Share Space Without the Headache: Best practices for facility agreements

Sharing space with other churches, non-profits, or ministries is a powerful ministry strategy, especially for churches in major cities, where space is at a premium. But unwritten rules and damaged property can easily create chaos.

Matthew Dillingham and Marie Burrus break down why clear boundaries protect your ministry. Learn the essential legal clauses, financial risks, and management strategies required to share your facility safely and generously. 

Key Takeaways

• Know Your Church's "Why": Define your primary goals upfront, whether focused on financial sustainability, community outreach, or Kingdom partnership.

• Clarity Is Kindness: Written facility-use agreements eliminate assumptions, protect relationships, and set both parties up for success.

• Cover Baseline Costs: Set rental rates that reliably cover utilities, building wear-and-tear, and required staff hours.

• Understand Legal & Tax Risks: Avoid public "Space for Rent" signs or unvetted for-profit leases that could trigger unexpected tax implications.

 

Suggestions to Include in Your Facilities Agreement

• Approved rooms, dates, and exact usage hours

• A/V and facility equipment usage limits

• Damage liability and facility cleanup expectations

• Insurance, staffing, and security requirements

• Indemnification clauses to protect both parties from liability

• Payment terms and strict invoicing schedules

• Clear exit and cancellation clauses for both parties

 

Resources 

• Church Tax & Law: https://www.churchlawandtax.com/ 

• Virtual Executive Pastor: https://www.virtualexecutivepastor.com/ 

 

Just for Fun: "Dance Little Jean," by Nitty Gritty Dirt Band https://www.youtube.com/watch?v=SS56zyv0bIE