Turning Liabilities Into Opportunities
Church Facilities Reimagined
AUDIO ONLY VERSION
Restructuring your facility use could lighten your load and result in a greater ministry impact.
Some churches have an abundance of people, but no permanent place to meet. Other houses of worship have an abundance of space, but few people. These scenarios can be viewed as problems, but our guests in this webinar are in the business of seeing them as possibilities – possibilities such as these:
Could a congregation sell its property, then lease part of it back?
Could a church in need of a home lease the property of an existing church, benefitting both organizations?
Could a church sell some, or part of its property, for a use that is aligned with its mission, such as affordable housing, nonprofit offices, or a day care?
Restructuring the use or ownership of your facility does not mean ending your mission. In fact, lightening the financial load and freeing up time spent on maintenance could reinvigorate your work.
Summary of webinar on church real estate transactions
Landis Graden and Megan MacIver from DCG Strategies discuss the critical challenges facing churches with underutilized properties, offering a faith-based yet strategic approach to real estate decision-making. They emphasize that property decisions are not just transactional, but deeply connected to a church's mission, and provide expert guidance on how congregations can transform potential challenges into opportunities for community impact and ministry growth. The discussion highlights the growing issue of underutilized church buildings in evolving communities, where changing demographics and increasing costs have left many congregations struggling to adapt.
Landis and Megan share insights from their extensive experience in real estate, particularly within the faith-based sector. They emphasized the importance of understanding the mission and values of a church before making real estate decisions. They explore practical approaches for churches facing the difficult choice of whether to sell, renovate, or repurpose their properties. Landis underscored the need for church leaders to face the reality of their situations, including the possible need to transform their facilities into spaces that better serve their communities. This could involve leasing parts of their property, selling it to invest in new ministries, or creatively reimagining how their spaces can be utilized.
The webinar also showcases case studies of organizations that successfully navigated these transitions. For example, a church in West Oakland embraced the changing landscape to provide housing for vulnerable seniors, while a church in Newark merged with another congregation to maximize their resources for community impact. Throughout the discussion, the speakers reiterate the value of collaboration, communication, and the need to approach these challenges with an open mind.
Key Points
Demographic Shifts: Churches are facing challenges due to changing neighborhood dynamics, declining membership, and increasing maintenance costs.
Mission-First Approach: Understand a church's core mission before making any real estate recommendations.
Three Primary Options: Churches can lease part of their property, sell part or all of their property, or develop their existing land.
Transformation Stories: Case studies are shared of churches successfully repurposing properties for housing, community services, and supporting other ministries.
Pastoral Perspective: Recognize that property decisions involve emotional and spiritual considerations, not just financial transactions.
Patient Process: Approach property discussions with patience, building trust, and understanding the unique decision-making dynamics of faith communities. Rushing and a false sense of urgency make the transactions for difficult and could introduce problems.
Bridge-Building: Use trusted relationships and patient communication to help churches explore potential property solutions that involve other property owners.
Expert Guidance: Church real estate is not a niche for generalists. A quality transaction requires specialized knowledge in church real estate that understands unique operational timelines and potential risks
Positive Reframing: View property changes as opportunities for renewed ministry and community impact, not as failures.
Timestamped overview of church real estate webinar
00:00:00 - Introduction
- Host Roy Harryman welcomes participants to the webinar sponsored by Ministry Pacific.
- Introduces guests Landis Graden and Megan MacIver from DCG Strategies.
- Clarifies that Ministry Pacific is an insurance broker focused on serving churches and nonprofits.
00:01:45 - Guest Introductions
- Megan MacIver shares her background and the mission of DCG Strategies.
- Explains their full-service real estate firm model aimed at serving mission-driven organizations.
00:02:02 - Overview of DCG Strategies
- Megan describes the types of organizations they serve (churches, faith-based institutions, nonprofits).
- Highlights their advisory, strategy, and brokerage work in real estate.
00:03:55 - Challenges Faced by Churches
- Roy introduces the topic of increasing numbers of empty church buildings.
- Landis discusses demographic changes and rising costs as key factors affecting churches.
00:06:59 - Adapting to Change
- Landis and Megan share insights on how churches are struggling with adaptation.
- Emphasizes the importance of recognizing current realities without denial.
00:09:50 - Solutions for Underutilized Properties
- Discussions on how churches can view underutilized spaces as assets rather than liabilities.
- Examples of repurposing church land for community benefit.
00:10:31 - Real Estate Options for Churches
- Landis presents options for churches with excess property, focusing on their mission before real estate solutions.
- Explains three key options: leasing, selling, or developing property.
00:15:00 - Creating a New Vision
- Landis stresses the need for churches to clarify their mission and vision as a foundation for real estate decisions.
- Examples of churches successfully adapting their real estate strategies.
00:17:42 - Case Studies
- Landis shares a success story about Friendship Christian Church in West Oakland transforming their property to house vulnerable seniors.
- Discusses another case of a Lutheran church merging with another congregation for greater impact.
00:22:01 - Importance of Real Estate Expertise
- The significance of understanding church-specific real estate needs vs. general commercial experience.
- Emphasizes the value of education and informed decision-making in church real estate.
00:28:25 - Objective Perspective
- Discussion on how external experts can provide valuable insights and clarity for church leadership.
00:33:17 - Choosing the Right Broker
- Key advice on selecting brokers with experience in church real estate to avoid potential pitfalls.
- Importance of long-term commitment and understanding unique church dynamics.
00:36:15 - Navigating Change
- Megan talks about the importance of trust and relationship-building in facilitating church decisions regarding property.
00:41:13 - Questions from Attendees
- Addressing concerns about parsonages and their impact on property decisions.
- Discussion on denial and grieving in decision-making processes for churches.
00:42:07 - Timeframe for Consultations
- Landis explains that the typical timeframe for gathering information for transactions is 45-60 days.
00:43:51 - Approaching Other Congregations
- Landis shares strategies for tactfully approaching congregations with underutilized buildings.
00:46:24 - Handling Developer Interest
- Guidance on managing neighborhood concerns and the political landscape around potential property developments.
00:49:59 - Geographic Scope of Work
- Landis explains that while they operate primarily in California, they also consult outside the state and partner with licensed brokers as needed.
00:50:43 - Conclusion
- Final thoughts from Landis and Megan.
- Encouragement to check out the DCG Strategies website and express gratitude to the attendees.