501(c)3

Part 4: Smelling Salts for Leadership

The way we are used to doing Church in the U.S. has been severely disrupted by the pandemic. We all know that. And it has revealed some weaknesses in the sustainability of our congregational model. If our members can’t come to our buildings for our programming and give their offerings, how long can we last? Is the only thing we really have to offer the community around us is a Sunday morning service? Do we have no other purposes to fulfill?

The disruption also reveals that U.S. congregations of all sizes have strayed into operating more like nonprofit businesses - with something like a fee-for-services model - than like the New Testament Church we are called to be. And so when the wrench of COVID-19 was thrown into our gears, the model we were relying on failed us.

When the New Testament Church was disrupted in Acts 8:1-4, scattered from each other and separated from the Apostles, the result was not a crippled Church or a confused Church but a multiplying Church. You see, there’s our way for our results but then there’s Jesus’ way for Jesus’ results.

What is this season of disruption revealing about your congregation? It is a perfect time, now that the gears of our current church-machines have ground to a halt, to reflect, evaluate and ask some new questions of ourselves. And so we offer, “Smelling Salts for Leadership.” If we take an unpleasant but bracing whiff of these smelling salts, we have the opportunity to wake up, see clearly what we have been doing to ourselves, and begin to see some of the simple but important reforms we can make.

Now’s the time. Now’s the time to have thoughtful leadership conversations (using technology, of course). “Have we been producing the fruit of a New Testament Church or the fruit of a 501(c)3 nonprofit business? Has this disruption caused us to respond like a threatened business or like a Church ready for multiplication?” Now’s the time to ask because the disruption of our congregational model is no longer hypothetical. Everyone is experiencing the concrete challenge to our congregational viability, identity and purpose.

As my friend, Bryce Formwalt, recently pointed out, “I believe that this crisis has exposed our deeply rooted dependency on Sunday morning gatherings inside our church buildings. Many American churches have built their identity and purpose around Sunday morning worship, fellowship, and education … and not much else. So what is church if we can’t gather inside our beautiful buildings on Sunday mornings? My hope is that this crisis will help you and your congregation to think deeply about this question and reclaim your mission.”

Is Bryce right? Let’s take a whiff of Smelling Salt #4 and see.

Smelling Salt #4

In the U.S., we know how to run 501(c)3’s and denominational franchises, but we’ve forgotten the basics of running a New Testament Church. 

  1. In the U.S., because our congregations have applied for nonprofit, tax exempt, 501(c)3 status, we end up being more thoroughly influenced by what it takes to run a nonprofit business than we are by what it takes to be a New Testament Church.

  2. 501(c)3 congregations are governed by constitutions and bylaws, led by boards and committees, and evaluated by metrics measuring the success of our nonprofit business; for instance, the number of people coming through the doors, the level of revenue coming through the offerings, and the level of satisfaction coming from our members.

  3. Likewise, many congregations are more deeply influenced by what it takes to be a denominational franchise in good standing than being good examples of a New Testament Church in the local community.  For too many congregations, the first question asked is not, “What is the model of the New Testament Church?” but, “Is this Lutheran?” (or fill in your preferred denominational label).

  4. A 501(c)3 congregation is habitually focused on gathering members and supporting itself. A New Testament Church is habitually focused on sending out trained disciples who support the transformation of the community.

  5. One way to tell whether a congregation is thinking more like a 501(c)3 or a New Testament Church is by listening to what is being talk about most at church.

501(c)3

  • Senior staff and Governing Boards are talking most about the sustainability of their 501(c)3: budgets, attendance trends, policies, buildings, paying bills, staff, level of members’ satisfaction, etc.

  • Program committees and staff are talking most about the next “Jesus show” they are preparing or what lessons people need to learn. Their first question usually is, “Will the members participate or not? Will they like it or not?”

  • Small groups (that is, any smaller congregational gatherings) are talking most about their own interests, needs and level of satisfaction with the organization.

  • The rest of the members are talking about how well (or poorly) the congregational leaders are adhering to denominational franchise rules and how well (or poorly) the leaders are meeting their needs.

New Testament Church

  • Senior staff and Governing Boards are talking most about how well the members are fulfilling Jesus’ mission of loving neighbors and transforming the community.  They are talking about how best to use the organization to facilitate these missional results.

  • Program committees and staff are talking most about how their program can disciple the members to live out their baptismal identity for the good of others in their daily lives – that is, how can their program teach/model/facilitate/inspire/champion/train/tell the stories of living such a redemptive lifestyle.

  • Small groups are talking most about how they are joining Jesus and interacting with lost people. What’s working, what’s not and what’s their next step.

