Can I ask those of you who write for money to give me advice?

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Two years ago I stupidly agreed to write something for a church organisation. Like an idiot I did not draw up a contract. It was kind of "If you write this we will pay you "something." Nor was it totally clear what I was writing or how long. I began what ended up as a 200 page book which was apparently, not what was originally wanted, but all along I have sent updates and so on. I was just trusting the people I was writing for would be fair. Then I involved a co-writer. She began as my editor, but her contributions were substantial and we got a far better book. We are still revising it. This editor/co-writer pointed out that the book involved a huge amount of work and that I should be paid accordingly. I strongly feel we need to keep the copyright and that this should be published to the wider world. The church organisation still thinks the agreement, not written, was to write it for them and they should have it as "theirs." I do agree I did agree to write it for them. It just became a larger project. I wrote suggesting several options. One was that the book was published with split royalties 50 for me, 40 for the co-editor and 10 to the church organisation. I explained the number of work hours and that we were not simply producing a word document and giving it to them. By the time we are finished, we will have done a huge amount of work to make the whole thing as professional and as good as we can. I am also formatting and my sister is contributing the cover. She is a professional artist and I am thinking of giving her some of my cut although she has not asked. Morally, can I refuse to give the book to the church organisation for the song they seem to expect if for and simply say, "this was more work than expected and better than you wanted and it is unfair to want the work for a paltry sum?" I think they are probably wanting to pay about £200 for what is now over a thousand hours of work. It is the moral aspect I am struggling with seeing as I did originally agree the work was for them (verbally) and in email updates have given that impression. I thought what I was offering was a fair compromise. They could still use the book, make money from it (potentially,) and there is no reason why we cannot self-publish and give them the option to buy a number of books at a lower price. It is perfectly easy to set the price and ask them to buy before we add an ISBN and go public at a higher price. My learning curve is that even if it is for friends draw up a written contract and agree what is wanted in detail in writing. I could kick myself for not doing that. I will be sending a contract to them outlining the price in real terms, so they can see why I am not just sending the book as it is, but stuck on the moral issue. What would others do? The organisation expected something in 2 months and for lots of reasons, it has taken two years. It is a kind of manual/workbook and the research alone took a lot of time. It will be fully plagiarism checked (as any book should be,) and we have not simply grammar and spell checked a word document.