You know the third seat in the fourth pew that you've always thought of as "yours"? It's getting a little threadbare. Maybe it's time to consider purchasing new pews for your church. Or new office furniture. Perhaps your classrooms are sadly out-of-date, or the carpeting in your entrance area is holier than thou?

It's time to get down to some serious shopping. Of course, shopping is the easy part. Catalogs and the Internet have made shopping for and purchasing new furniture and equipment very easy. Figuring out how to pay for it is the challenge!

Begin with a clear understanding of exactly what you will purchase and how much it will cost. Can you afford to pay cash? If not, how much will you need to raise, and is it feasible for your church to raise that much money? In this article, we list several options for raising the money you need.

Conventional Lending
If the need is immediate, cash is not available, and you can't wait until the money is raised, consider borrowing through a commercial lender. You will need to develop a financial plan that tells you how much you can afford to borrow. Your bank or lending institution will want to see this plan, and it should include church financial statements and budgets for the past three to five years (with special campaigns or contributions listed separately), along with church history and attendance figures and any special requests or unusual conditions.

Ask important questions of your lender, including the interest rate for fixed and adjustable rate loans, annual percentage rate (APR), special requirements (such as site visits), and fees (such as closing costs, commitment fees, and early payment penalties). It's a good idea to make a chart and compare all of the answers from every lender you approach.

Banks are eager to write loans, and interest rates are the lowest in recent memory. Due to the unsettled economy, however, be prepared for your lender to be more stringent about terms. Loans to churches and other religious institutions tend to be five-year balloon mortgages based on 20-year amortizations. Monthly payments are based on a 20-year repayment schedule, but the loan has to be repaid by the end of a five-year term or else you will need to refinance.

Many forms of commercial financing can be found on the Internet. If you put the words "churches AND loans" (without the quotes, but with the capital letters) into a search engine like google.com, it will return several companies that specialize in loans for non-profit organizations such as churches. The benefit of this kind of company is that they understand your needs and are used to dealing with organizations in the same kind of cash-flow situation as your church. Some charge fees, some don't. Online instructions are generally easy to follow, and you don't commit yourself until you click "submit."

Recognizing that loans are repaid through congregational giving, lenders will consider pledges for future giving as collateral for a loan. It may be a good idea to hold a pledge drive for your purchase before asking for the loan.

Leasing
Leasing companies represent another means of securing immediate needs. Many established companies can help you afford their products by pointing you to a leasing company with whom they do business. Leasing companies can provide computers, office equipment and furniture, and other specialized equipment unique to your needs. The lessor will charge a monthly fee for the items you need. It will also contact the company that supplies those items. Leasing companies work with a number of different furniture and equipment outlets, so you are able to choose from a variety of companies.

At the end of the lease period, you either buy the items outright at a predetermined price, extend your lease, or start all over. Or, if you have bought yourself enough time to fundraise, you can now go out and buy the things yourself.

Lending institutions prefer to work with loans of $100,000 and more. But for a small organization, even a $5,000 loan may be needed. Leasing companies are prepared to work with those smaller numbers. The loans are at a fixed rate, with the buy-out price worked out ahead of time. Because leasing companies offer up to 100 percent financing, you can save cash for other purposes. At the same time, it helps preserve a bank line of credit for your church's working capital needs. You will pay off your lease with monthly payments that can be geared to your particular cash flow or budgeting needs.

Fund Raising
Have you heard the story about the treasurer of a congregation who says to his board of trustees, "I found the money we need to finance our project! It's all right here in the church!"

"Wonderful!" the trustees exclaim. "Where is it?"

And the treasurer says, "It's in your pockets!"

Ultimately, our congregations pay for all purchases, whether made with cash or borrowed money. If you've decided to raise money above the normal giving through fundraisers, try to think beyond the usual dinners and bazaars. While those may have a positive history with your congregation, something new will pique the interest of those who might otherwise react with a "ho-hum, here we go again." Also keep in mind that the most successful times to run a fundraising campaign are between September and Thanksgiving, and after Easter.

Consider some of these novel fundraising ideas:

Does your church have a website? Ask the webmaster to create a page for a "registry," similar to a bridal registry. Post a list of the items you wish to purchase, the quantity, and the cost for each, and keep a running total of how many are ordered. Announce it in your weekly bulletin. Congregants can then go to the page, click on the item, and pledge money toward the purchase of that item. People can choose to "sponsor" a chair, a signboard, a desk, a prayer book, etc. A group—such as a Sunday school class—can sponsor a more expensive item. An added benefit to this ongoing fundraiser is that people can visit the website often and see what's left to purchase. And if they see that "only one more chair" is needed, they might be willing to donate the money to buy it. Plus, this is one more way to get parishioners to visit your website.

For an evening event, hold a Goods & Services Auction. Ask local businesses and your congregants to donate items or services that congregants can bid on. These can range from sports or theater tickets to cars, trips, or new items provided by merchants. Surely there are people in your congregation whose businesses would welcome the publicity and tax deduction. You can also create an opportunity for your congregants to share their special talents by auctioning off a hand-knit sweater, home-baked meal, family portrait, or other project done by a member of the congregation. The youth group can be a great source for such an auction. Many church members would be glad to "rent" a healthy teen for a few hours of yard work or other project around the house.

A new style of giving is being tried at various churches around the country. This is automatic giving by credit card. Although it doesn't have the same feel-good quality as actually seeing the money in the collection plate, it does have the benefit of allowing parishioners to donate larger sums, which they can then float with their credit card companies until payment is due. Costs to the church are minimal in comparison with what a retail business would pay.

Whether you choose to finance in a conventional manner, through a lease, or fundraisers, be careful to not put yourself in such bondage, financial or otherwise, that you can't minister to those around you.

Marlene Heller (ByMHeller@aol.com) is a freelance writer living in Kendall Park, New Jersey.