January 7, 2007

Church Incorporation: The Debate

Anyone who’s done any "church planting" research on the internet lately has quite likely discovered the ongoing debate about church incorporation. “To incorporate, or not incorporate. That is the question.” One school of thought holds that church incorporation is an “illegitimate extension of State power over churches.” And that by incorporating, churches “capitulate to the State.” In other words, they “transfer their sovereignty from the Church of Jesus Christ to the messianic, bureaucratic State.”

That’s tough talk. But, where does this come from? You may be surprised to discover that it arises from a convoluted argument over the “privileges” the State is said to subsidize for churches. As the argument goes, “a State-granted privilege has become (and always potentially was) a means for the State to exercise control over corporations.”

What are these privileges? When church leaders elect to incorporate, they presumably do so to limit their personal liabilities, for the special tax treatment afforded corporations, for the opportunity to own property in the name of the church, and for the right to sue in court to secure certain legal rights on behalf of the church. This is what some term, “a surrender of the church’s ecclesiastical birthright.”

The opposing argument can be summed up in these truths; that corporate privileges are not absolute, and there is no requirement that churches incorporate. In other words, incorporation is a choice made by church leaders after investigation, much thought, and profound consideration of what is best for their ministries. The sad truth, however, is that many churches are incorporated simply because their leaders think that’s what they’re supposed to do. Amazing how the silent suffering of ignorance can be deafening.

The fact of the matter is that in following this debate, one will rarely find a reference to scripture, or what the debater sees as the mind and heart of God. Instead, the opposing arguments exist almost entirely in the existential realm of pseudo-intellectualism. Thus, one intellectual argues that incorporation creates unbiblical “State” churches. The other insists that it’s just another modern tool to spread the gospel while protecting a church against modern risks.

Is one right and the other wrong? We shall know only when we look into the mind and heart of God on this issue. Why is that important? Because it really doesn’t matter what intellectuals believe and articulate, if it bears no relevance to God’s view on the matter.

I will say that I believe this debate is truly healthy and we need not fear fleshing it out. It’s essential if we are to let God reveal himself to us on this matter. I do suggest that we finally make how God feels about it the central theme of this discussion. Otherwise, we risk ending the debate by chalking it up it to a mere difference of opinion. Which would mean that we failed, or refused, to delve into the written Word for our answers. And that reduces our debate to an exercise in futility.

If we consult God's Word and conclude that it is only a matter of opinion, so that we can agree to disagree, that's fine. But consulting the bible is essential before we can end it that way. I believe that the only way to know what God thinks and feels on this issue is to read our bibles and discern it.

Even if we were to agree that the promulgation of religious incorporation statutes was born of a “state” desire to dull the Christian mind and suppress our birthright, we must still go beyond that to an understanding of what God would have us do.

I will not pretend to be a religious scholar or world-traveling preacher. I'm really just a simple man with gifts from God. But I will say this. I know that God is sovereign. Nothing happens without His approval. And no one, no government, no scheme, no hidden agenda, and no earthly power… no matter how strong or sinister, can hold back the holy and mighty hand of God. Not even a corporation.

I will be back to continue this discussion and add a few of my own tidbits. For now, I’d like to know what you think.

Filed under Legal & Business by AHernandez

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January 19, 2007

I'm Starting A Church. What Should I Focus On?

This is a very important question… the answer to which will vary, depending on who you ask. If you ask many of the online "consultants" and vendors who seem to have stumbled into a "church-starting" niche, they would advise you to incorporate and secure IRS tax exemption. Don't buy it. They're steering you the wrong way.

Now, I'm not saying you shouldn't incorporate a church or secure 501c3 tax exemption by filing Form 1023 with the IRS. Many church leaders find advantages in doing so. What I am saying is that those tasks are by no means the most important aspects of starting a church. In fact, focusing on incorporation and tax exemption is no different than what generic nonprofits do. It's also what other types of religious organizations, including "fringe" religions focus on.

