When you ask pastors whether their church is a business or a ministry, most will quickly respond, “ministry.” It makes sense—ministry sounds spiritual, while “business” might seem secular, linked to profit-driven motives. Plus, many pastors do not enjoy spending time on spreadsheets; they want to serve people.
However, this question is not as black and white as it seems. Churches do not have to choose between being a ministry or a business—they can, and should, be both. Ignoring good business practices can threaten a church’s sustainability while focusing only on efficiency can risk losing the church’s mission and identity.
The Balance: Ministry and Business
Churches must learn to balance their spiritual mission with sound business practices. This means embracing smart management and financial principles without compromising their purpose of serving the community.
Biblical Examples: Jesus and Business
Jesus Himself gave lessons that blend spirituality with practical wisdom. In the Parable of the Talents (Matthew 25:14-30), a master rewards the servants who wisely invest his money and rebukes the one who did nothing to increase it. The message? Being savvy in managing resources is essential.
On the flip side, when Mary of Bethany poured expensive perfume on Jesus’ feet, Judas criticized the extravagance, but Jesus rebuked him, reminding us to prioritize the mission over purely financial concerns.
Churches and the IRS
In the US, churches are classified as 501(c)(3) nonprofits, meaning they are tax-exempt, and donations to them are deductible. While they do not need to file annual returns like other nonprofits, churches still must maintain proper financial records and can generate income provided it aligns with their mission.
Profitability in Nonprofits
Contrary to what some might think, churches should aim for profitability. The key difference is that any extra funds are not for private gain but are reinvested into the ministry. Churches, like any well-run organization, must manage staff, property, and finances to fulfill their mission effectively.
To truly thrive, churches must embrace the business side without losing sight of their core spiritual purpose.
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Article courtesy of Infinity Concepts