11 WAYS TO SUPPORT STEWARDSHIP FOR YOUR CHURCH #9

 

            Continuing the VANCO stewardship booklet on the 11 Ways to support stewardship for your church, we are discussing Renting.

            Often, we avoid the use of the word “rent” and talk about “building use” so we can keep our non-profit status. Part of the rationale for this makes sense, but it isn’t totally complete. Of course, federal law requires tax-exempt entities to use their facilities exclusively for appropriate purposes; obviously to prevent a company from saying they’re a church to gain tax-exempt status and then run a business on the premises.

            We usually allow the church to be used by scouting troops, recovery groups and social clubs, even those are not usually exclusively for members of the church.

            You can charge for the use of your facilities, if it involves other non-profit organizations or is “within the mission of the church.” Some of these ideas could include one of the music ministers using one of the rooms to offer private voice lessons, or a local orchestra putting on a concert, or even renting out gym facilities to recreational groups. But the renter doesn’t have to be a member of the church. In this day when many people are working from home, sometimes they need a conference room or a small office to use occasionally.

            Of course, this type of income could be subject to taxation. You should check with a tax professional to make sure that this alternate source of income won’t affect your tax-exempt status.

            It may not be subject to income tax but may subject the portion of the property not used for ministry to be subject to real property taxes by the local authority. If the rental income you receive is greater than that, you’re still ahead.

            You need to make sure that renting out the property isn’t just done to make money, but to further the mission of your church. Ask yourselves: (a) what is the mission of your church? (b) how would the space being used for rental further that mission?

            If you want to get further information on this, I would strongly suggest that you consider reading the book, The Coming Revolution in Church Economics; Why Tithes and Offerings Are No Longer Enough, and What You Can Do About It by Mark Deymaz. It is information and a very good read.

Take the time to look at your assets. How can your building be an asset and not a liability?

            If you wish more information on anything you’ve been reading about, please feel free to contact me at (315) 427-3668 or sranousacctg@twcny.rr.com or susanranous@unyumc.org.  I’d be happy to help or answer any questions.