Restoring Enterprise to its Place in the Body of Christ

Business as Mission, Kingdom Business, Great Commission Companies, Purpose-Driven Business, Enterprising Ministry, Kingdom Entrepreneurship - It goes by many names, but there is a new, and yet very old calling in the Global Body of Christ. Many believers are called to walk out their calling in the marketplace. A subset of those believers are called to plant and grow businesses that serve God and the rest of the church. It is their ministry, enterprising ministry, that we describe, support, and explore here.

Friday, December 17, 2010

The Integrated life

What if we could resolve the exhausting struggle between work, family, and spiritual life? What if we recognized a dep connection between faith and business? What if we could see our everyday work as ministry that has spiritual value? and What if God were even involved as an everyday partner in our work?

Experience the Integrated Life...

Ken Eldred, in his new book

The Integrated Life

Kingdom business is purpose-driven business

Kingdom business is purpose-driven business. It is business pursued with a goal of achieving spiritual, economic and social transformation in individuals and nations.


Dr. David Yonggi Cho, from the forward of God is at Work, by Ken Eldridge

How Small Ministries Can find Partners to Do Big Things- The 755 Network

If a ministry looks at it's calling and resources in three ways,

(1) - Pick one of 7 Categories of how they intend to influence the world for God's kingdom,
(2) - Pick one of  5 areas of  Christian Saturation where they intend to serve, and
(3) - Pick one of  5 roles they are called and willing to play

 the organization can make good decisions about what kinds of work projects they want to engage in, and who they should partner with. If a number of small groups do this together, they become - a 755 network.

A Real Life Case Study:

Banda Ache and the Tsunami

Its January, 2005, Lewisville, Texas, two days after the worst tsunami in living memory devastates the Banda Aceh region of Java, Indonesia. Reporters on the scene said the area resembled pictures of Hiroshima after the atomic bomb. Seven waves 75 to 100 feet went 30 miles Inland, contaminating every fresh water source with sea water, debris, and what ever was in the warehouse of several chemical plants that were washed away in the path of the waves. This was also a place that had been closed to the gospel.

A missionary from a nearby region, in Texas on furlough, called a contact in Banda Aceh. “All the drinking water sources are gone” they reported. “Bottled water is being brought in, but it's going to take months to rehabilitate all the water sources. We need a solution now.”

The missionary contacted a small ministry that specializes in drinking water situations in support of mission projects, with water engineers on staff. A kingdom business offered a conference room and computers for the project. An informal project team formed. After an initial assessment, the engineers and contacted another specialty water purification manufacturing ministry in South Carolina that makes equipment that met the Banda Aceh situation needs. Now that the team knows the costs, a large denominational ministry goes about raising the funds. Finally, space is found on an aircraft chartered by a different international NGO that will pick up the equipment and get it sent to Banda Aceh. The missionary goes to South Carolina for training on the equipment, and then leaves for Indonesia to set up and operate the equipment.

This all takes place in about three days.

The project team formed for this project had a missionary, a denominational mission organization, a kingdom business, two small water ministry specialty organizations and an international NGO. As soon as the missionary, now a water purification system operator, joins the water purification systems in Indonesia, the project team is disbanded, and the organizations never worked together again.

This situation shows as emerging partnership model, and suggests a way to create a partnering framework for the next phase of global ministry so that projects like the one above can happen more often. I call it the 755 network.

The 755 Network

In it’s simplest form, the network is made up of many different sizes and kinds of organizations, each of which has identified themselves along three Dimensions:

• Molders of culture ( 7 Parts of the culture the group intends to address-How they intend to serve)
• Waves of gospel saturation (5 progressive waves of Gospel saturation-Where they intend to serve)
• Five Charters (5 Kinds of organizations-What role they serve )

The framework is based on based on observation of what God appears to be doing already, suggesting some additional structure.

Three Dimensions

Each ministry that participates in a 755 network conducts a self-assessment along these three dimensions. They can identify where their ministry organization exists in relation to other members of the network.

