Are you gifted and feeling God calling you to step forward? Wow! What a great place to be, especially when you are ready to answer the call. However, before you think about a ministry you must answer the question, “Should I be for-profit or non-profit?
Before you make a decision – wait! Did you know you can be both?
Operational costs for expenses such as benefits, salaries and programs are a challenge for ministries and businesses. Money is a big deal. It’s at the center of operations for business and ministry. Considering a “For-Profit” status for your ministry is an excellent solution.
Yes, the non-profit status is the most popular way to organize a ministry. It offers tax benefits and creates the opportunity for donors to give and provide for the ministry operations, missions, and salaries. While it is beneficial to have donors, what if that is not the only way? What if that isn’t the path for your ministry? Would you consider a beyond-the-limits approach to ministry? Are you a wild friend who will step back and look at it a different way?
If you are in business, your opportunities are broad. Think about it.
What if your business or community is where your ministry will happen while you earn an income and fulfill your ministry purpose–both happening at the same time?
The IRS code gives you guidance for operating a non-profit organization with the 501(c)(3) status, but that’s not necessarily God’s plan.
You may ask, “Can a business be a ministry?” The answer is, “Yes!” Just because you make money doesn’t mean you have to abandon purpose and genuinely care for people. The truth about money and ministry is this; a ministry has to function as a business in some regard, simply to manage and keep up with the administration of the organization. Making money is not bad. Loving money is the problem (1 Timothy 6:10).
Think about it.
Are you willing to step out of the box and run your ministry differently? What’s wrong with making a profit and giving it to your ministry? That’s exactly what I am suggesting.
Make a decision to learn what you need to learn. Go where you must go and do what you must do. Decide today that nothing will stop you!
Now, let’s discuss the difference between a ministry and business. A business makes a profit for the sake of profit, growth, power, position, etc. A ministry makes a profit and cares about growth, but has a deeper purpose. The ministry in your business happens, not because of your product, but because of you! Be honest about your business, but also show your commitment to care about all people and draw them into a personal faith journey to experience God’s plan for their life. A ministry cares for and supports people as a priority, even when business challenges arise. The foundational ministry commitments do not change because there is a need to increase revenue.
Years ago, I was writing grants for urban youth ministries and feeling the stress of seeking money for important programs and supplies. When I was in corporate sales management, I could have written the check myself. I knew there was a better way. I believe marketplace ministry is the solution.
Abandoning the idea of the 501 (c) (3) as the only source of income for you and your ministry, I now favor the “for-profit” status for gifted ministry leaders operating in the business sector. You can still have your ministry purpose, but you’ll pay taxes and make the money you need instead of raising money and depending on donations as your only source of income. After reading, if you are still trying to decide between “for-profit” and “non-profit” check out our additional resources.
There are advantages of a “for-profit” status that can benefit a ministry–that is, if you have what it takes to make a profit, you are a giver, and you don’t mind contributing to Uncle Sam.
Here’s the problem:
- The 501 (c) ( 3) status has limitations on activities such as earning income, political involvement, selling goods, and transferring assets.
- The 501 (c) (3) status is facing political challenges that will probably lead to drastic changes in the future.
- The 501 (c) (3) status creates limitations that can influence the decisions and direction of an organization.
Here’s the Solution:
Establish a business as a financial source for your ministry. Turn your passion into money for your ministry. Through your business, seek creative ways to support the ministry and earn a good living for yourself and your team. If you choose to have a non-profit affiliate of your ministry to get funding for specific needs (scholarships, food for the homeless, missions, resources for children, etc), your marketplace ministry acts as a hedge against changes in the 501 (c) (3) tax code. Your Marketplace Ministry gives you the freedom to use your taxable income to support your ministry’s needs. That is beyond-the-limits thinking!
With this ministry set-up, your personal finances are not bound by the limitations and political uncertainties of the non-profit. You will also be free to enjoy your earnings without the scrutiny of non-profit watchdogs!
