Reimagining Sacred Spaces: How Churches Can Sustain Mission Through Revenue-Based Partnerships
For generations, church buildings have been more than places of worship. They’ve been community gathering spaces, shelters in times of crisis, and centers of spiritual formation. Yet today, many churches find themselves struggling to maintain their expansive facilities, originally built for larger congregations and busier weekly schedules. With declining attendance and financial support, these spaces—once symbols of thriving ministry—can become burdens rather than blessings.
Rather than seeing unused space as a liability, churches can embrace a new vision of sustainability by creatively using their buildings to both serve their communities and generate revenue. Through intentional space-sharing and revenue-based partnerships, churches can breathe new life into their facilities while ensuring financial stability for years to come.
The CBFNC Church Sustainability Initiative (CSI) is designed to help congregations explore these opportunities and implement sustainable, mission-aligned partnerships.
The Case for Space Partnerships
As churches reassess their sustainability, many are asking:
- How can we leverage our facilities to meet community needs?
- What kinds of partnerships align with our mission and values?
- How do we balance financial sustainability with our sacred calling?
The reality is that church buildings sit empty for much of the week—an untapped resource that could be used to engage with the community in new and meaningful ways. By partnering with mission-driven organizations, nonprofits, or local businesses, congregations can reimagine their space as a hub for service and collaboration while also creating financial streams that support ongoing ministry.
Creative Ways to Utilize Church Space
Churches across the country are finding innovative ways to transform their buildings into community assets that also provide financial sustainability. Here are some successful models:
1. Nonprofit and Community Organization Partnerships
Many churches have large fellowship halls, classrooms, and office spaces that can be leased to nonprofit organizations. Potential partners include:
- Food pantries and meal distribution programs
- Counseling and mental health services
- After-school tutoring programs
- Senior activity centers
- Refugee and immigrant resource organizations
Financial Benefit: Nonprofits often seek affordable, centrally located spaces and are willing to pay reasonable rent. These partnerships provide steady income while aligning with the church’s mission to serve.
2. Childcare and Educational Centers
With the rising demand for quality childcare and alternative education models, churches are well-positioned to host:
- Preschools and daycare centers
- Homeschool co-ops
- Music and arts programs
- Special education services
Financial Benefit: Long-term leases with childcare providers create predictable revenue streams while filling a major community need.
3. Co-Worship Arrangements with Other Congregations
Many church buildings were constructed to accommodate multiple services and ministries. Instead of allowing large sanctuaries to sit empty, churches can partner with:
- Immigrant or ethnic congregations
- New church plants needing affordable worship space
- Other denominations with complementary schedules
Financial Benefit: Renting space to another congregation offsets building costs while fostering interdenominational collaboration.
4. Arts and Cultural Venue Hosting
Churches often have beautiful spaces that can host:
- Concerts and performances
- Art galleries and exhibitions
- Community theater productions
- Writing and poetry workshops
Financial Benefit: Event-based rentals provide supplemental income while making the church a cultural hub.
5. Business and Entrepreneurial Partnerships
Forward-thinking churches have begun partnering with businesses that align with their mission, such as:
- Coffee shops or bakeries that serve as community gathering places
- Coworking spaces for remote workers
- Farmer’s markets and CSA distribution hubs
- Gym or wellness centers offering fitness and health programs
Financial Benefit: Business partnerships diversify income sources and attract new people to the church campus.
Financial Benefits of Revenue-Based Partnerships
Engaging in space-sharing and revenue-generating partnerships provides multiple financial advantages:
Increased Income: These partnerships help offset operational costs, ensuring the church can continue its mission.
More Efficient Use of Resources: Empty buildings become active community hubs, maximizing the church’s impact.
Sustainable Ministry: Instead of relying solely on tithes and offerings, revenue streams provide long-term financial stability.
Potential Tax Benefits: Some nonprofit partnerships may provide tax exemptions or financial incentives, depending on the arrangement.
Potential Tax and Legal Considerations
While revenue-based partnerships can provide financial relief, churches must be aware of tax implications:
Unrelated Business Income Tax (UBIT): The IRS requires tax-exempt organizations, including churches, to pay taxes on income generated from activities unrelated to their core mission. For example, renting space for a commercial business (such as a for-profit coffee shop) may be taxable, while renting to a nonprofit daycare may not.
Property Tax Considerations: Some local municipalities may reevaluate a church’s property tax exemption if a significant portion of the space is used for non-religious purposes. Churches should consult with tax professionals to ensure compliance.
Zoning and Lease Agreements: Churches should check local zoning laws and create clear lease agreements that outline usage, responsibilities, and financial terms.
Solution: Churches can work with CBFNC’s Church Sustainability Initiative to navigate these complexities, ensuring that space-sharing arrangements remain both missionally aligned and financially sound.
How CBFNC’s Church Sustainability Initiative Can Help
The Church Sustainability Initiative (CSI) exists to equip churches with tools, resources, and guidance to explore creative, sustainable pathways forward. Through CSI, churches can:
- Assess the viability of space-sharing partnerships
- Develop strategic plans for sustainable revenue generation
- Navigate financial, tax, and legal considerations
- Connect with other churches exploring similar solutions
Space-sharing should never be a desperate move—it should be a strategic, mission-driven decision. The CBFNC Church Sustainability Initiative provides churches with the support they need to discern their next most faithful step in this changing landscape.
Next Steps: Exploring the Possibilities for Your Church
If your congregation is struggling to maintain its building or wondering how to use its space more effectively, consider these questions:
- What are the greatest needs in our community, and how can we meet them with our space?
- What partnerships align with our mission and values?
- How can we create sustainable financial models without compromising our identity as a church
- Who can help us navigate the legal and tax implications of revenue-based partnerships?
The good news is that your church is not alone. The CBFNC Church Sustainability Initiative is here to walk with you as you explore creative, faithful, and sustainable solutions for your future.
Learn More & Take the Next Step
Do you want to see if the Church Sustainability Initiative is right for your congregation? Take the Church Sustainability Pathway Discovery Guide for better insight here.
To learn more about how CBFNC can support your congregation, visit cbfnc.org/churchsustainability.
– By Andy Hale
CBFNC associate executive coordinator
This is one article in a seven-article series on church sustainability. Access the other six below:
Read Church Sustainability Series: Ethical Partnerships and Sustainable Congregations here.
Read Church Sustainability Series: Avoiding Pitfalls and the Mythological Comeback Kid here.
Read Church Sustainability Series: Finding Hope in a Changing Church here.
Read Church Sustainability Series: Redefining Success, Maintaining & Failure here.
Read Church Sustainability Series: Sustaining Care here.
Read Church Sustainability Series: Rethinking Ministry Roles here.
