It is estimated that 80% of churches do not have a deferred maintenance fund. This means many churches are one emergency away from possibly closing their doors.
Deferring maintenance projects may seem like the best solution when funds are tight. Unfortunately, waiting doesn’t make the work cheaper. A roof replaced on schedule gets three bids and a spring install date. A roof replaced after a leak gets whoever can come Tuesday, at whatever they charge. In addition to the new roof, you must also pay for drywall, insulation, and carpet as a result of the leak. And the invoice is not the worst of it. Instead of focusing on mission, your board is focused on emergency maintenance; and your pastor spends a spring on bids instead of people.
There’s a better way. Planning for the building needs ahead of time is how you protect the mission from the building. Here are five steps to help you figure out what your church should be setting aside each month, and each year, for the work that is coming.
- WRITE IT DOWN
Walk the property and list the items that will eventually need to be replaced – roof, HVAC, parking lot, water heater, windows, flooring, kitchen equipment, technology, etc. Next to each item note the year it went in, how long it should last, and what it would cost to replace today.
- DO THE MATH
Once you figure out how long each item should last, subtract the current age of the item. This is how long you realistically have to be ready to replace it. Divide the replacement cost by the number of months until estimated replacement. This is the number you need to set aside each month for that item to be ready for replacement.
- PUT IT IN THE BUDGET
Deferred maintenance funding belongs in the annual budget next to utilities and insurance. If it lives in whatever is left over in December, it will not survive a hard year. And Murphy’s Law tells us the furnace will go in a hard year.
- ATTACH RULES
Hold the reserve account somewhere separate and write a short policy (1/2 page is plenty) that says what it can be spent on, e.g. building maintenance and improvements, new construction, land. Anything else takes a board vote.
- REPEAT
Once a year, walk the property, update your spreadsheet, calculate the numbers, and plan accordingly.
A church that puts away $1,500 a month for ten years writes a check for the roof and stays on mission. A church that does not runs a capital campaign. Protect your mission by being proactive.
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