A growing number of churches are facing a silent but critical problem—one that rarely appears in budget meetings or revitalization plans. It’s not theological drift or volunteer shortages. It’s deferred maintenance.
The sticker shock is real. My church is finishing a $2.2 million air conditioning project. We still have several other projects to complete. While we are making significant progress, almost all our budget surpluses from the previous several years have been earmarked for deferred maintenance.
From older roofs to HVAC failures and faded paint, many congregations are simply unprepared for the cost of keeping their buildings functional and safe. And the implications are far greater than aesthetic appeal. In some cases, deferred maintenance is the warning light that a church may soon be forced to close its doors.
A Hidden Metric That Predicts Church Closures
One of the most underutilized metrics in evaluating church health is the Deferred Maintenance Reserve Ratio. This ratio may not appear on typical church scorecards, but it could be the clearest indicator of whether a congregation is heading toward a facility crisis.
The premise is simple: Churches should be financially prepared to replace or repair high-cost assets (like HVAC systems and roofs) within their expected lifespans. When they are not, the backlog of repairs grows—sometimes to catastrophic levels.
Why Deferred Maintenance Is Often Ignored
Church leaders rarely talk about this issue for a few reasons:
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- It’s complicated. Calculating facility needs and reserves involves timelines, depreciation, and financial planning.
- It’s invisible until it’s urgent. Churches can delay painting or roof repairs for years, until they can’t.
- It’s uncomfortable. No one wants to admit that they’ve underfunded facilities or neglected planning for future needs.
Yet avoiding the problem doesn’t make it go away. It makes it worse and often more expensive.
What Contributes to Deferred Maintenance?
Several factors influence whether a church finds itself in a maintenance deficit:
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- Age of the building – Older buildings naturally accumulate more deferred work, especially historic ones that require specialized upkeep.
- Complexity of facilities – Churches with gyms, schools, and multiple buildings face exponentially higher maintenance costs.
- Financial health – Congregations with tight budgets are more likely to defer work, creating a costly backlog.
- Environment and weather – Churches in harsh climates or flood-prone zones may see accelerated deterioration.
Despite these challenges, the Deferred Maintenance Reserve Ratio gives a clear picture of where a church stands and what needs to happen next.
How to Calculate the Deferred Maintenance Reserve Ratio
The step-by-step instructions may seem detailed, but they provide an essential snapshot of a church’s readiness to care for its facility:
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- Identify major future expenses, such as roof, HVAC, painting, and equipment replacement, including elevators.
- Estimate when that expenditure should occur (in the number of years).
- Estimate the cost of that expenditure.
- Determine the amount of reserves the church should have set aside each year to have adequate funds to replace each asset. Those funds are called needed reserves.
- Determine the amount of reserves the church currently has available. These funds are called available reserves.
- Divide the available reserves by the needed reserves. This number is the church’s deferred maintenance ratio.
Example:
(Available reserves) ÷ (Needed reserves) = Deferred maintenance ratio.
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- Roof replacement (in 10 of 20 years): $200,000 × 50% = $100,000
- HVAC (in 6 of 10 years): $280,000 × 60% = $168,000
- Painting (in 8 of 10 years): $50,000 × 80% = $40,000
- Total needed reserves: $308,000
- Current available reserves: $175,000
- Deferred Maintenance Reserve Ratio: $175,000 ÷ $308,000 = 56.8%
Interpreting the Results: The Traffic Light System
Use this simple grading system to evaluate your church’s standing:
Green: Above 80% – Your church is in a solid position. Ideally, you’d have 100% of the reserves needed, but a 20% gap is manageable.
Yellow: 60% to 80% – You’re entering risky territory. Begin planning now to address the funding gap before systems fail.
Red: Below 60% – This is where most churches fall, and the consequences can be severe. Established churches with low or zero reserves often face sudden closures due to unsafe or unusable facilities.
The Call to Action
This metric isn’t just about bricks and mortar; it’s about stewardship. A deferred maintenance crisis can cripple a church’s ministry. It can saddle leaders with insurmountable financial burdens.
Yet churches that build reserves and plan proactively are better positioned to remain open, safe, and welcoming for future generations. The Deferred Maintenance Reserve Ratio may not be flashy, but it may be the most important number your finance team considers this year.
This metric, along with many others, is found in The Church Health Scorecard. You can understand clearly the health of your church in 12 key areas. Every metric has specific guidance on its calculation and application. You also get two video courses on understanding the scorecard and the key trends in churches today.
Posted on August 18, 2025
As President of Church Answers, Sam Rainer wears many hats. From podcast co-host to full-time Pastor at West Bradenton Baptist Church, Sam’s heart for ministry and revitalization are evident in all he does.
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