Why Some Pastors Compromise Their Sermons

By Raul Rivera

It was 30 minutes before service started, and Pastor Morris sat at his desk with his sermon in one hand and the church’s account statement in the other. Although the church’s account was not “in the red”, it was awfully close to it. In order to stay on top, the church would need to bring in a healthy sized offering that morning. 

As Pastor Morris sat in his office, he felt caught between a rock and a hard place. He had a dilemma on his hands, and he was not quite sure what to do.

The sermon that Pastor Morris had in his hand for that morning’s service was one he had felt the Lord lay on his heart earlier in the week. It was a sermon about the pitfalls of pride and greed. The problem was that he knew this sermon would not settle well with some of his church’s more generous givers.

Knowing that the church needed to receive a good offering that morning, Pastor Morris sat there contemplating whether or not he should preach the sermon that the Lord gave him, or if he should just preach a sermon on the love of God.

A common occurrence amongst pastors today

When you survey churches across America, less than 3% of churches earn income outside of tithes, offerings, and pledges. The giving of tithes and offerings remains the traditional method from which churches generate income; however, this method alone also continues to be a source of stress for many pastors across the country.

I teach the biblical model for the church to have a for-profit arm (or church-owned business) that generates income in the same way that the Lord provided for the Levites. 

Speaking from experience, I know what it is like to pray for enough tithes so that rent for the month will be covered. I also know what it is like to be uncertain if the church will have enough money to cover payroll.

(Recommended reading: “How to Create a Healthy Church Budget”)

Pastors in the same situation may be more cautious about which sermons to preach from the pulpit. Let me explain.

A season for new wineskins

How often do pastors across the country go to the pulpit on Sunday mornings with two different sermons? Better yet, how often have YOU been in a situation similar to Pastor Morris?

Perhaps one sermon may speak about matters of the heart and being pure before God. However, as you approach the pulpit, scan the audience, and notice one of your more generous donors sitting there, you know that the message of purity will not sit well with this particular donor.

Since your church is in need of a large offering in order to cover rent for the month (or anything else for that matter), you are tempted to use your “back-up” message on the love of God. As difficult as this example may be, it is unfortunately an all-too-common occurrence in the church today.

The time for change has come! 

Life is too short to live satisfied with the traditional. There are “new wineskins” that God has for you and your church in this time and season. So, why not start and run a church-owned business and break out of the traditional methods used in the past?

There are new wineskins that God has for you and your church in this time and season.

(Recommended reading: “How a Church Mistake Can Be Costly to Pastors”)

Why not begin to utilize a new way of doing church?

I will use the remainder of this post to introduce to you what a for-profit arm is, how a for-profit arm functions, and why your church should consider owning a for-profit arm.

What is a for-profit arm?

In essence, a for-profit arm is a church-owned business that is explicitly established to do business and to make tax-free money for the church paid in the form of donations and dividends. The for-profit arm exists as a regular for-profit business that is described in Internal Revenue Code section 502.

This business can engage in any lawful activity and be open to the general public. The type of business can be anything you want it to be so long as it is a legal business and your ministry feels good about it. Whether it is real estate investing, commercial leasing, hauling, dry cleaning, a retail store, a convenient store, a car dealership, or a restaurant, your church can own the business.

A for-profit arm is explicitly established to do business and make tax-free money for the church.

(Recommended reading: “Can Our Church Own a Business?”)

How the Roman Catholic Church and Mormon Church are excelling with this model 

Perhaps you are not familiar with a church being able to own a for-profit arm. However, the concept of a church-owned business is not new. Many churches like the Roman Catholic Church and the Mormon Church have been creatively utilizing church-owned businesses to their benefit for decades.

For example, the Roman Catholic Church owns more real estate than any other organization in the world, and it uses this investment to generate income for the church. An annual statement from the year 2000 revealed that the Roman Catholic Church made nearly 30 billion dollars in profit from real estate in the United States alone.

Likewise, the Mormon Church has two of the nation’s largest for-profit enterprises. Deseret Management Corporation is an umbrella organization for many for-profit businesses, which in total makes annual revenue of over 1.2 billion dollars. Included within the umbrella are a newspaper, eleven radio stations, a TV station, a publishing and distribution company, a digital media company, a hospitality business, and an insurance business.

Imagine for a moment if more churches across the country grasped this concept, how much more of an impact the church would have in the world today. Next, let us look at how a church-owned business functions.

How does a for-profit arm function?

Similar to a nonprofit corporation, the for-profit corporation is formed by filing articles of incorporation with the state. When the church creates the corporation, it assigns a certain number of authorized shares, as listed in the articles of incorporation.

The initial purchase of shares not only gives the church ownership in the business, but it also provides the business with start-up money. This is the only time financial benefit flows from the church to the feeder corporation.

Once the business has made a profit, the board of directors for the for-profit arm can pay that profit to the church in the form of dividends.

(Recommended reading: “Two Clauses in Your Bylaws That Can Save You and Your Ministry”)

Here is why your church should own a for-profit arm

The fact remains that many churches today struggle just to pay basic expenses such as rent and utilities using only the tithes and offerings received. This, in turn, results in the unnecessary stress that many pastors experience and, at times, may adversely affect the sermons preached from the pulpit on Sunday mornings.

Since the government has made provisions in the tax code to allow churches and other nonprofits to receive passive income from a for-profit corporation, the question now becomes, “Why not take advantage of this benefit allotted to you and your church?” 

When you begin a church-owned business, the sky is the limit when it comes to generating income for the church.

(Recommended reading: “Restricted Offering vs. Designated Offering”)

It is time to dream bigger dreams

I love the Church! When I was a pastor in full-time ministry, I loved serving God and His people within that calling. However, I do not believe the stress I experienced, at times, was of God, especially when He has called us to be the head and not the tail!

I encourage you to consider implementing both biblical and legal strategies for your church owning a for-profit arm. Imagine the day when you are no longer solely dependent upon the tithes and offerings the church receives. Think about the relief of not having to carry around that worry.

If you have any further questions about this dynamic strategy, please call our office at 877-494-4655 and ask to speak with one of our church plant consultants.

Handpicked articles for you:

• “3 Compliance Pitfalls for Your Ministry to Avoid”
• “How to Simplify All of Your Church’s Filing Requirements”
• “How to Create a Healthy Church Budget”

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