As a successful business owner and ministry leader, you will influence your environment while being an example of a Christ-follower. It’s a set-up allowing you to stand strong financially, demonstrating a biblical lifestyle in the various corridors of the culture–Media, Education, Finance, etc. Enjoy your influential lifestyle while being active, creative in ministry, visible, and involved in your community. Get the coaching you need and thrive in your ministry, despite inflation, challenges, and increasing costs.
As you see the culture changing, ask yourself, “How safe is the 501 (c) (3) status? Do you want all of your household income tied to something that will change with legislation?
“As ministry leaders, it is good to be prepared for what the future brings. Some people (like missionaries) need help because the nature of their ministry is not suitable for making a profit. Other ministries, in thriving metropolitan areas, are well-positioned to make money and support people who are in need.
For example, I have this ministry (Ministry in Business). I also own an Insurance Agency where I offer retirement planning. My insurance business is not like others. The people I work with are like a family. My insurance agency makes money, which allows me to pay for my ministry’s supplies and administrative costs, including this website. We bring sincerity and honesty to every meeting because our ministry doesn’t leave just because we are doing business.
All hard work brings a profit, but mere talk leads only to poverty.
(Proverbs 14:23)
Here are 19 more reasons you too should consider a “for-profit” status for your ministry.
- You will be above reproach when asked about your spending. You can respond with something like, “I don’t take an income from the giving, my income comes from my earnings.”
- Your taxable income gives you the freedom to transfer wealth and assets to your children.
- A for-profit status allows you to bless your ministry and other people in any way you chose.
- A for-profit status allows you to use all of your abilities, in and out of ministry, to support your ministry and your family.
- The business community respects for-profit organizations.
- People don’t decide how much money you make through their giving. You decide how much you make through your work and leadership.
- The business world offers unlimited income.
- When you hire people for your ministry, you provide greater earning opportunities for others.
- You show a biblical lifestyle in the marketplace as you interact through your business.
- You will give more and avoid being a broke ministry leader.
- You will enjoy a personal lifestyle without as many questions about personal assets and spending.
- Other ministries that can’t adapt to this format need your contributions.
- You will pay your staff well and offer better benefits.
- You will be an excellent ministry example and influence society.
- You decide which business tracking and set-up guidelines you want to follow, instead of the Governmental Taxing Authorities overseeing your activities and reporting.
- You won’t have the rules and regulations that limit your freedoms.
- You never have to feel guilty for spending money and living well.
- You can operate on many platforms.
- Your income earning potential is higher.
BENEFITS
Of course, there are benefits to having a 501 (c) (3) and reasons that you may need the status.
- It makes sense for churches because of the large population of givers and other benefits and responsibilities.
- They need the status for missions and organizations that serve impoverished areas that have limited resources and opportunities
- Some large donors only give if you have the status.
- Other benefits that you may desire.
Donations should not be the only source of income for you and your family. Get involved in a profit-earning business and let the non-profit be a separate entity (if you need the status).
Your non-profit arm of your ministry will serve missions and other needs, such as disadvantaged populations, scholarships, and programs. But be careful how you set up your 501 (c) (3) and consider how you want to handle salaries and other living expenses. Your donors will appreciate knowing their giving goes to people in need and programs instead of mostly salaries and buildings. It’s time to stop living beneath your capabilities just because you work for a ministry. It’s time to do both. Use your ministry gifts and your talents in the business world. Make them both advance God’s plan for your life.
Ask for contributions, even without the 501(c) 3. The benefit of 501 (c) 3 is the tax deduction. A tax deduction is a bonus given by the government, not a requirement for a sincere gift from the heart.
If you are planning a marketplace ministry register on this site. We have tools to help you get started and manage along the way.
In the Bible, Joseph had to learn to be adaptable, in an environment that did not agree with his beliefs. You too, may find that God is creating a pathway for your ministry to flourish in a for-profit world.
All I’m suggesting is that you consider the possibilities and live beyond the limits.
Take some time to read my latest book, How to Make Your Business Your Ministry – The New Marketplace Ministry. It guides you into more detail about the intersection of business and ministry. It’s time to embrace the great opportunity with the ten steps that I outline in the book. Click below to download.
Like what you are reading? Take the next step and get connected.
