After more than 30 years helping churches plan, design, and construct ministry facilities, I’ve seen one common mistake repeated time and again: focusing on the cost to build, not the cost to own.
Each year, millions are spent on new or renovated church buildings—but few leaders truly account for what it costs to operate, maintain, and sustain them. In this guide, we’ll uncover what facility ownership really costs and how proper planning, budgeting, and stewardship can keep your ministry financially healthy for decades.
Zoom Out: Actual Costs of Church Facility Ownership
I want to start by digging into the real costs and ownership associated with our church facilities as an overview. For this demonstration, let’s assume that our new church facility is 30,000 SF for $7,500,000 (initial cost). Let’s assume we borrowed $6,000,000 to pay for a project through a 15-year loan at 7.4%. However, we paid it off in seven years. In this scenario, you will have paid approximately $3.2M in interest (cost of ‘money in this scenario).
How much is a church?
Based on our research and benchmarking provided by International Facility Managers Association, the average church in America will spend up to $7.50 per square foot annually for janitorial services, utilities, and general maintenance (cost of operation). It will also spend an additional amount on capital improvements up to $3.00 per square foot range (assuming there is no deferred maintenance to account for). Therefore, for the sake of this exercise, let’s assume we will spend $9.25 per square foot on operational and capital reserve costs.
Let’s assume a 40-year life cycle at 2.5% per year of inflation. Since operational costs are perpetual and paid using inflated dollars, this is going to increase. So, $315,000 per year multiplied by 40 years at 1.5% per year without compounding equates to $22,077,599.
Zoom In: What Do The Costs Mean
So, what do these costs actually mean? Here’s a summary from the above:
- Initial costs: $7,500,000
- Cost of money: $3,200,000
- Cost of life cycle operations and capital reserve: $22,077,599 ( aka $736/SF, ouch)
- The total cost of church facility ownership: $32,777,599
Wow, that is a lot of money. But that’s not even the shocking part. The combined cost of the construction and design is only about 3% of the total cost of ownership. The construction costs, including the design, are only about 22% of the total cost of church facility ownership. The interest paid is about 9% of the total cost of ownership. Therefore, this leaves about 66% of the total ownership cost in operation costs and capital expenditures.
What Costs More: Building a church or operating a church?
Operating—by a landslide.
The ongoing expenses of maintenance, energy, capital renewal, and deferred repairs silently consume budgets. According to ChurchTrac, most churches spend 20–30% of their total budget on facilities and operations, while Tithe.ly’s research shows an average of 23% allocated to facilities annually.
These numbers show the majority of financial weight happens after the ribbon cutting. Unfortunately, few churches plan for that reality.
Some facility owners become frustrated when they see 7% instead of 5% for design fees or if the construction partner charges 6% instead of 3%. The fees that comprise only 3% of total costs of ownership seem so important at the time, but the decisions and directions suggested and put in place are what will be a part of your building for a long time. All that to say, it’s essential we fix our focus to the actual cost of facility ownership – not the initial.
Church Facility Stewardship and Ownership
Facility stewardship isn’t about cutting costs—it’s about maximizing ministry through wise, sustainable management. True stewardship includes every phase of a building’s life cycle, not just its grand opening.
1. Purposeful Facility Planning
Before building, ask:
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Does this facility truly serve our mission and vision?
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Can we sustain its operational costs?
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What is the long-term financial impact on our congregation?
Good planning includes life cycle projections and reserve allocations—not just square footage and seating capacity.
2. Proper Facility Development
Wise construction includes financial stewardship. Invest in design that reduces operational costs, not just upfront expenses. Energy-efficient systems, durable materials, and flexible layouts lower long-term expenditures.
As McKnight Group reports, churches should currently budget $275–$325 per square foot for new construction—but more importantly, they must plan for decades of maintenance that follows.
3. Proactive Facility Management
Reactive maintenance is costly. Studies show churches that use proactive facility management software (CMMS) reduce operational costs by 35–45% compared to those without structured systems.
A comprehensive maintenance plan ensures your HVAC, roofing, and lighting systems reach full life expectancy—saving thousands annually.
4. Transparent Budgeting and Reserves
Your operating budget should include clear line items for maintenance, capital reserves, and replacements. Our team here at Smart Church Solutions recommends budgeting $4.50–$7.00 per square foot annually for operations, plus $1.00 per square foot toward future capital reserves.
The Real Cost of Neglect
Deferred maintenance always costs more later. Churches that fail to plan for lifecycle replacements often find themselves facing large, unplanned capital crises—roof failures, HVAC replacements, water damage—all of which divert resources from ministry.
“Facility stewardship is not about bricks and mortar; it’s about mission readiness.” — Tim Cool
A building should serve ministry, not strain it.
Building for Longevity
When you understand the full cost of ownership, your perspective changes:
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You design smarter.
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You budget with foresight.
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You operate with stewardship.
Investing in the long game ensures your building remains a ministry tool for generations—not a financial burden.
Free Resource: Church Facility Budgeting eBook
Our team is here to help you get started. We even created a FREE church facility budgeting ebook to set you in the right direction. Make sure to download your free copy today!