That's not what it means to start a church. A church does not start upon incorporation or securing recognition of tax exemption. A church starts when two or more come together in reverent prayer and worship of Lord Jesus Christ. It is possible to have a church long before a church corporation is formed. In fact, churches are not required to incorporate or secure federal tax exemption. They can form as unincorporated associations and federal tax exemption is automatic.

When starting a church, or even when deciding to move forward with a church or ministry you've been working hard to build for some time, the most important things to focus on are the issues that are UNIQUE to Christian churches. How can you feel confident about focusing on advancing the gospel and taking care of God's people without addressing the issues that can derail those efforts?

The truth is that incorporation and tax exemption are no help in leading people to spiritually and emotionally invest themselves and their families in a ministry. They don't help the flock feel support, encouragement, and protection. And they don't help ministry personnel and other church leaders feel confident about the long-term prospects of their ministry.

So what should you focus on? What are the uniquely church-related aspects that are most important to address? Obviously, it starts with the Word of God. Now, I understand that in any group of otherwise good, honest, reasonable and god-fearing people, many can get a completely different message after reading the same passage that everyone else reads. But remember, God will not hold us accountable for someone else's interpretation of scripture. He'll hold us accountable for how we lived them out ourselves.

So read the Word and ask yourself: What does God say about ministers and ordination? What does God say about authority in the church? What does God say about the authority of church members? What does God say about the kind of activities we are contemplating? What does God say about children? Missions? Evangelism? The poor?

Of course, not everything is spelled out for us in the Word. You may conclude that the bible is silent on certain issues. That's fine. You have freedom in Christ. Choose a direction based on general Christian principles. Make a list of the major religious tenets you feel compelled to focus on. Decide on the activities you will pursue as a church. Please understand, this does not mean that the bible boils down to those few statements, beliefs, or activities. It's simply what you will concentrate on for now. It can change later. Here are some things to think about.

Are ministers to be ordained? What should their qualifications be? How will new ministers be raised up? Will the church have full-time paid workers in the pastoral ministry, or only volunteers? Is the minister subject to the oversight and decision-making of an eldership group, or will the minister have decision-making authority over everything? Is it a good idea to sign a church-minister contract? If so, how should we go about it?

What are the standards of conduct for ministers, staff, volunteers and church members? What can members be expelled for? What can ministers be fired for? Do we even have an adequate mechanism in place to deal with ministry personnel issues? What can we pay our ministers? How do we decide that? What must someone do to become a church member? Or can anyone be a member simply by attending? Is baptism a requirement for membership? What else must a member know before placing membership in the congregation?

What will the church's official list of activities consist of? Besides weekend worship, will there be a mid-week service? What about bible studies? Will we have house church services? Will we have a structured children's program? How can we make sure that our children are protected from potential abuse? Do any of our contemplated activities consist of unreasonable or uncommon risk?

Address the issues of legal and religious, or ecclesiastical, authority in the church. What does the bible teach about how authority should flow? Is it best for the church to be governed by majority rule of the general membership? Or, should ministry personnel, such as an eldership group, have the final say on almost any matter? This is an important consideration because whatever you fail to decide up front, a secular court may eventually do for you. And that would not be good.

There are so many other things to focus on when starting a church. But remember, the point is that you must think them through and make some decisions about what you believe God is leading you to do. Then, you must decide what and how to either document or communicate your beliefs and expectations to the flock. It will do you no good to think things through but fail to clearly communicate them to church members. This is one of the most effective ways to avoid the kind of problems in the future that can derail a thriving ministry. This is what church law experts call the "contract" between a church and its members.

Your most important governing document is the church constitution. I should consist of the most important biblical concepts and direction you think is necessary to communicate to church members. But more importantly, it helps you come together as a community of believers and church leaders in agreement on what your mutual commitments and ministry will be and do. If you don't think it through, openly discuss it, and come to full agreement on… long before you incorporate and file tax forms, then it's an area that's ripe for dispute.

So focus on that first. And if you decide to incorporate and file tax forms later, your hard work on the front end will make those business tasks a smooth process, almost like an afterthought.

Filed under Leadership by AHernandez