The American church is unique in that, historically, churches have been dependent on the generosity of their members, as opposed to European churches, which benefit from state-supported taxation.
We are increasingly daunted by challenges in teaching, inspiring and receiving that generosity. While I strongly believe that stewardship should be preached from the standpoint of abundance and not scarcity, the needs of congregations today outpace the will of people to give, especially given the generational differences between "the great generation" and baby boomers and then between baby boomers and millennials.
Churches need money for ministry. We typically generate income from contributions and offerings, program fees and revenue, issuance of debt (yes, it is a source of funds...albeit one that must eventually be returned) and investment income. Fortunately, many churches are investigating and establishing endowments that foster planned gifts from donor assets as opposed to annual gifts from donor income.
But are there other models available - ones that can fund ministry and operate with integrity, but not displace the priority of free-will giving? I believe so.
There is one asset that nearly all churches possess. Land. Placing buildings on church land does not have to be the land's sole function. Land can also be used advantageously to fund ministry.
The Collegiate Churches of New York City, which include the congregation I presently serve (Marble Collegiate), have embarked on a joint project with a recognized developer in New York City. We plan to construct a mixed use facility of some sixty stories that will encompass both needed sacred space for our ministries and residential condominiums for the public at market prices.
Working with a developer enables the church to obtain first-rate connections in navigating the vast legal requirements of the city, while also securing advantageous financing for the project. What did the church bring to the relationship? Land. Valuable land that sits in proximity to Fifth Avenue and the Empire State Building. We will split the profits 50%-50%, and after all expenses, that will more than secure a healthy return for our own endowment.
Context determines some possibilities, of course. In urban areas, congregations can use land for mixed use projects jointly occupied with other tenants or owners. Others might use their land as the investment in the project but have no plan to occupy, yielding new tenant buildings, commercial spaces and retail ventures. In rural areas, land can be used in leasing opportunities for timbering, oil and natural gas extrapolation, tenant farming or other uses.