-
- Click on “Grow With Us” below and get new articles, videos and resources.
- Get the Book: How to Make Your Ministry Your Business and discover life-changing Marketplace Ministry principles that catapult you forward in business and ministry.
- Join our Ministry in Business Facebook community
Thank you! I am so glad you found my website. Yes, God is doing His work outside of the box to those who are willing to listen. I love your “New Wineskin” approach. Blessings to you, your wife and your ministry.
WOW!!!! I just “so happened” to come across your sight today! What an answer to prayer!!! My spirit had been troubled about how to structure the Ministry that God was calling my wife and me to start. We are not “church as usual” Pastors. I am an outlier – I was born thinking outside of the box – a gift from God that had blessed my wife and me to bless thousands of families throughout the USA and abroad. We, retirees, are in a new season where God wants to use our decades of professional and social-impact achievements to commence a “New Wineskin” Ministry. We were considering structuring as a 508 NPO, which was, in my opinion, a reasonable alternative to the 501 NPO. As I was meditating with Abba, HE said, “why would you (MY prophet) start a ‘non-profit’ Ministry?” I responded by Googling ‘forprofit church” and came across your sight. Again – WOW!!! Praise God!!! My next step is to share this info with my Quean and ask Abba for continued discernment and direction. Rhonda, Thank you for sharing what God has Blessed you with to Bless others! Peace and Blessings – Mark
Hi Rose. I hope you are doing well today. I am introducing a coaching cohort to get the cost down for my friends who are just getting started with their ministry and business. That gives you access to a private MIB Network where you can ask questions, a monthly Zoom call and a monthly training. This is kicking off on August 15th. The announcement goes out next week and the cost is only $12 per month. I will send you the information in a few days. Blessings! Rhonda
Thank you Rhonda, that was helpful! Appreciate you and may God continue to bless your ministry! If we may need further advice or feedback do you have a direct email where we can email you!? Thank you for your time.
Rose
Hi Rose,
That’s a good question. I always suggest discussing tax deductions with a CPA. However, to get the deduction, you need the 501c3. If you need donations, it’s a good idea to become a non-profit. My suggestion in the post is primarily for people who can earn money and will not request donations.There are also ways to set up a non-profit for a specific purpose and continue your for-profit marketplace ministry.
So, think it through and consider your ministry needs. I hope this helps.
Rhonda, what if we take your advice and do a for-profit ministry but then someone wants to give a large amount towards your for-profit ministry. From what I understand they could but it would have to be as a gift? So we would actually have to explain to them we are not a 501 c 3 and they won’t be able to claim whatever they give at the end of the year. Is that correct?
Hello, I have more information coming in my book this May. Look for an opportunity for a free download during the first 30 days of the book release. Blessings!
Love to receive more information about this to share with my church.
Thank you! I love that you are providing a platform for independent Christian songwriters! That’s awesome! I am excited to provide encouragement for readers who I call “Wild Friends” because we don’t do things the normal way. I have a book that will be out in May, “How to Make Your Business Your Ministry – The New Marketplace Ministry” and would love to send you a free download. Did you register on the site? If so, I will send it out during the Release Party in May. Blessings to you and your ministry.
Such an amazing move of God that I found your website resources on the very day that my wife and I are discussing whether or not we should convert our existing ministry business called Resurrection Declarations over to non-profit status. Now I don’t think that will happen! God has shown us a plan and now we just need to faithfully work it. Our motive has always been ministry, we just need to stop doubting our methods! We are making a huge shift and will be providing a platform for other independent Christian songwriters, can’t wait to pursue the vision! Thank you for being obedient to the Holy
Spirit’s leading.
Hi Rick, Thanks for reaching out. No matter how you set things up it’s great to see you moving forward. We know God will guide you along the way. I am planning to start a monthly online gathering this fall. So, be sure to register on the site and I will let you know when that actually happens. For now, walk through some of the posts. I have most of the questions answered.
God bless you and your ministry.
