New Revenue Without Selling the Mission
For many churches facing financial strain, the instinct is to sell. But selling is often a short term fix that severs a congregation from its spiritual and geographic roots. Fortunately, there are better ways forward. Ground leases, joint ventures, and condominium splits offer faith based institutions a chance to generate revenue while retaining control of their land and protecting their mission.
Ground leases, typically lasting 75 to 99 years, allow a church to lease its land to a developer while maintaining long term ownership. In return, the church receives steady lease payments that can fund ministry operations, capital improvements, or new programs. These leases are increasingly popular in places like Florida and Missouri, where churches are under pressure to monetize property but want to remain active in their communities.
Joint ventures provide a more collaborative approach. Here, the church may contribute land and a development partner contributes capital, design, and construction services. Income and decision making are shared, typically through a legal structure like a limited liability company (LLC). These arrangements require careful negotiation and legal safeguards, but when structured well, they allow congregations to stay engaged and benefit directly from the success of the project.
Condominium splits are another tool, particularly useful for mixed use developments. A church can retain ownership of its worship space and lease or sell other portions of the development, such as residential or commercial units. This model is being piloted in urban markets across the U.S., including Kansas City and Miami, where churches are redeveloping large properties to include sanctuaries, housing, and nonprofit office space under one roof.
The Marston Foundation helps faith based clients understand these models and choose the best fit. We provide financial modeling, legal referrals, and technical assistance to ensure each deal aligns with the church’s values and long term vision.
Successful examples include:
- Washington, D.C.’s Beacon Center, a joint venture between Emory United Methodist Church and a nonprofit developer that created 99 affordable housing units and preserved worship space.
- Hope Community Development in Florida, which used a 99 year ground lease to fund an early learning center and senior apartments.
By exploring non-sale options, churches can create revenue streams that empower rather than uproot. They can preserve their land as sacred, mission aligned space while answering the call to serve their communities in new and sustainable ways.