The First Dimension: Where does your ministry intend to reach out to influence the culture, wherever in the world you serve? The seven part of the 755 frame work, listed below, appears to have been originally provided by Bill Blass and Loren Cunningham of YWAM and Bill Blass of Campus Crusade for Christ.
• Religion
• Government, Law, medical
• Media
• Family
• Education
• Business
• Arts and Entertainment

The Second Dimension:
Where does your organization’s Ministry Passion focus among these five transformational Waves?
• The first wave is the Seeding wave- Pioneering, possibly Hostile (Somalia)- 2nd Antioch Church; Acts 17, Matt 28:18-20
• The second wave is the Soaking wave- A Foothold is established (Nigeria, China ).Ephesians 6: 4-5
• The third wave is the Spreading wave- Spreading to the entire local area of influence (Fiji, Mexico –The Church at Corinth).
• The fourth wave is the Sharing wave- Sends Missionaries (US, South Korea, South Africa)(First Antioch Church, Acts 14)
• The fifth wave is the Securing wave- The work to reseed countries with declining Christian Influence (Europe, The church At Ephesus).

The Third Dimension:
What gifting and resources has God given your organization, and whom has he called you to serve?
1.  Mission Project Coordinator: God has given you a vision for a specific mission to a specific area, and you may already have a local ministry Partner, but you may not know how to get it done.
2.  Catalyst  has your team done a lot of different projects and have a lot of Contacts but not Workers?
3.  Workers- Does your group do a a lot of mission trips together, are a church looking for a ministry opportunity and you just want to serve?
4.  Resource - Does your group have assets, skills, training, tools, funding, or other resources you want to use?
5.  Local Ministry- Are you a globally local church or ministry with a special need?
This is related to, but not the same as mission project roles we will describe later. For example:

That’s it...

So How to I set up a 755 Network?

Conferences: Picture a conference where conference sponsors send out a short 755 Network questionnaire ahead of time

an example Attendee wears a badge like this:

Name- Orion Banda
African Christian Fellowship International
• Domain – Religion
• Wave – Second Wave-Foothold
• Role- Local Ministry

Or

Name-Jane Smith
Aviation Missions International
• Domain – Across 7 Domains
• Wave - First and Second Wave
• Role – Aviation and technology Specialists

Or

Name: John Doe
Kingdom Travel
• Domain- Across Church, Business, Govt.
• Wave –Specialize in First and Second Wave
• Role- Travel/Visa Specialist

How it can work:

1. Setting up Conferences and inter-ministry events:
You set up conference with 3 sessions, each offered 3 Times:  

-Session 1 For everyone In the Same Domain (religion, government, media, business, etc) 
                 Topic: lets compare best practices
-Session 2 For every Transformation Wave (for example (Europe/North America) together,
                 (Somalia, Pakistan, Japan)
                  Topic: What Ministry Strategies work best in our areas?
- Session  3  For Every Role:  (Local Ministries, Catalysts, Mission Project Coordinators)
                   Topic: How do we reach out to find other small ministries?

Seating at meals is always role cross-functional : 

The networks will develop naturally under the direction of the Holy Spirit.

2.  Setting up a project 

     Using this framework, Like the Banda Aceh Project, a  Mission Project Coordinator and Local Ministry might hunt down a Catalyst who could help them structure their project, point them in the direction of  workers and resources for the project.

3.  Assessing a current Project that may be meeting resistance? 
     What parts of the Framework are missing?

Conclusion

The 755 network is ministry strategy that facilities the partnering of diverse ministries of variable size to work together on mission projects of short to long duration. The network itself can be formal or informal. The frame work works best when an organization member, after assessment, self identifies along three dimensions. Armed with this understanding, they can operate in the network to find the right kinds and quantities of other mission organizations to develop relationships and later to possibly partner with for a mission project.

There will likely be many 755 Networks for different sizes and emphasis, formal and informal of short and long duration. Finally, there are still issues to be explored, including creating partnership agreements and internal conflict resolutions processes.


