Assorted

If businesses tithed

Christians are familiar with the Biblical principle of tithing, and support many kingdom causes as a matter of course. They apply the principles of Galatians 6:10 with their talents, time and treasure: “So then, as we have opportunity, let us do good to everyone, and especially to those who are of the household of faith.” Followers of Jesus Christ are known for their enthusiastic support of their local church, Christian education, organizations helping the homeless and poor nearby and in other parts of the globe.

We are giving, and we can see God blessing those gifts.

So, what might the Lord do if Christians who own their own businesses or are shareholders in a venture with others, found ways to apply these same principles in their business operations?

Retained earnings

Often in the first years of establishing a company, funds can be tight, and any profits that are made need to be invested back in the business to pay down debt, or to purchase new equipment, or to hire more staff. (These profits that are not pulled out of the venture, but are used by the company are often called “retained earnings.”) Sometimes, a new firm can operate for years without paying out profits to its owners, but meanwhile, the company is growing, owns more assets than when it was starting up, and itself is now worth far more than it was when it was just an idea percolating in the minds of its founders.

When Christian owners or shareholders are rewarded with a dividend payout from the business, it’s relatively easy for them to make an individual decision about giving back to the Lord from these earnings, just as they would decide when receiving a regular paycheque. All these good gifts that we receive are really the Lord’s, and for us to “give back” from our first fruits should be a given. In Proverbs 3:9-10, Solomon reminds us to:

“Honor the Lord with your wealth, and with the first fruits of all your produce; then your barns will be filled with plenty, and your vats will be bursting with wine.”

But what about the wealth that has been building up inside the venture, the “retained earnings” referenced above? In Luke 12:16-21, the Lord Jesus warns against covetousness and greed with the story of the rich fool:

“The land of a rich man produced plentifully, and he thought to himself, ‘What shall I do, for I have nowhere to store my crops?’ And he said, ‘I will do this: I will tear down my barns and build larger ones, and there I will store all my grain and my goods. And I will say to my soul, “Soul, you have ample goods laid up for many years; relax, eat, drink, be merry.”’ But God said to him, ‘Fool! This night your soul is required of you, and the things that you have prepared, whose will they be?’ So is the one who lays up treasure for himself and is not rich toward God.”

Stewards, not owners

The rich man’s declaration of what he will do with “my grain and my goods” tells us how he thought of what he owned – it was all his, and not the Lord’s. That’s a point that the Lord Jesus makes again and again – not to think of the possessions God has entrusted to me as mine. All of it is the Lord’s, and all of it is only lent to us here on earth, to use wisely, and give back to Him (Luke 12:42-48, Matt. 25:14-30, etc.). And leading into this passage, He also warns us against thinking that one's life consists “in the abundance of the things he possesses” (Luke 12:15).

Although it’s not an exact analogy, the retained earnings inside our companies can function like the grain and goods in the rich fool’s barn – our company’s growth can be a temptation to measure ourselves by what we have built – so we need to be very careful how we view them.

So, how can we resist that pull?

Firstly, we should consider all of it the Lord’s, to be used for His kingdom and His glory. This does not mean we can’t invest in new equipment, or purchase additional property for our companies, or keep a prudent amount of funds available for potential emergencies. All of these are good business practices. But we should have in the forefront the idea that all of this is the Lord’s: just like the servants entrusted with the master’s property in Matthew 25, we will also be asked to give an account by our Master for how we managed what He lent to us.

Secondly, just as we financially support kingdom causes by giving from our paychecks and dividends, our companies could do the same with their retained earnings and with other resources they have built up. I was exposed to this idea of “corporate tithing” years ago by other Christian business owners. At their annual shareholders’ meeting, where they reviewed the past year’s performance, the shareholders were given an update on how much, and to whom the company had donated in the past twelve months, with the expectation that it would add up to a tenth of the retained earnings from the previous year. This built-in accountability helped the company’s management be intentional about their charitable giving, because there was a specific expectation around a measurable quantity – ten percent of last year’s retained earnings is a clear expectation, and one that can be easily communicated and measured.

So how about it, business owners? Could a principle like this be adopted in your business? Can you encourage the company you work for to consider more than nominal support of causes that promote the Kingdom of God?

May we be encouraged also by Paul who writes in 2 Cor. 9:6-7:

“Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”

Just imagine

Business tithing brings with it all sorts of opportunities and possibilities.

• Imagine a business tithed from their profit of $100,000: they could cover the cost of a part-time special needs assistant at their local Christian school.
• If they tithed from $1M, they could provide the means for a church or non-profit to hire a full-time employee, or do a renovation, or fund a medical clinic in the third world for a year.
• Imagine doing this consecutively over 10 or even 40 years? It really adds up. It could cover the cost of an entire orphanage etc.
• Another way businesses can tithe, beyond money, is by hiring people who are otherwise not likely to get a job, or a great job. It might be people with special needs, or who are in a place in life where they really need help/grace. Employment is so meaningful. But if we are only thinking about the bottom line, we won't be keen to take them on.

While this editorial focused primarily on the financial portion of a company’s giving back, there are many other ways that businesses can contribute to their community with their employees’ and owners’ time and abilities. If you have suggestions for good practices that encourage good stewardship in these areas, we’d be delighted to learn more! Send us your thoughts.

Marty VanDriel is the chief executive officer of two small businesses in Washington State, voluntary treasurer for three non-profit organizations, and assistant editor of Reformed Perspective.