[Perspective] More than a ministry

By Curt Tucker, Investment & Admin Director Arkansas Baptist Foundation 

When most people think of a church, they think of ‘Church’— worship services, Sunday school classes, youth programs, and community outreach. And rightly so, the heart of any church should be ministry. But every church, whether we want to acknowledge it or not, is more than just ‘Church’. Every church is also a nonprofit organization, an employer, and a legal entity with trustees or directors who carry important legal and financial responsibilities. Recognizing this reality helps leaders manage the church with wisdom, integrity, and foresight. 

The Church as a Ministry 

First and foremost (I feel like I have to say this now, so you won’t think I’m a governmental agent) the church exists to glorify God, make disciples, and serve others. Preaching, teaching, prayer, missions, and outreach are the primary work of any local body of believers. But for this work to flourish, the church must also tend to its organizational and legal responsibilities. 

The Church as a Nonprofit Organization 

Every church in the United States is, by definition, a nonprofit entity. Even if it has never filed for IRS recognition of 501(c)(3) status, the IRS automatically treats churches as tax-exempt entities— able to, among other things, receive and receipt tax deductible gifts. This means churches must keep financial records, file payroll taxes, abide by nonprofit regulations, and follow their approved governing documents such as bylaws and articles of incorporation. Churches also need to operate transparently and beyond reproach. Donors, members, and the community (and the Lord, I might add) expect responsible stewardship of tithes and offerings. 

The Church as an Employer 

Churches employ pastors, ministry staff, administrative personnel, custodians, and more. With that role comes responsibility. While certain religious exemptions exist, churches must still follow federal and state labor laws. Proper handling and reporting of wages, housing allowances, retirement plans, and health benefits are critical. Even a small rural church with a bi-vocational pastor must be intentional about classifying and compensating workers correctly. Both for the sake of the church, and that of the worker.  

The Fiduciary Duties of Trustees and Directors 

In addition to pastors and ministry leaders, most churches have trustees, elders, deacons, or a board of directors who serve as legal stewards of the organization. These individuals hold fiduciary responsibilities, meaning they must act in the best interest of the church as a nonprofit entity. Their duties typically include: 

• Duty of Care: Making informed and prudent decisions, asking questions, and exercising oversight in financial and operational matters. 

• Duty of Loyalty: Acting in the best interest of the church, avoiding conflicts of interest, and putting the mission of the church above personal gain. 

• Duty of Obedience: Ensuring the church stays true to its governing documents, biblical mission, and applicable laws. 

These fiduciary duties are not merely legal checkboxes—they are spiritual responsibilities. Trustees and directors help safeguard the integrity of the church so ministry can thrive. 

Embracing the Full Identity of the Church 

Acknowledging that your church is more than just a ministry is not a distraction from the mission—it is a way of strengthening it. By embracing the church’s broader identity as a nonprofit, an employer, and an organization with fiduciary obligations, leaders can create a healthier, more sustainable foundation for Gospel work. 

When churches take their organizational responsibilities seriously, they free themselves to focus more on what matters most: loving God, loving people, and making disciples. 

An Opportunity to Learn More 

If you found this information helpful and would like to learn more about the organizational aspects of operating a church, please consider attending our Church Administration Workshop on September 11. Hosted in conjunction with the Arkansas Baptist State Convention, this workshop will be helpful for anyone involved in the operations of a church who wants to know more about accounting, payroll, taxes, and financial issues. Find out more and sign up at: www.abf.org/administration.    

The information contained in this article does not constitute legal or tax advice and you should consult with your own legal counsel or tax counsel about your situation.  If you have questions about this article or the Foundation’s services, please contact us at 501-376-4791, Ext. 5907 or [email protected].