Do you have questions about Church Bond investing?
Our “Straight Talk About Church Bonds” brochure may be helpful.
At Share Financial, we work with churches and non-profit organizations to provide the highest quality financial counsel and service to our clients – churches, non-profits and the people who invest in them. It is our goal to be the best at serving you in this capacity. This is our mission. Everything we do and the relationships we build reflect our integrity in fulfilling this mission.
The investment opportunities provided by Share Financial can be part of an investor’s strategy that balances their portfolio with a sound asset class. At Share Financial, we provide investors nationwide with opportunities to invest in some of the churches we are financing. Contact our offices or one of our brokers for current issue availability.
The information on this site is provided as information only and does not constitute an offer to sell or a solicitation of an offer to buy any security that may be referenced herein, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful. All offerings are made only by prospectus and are subject to prior sale. A copy of the prospectus for any available offerings may be obtained by calling 800-331-9152.
Certain risks are associated with investment in church bond offerings. Potential investors should carefully consider the risk factors as set forth in the prospectus for the offering. Outlined below are certain selected risks associated with church bond offerings in general:
- The issuer (the church) is dependent on voluntary contributions for its operation and for payment of the principal and interest of the bonds of the offering. There is no assurance such contributions will increase or remain stable. Failure to achieve an anticipated amount of contributions could adversely affect the issuer’s ability to repay the bonds.
- Properties that serve as collateral for church bond offerings are for the most part special purpose facilities for which there may be a very limited market. There is no assurance such properties can be sold for stated values.
- If the offering involves the construction of new facilities and such facilities are not completed as anticipated, the value of the property that serves as collateral for the bonds could be adversely affected as well as the issuer’s ability to repay the bonds.
- There is no established secondary market for the bonds. The bonds are not insured or rated by any nationally recognized statistical rating organization. Bonds may be sold prior to maturity on a best efforts basis.
- The bonds are subject to early redemption by the issuer. Investors have no right to require the issuer to redeem any bond before maturity.
- The issuer’s senior minister/pastor typically serves a significant role in the leadership, management, growth, and viability of the issuer as a church, and the loss of such person’s services could have a material adverse affect on the issuer’s ability to repay the bonds.
- There are no income tax benefits upon the purchase of the bonds.
- When bonds are sold on a best efforts basis, there is no assurance all bonds of the offering can be sold and all purposes of the offering completed in full.
There are other risks to be considered that are more fully described in the prospectus for the offering. Investors should read the prospectus carefully before investing and consider any potential investment based upon their individual financial situation, investment objective, and risk tolerance.