Investing in Church Extension Funds
What you are buying
A church extension fund investment is almost always a loan from you to the fund. The fund issues a note, bond, or certificate. In return it agrees to pay interest and to return your principal at maturity, or on demand for some products. It is not a share of ownership and it is not a bank account.
Common product types
- Fixed-term notes: set maturity, often with an early redemption policy.
- Demand or variable-rate notes: the rate can change, and redemption rules vary.
- Bonds and certificates: similar to notes, sometimes sold in larger denominations.
- IRA and custodial options: offered by some funds, not all.
How the fund uses your money
Funds lend investor money to churches, usually secured by a mortgage on church property. Some also hold cash, bank deposits, or securities for liquidity, and some lend to schools, camps, or other ministries. Repayment depends on the fund collecting from its borrowers and managing its own balance sheet. It is not backed by a government agency.
Who can invest
Many funds restrict who may invest, for example members or affiliates of a denomination, or residents of states where the fund has made the required filings. Some accept investors more broadly. Check the fund's eligibility section and its offering circular.
Typical risks, stated generally
Every fund's risks differ, and the offering circular is where they are described. Commonly disclosed categories include:
- Borrower default, or concentration in a small number of loans
- Real estate values falling, so collateral covers less of a loan
- Liquidity limits, including restrictions or delays on early redemption
- Interest rate changes affecting the fund's margin
- Investments generally not insured by the FDIC, NCUA, or another government agency
- Limited or no secondary market for the notes
- Reliance on a small staff or board
Questions worth asking any fund
- Who is allowed to invest, and is the offering available in my state?
- What does the offering circular say about risks? Can I get a copy?
- How does the fund measure loan losses and delinquencies?
- What share of the loan portfolio is in its largest loans?
- How much liquid reserve does it hold against redemptions?
- Are audited financial statements available, and who is the auditor?
- What happens if I need my money before maturity?
Things to understand before you invest
- The fund's financial condition matters more than its denomination's reputation.
- A rate is only one factor. Term, liquidity, and risk shape the real tradeoff.
- Diversification still applies. Many people limit how much of their savings sits with any one issuer.
Where to find the documents
Each fund's listing links to the fund's own site. Look there for the offering circular, current rates, and financial statements. We do not host or summarize these documents, and this directory does not publish rates.
Important information
CEF Core publishes this directory for information only. It is not an offer to sell, or a solicitation of an offer to buy, any security, and it is not investment, legal, tax, or lending advice. We are not an offeror of securities, a broker-dealer, or an investment adviser. Details come from each fund's own public pages. We have not independently verified them, and they may be incomplete or out of date. A listing is not an endorsement, rating, or recommendation, and listings appear in alphabetical order. Church extension fund notes are generally not FDIC or NCUA insured, and offerings may be available only in certain states and to certain investors. Confirm all details with the fund and read its current offering circular before you invest or apply.
Directory information only; not an offer or advice.
CEF Core sells software to church extension funds. Our relationship with a fund does not affect whether or where it appears in this directory, and listings are alphabetical.