Is it wrong for churches to incur debt?

Introduction

The topic of whether it is wrong for churches to incur debt can generate significant questions about stewardship, responsibility, and biblical principles. Various passages in Scripture address borrowing, lending, and the spiritual mindset believers should have regarding earthly resources. Below is a comprehensive examination of these teachings and practical considerations.

Biblical Definitions and Concepts

Churches are communal gatherings of believers that often require buildings, resources, and planning to fulfill their mission. Debt occurs when repayment obligations are established, typically involving interest. Within Scripture, debt is not always flatly condemned, but it is approached with caution and set against the broader principle of responsible stewardship.

Old Testament Insights

1. Proverbs on Borrowing

Proverbs emphasizes the challenges associated with debt. Proverbs 22:7 states, “The rich rule over the poor, and the borrower is slave to the lender.” This warns that borrowing can place one in a position of subordination. For churches, this cautionary principle suggests the need to thoughtfully weigh the potential burdens and risks.

2. National Economic Guidance

In the Old Testament, the nation of Israel was instructed regarding lending and borrowing, especially in passages such as Deuteronomy 15:6: “For the LORD your God will bless you as He has promised; you will lend to many nations but borrow from none.” This was a covenant blessing dependent on Israel’s obedience, underscoring that depending on God includes exercising restraint in accumulating debt.

3. Generosity and Provision

The Old Testament also underscores that God’s resources are abundant. Malachi 3:10 records God’s promise concerning faithful giving: “…Test Me in this,” says the LORD of Hosts. “See if I will not open the floodgates of heaven and pour out for you blessing without measure.” While this passage addresses tithing, it highlights God’s capability to provide beyond expectation, possibly lessening the need for substantial debts.

New Testament Teachings

1. Romans 13:8

One of the most frequently cited verses on the topic is Romans 13:8: “Be indebted to no one, except to one another in love. For he who loves his neighbor has fulfilled the law.” While this verse primarily speaks about the moral debt of love, many interpret it as an encouragement to live free from unnecessary financial obligations.

2. Counting the Cost

Luke 14:28 states, “For which of you, wishing to build a tower, does not first sit down and count the cost to see if he has the resources to complete it?” Jesus’ words here address wise planning. A church contemplating debt is advised to prudently evaluate its financial capacity and potential future challenges.

3. Stewardship and Witness

The New Testament frequently highlights that resources are entrusted by God and should be handled with integrity (1 Corinthians 4:2). A church’s financial decisions can have public ramifications, reflecting either positively or negatively on its testimony.

Spiritual Mindset and Heart Attitude

1. Trust in Divine Provision

Scripture consistently teaches dependence on God’s provision. Philippians 4:19 states, “And my God will supply all your needs according to His glorious riches in Christ Jesus.” A prudent approach to church finances calculates realistically while also trusting in the work of providence.

2. Avoiding Greed and Presumption

The desire to take on excessive debt can sometimes stem from presuming on the future or a wish to expand beyond reason. James 4:13–15 reminds believers to say, “If the Lord is willing, we will live and do this or that,” guarding against arrogance in planning.

Practical Considerations

1. Ministry Focus

A central purpose of a church is to fulfill spiritual ministry. If debt severely restricts funds that could support outreach, missions, or benevolence, it can detract from this vital mission. Therefore, any form of borrowing must uphold the priority of ministry.

2. Impact on Church Unity

Debt decisions can affect congregational harmony. Ensuring transparent communication and collective agreement within the church body helps prevent strife or misunderstandings about financial obligations.

3. Risk Assessment

It is important to assess the ability of a congregation to honor obligations without compromising regular ministry functions. Entering debt without thoroughly examining interest rates, repayment terms, and economic trends can jeopardize the overall witness and integrity of the church.

Potential Pitfalls of Church Debt

1. Excessive Burden

A church weighed down by monthly payments might have fewer resources for benevolence, missions, and staff support.

2. Limiting Future Flexibility

Debt can lock a church into long-term financial commitments. If giving patterns shift, an economic downturn occurs, or unforeseen events affect congregants’ incomes, financial strain may ensue.

3. Hindering Generosity

The call to generosity can conflict with the stress of meeting loan payments. A congregation might reduce giving to the needy or be hesitant to embark on charitable endeavors.

Historical and Anecdotal Reflections

1. Early Church Simplicity

Early Christian groups typically met in homes or humble settings. While records of the earliest churches do not directly address building debt, their examples illustrate the principle of growing in step with God’s provision and focusing on communal support (Acts 2:42–47).

2. Modern Examples

Church history and modern anecdotal cases contain examples of congregations that took on large building projects with debt and saw successful payoffs due to unified efforts and wise planning. Others struggled under mounting financial pressures. The distinction often lies in prayerful discernment and thorough preparation.

Balanced Conclusions

1. Scripture Does Not Ban All Debt

From a broad biblical perspective, debt is not portrayed as an outright sin but comes with strong cautions. The emphasis is on prudent use of resources, wise planning, and reliance on God’s provision.

2. Stewardship and Prayerful Judgment

Decisions around church debt should be preceded by careful stewardship, prayer, due diligence, and congregational unity. Leaders and members are encouraged to consider both the spiritual and financial welfare of the church.

3. Maintaining Gospel Priorities

When contemplating debt, the church must ensure the primary mission—proclaiming the good news and caring for believers—remains uncompromised. Keeping a testimony of integrity and showcasing faith through responsible financial actions is paramount.

Summary

While Scripture issues warnings regarding the dangers of debt, it does not explicitly forbid a church from incurring debt. Each situation calls for discernment, guided by biblical principles of stewardship, integrity, and trust in divine provision. When churches “count the cost” (Luke 14:28) and engage in prayerful planning, they can responsibly decide whether incurring debt will support or hinder the overall calling to love God, serve others, and share the message of hope.