Skip to main content

MinistryCPA Special Topic: God Gives the Ability to Gain Wealth

Question:

A young man posits a question to his Christian grandfather: “Grandpa, I hope that I can someday have the smarts that you have. You have so much cool stuff—and you are always paying the bill at the restaurant and giving money to people. What is your secret to success?” How should a godly grandfather respond biblically to his grandson’s question?

Answer:

A Christian family might have an attitude that its position of wealth came from shrewd business strategies and hard work. At least at a time when he felt he needed an explanation to offer to his wives for his accumulation of wealth, Jacob credited God for his extensive possessions.

Thus God hath taken away the cattle of your father, and given them to me (Genesis 31.9). 

Moses warned the people of Israel not to think of their possessions in this way: And thou say in thine heart, My power and the might of mine hand hath gotten me this wealth. But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day (Deuteronomy 8:17-18).

The grandfather might first respond to his grandson by acknowledging the contributions of others whom God has used to enable his success. Consider the Apostle Paul: he recognized others for their support that God blessed, closing his letters often with final words that would resonate long with his readers (e.g. the church at Philippi (Philippians 4.10ff); Aquila and Priscilla (Romans 16.3ff)). 
  
The grandfather could also emphasize that having “cool stuff” can often be a distractor to what is actually most important. Jesus said, “Take heed, and beware of covetousness: for a man's life consisteth not in the abundance of the things which he possesseth” (Luke 12.15). Being generous with others is just one way that God helps him to keep in perspective that his wealth is really not his own. It has been given to the young man’s grandfather by God in trust that he would use it as a faithful ambassador of God’s good will and as a steward of God’s possessions.  

Finally, he has no “secret of success.” Others have taught him, experience has prepared him, and God-granted discipline has sustained him to serve others. Those whom he has served have paid for the goods and services that he has sold to meet real and legitimate needs in their lives, families, and enterprises. His work has been blessed by God. Even Satan recognized that God had “blessed the work of [Job’s] hands, and his substance is increased in the land” (Job 1.10). Job said, “Naked came I out of my mother’s womb, and naked shall I return thither: the Lord gave” (1.21). If God blesses one of His children with material possessions, he or she should only view it as a stewardship opportunity and responsibility, not as a validation of his or her own shrewdness.

Comments

Popular posts from this blog

Rental of a Church Parsonage to a Non-Minister

Question: A church owns a parsonage, but the pastor does not use it as he owns his own home. The church rents the parsonage to a tenant other than a minister or employee of the church. Will the church be responsible for paying income tax on these monies as Unrelated Business Income (filing a Form 990-T) even if the money is used to carry on the business of the church? Answer: Whether the money is used for church purposes is irrelevant.  IRS Publication 598  states: "If an exempt organization regularly carries on a trade or business not substantially related to its exempt purpose, except that it provides funds to carry out that purpose, the organization is subject to tax on its income from that unrelated trade or business." Fortunately, in the case of rental income from real property, such income is "excluded in computing unrelated business taxable income" (Publication 598). Caution: see content below regarding debt-financed property.  However, a second concern not a

Review: Form 1099 Payments to 501(c)(3) Organizations

Question: A church rented space from another church last year. Should it request a completed Form W-9 and issue Form 1099-MISC? Answer: Payments from one 501(c)(3) organization to another 501(c)(3) organization are not subject to Form 1099-MISC reporting. The IRS Instructions for Form 1099-MISC state that "payments to a tax-exempt organization" are exempt from reporting a Form 1099-MISC.  The following are typical examples of payments of $600 or more by a church which are subject to reporting a Form 1099-MISC: Rent paid to an individual (non-corporation) Payments for services rendered by individuals who are not employees (e.g. janitorial service, facilities, snow removal, guest speakers) Support sent directly to missionaries

Housing Allowance and Form 1099-MISC Reporting

Question: A church provides its minister a housing allowance but believes it must report the full amount of compensation (including the non-taxable housing allowance portion) on Form 1099-MISC in order to demonstrate the full earnings of the minister. (Starting in 2020, Form 1099-MISC is replaced with Form 1099-NEC for non-employee compensation.) If the church reports his compensation, including the housing allowance, on the Form 1099-NEC as taxable income, will he be able to deduct his housing expenses somewhere else on the Form 1040? Answer: This question brings up a couple of issues. First, most ministers are properly classified as employees who receive Form W-2 , not as independent contractors who receive Form 1099-NEC . Box 1 on Form W-2 reports taxable compensation. It is reduced to reflect the church's designation of a portion of his pay as non-taxable housing. Then, in Box 14 (Other), Form W-2 typically reports as a memorandum item his additional non-taxable, housing allowa