Next: Now that I have my 755 Network, what's next?

Then: Once a 755 network emerges, How do I manage and grow it?

Lee Royal
Editor, Enterprising Ministry

Monday, December 13, 2010

Biblical Enterprise is not a Work Toward Salvation, It is A Fruit of Salvation

Do not give your business life in an effort to help you earn your salvation. Your work, your enterprise is a fruite of Gratitude for the salvation he gave you, that you did not earn


Friday, October 29, 2010

Post Denominational Missions

A decade ago, there was controversey over whether American churches had entered a post-deominational period. As shown by this article, the consensus appeared to be that denominational affiliation was strong; however, since that time, it seems that some of the most prolific religious activites have grown outside denominational affiliations. 

Post denominationalism was discussed, in some confusion by people trying to find out what Sarah Palin believed in 2008.

Since I find no definition that makes sense, I will provide one:

"Post-denominational"  , or postdenominiational, or "post denominational" attempts to identify a period of general decline of centralized infulence among mostly protestant Christian denominations.

This neither creates a meta-denomination, nor a decline in the overall number of churches.  Evangelical religious activity by individuals is growing and crossing  individual church boundaries. New types ade groupings of individual churches are being formed.  Mega churches have emerged which tend to create their own network of smaller churches. Though this differs significantly among existing denominations,  most participants in this structure change agree, however, that the centralized authority of these denominaitonal groups have a different kind of influence than before this period of time.

"Post-denominational" It is also not to be confusesd with non-denominational, which identifies a category of independent protestant chuches who are not affiliated with any denomination. These churches have existed throughout American History.

There is even a movement in Judaism that has co-opted the term and created its own definitions

Post Denominational Missions
In light of this movement concept of how churhces cooprate together for missions is changing The concepot of Post Denominational Missions seems to be emerging elsewhere in discussions about creative and new ministry concepts, and Post denominationalism was discussed, in some confusion by people trying to find out what Sarah Palin believed in 2008.

Recently, post-denominational mission activites are begining to be mentioned
An Early Draft of this final document seems to have editied out the controversial phrase "post-denominational missions." The Article is about the the History of First Baptist Church Huntsville, AL.

"...... Following World War II, the U.S. Army chose Huntsville as a research and design facility for the newly emerging field of rocket science, and in the 1960s NASA’s Marshall Space Flight Center led the city into a period of unparalleled growth. Scientists and engineers from throughout the nation and world moved to Huntsville, and many joined the congregation of FBC.

 While First Baptist, like many other city congregations, struggled with the cultural and societal changes that swept the South in the sixties, for FBC the decade also witnessed new building programs, membership growth, and the emergence of a hands-on missions focus that hinted of an emerging post-denominational missions approach....."

March 2009 • Baptists Today

In summary:

Post denominationalism itself is an emerging concept, but post denominational mission strategies will be part of that discussion.

Thursday, October 7, 2010

The Theology of Serving God - The Ministry of Enterprise

Service to God must be done out gratitude for his love and mercy, not to earn a passport to heaven or even in repayment of a passport to heaven. So every part of our service portfolio is in gratitude. Our Service in Enterprise, in church (which is our refuge, not our biosphere) every interaction with every person at anytime.

Am I really called to service right now, right were I am?\
  • You were chosen to tell about the excellent qualities of  God, who called you. (1 Peter 2:9 GW).
  • Now you belong to him ... in order that you might be useful in the service of God." Romans 7:4 TEV
Is everyone called to service?
 9, 26; 7:17; Philippians 3:14; 1 Peter 2:9; 2 Peter 1:3)

Why was I called to service? Did I earn the Job?
  • Now you belong to him ... in order that you might be useful in the service of God. (Romans 7:4 TEV)
  • He saved us and called us to be his own people, not because of what we have done, but because of his own purpose." (2 Timothy 1:9 TEV)
I am not prepared to serve. How will I be Equipped?
  • And we know that in all things God works for the good of those who love him,[a] who[b] have been called according to his purpose. For those God foreknew he also predestined to be conformed to the likeness of his Son, that he might be the firstborn among many brothers. And those he predestined, he also called; those he called, he also justified; those he justified, he also glorified  (Romans 8-28-30)
Since we are all called to serve, and serve out of Gratitude, I understand that God Equipps me for his service; Serving other People.

