The Bible does say in 1 thess 4:11 To Do Our Own Business working with our own Hands as He has commanded us!
In the Gospel of Luke19:13 Jesus tells the story of the Master who gave his 10 servants a little money and told them to Go Do Business with the money! The Master then later returned to see how much they had Gained by Trading or you can say Doing Business which is what He told them to Do. One didn’t do it.
Then also the Head of the Church the Lord Jesus Himself said that He was about The Father's Business.
According to the scriptures for the Christian that is to:
1. To preach the Gospel of our Lord Jesus Christ to the world
2. Minister to and pray for the sick
3. To Feed the hungry and help the poor be poor no more
These three things in its simplicity qualify the church to be classified by the IRS as a tax-exempted non-profit organization by meeting three of the required eight (8) qualifications which are religious, charity and educational purposes.
IRS Exemption Requirements - 501(c)(3) Organizations
Exempt Purposes - Internal Revenue Code Section 501(c)(3)
The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
Let’s look at each Definition- Merriam-Webster’s Dictionary
I. Religious
1 : relating to or manifesting faithful devotion to an acknowledged ultimate reality or deity <a religious person> <religious attitudes>
2 : of, relating to, or devoted to religious beliefs or observances<joined a religious order>
II. Charity
: the act of giving money, food, or other kinds of help to people who are poor, sick, etc. ; also : something(such as money or food) that is given to people who are poor, sick, etc.
: an organization that helps people who are poor, sick, etc.
: the organizations that help people in need
III. Educational
: to teach (someone) especially in a school, college, or university
: to give (someone) information about something : to train (someone) to do something
Full Definition
transitive verb
1 a : to provide schooling for <chose to educate their children at home>
b : to train by formal instruction and supervised practice especially in a skill, trade, or profession
2 a : to develop mentally, morally, or aesthetically especially by instruction
b : to provide with information :inform <educating themselves about changes in the industry>
3 : to persuade or condition to feel, believe, or act in a desired way <educate the public to support our position>
The church teaches for the betterment in each of these areas of Life
Spiritual Salvation – Morality
Health and Healing
Financial Independence Responsibility & Wealth
IRS – DOCUMENTS – FOR NON-PROFIT
Exemption Requirements - 501(c)(3) Organizations
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.
Unrelated Business Income Tax
Even though an organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. For most organizations, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption. An exempt organization that has $1,000 or more of gross income from an unrelated business must file Form 990-T. An organization must pay estimated tax if it expects its tax for the year to be $500 or more.
Unrelated Business Income Defined by the IRS
For most organizations, an activity is an unrelated business (and subject to unrelated business income tax) if it meets three requirements:
1. It is a trade or business,
2. It is regularly carried on, and
3. It is not substantially related to furthering the exempt purpose of the organization.
There are, however, a number of modifications, exclusions, and exceptions to the general definition of unrelated business income.
With the Church the Income being generated from the Business or Businesses is related to the Exempt Organizations Expenses to Operate because it is being used to pay the expenses and operating cost of the Tax Exempt Organization.
Inurement/Private Benefit - Charitable Organizations
A section 501(c)(3) organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of a section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization.
This doesn't mean the Church can't pay salaries from the Income
Churches
1. To operate and maintain the church which is a Tax Exempt organization money is needed so a expense and cost budget is established which usually includes:
a. Salaries: Including the Pastors and all of its Employees
b. Buildings - Mortgages or Rents
c. Utilities
d. Supplies
e .Evangelism/expansion
QUESTION: Does the IRS say or dictate how a church is to raise or get its capital for the purpose of paying its expenses or running its ministry? NO!!!!!!!!!
What makes people especially most pastors think that the church has to be dependent on donations or people giving to it to operate its Ministry?
Actually if that is the case then Church itself would be the Dependent and on welfare which actually means needing support.
This would make the Church a recipient of charity when the Church itself is a charity organization meaning it is formed for the purpose of or supposed to be giving to the poor and helping those in need. Remember the Words of Jesus, “ It Is More Blessed to Give Then It is to receive”. That also includes the Church.
In most cases the church receives donations and pays its expenses and operating cost and doesn’t have much or as much left over as it would have if it were generating its own income through doing a Business to pay its own expenses.
If that were the case then the Tithes Offerings and Donations could be used for the actual purpose of Giving according to the Scriptures Which is to Honor God and help people in need.
Question?
So If the church raises its funds to pay its operating cost expenses through the church business why would it be classified as unrelated income when It's income related to paying the ministries or Churches Expenses and budget or cost to operate the Exempt Organization.
Next Question?
What about the IRS statement about Surplus?
Well most churches at least in the African American and minority communities there is no surplus.
If anything there is a lack of finances and no Surplus. Bankruptcy or foreclosure continues all over the country like never before in our time.
If there was ever a special need for the church to start or have its own business for the purpose of raising funds now is the time in what is being called the Great Recession.
Here are some examples of types of Businesses the church should or could do:
1. Renting out some of it unused building or land for office space getting monthly income.
2. Buying and selling products and services to its members and community.
3. Working together with other pastors, churches and organizations buying selling to each other.
4. Work with Local banks and merchants/Businesses that are doing cash back merchant funded programs then give free memberships to members to generate income from consumer spending and shopping at their place of business
Just think what the church, the body of Christ, Christians which is the largest single group of people connected together next to the human race could do if it gets hold of this and starts doing business to Get its Funds needed rather than Begging or relying on people to give to it to survive.
If you bare witness with this Blog join us in doing “ The Business of Giving” and Start Generating Income for your Church and People.
Get a free membership a cash back program here: http://www.dubli.com/T0US199G7
Or information on becoming a Business Associate with our team of Pastors and Churches
Click Here: http://www.drsteveparson.biz
Please share this Blog with other Pastors, Churches or Organizations.
