3 Reasons Why Churches Should Incorporate

By Dr. Franklin Dumond

Churches in the United States originally mirrored the state-church structures of England. In fact, the state of Massachusetts maintained a state sponsored church until 1833. In those original structures the church was an extension of the state. This remains essentially the case in many European countries where a government operated church exists.

Part of the incentive for early pioneers to migrate to America was the incentive for religious freedom. They did not at first, however, set out to establish a free-church tradition. Instead, they simply established their preferred version of a state sponsored church.

With the Great Awakenings on the western frontiers of the United States, churches were brought into existence rapidly. There was little attention given to organizational life in those days since many of the churches were congregational in polity. Thus the group organized to meet their needs for religious affiliation. Today if investigations are done into the background or origin of many churches that carry some form of “Union” in their name, one will discover that once upon a time one church location served several different denominations. The congregation might be the same but on some Sundays they gathered as a Baptist church and on others they gathered as a Methodist or Presbyterian church depending on which pastor could travel the particular circuit on a given meeting day.

As denominations developed and as churches began to hold property, they also began to engage in collective business activity. For example, a church budget I saw from some of those early days indicated a set amount to be spent for “kindling” so the newly installed coal fired furnace could operate.

The developing business life of churches meant that in the 20th century a need existed to identify the church as a formal entity in the community. To recognize that existence and to extend preferential treatment toward its operations, churches were encouraged to incorporate under the laws in their state.

Three overarching reasons exist for churches to incorporate.

Legal Identity. Incorporation establishes legal identity. The world of banking, insurance and utility deposits requires that entities that do business must have some formal identity by which that business is done. Incorporation provides that formal, legal identity for a church. Thus when officers sign official documents such as deeds, loans, etc. they are signing as officers of the corporation not as individuals.

Limited Liability. Forming a nonprofit corporation normally protects the directors, officers, and members of the nonprofit from personal liability for the corporation’s debts and other obligations. Called limited liability, this shield ensures that anyone who obtains a judgment against the nonprofit can reach only the assets of the corporation, not the bank accounts, houses, or other property owned by the people who manage, work for, or participate in the business. Limited liability also means that business loans and mortgages are guaranteed by the corporation’s assets not those officers who co-sign.

Tax-Exempt Status. Many nonprofit groups seek nonprofit corporate status to gain exemptions from federal and state income taxes. The most common federal tax exemption for nonprofits comes from Section 501(c)(3) of the Internal Revenue Code, which is why nonprofits are sometimes called “501(c)(3)s.” This status is granted to General Baptist churches under a blanket ruling by the IRS. A letter of recognition is issued to any General Baptist church that meets the criteria. For more information contact General Baptist Ministries.

When a church obtains tax-exempt status, not only is it free from paying taxes on all income from activities related to its nonprofit purpose but people and organizations that donate to the nonprofit can take a tax deduction for their contributions.

Incorporating a church as a nonprofit corporation usually involves these steps:

  • Choose a business name that is legally available in your state.
  • Prepare articles of incorporation that define your purpose and meet the legal requirements of the state. Sample copies are generally available from the Secretary of State’s office. While it is not necessary to use an attorney, it may be helpful to have an attorney review or even prepare the articles of incorporation.
  • Create bylaws that will guide the corporation’s operation.
  • Select an initial board of directors and officers for the corporation.
  • File your “articles of incorporation” with your state’s corporate filing office, and pay a filing fee.

Your state’s corporate filing division is usually part of the secretary of state’s office. You can request a packet of nonprofit materials from that office which will include sample articles of incorporation, the state’s laws on nonprofit corporations, and instructions on how to find an available business name.

Life in Those Old Denominations: 5 Ways to Participate

Having just completed our annual Mission & Ministry Summit I have been reminded not only of the history of our own denomination but also the value of belonging and participating in a denominational network. Nevertheless, while hundreds of General Baptist leaders gathered in Collinsville, Illinois for Powerful Worship, Practical Training and Personal Missionary Connections, (you can read about the event here) hundreds of others chose not to participate. As I reflected on participation in denominational enterprises it struck me that there are at least five ways I can participate.

  1. Participating through shared theology. The heart of our General Baptist movement, network, denomination is a commitment to our core theology of a General Atonement. This seems old-hat to those of us who have always held such a simple belief. As stated in the Scripture, Jesus Christ by the grace of God tasted death for every man so that whosoever will may be saved. It seems strange to think that this concept was considered heresy in most Baptist circles in the 1820’s when our movement was born. It also seems strange to think that many evangelicals today avoid that simple truth without realizing that they then portray a view of God as capricious, arbitrary and unreasoning.

When I served as pastor, I regularly met new people in our community who came from a church background that was non-General Baptist. They were delighted to learn that we believed as they did that God offers equal opportunity to all who would by faith accept Jesus as a personal savior.

Whenever I espouse belief in a General Atonement rather than a Limited Atonement, then I am participating in our General Baptist denomination by sharing a mutual theology.