  • The rest of the members are talking most about how well (or poorly) the congregational leaders are modeling biblical, missional lifestyles which the members can take note of and imitate in their daily lives. (see Hebrews 13:7)

6. Another way to tell whether a congregation is thinking more like a 501(c)3 or a New Testament Church is by how the congregational leadership is defined and organized.  Is leadership defined and organized around the constitutional requirements of a 501(c)3 or around accomplishing the mission of God and prioritizing the multiplication of missional disciples? (see Matthew 28:19-20)

  • Are senior lay leaders identified by their willingness to serve on a board and by their organizational skills or by their discipling skills and the outcome of their way of life? Do their duties revolve around meetings, agendas, budgets, policies, constitutions, staff evaluations and membership complaints or around discipling new missional leaders?

  • The congregation needs officers to manage the 501(c)3 and comply with IRS regulations.  But we also need the kind of leaders the Bible advocates so we see multiplication of missional discipleship throughout the congregation and out into the community.

7. The Bible says a New Testament Church leader is identified by the outcome of their way of life.

  • Hebrews 13:7, “Consider the outcome of [your leaders’] way of life and imitate their faith.”

  • Luke 6:43-48, “Each tree is recognized by its own fruit.”

  • Galatians 5:22-23, “But the fruit of the Spirit is love, joy, peace, patience, kindness…”

8. The duties of a New Testament Church leader are defined by their willingness to invest in relationships so that they can disciple other members to follow Jesus and join Him on His mission in the community.

  • 1 Corinthians 11:1, “Follow my example, as I follow the example of Christ.”

  • Philippians 4:9, “Whatever you have learned from me or seen in me – put it into practice.”

  • Philippians 3:17, “…and take note of those who live according to the pattern we gave you.”

9. The qualifications for this kind of leader are simple: a) year by year, do we see them growing up and becoming more like Jesus; b) do we want people of the Church imitating their way of life?

10. Leveraging this kind of leadership means our leaders are regularly gathering in smaller groups with members to

  • invest in relationship with them,

  • talk with them about how life with Jesus is going,

  • encourage them,

  • offer them insights from their lives

  • and spur them on to another week of love and good works for others. (see Hebrews 10:24-25)

11. On the other hand, 501(c)3 lay leaders are leveraged in the following ways:

  • Leaders go to meetings in conference rooms with other leaders. Most members don’t see them or know them nor are they aware of the outcome of their daily way of life.

  • Leaders are put in charge of programs and model for members how to lead a program (and members are still unaware of the outcome of the leader’s daily way of life).

  • Leaders are asked to lead Bible Classes or Small Groups and model for members how to lead in that setting.

  • Thus, members end up being under-discipled in how to live the impactful life of a Jesus-follower in the community simply because the congregation did not identify and organize its leaders for this purpose.

12. A third way to tell whether a congregation is thinking more like a 501(c)3 nonprofit business or a New Testament Church is what metrics (statistics) motivate the members most. For instance:

  • Regarding offerings and membership: for the 501(c)3, these ARE the metrics.  Few other metrics matter. And when comparing the two metrics, “How much money do we have?” trumps, “How many members do we have?”  The level of contentment the congregation has with its finances drives the level of commitment it has for gaining new members.

  • Regarding leadership: a 501(c)3 asks, “Do we have enough people willing to be elected to the positions required by the constitution?” A New Testament Church (NTC) asks, “Who are the leaders in our congregation we want our members to imitate?”

  • Regarding attendance in services and programs: a 501(c)3 asks, “Are people showing up for our services and programs?” A NTC asks, “Are people growing up because of our services and programs so they are a force for redemption and restoration in this community?”

  • Regarding the budget: a 501(3)c asks, “How much money do we need for our services and programs?” A NTC asks, “How much money can we use to bless this community in which God has placed us?”

  • Regarding the commitment of members: a 501(c)3 asks, “Why don’t more of our members come to our voters’ meetings?” (or serve on our committees or volunteer to help with our programs?) A NTC asks, “How can we help our members invest in friendships with more lost people in their neighborhoods?” (or serve the community or volunteer to help other nonprofits?)

Questions to Prompt Action

  • Is the point of Smelling Salt #4 to abandon our 501(c)3 status with the IRS or to be aware of how the framework of such a status can warp how we go about running our congregation?

  • When our congregation gathers in meetings, groups or classes, what do we talk about the most?

  • From the examples given above, how does being a 501(c)3 distract our congregation from being a New Testament Church for the good of this community?  What can we do to correct this?

  • Jesus says, “By their fruit you will know them.” What is our congregational fruit telling us these days?

  • Who are Hebrew 13:7 kinds of leaders in our congregation?

  • How can we organize our congregation into small groups so they can regularly interact with our Hebrews 13:7 leaders?  (Note: for the sake of sustainability and good order, think in terms of where members already live.)

  • The metrics we have are driven by the values we have.  What we value is what we measure. What do our current congregational metrics tell us about our current congregational values? What additional metrics can help us embrace new values?