Business Tithing

This weekend we had a wonderful time of fellowship at Susquehanna Grace Community Church in Wrightsville PA.  Although most of our time was spent discussing living by God’s Economy with our personal finances, the weekend ended with a good discussion about business tithing.  The question was: if God blesses me with a business, should I as a faithful steward tithe on the business?  And if the answer is yes, how do we calculate tithe: Gross Receipts, Gross Profit, Net Profit etc? 

I believe that tithing is a principle that God gave mankind to help us get to know Him better and understand that He is owner and we are stewards.  It is a God instituted practice to develop a relationship between God and mankind (Deuteronomy 14:22-23).  This relationship applies to the individual and not the things that God entrusts the faithful steward to manage.

 

In addition to a business, God may bless an individual with real estate, investment portfolios and other assets that may increase in value.  The principle of tithing is intended for the individual and not the things God gives us to manage. 

Applying tithing to a business can be very difficult at best.  Tithing on gross proceeds would put some businesses under, due to the fact that they operate with a gross margin of less than 10%.   Basing the tithe on gross margin, could include tithing on monies that are not rightfully ours, since overhead, including accounts payable and payroll are usually included in gross margin figures.  Adding in factors like depreciation, taxes and multiple owners makes tithing from a business very confusing.  It is inconsistent with the character of God that obeying Him is confusing.

So if we are faithful stewards and business owners, what is the answer?  I believe the answer is found in Proverbs 3:9,10 where we are told to tithe from the increase.  The Bible (including Proverbs) is written to man and not to a business.  So the increase would apply to what man or woman (owner) realizes and not the increase the business realizes.

The key is to make sure we do not mix up our business finances and our personal finances.  This is a very bad practice, no matter if you have a farm, home based Avon business or 350 employee manufacturing company.    

I believe the responsibility to tithe occurs when we move the increase from our business to our personal finances.  This includes salaries, personal expense such as insurance paid by the company, period end bonuses or appreciation when the business is sold.  Until the increase is moved to the individual, I do not believe the tithe is applicable.

This is similar to real estate and investment portfolios.  When the market price of our house or investments increase, I do not believe we are compelled to tithe until that increase is realized in our personal finances.  This would occur at the time of the sale of the house or equity. 

God promises blessings for obedience in the area of tithing.  He doesn’t need our money, He wants our hearts.  Tithing is one way to indicate He has our heart.  I would encourage you to search the scriptures on the principle of tithing and if you are a business owner, let the Holy Spirit direct you and faithfully obey Him in this area.  I can assure you, there will be a blessing for your faithfulness.

This post is limited to tithing from the business.  It does not include sharing from abundance or sacrificial giving, which I believe are other opportunities to give outlined in God’s Word.  If God has blessed you with a business and He puts in on your heart to give from the business, praise the Lord and by all means follow His leading.   Although I personally do not believe tithing applies to business, I do believe that God will bless you for sharing from your business in the form of “over and above the tithe” giving.

I would love to hear your thoughts on this subject as I know others have different understanding of this application.