  1. Participating through shared mission. The natural outgrowth of belief in a General Atonement is taking the Great Commission seriously. Thus when I pray for, support or participate in the denominational mission, then I am participating in the General Baptist cause. Shared mission involves missionary activity throughout the world, church planting within the United States, and various initiatives to teach and train as we make disciples in obedience to the Great Commission.
  2. Participating by personal networking. Shared theology and shared mission puts me in connection with others and while I cannot be connected personally with every adherent of the General Baptist cause, I can and do make connections with some others. Many times these connections are framed within my local church or regional association. On other occasions they cross regional boundaries as I find personal connection with like-missioned people across the nation or around the world.
  3. Participating by officially belonging. While shared theology, mission and network are excellent starting points, officially belonging is an important and meaningful way to participate in the life of our denomination. This official connection generally occurs through participation in a regional association that in turn is connected to the General Association of General Baptists. Churches that are not part of a denomination may become direct affiliates of the General Association to establish an official connection. Help is always available from denominational officers and denominational offices to assist any church who shares our core theology, mission and network to make official connections.
  4. Participating by showing up. Attending the first time is always a bit awkward whether it is a pastor’s conference, The Summit, or a Council of Associations meeting. Repeated attendance, however, means that soon we learn the expectations and nature of the gatherings. Repeated attendance also means that soon we learn not only how to navigate the denominational circuit but also that we anticipate seeing, greeting and catching up with folks who have become partners in the gospel. After 40 years of attending the General Association and after directly working with The Summit for 10 seasons now, I still look forward to showing up and checking up on folks I may only see once in a while.

 

 

 

Life in Those Old Denominations: 3 Reasons for Belonging AND Participating

By Dr. Franklin Dumond

Having just completed our annual Mission & Ministry Summit I have been reminded not only of the history of our own denomination but also the value of belonging and participating in a denominational network. Hundreds of General Baptist leaders gathered in Collinsville, Illinois for Powerful Worship, Practical Training and Personal Missionary Connections.

Powerful Worship was made possible by a Collective Worship Team of musicians and vocalists from several churches. The main sessions were completed by powerful preaching from both General Baptist and guest preachers who obviously had a message to share. Each preacher (Mark Powell, Darren Patrick, Alex Himaya, and Clint Cook) shared passionately and effectively. (Note: DVD copies of the main sessions are available for purchase from Congregational Ministries.)

Practical Training came from workshop sessions offered throughout the week. Workshop tracks allowed participants options to build a series of connected workshops or to enjoy highlights from several workshop tracks. Along with missionary connections, special training came from our own Church Planting Team and guests assisted with rural church, discipleship, personal enrichment, church systems and other topics. To conserve the learning, audio recordings were made of most workshops and access to those downloadable recordings is available through a drop card system that may be purchased from Congregational Ministries.

Missionary Connections were not only available in the workshops but were also part of the main stage event, a featured element of the exhibit hall, and an important part of two very powerful group prayers. On Tuesday evening Executive Director Clint Cook presided over a very moving commissioning service as the assembled leaders laid hands on newly appointed International Missions Director Mark Powell and newly appointed church planter Steve Gill to commission them to their new tasks. On Wednesday evening all the current missionaries, church planters and ethnic ministries were grouped together for a special joint prayer of blessing on their lives and service.

Looking back over the week I was reminded of three very important reasons for being part of a denominational network.

First, we do together what we cannot do alone. No one church can accomplish individually what we accomplish collectively. What one church can supervise the gathering of 42 churches in India? What one church can undertake the management of an orphanage in Honduras? What one church can plant a series of fast-growing, high-impact churches to reach thousands with the gospel? What one church can set the stage for revitalization of hundreds of existing churches? While no one church can undertake these ministries, when we work together they are rather easily accomplished!

Second, as part of a network of churches we are exposed to the help and encouragement needed to be more effective in our local ministries. One of the amazing things about The Summit is that since the meetings were re-engineered in 2007 a broader connection among and between General Baptists from different parts of the nation and different parts of the world have developed. With these new connections there is a synergy of effort as well as a keen reassurance that we are not alone in the struggle.

Third, as part of a denominational connection I can take advantage of services and programs that are offered to assist and expand my own ministry. Conferences and events offered by the denomination are provided at very modest costs and in convenient locations. If I accessed similar services as a private payee I would spend hundreds of dollars more for the same or similar conferences and events. Consultation services, missionary presence and church planter connections are all designed to assist and expand each local ministry to more effectively reach the world.

Executive Director Clint Cook puts it like this, “General Baptist Ministries exists to maximize Kingdom impact by starting, equipping and inspiring local churches to accomplish the Great Commission.”

Brand name loyalty is not what it once was. Markets for automobiles and dishwashing detergent can no longer depend on a buying public that is motivated by brand name loyalty. Church connections, too, are often driven by factors other than brand name loyalty. For me, however, there are compelling reasons for connecting to those old denominational structures, so I want to do my part to establish and improve my connections.

 

To purchase recordings of the workshops or General Sessions, contact Congregational Ministries at cmofc@generalbaptist or by calling 573-785-7746.