Is it okay for a church to go into debt?

what does the bible say?

The Bible does not provide a direct comm and about whether a local church can take on debt, which leaves the matter to wise discernment and careful stewardship. The Bible consistently advises caution about debt, often highlighting the potential pitfalls (Proverbs 22:7; Romans 13:8). Debt may limit a church’s ministry flexibility, create long-term financial obligations, and add stress on leadership and members. Therefore, whenever possible, a church should prioritize financial prudence, careful planning, and reliance on God’s provision (Proverbs 21:5; Philippians 4:19), seeking to fund ministries and projects through generosity, tithes, and responsible budgeting rather than borrowing (2 Corinthians 9:6-7; Romans 13:8). While there may be situations where debt could be justified for essential mission work, it should never become a casual or default approach, and every decision should be made with prayerful consideration (James 1:5), accountability, and a clear plan for repayment.

from the old testament

• Biblical principles about individuals assuming debt can be applied to churches. One reason to avoid debt is that it gives control to the lending institution. Proverbs 22:7 states, “The rich rules over the poor, and the borrower is the slave of the lender.” For a church, this includes control of property as well as an interest rate on loans that requires giving a portion of church donations directly to the lender.

from the new testament

• Most churches borrow money for property and buildings. However, other more important needs often exist among the church family or community. These are important priorities to God and should be considered before taking on debt (Matthew 25:35-40).
• A church should also avoid debt to maximize resources for advancing the Great Commission. While buildings and properties can support ministry activities, the ultimate priority is reaching those who have never heard the Gospel. Financial burdens should not limit the church’s ability to make disciples and spread Christ’s message (Matthew 28:19-20; Romans 10:14-15).
• Philippians 4:19 teaches, “And my God will supply every need of yours according to his riches in glory in Christ Jesus.” Matthew 7:7 says, “Ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you.” Avoiding debt allows room for God to divinely provide funding.

implications for today

Debt is not necessarily always bad or wrong, but borrowing should be carefully considered prior to any decision. If God desires a large-scale project to take place, He will also help provide a way for it to occur. While this may include a loan, congregant donation is often how God works to fund a church project. Debt may offer a quick solution for the short term, but it can end badly if not managed well. A team of wise counselors, united in prayer and planning, can help work toward solutions that avoid heavy dependence upon loans that could hurt the church or its outreach (Proverbs 11:14, 15:22; James 1:5).

Recap

understand

• Debt carries risks and can limit a church’s control and flexibility.
• Churches should prioritize stewardship and God’s provision over borrowing.
• Debt may be allowed cautiously with prayer, counsel, and a clear repayment plan.

reflect

• What has God called you to steward, and how are you doing that?
• How are you seeking God’s guidance in financial decisions?
• How willing are you to trust God’s provision rather than taking on debt for immediate solutions?

engage

• How can a church discern whether taking on debt aligns with God’s priorities for its mission and ministry?
• What steps can a church take to avoid financial burdens that could limit its ability to serve the community and advance the Great Commission?
• How does reliance on God’s provision, rather than borrowing, impact the faith and unity of a church family and its witness to the world?