While praying and reading about how to set up the ministry the I have been called to do I found your site. I have never been comfortable giving up control of the vision and purpose of God in His call to me to people I do not fully know just to meet the IRS requirements to obtain 501c status. His call came to me so I think I should choose to obey and not put this important assignment onto others who may or may not be called. I do see the benefit and need for the 501c for a narrower purpose rather than the whole plan. I will be seriously putting this guidance to prayer as I put on the brakes of trying to put all of the ministry plans under the IRS requirement worrying if or when I act outside of their limiting control. I would love to talk in more detail as these plans develop.
Hi Reatha,
Thanks for the comment. Check out my latest post, Trying to Decide Between For-Profit and Non-Profit? – https://rhondawilliamsnow.com/still-trying-to-decide-between-for-profit-and-non-profit/
I am inspired to take this route with my ministry. Thank you for this inspiration. I have wondering if it was even possible to have a for profit minisyry.
Hi Nancy. That’s a good questions. Any business that gives you contact with people can be your marketplace ministry. While you conduct your business as usual, your ministry happens with the people you meet and work with. Here is a post called A New Era for Marketplace Ministry that explains how I use my insurance business for my ministry. Blessings to you.
This is a wonderful article and so insightful for my future plans. I have a question: Can you provide examples of businesses that can be used as for profit arms? I want to make sure I fully understand which direction to take. Thank you in advance!
Hi I am looking at starting a Ministry… and your above article has inspired me to go that route.. the Lord has showed me a Holy Cow type of a Ministry idea.. but its mostly going to start out as a consulting business.. that will grow into the Ministry – God has planned for it… He gave it a name and everything.
I would love more information and support with this please. Finding info online is extremely difficult. But a 508 is the way we are wanting to go I believe. Thank you so much for sharing what you have so far.
Thank you so much! I have been thinking about this and want to move forward.
That is so common. I believe one way God is using Covid-19 is by forcing people beyond the church walls and into their true calling. For missions and outreach to disadvantaged populations the “for-profit” model is difficult. You need financial help and the benefits from the tax deduction. I would recommend talking to an attorney for proper set-up, but you can have a business (for-profit) and a non-profit for ministry (by getting your own 501(c)(3). You have to keep them separate and be careful not to blur the lines. If you go out to speak and charge a fee or write a book, you can sell your personal products (under a business name), and pay your taxes. An attorney will help you write the bylaws so you have a clear understanding of what activity is business and what activity is ministry. – Saying a prayer for God to guide you.
We are feeling called outside of the normal church structure. Our hearts are for Missions and outreach, especially in poor countries, but we are regular tithesrs and givers in our local church, where it’s hard to build any outreach outside their usual activities. Wed love to commit our resources more to our own heart call, but would lose a huge tax deduction by doing so. Any thoughts?
Hello, I am in the process of updating my website and missed the question. You should discuss the options with an attorney or CPA to clearly explain the difference. Each has advantages and disadvantages that you should be aware of. Thanks for reading.
Thank you for this insight. I know that it is Spirit led. I have a question though. In a for profit format, for a music ministry, what is the best way to go…LLC, INC, CORP?
I am so excited to hear that you are moving forward. Like you said, God has out-of-the-box plans that will answer the needs for this culture. I am excited to see Him at work. I will be writing more on the subject as it unfolds in my own ministry. Don’t forget to register for new posts coming this month. Thank you and God bless your journey.
This is beautifully written! My husband and I have a rather unorthodox ministry. We are in the midst of making this decision, that you’ve written about. This article was confirmation on how to move forward, we are not afraid of thinking out of the box. Thank you.
Thank you. It has helped me stay on track and connected in many ways. Keep in touch by registering on the page. I plan to write more on the subject.
Rhonda, this is such great advice about moving beyond what we often see as the traditional way of setting up a ministry. Appreciate you sharing your wisdom.
I’m glad it helped.
This has help me today.I was so confused about what to do for my ministry.
Amen…. Very Insightful!
Yes. God has amazing ways to help us function in ministry and be prepared for the days ahead. Praying for God to guide you clearly.
Thank you for this article. I’m in the middle of making these decisions right now and this helps me understand my options and focus my prayers.
It’s also nice to know I’m not the only one who thinks this way 😌