In the Gospel of Luke19:13 Jesus tells the story of the Master who gave his 10 servants a little money and told them to Go Do Business with the money! The Master then later returned to see how much they had Gained by Trading or you can say Doing Business which is what He told them to Do. One didn’t do it.
Then also the Head of the Church the Lord Jesus Himself said that He was about The Father's Business.
According to the scriptures for the Christian that is to:
1. To preach the Gospel of our Lord Jesus Christ to the world
2. Minister to and pray for the sick
3. To Feed the hungry and help the poor be poor no more
These three things in its simplicity qualify the church to be classified by the IRS as a tax-exempted non-profit organization by meeting three of the required eight (8) qualifications which are religious, charity and educational purposes.
IRS Exemption Requirements - 501(c)(3) Organizations
Exempt Purposes - Internal Revenue Code Section 501(c)(3)
The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
Let’s look at each Definition- Merriam-Webster’s Dictionary
I. Religious
1 : relating to or manifesting faithful devotion to an acknowledged ultimate reality or deity <a religious person> <religious attitudes>
2 : of, relating to, or devoted to religious beliefs or observances<joined a religious order>
II. Charity
: the act of giving money, food, or other kinds of help to people who are poor, sick, etc. ; also : something(such as money or food) that is given to people who are poor, sick, etc.
: an organization that helps people who are poor, sick, etc.
: the organizations that help people in need
III. Educational
: to teach (someone) especially in a school, college, or university
: to give (someone) information about something : to train (someone) to do something
Full Definition
transitive verb
1 a : to provide schooling for <chose to educate their children at home>
b : to train by formal instruction and supervised practice especially in a skill, trade, or profession
2 a : to develop mentally, morally, or aesthetically especially by instruction
b : to provide with information :inform <educating themselves about changes in the industry>
3 : to persuade or condition to feel, believe, or act in a desired way <educate the public to support our position>
The church teaches for the betterment in each of these areas of Life
Spiritual Salvation – Morality
Health and Healing
Financial Independence Responsibility & Wealth
IRS – DOCUMENTS – FOR NON-PROFIT
Exemption Requirements - 501(c)(3) Organizations
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.
Unrelated Business Income Tax
Even though an organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. For most organizations, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption. An exempt organization that has $1,000 or more of gross income from an unrelated business must file Form 990-T. An organization must pay estimated tax if it expects its tax for the year to be $500 or more.
Unrelated Business Income Defined by the IRS
For most organizations, an activity is an unrelated business (and subject to unrelated business income tax) if it meets three requirements:
1. It is a trade or business,
2. It is regularly carried on, and
3. It is not substantially related to furthering the exempt purpose of the organization.
There are, however, a number of modifications, exclusions, and exceptions to the general definition of unrelated business income.
With the Church the Income being generated from the Business or Businesses is related to the Exempt Organizations Expenses to Operate because it is being used to pay the expenses and operating cost of the Tax Exempt Organization.
Inurement/Private Benefit - Charitable Organizations
A section 501(c)(3) organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of a section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization.
This doesn't mean the Church can't pay salaries from the Income
Churches
1. To operate and maintain the church which is a Tax Exempt organization money is needed so a expense and cost budget is established which usually includes:
a. Salaries: Including the Pastors and all of its Employees
b. Buildings - Mortgages or Rents
c. Utilities
d. Supplies
e .Evangelism/expansion
QUESTION: Does the IRS say or dictate how a church is to raise or get its capital for the purpose of paying its expenses or running its ministry? NO!!!!!!!!!
What makes people especially most pastors think that the church has to be dependent on donations or people giving to it to operate its Ministry?
Actually if that is the case then Church itself would be the Dependent and on welfare which actually means needing support.
This would make the Church a recipient of charity when the Church itself is a charity organization meaning it is formed for the purpose of or supposed to be giving to the poor and helping those in need. Remember the Words of Jesus, “ It Is More Blessed to Give Then It is to receive”. That also includes the Church.
In most cases the church receives donations and pays its expenses and operating cost and doesn’t have much or as much left over as it would have if it were generating its own income through doing a Business to pay its own expenses.
If that were the case then the Tithes Offerings and Donations could be used for the actual purpose of Giving according to the Scriptures Which is to Honor God and help people in need.
Question?
So If the church raises its funds to pay its operating cost expenses through the church business why would it be classified as unrelated income when It's income related to paying the ministries or Churches Expenses and budget or cost to operate the Exempt Organization.
Next Question?
What about the IRS statement about Surplus?
Well most churches at least in the African American and minority communities there is no surplus.
If anything there is a lack of finances and no Surplus. Bankruptcy or foreclosure continues all over the country like never before in our time.
If there was ever a special need for the church to start or have its own business for the purpose of raising funds now is the time in what is being called the Great Recession.
Here are some examples of types of Businesses the church should or could do:
1. Renting out some of it unused building or land for office space getting monthly income.
2. Buying and selling products and services to its members and community.
3. Working together with other pastors, churches and organizations buying selling to each other.
4. Work with Local banks and merchants/Businesses that are doing cash back merchant funded programs then give free memberships to members to generate income from consumer spending and shopping at their place of business
Just think what the church, the body of Christ, Christians which is the largest single group of people connected together next to the human race could do if it gets hold of this and starts doing business to Get its Funds needed rather than Begging or relying on people to give to it to survive.
If you bare witness with this Blog join us in doing “ The Business of Giving” and Start Generating Income for your Church and People.
Get a free membership a cash back program here: http://www.dubli.com/T0US199G7
Or information on becoming a Business Associate with our team of Pastors and Churches
Click Here: http://www.drsteveparson.biz
Please share this Blog with other Pastors, Churches or Organizations.