GIVE TO GOD WHAT IS GOD’S

After much studying of God’s Word, thought and prayer, I believe God’s Word addresses this for a modern day business.  It is possible to honor God by tithing from what a business produces.

First of all, I believe you should tithe from your business in addition to your tithing from your personal income.

But tithe 10% of what?

1. Gross sales
2. Gross Profit
3. Net Profit
4. Before or after taxes
5. Before or after dividends

(LEV 27:30 NASB)     says “of the seed”

(DEU 14:22 NASB)     says “of the produce which came out of the field”

(DEU 26:12 NASB)     says “of your increase”

Three possible sources

1. Gross sales – It has been said that most modern day businesses don’t make a 10% profit.  I agree.

God’s command should be able to be earned out – It should be possible under any circumstances.

For example, If your business volume could be combined into one transaction where you bought a product and sold it and made a 3% commission or profit.  If you gave 10% of the sales price to the Lord, you would show a 7% loss.

It is against the law in the United States for companies to deduct contributions unless they show a profit.

Jesus said “give to Caesar what is Caesar’s”.  Meaning, abide by the law of the land.  God does not want us to break the law to fulfill His Law.  His Law is perfect and just and can be fulfilled.

In addition, it is only a matter of time before a company’s equity disappears if you continue to tithe and lose money every year.  If that happens, then that business can no longer be used for the Lord’s Work.

2. From Gross Profit – What is gross profit?

Gross sales minus direct expenses.  What are direct expenses?  Some direct expenses may not be showing up as such because it’s too hard to do it on the P&L report.  So gross profit becomes arbitrary.

Also, many companies have gross profit above 10% only to have net profit under 10% or possible a loss in any given year.

Again, tithing 10% of gross profit could place a company in a position of showing a loss for the year.  Remember, you have to show a profit to take the deduction or your breaking the law.

Some may argue, “But overhead is controlled by management.  Your enjoying country club memberships, company vehicle, expense accounts and trips.”

First of all, company vehicles were either purchased out of the equity of the company; changing cash to vehicle but not increasing value, or they were purchased by borrowed money.  Again not increasing value because of the loan against the vehicle.

If country club dues, trips, expense accounts and even vehicles are not being used to enable the company to increase sales, then they should not be an expense to that company and should be stopped.  If they are being used to increase sales then they are a legitimate expense of business regardless whether you are the one “enjoying” them or your employees.

So, since gross profit is arbitrary, how will you know if your using the right value for gross profit.

3. From Net Profit – This is it!

I believe this is the way to consistently fulfill God’s Word.  “His desire”.  I believe it should be done before any dividend or taxes are paid out of it.  You will always be able to do it assuring you have a profit and it will be easy to compute.

To support the decision to use Net Profit as the source from which to tithe:

(LEV 27:30 NASB)  I believe the “SEED” the Lord Gives you at the beginning of the year is the equity in the company

(DEU 14:22 NASB)  The “PRODUCE” is the increase in the equity at the end of the year.\

(DEU 26:12 NASB)  “TITHE OF YOUR INCREASE” 10% of the increase in the equity of the business.

Since I believe the owners of the business should tithe from their personal income they receive from the business as well, you may add their income together with the income of the business to see the total “increases” “produced” from the “seed” of the equity of the company for the year.

A Tithe of each produces a tithe of all.

Even if the business loses money one year and no tithe is taken out, the tithe of the owners salary represents the true tithe of the increase that year.

Before paying the business tithe, check with your accountant to see the best way to do this.  The government does not want us paying more than our fair share of taxes.  There may be one way better than another which they allow that will save taxes.  You may decide to pay it to the stockholders so they can give it all to the Lord.  Depending on the company’s tax bracket vs stockholders, this may work best.  It doesn’t matter who gets credit, the Lord knows your heart.

EXAMPLE:

Net Profit Before Taxes    10,000

Owners Salary                100,000

Total R.O.I                       110,000

Tithe      11,000     10,000 + 1,000

The concept of return on investment “R.O.I.” can best be seen by the parable of the Talents where a wealthy man returns after giving his slaves charge over his money.  We was interested if they had used or invested His money and what was the increase.  His return on his investment “R.O.I.” of the equity, the seed, the talents He had given them at the beginning.

EXAMPLE:

Net Profit Before Taxes   -10,000

Owners Salary                100,000

Total R.O.I                        90,000

Tithe    9,000 personally

Personally, I would tithe 10% of the $100,000 since you can do this weekly easily.  Don’t let your personal tithe be reduced in a year of a loss unless your income is reduced.  Then tithe from the reduced income.

Remember, the Lord loves a cheerful giver!  Do it because you want to, not because you have to!  And remember the Lords promise:  (MAL 3:10 NASB) “Bring the whole tithe into the storehouse, so that there may be food in My house, and test Me now in this,” says the Lord of hosts, “if I I’ll not open for you the windows of heaven, and pour out for you a blessing until it overflows.”