the people seem to have to go through the fleshly change that, because it is fleshly, is extremely hard to do. Our churches tend to grow toward traditions and monuments and then the building becomes their tomb stone. I pray that we will begin to lead the church into a pattern of disconnect with material things and press toward the mark of the high calling of God in Christ Jesus. Amen Amen Amen