Politically, Nicaragua is a democratic republic and is making steps to move away from the authoritarian party structure that ruled the nation for years, producing political violence and corruption. This corruption has affected the country economically, as great wealth has accumulated in the hands of a few and economic resources have been poorly distributed. In response to this struggle with poverty, Grace Church has sought to include economic development and construction efforts in their holistic ministry.

Culturally, Nicaragua has much to offer.  Creativity, humor, hospitality, valuing extended family, and persistence are hallmarks of the culture. While these help contribute to a lively and dynamic society, other cultural norms impede the development of the local church, such as a fatalistic view of life, a distrust of people outside of the family, and a growing consumerist culture.  There is also a prevalent machismo culture, which devalues women and encourages men to be irresponsible in relationships with women. Many homes are fatherless as the result of war, but primarily because men are often forced to travel great distances to find work, sometimes in neighboring countries. This presents a unique opportunity for Grace’s teaching on gender with Men’s Roundtable and Ezer to influence the culture. 

Nicaragua has no official religion and religious freedom has been protected by the Nicaraguan constitution since 1939. The largest denomination is Roman Catholic, and the Catholic Church has historically been expected to lend its authority and support to government decisions. The evangelical church in Nicaragua has often been marked by extreme legalism and an escapist view of life.  Evangelical and Catholic communities in Nicaragua are strongly polarized, creating a deep need for spiritually mature and stable leadership. Grace Church seeks to work through the local church, training and caring for pastors. In the process, those pastors gain tools to speak against the polarization among Christians in Nicaragua and to impact their communities with the Gospel.