What if, as some are calling for, churches would no longer be considered tax-exempt?  If you have been following events over the past few years, you know that it’s not a giant leap to get there from here.  We know that pressure is building to reduce or eliminate tax-exemption status for non-profits, especially churches.  It may come from several different directions at once, from those without a Biblical world view, from pressure on lawmakers to squeeze every ounce of “revenue” to support the massive debts we have accumulated, or from some other source that I am not smart enough to determine right now.  Our legislators here in North Carolina are already  headed down that road by putting forth bills to cap the amount of exemption for non-profits from sales taxes.

While our country’s financial situation absolutely screams for tax reform, and while I think eliminating the tax exemption for churches is a terrible idea for several reasons, those are not the questions of the day.  We can debate those another time.

My challenge is to those of us who are believers and it’s two-fold.  First, would you continue to tithe and support the Lords’ work even if you no longer receive a tax deduction?  Second, to those who read this who manage the finances at your church – is your church prepared for such an event?

I daresay that given the average level of giving to our churches currently,  if the deduction were eliminated, churches would experience some level of decreased giving.  While we are admonished not to worry about tomorrow, we are also told to plan, recognizing that the Lord has the last word.  I urge you to make up your mind now to follow the Lord, regardless of tax policy, and become a good steward (manager) of His resources.

How do we plan for such a possibility?  Here are four suggestions from the book of Proverbs, most of which will apply to individuals and churches alike:

1. For individuals, begin by committing the first part of your income (increase) to the Lord. (Proverbs 3:9-10)
2. Create a realistic spending plan and stay on it. (Proverbs 27:23)
3. Set aside an amount for emergencies. (Proverbs 21:20)
4. Eliminate debt as quickly as possible so that you or your church can be free to follow the Lord. (Proverbs 22:7)

Each of these is a lengthy subject all by itself and beyond the scope of this particular post.  If you are an individual seeking more information on any one of these, be sure to check out our coaching page.  If you are a church or other non-profit organization seeking help, then feel free to contact us.

What if I’m absolutely dead wrong and none of this occurs?  Then I suggest we get on our knees and give thanks.  But taking the steps above will not hurt you in either event – and I can say from personal experience that putting these into practice provides a peace of mind like no other financial decisions we’ve ever made.