Kinds of organizations

Between Christian and secular organizations, the boards’ responsibilities are much the same regardless of the organization, although the attitudes, ethos and purposes vary greatly. The extent to which God’s leading is part of decision-making obviously varies greatly, but board dynamics are similar. Compare the following:

• Boards of secular businesses with shareholders
• Boards of secular associations with members
• Boards of Christian ministries with members
• Church boards of elders relating to their church members.

Christian organizations are of two main kinds: a ministry and a non-profit Christian business. The main difference is that a ministry depends on gifts and donations, but may earn part of its income. In contrast, a Christian business must earn all its income. This greatly affects the relationship with its constituency and its approach to accounting.

It also affects what activities it may take on:

• A ministry is quite focused and can take on a loss-making activity in faith. The essential factors are a sense of God’s leading, member consensus, and prospects of adequate member donations.
• A Christian business can usually take on any financially viable, ethical activity. However, it must ensure that the income from the activity will at least cover all its costs.

Due to a cultural shift in the last twenty years, many organizations that were once supported by gifts and donations now earn their income of a fee-for-service basis.