Next - How Do I serve?

Wednesday, April 7, 2010

America a Christian or Islamic Nation?

Someone near and dear to me recently asked me to check out the rumors that President Obama was turning this nation into a Muslim Nation instead of a Christian Nation.
I shared the following:

 As a Christ follower I am saddened, but not particularly worried about these events because The king's heart is in the hand of the LORD;  he directs it like a watercourse wherever he pleases. (Proverbs 2:1).

I personally value the fact that my country's leaders, which change all the time, will not be asked to define what it means to be a Christ follower. Frankly, a don't trust any man to do that. The church is enduring and standing and growing rapidly across the world, in contrast to man made religion.

A man made religion is where a group of people take a set of rules and try to improve our own nature and spirits by behaving better. Using this definition of religion, any set of rules can be followed, drawn or extrapolated from the Quaran, the Bahgda Vida, the Bible, or any cook book from which a set of behavioral rules can be assembled. When differing groups have to live together in a country that values freedom and justice, we are challenged to find a set of rules by which we agree to serve justice. America is a country like that, and since our founders were mostly Christian the rules (our Justice system) they created were based on the bible. From a historical perspective only a false revision of our history can change that,

This justice system never did make us a Christian nation. Since we are a nation of the people and by the people, we will not be a Christian nation unless every single citizen choose to follow Christ. While it is my primary job in life to be an ambassador for Christ, working so that every person in America and elsewhere has the opportunity to choose Christ, They must choose to accept or reject Jesus' gift of payment for the wrongs they have done  individually, on their own. It is between God and each individual.

My relationship is with Jesus, and I want to share that with everyone his gift with everyone I meet, but if I make people choose Jesus by setting up rules that say they have no choice, but to believe in Jesus in my country, they can no longer choose him voluntarily.

Do Muslims play by the same rules? Some do not. Salafist Sunni Muslims are taught that they are not obeying the rules of their book unless promote the plan that their leaders make everyone under their geographic control obey the rules of their book, whether they choose it or not.

A Muslim is a follower of Islam. Therefore you can have a Muslim nation. (a country made up of Muslims} or an Islamic Nation (Nation ruled by Islamic - Sharia- law). Unfortunately we have no such distinctions in Christianity. We are a nation of many Christians, not ruled by the bible, but principles drawn from the bible.


So is America a Christian Nation? It is a nation of many Christ followers, and I hope it never becomes a nation ruled by some man's interpretation of the bible until every individual freely chooses to become a Christ follower.

Is it a Muslim nation? Salafist Sunni Muslims believe their God already owns America and that it must be brought by his followers under his control. I will politically oppose any action that tries to make America an Islamic Nation by these terms. Will there be many Muslims? I hope God continues to send them to us from abroad, where I pray I will always have the freedom to speak my faith publicly, and pray that God's spirit moves in them as he did in me. But until they do I will live in peace with them.

Will I keep my faith separate from my politics? No. I declare I am a follower of Jesus, and a citizen leader, and will express my Christian principles at the polls, in my everyday life, my votes and my preferences. I can even try make myself available to share my values with other people  who do not share them. My country's constitution says it cannot ask me to bow my knee to any religion it defines for me, and in that environment the gospel of Jesus will continue to spread around the world, on its own merits, until  every nation has heard the name of Jesus.

Therefore I an not afraid of this Muslim cult, and am neither ashamed of the Gospel of Christ, because it is the power of God for salvation.

Lee Royal

Wednesday, March 10, 2010

Charles Spurgeon on Prosperity

“Moab settled on his lees, he hath not been emptied from vessel to vessel.”

