There are lots of ways churches can generate income from their buildings. But once you've found an idea that looks promising, there's another question:
Are we actually ready to do it well?
Finding the opportunity is only part of the work. I've spent years working in venue management and now work with churches developing income from their buildings. Over that time, I've found that it's often the less exciting questions, like insurance, staffing, risk and responsibility, that determine whether an idea actually works in practice.
So this article looks at what comes next: some of the practical things worth thinking about once you have an idea you want to pursue. However, if you're still exploring the possibilities, start with 10 Income Streams for Churches Beyond Donations or How to Choose the Right Income Streams for Your Church.
Also, a quick caveat before we get into it. I'm not an accountant, solicitor or insurance specialist, so this isn't intended to be comprehensive professional advice. These are simply the things I'd want a church to have thought through, alongside the questions I'd take to someone better qualified than me.
1. Does it actually fit your church?
An opportunity can look great financially and still be the wrong fit.
A nursery might provide dependable income but occupy your hall five days a week. Events give you more control over your calendar but require active management. A café could generate income and bring people into the building, but you're effectively creating another operation.
I'd want to understand what you're trying to achieve, when the building is genuinely available, what you need to protect and what you're willing to invest.
The question isn't just “Could this make money?” It's “What would saying yes to this mean for everything else we do?”
2. Have you checked the financial and legal implications?
This is where I bring in people who know more than I do. Charities can generate income, but tax, VAT and charity trading rules vary depending on what you're doing and how you're doing it. In some circumstances, churches may also need advice about whether commercial activity should sit within a separate trading company.
HMRC has guidance on charities and trading, while the Charity Commission provides more detailed guidance for trustees on trading and tax. You don't need to become an expert in charity tax, but you do need appropriate advice for what you're planning.
3. Have you spoken to your insurer?
Insurance is another area where I'd rather ask than assume. I've had questions about what level of cover a hirer needs or whether a particular activity is covered, and my response is usually to speak to Ecclesiastical, or whoever actually insures the church.
Ask what your policy covers, what insurance hirers should hold, whether you need evidence of it and whether particular activities or suppliers create additional requirements.
Ecclesiastical has useful general guidance on hiring out church premises, but your own insurer can advise on your actual policy.
4. Have you properly thought about risk?
This is probably one of the things I've seen overlooked most often. It's easy to focus on timings, furniture, catering and price without stopping to ask:
What could actually go wrong, and what are we doing about it?
Think practically. If 200 people suddenly need to evacuate your building, who takes charge? Where do they go? Who checks the building? Does the organiser understand what they're responsible for? The same principle applies to first aid, contractors, alcohol, security and risks specific to a particular event.
A risk assessment shouldn't just be paperwork. It should make you think through what could happen and what you'd actually do about it.
5. Is everyone clear about their responsibilities?
Don't assume something is the hirer's responsibility simply because they're organising the event. Equally, the church doesn't necessarily need to take responsibility for every element of somebody else's event. Work out who is responsible for things like guest numbers, event-specific risks, first aid, contractors, security and any necessary licences or permissions.
If you're unsure where responsibility legally sits, seek advice. Then make sure what you've agreed is reflected in your processes and booking agreements.
I've written more about the wider practical foundations in Figuring Out Venue Hire? Here's What I Wish More Teams Knew.
6. Are your people actually equipped to run it?
When I managed a venue, staff training was something I took seriously. Part of that was preparing for the things you hope never happen. We practised fire evacuations, completed fire-safety training and undertook ACT counter-terrorism awareness training.
That might sound daunting, but in practice I found the opposite. The more people understood what could happen and had the chance to practise their response, the more capable they felt if something did go wrong.
And being equipped to run a venue goes well beyond emergencies. We trained people to handle complaints and difficult situations, manage bookings, use our systems and deal with things that hadn't gone to plan. We also worked on sales, because showing someone around a venue and helping them understand what it could offer is a skill too.
None of this is knowledge I'd expect someone to arrive with. These are skills that can be taught and developed with experience. That's why my venue hire training covers the practical, customer service and sales skills teams need to run venue hire well.
7. Do you know when you need specialist advice?
You don't need to have every answer internally. Depending on what you're doing, you might need to speak to an accountant, solicitor, insurer, your diocese, the local authority, or a specialist in a particular area of safety. Good preparation is about understanding your building and operation well enough to recognise when something needs expertise you don't have.
Preparation makes this much more manageable
Generating income from a church building involves responsibility. I don't think it's helpful to pretend otherwise. But I also don't think churches need to be frightened by it. When you break things down, train people, practise what needs practising and establish who is responsible for what, it becomes much more manageable.
If venue hire is one of the income streams you're considering, you can explore my venue hire training or start a conversation about getting the practical foundations in place.