Posted by Amazing [Anointed] on November 23, 1999 at 09:47:59 {KNpNN6QGfwFpTAHn5a4EASIIcexUto}:
In Reply to: No More Interest? posted by Questioner on November 22, 1999 at 22:07:41:
The interest charged on Kingdom Hall construction loans is not unscriptural. The Bible reference of not charging interest to your brother is not a law. We are no longer under law. Also, the point in the Bible has to do with Bothers (or sisters) in need. It would be wrong (or unethical) to ask for interest in these needy cases. Building Kingdom Halls is not an absolute essential for living.
The original Kingdom Hall construction loans were set up by a private fund and administered by the Society starting sometime in the 1950s or 60s. The couple that willed their estate for that purpose required 3% interest be charged to compensate for inflation. Inflation was lower back then. The interest was also charged to keep the fund growing to meet expansion growth necessitating more Kingdom Halls. The Society had to comply with the terms of the estate.
In the last ten or fifteen years or so the Society started charging more interest. I do not know exactly why, but I can guess that they saw a need to offset even higher inflation and meet the increasing rapid expansion of Kingom Hall quick-build program.
On the other side of the issue, the Society does not pay income taxes. So, the interest charged to date works out to a much hire rate if one were to calculate a normal commercial loan where the interest income is taxable to the lender. For example 6% tax free interest income may be more like 11%+ taxable interest income.
While the labor is 'free' at Bethel with respect to not paying the volunteers an income, there are costs associated with lending money. The Society has to pay the living expenses and costs associated with having these extra workers. There may be other hidden administrative costs associated that we are not aware of. Still, the Society does not incur the normal lending costs that a commercial lender would.
Simply Amazing