St Peter Port's Trinity Church Centre will become a three-storey modern building, taking over neighbouring Henry's Yard, right next door to Island FM's new studios.
The project will more than double the Trinity Centre's floor space, allowing for a much larger kitchen, 3 new medium-sized meetings rooms and an outdoor courtyard.
The new building will also improve accessibility, with a ramp and lift allowing the differently-abled access almost all floors and rooms.
Vicar Jon Honour says the expansion will benefit a large portion of the population.
"As a church, we want to offer more space for the community.
We currently put on lunches for older people, we hold monthly roasts for anyone who would like to come, we have a toddler group, we work with youth, children, and ex-offenders."
He says the church has raised around 19% of the £1.75M target so far.
"Most of the money would come from the church Community, we are involved in a Stewardship campaign encouraging people to give to what we call the Space project and so far people have been incredibly generous with that.
In time, we will look to go to other grant making bodies, to see if they can help us as well."

Annual Guernsey Scarecrow Festival set to raise thousands for charity
Channel Islands face 'physical' Poland test
Baby born on Guernsey's Marine Ambulance
New interim leader for Guernsey's healthcare system
Guernsey's reservoir levels falling after prolonged dry spell
Guernsey's Commonwealth flag carrier in early Games win
Abundant year for jellyfish in Guernsey waters
Battery fire ignites in Guernsey waste processing centre