What is a for profit arm?
Under Section 502 of the Internal Revenue Code, a ministry can establish a for profit arm to help earn tax-free income by way of donations and dividends. Do you think this is too good to be true? When done correctly, a for profit arm can give you options that will empower your church or ministry to grow.
Breaking out of the traditional
Life is too short to be satisfied with the traditional, especially when there are "new wineskins" for this time and season. To add a for profit arm is to break out of the traditional methods used in times past and to begin carving a new way of doing church business. The days of churches depending solely on giving are over, and you can be one of the first ones to do it!
Wont the ministry pay unrelated business income tax?
Many have asked, “Would the church not have to pay unrelated business income tax?” In short, the answer is, “NO.” The for profit arm is a separate entity. It is an independent business. The power is in the fact that the ministry owns 100% of the issued shares of the business. So, in essence, the ministry gets to control the business and reap 100% of its net profits as a non taxable dividend.
Add a for profit arm in eight simple steps
Expansion Suite™ walks you through eight easy-to-understand steps toward creating a for profit arm. You will find yourself enabled to not only create a new business, but to manage it properly as well. As an added bonus, the Expansion Suite™ offers real life examples of successful business ideas that will help to expand your dreams and visions.
Put yourself in a place of faith!
Most churches are stretching their faith by believing God for $1,000.00 in the offering just to pay church rent every month. Why not believe God for more? If you want the Lord to entrust you with a million dollars of income, you must place yourself in a position where you have no other choice but to trust HIM for a million dollars. A for profit, ministry owned, business is just the way to do it.