Discover how churches can borrow the best from the business world while retaining their unique mission.
“Churches should be run like a business.” Have you heard that before? If so, what does that mean in a practical sense? But churches aren’t like secular businesses: They’re nonprofit organizations with tax exempt status. Attempting to derive revenue from entrepreneurial activities may create income tax liabilities and impair property tax exemptions. So while a sports venue can sell its naming rights, a church can’t really become the “Chick-Fil-A Worship Auditorium.” Nor should it.
In addition, houses of worship enjoy certain regulatory freedoms resulting from their religious exemptions that for-profit businesses don’t. Applying wisdom from the for-profit business world can help churches and nonprofit leaders manage their organizations more effectively. By adapting the right attributes of well-run businesses, religious congregations can become better stewards of their resources and make more profound impacts in their communities. Together, we’ll consider business concepts that can work for the church while respecting its unique mission.
Our Expert
MAX HERR
Max Herr is president of Church & Ministry Compliance Consulting. He has more than 25 years of experience in insurance, financial services, compliance and governance, including more than 10 years as a church treasurer. Max served as a church compliance specialist for the California Southern Baptist Convention for six years.