Give a man wealth; let his ships bring home continually rich freights; let the winds and waves appear to be his servants to bear his vessels across the bosom of the mighty deep; let his lands yield abundantly: let the weather be propitious to his crops; let uninterrupted success attend him; let him stand among men as a successful merchant; let him enjoy continued health; allow him with braced nerve and brilliant eye to march through the world, and live happily; give him the buoyant spirit; let him have the song perpetually on his lips; let his eye be ever sparkling with joy—and the natural consequence of such an easy state to any man, let him be the best Christian who ever breathed, will be presumption; even David said, “I shall never be moved;” and we are not better than David, nor half so good.

Brother, beware of the smooth places of the way; if you are treading them, or if the way be rough, thank God for it. If God should always rock us in the cradle of prosperity; if we were always dandled on the knees of fortune; if we had not some stain on the alabaster pillar; if there were not a few clouds in the sky; if we had not some bitter drops in the wine of this life, we should become intoxicated with pleasure, we should dream “we stand;” and stand we should, but it would be upon a pinnacle; like the man asleep upon the mast, each moment we should be in jeopardy.

We bless God, then, for our afflictions; we thank him for our changes; we extol his name for losses of property; for we feel that had he not chastened us thus, we might have become too secure. Continued worldly prosperity is a fiery trial.

“Afflictions, though they seem severe,

In mercy oft are sent.”

Morning and Evening: Daily Readings by Charles Haddon Spurgeon

@ Scriply Bible

Monday, February 8, 2010

Operating Agreements for L3Cs

(Excerpt from L3C Discussion)
It must be remembered that an L3C is a variant form of an LLC and that an LLC is essentially a partnership with corporate protection. Therefore, within the constraints of the laws of the states within which the organization is organized and or headquartered there may or may not be certain requirements for items that must be included within the operating agreement.

It is also important to remember that the operating agreement should clearly state the charitable purposes of the L3C and how they will be executed. A foundation member is apt to want to include assurances that the L3C will stay true to its mission.

The number of investment tranches used and the returns indicated in these sample agreements are strictly for illustration purposes only. At all times, an attorney should be consulted if anyone is unclear about any portion of the operating agreement.

L3C Simplified  Operating Agreement by Americans for Community Development

By Robert Lang (Linkedin Discussion Group)

Saturday, February 6, 2010

Church - Work Word TripUps Create Barriers

Here are some terminology that subtly reveals some pastor's view of the workplace. Really, its a double entendre  "Reach out and redeem your work."
Workplace Ministry as an Out Reach.

The term outreach implies that any activity the church undertakes is to reach out of it's ideal, cloistered atmosphere, and retrieve people from the workplace, bringing them into the church.

While this may be a helpful term to church program developers, to business people it suggests a generation old concept that creates passive Christians in the workplace. It suggests that if you meet someone at work and convince them to go to your church, you have accomplished your church ministry, and you need to get back to the safety of the flock as quickly as you can. Your church staff will "minister" to those to whom you have reached out. After a rest from that "scary" place out "there, those not in full time ministry must run out to the battlefront, and "rescue the perishing." We are the Medics, running to pick up the wounded and bring them back. We can't stay too long, or we may be contaminated.

Redeem Your Workplace

Another phrase that suggests that the workplace by nature is corrupt, is "redeeming the workplace"
 google Redeeming the workplace, you will see a world of people believe that the workplace is a filthy, corrupt place, inherently evil, no matter who works there.  For example, the central question in one conference is "How can I enter a workplace that is less than ideal and redeem it and bring joy to it?

Sometimes Pastors misunderstand the passion of  those called to workplace ministry, because they cannot imagine having a Passion for the workplace.  You see, God brings deep joy to those of us called to workplace ministry when we are up to our necks in work, with people in need all around us; employees, team members, managers, bosses, vendors, customers, people in need everywhere. They would loose their deep joy if we had to labor as a pastor, outside of work dealing with marriages, divorces, family situations, it would drain our passion, steal our joy.

But it gives pastors deep joy to do the work in the context of the church.
Full-Time Ministry

This suggests that only those who serve on the staff of a church are in ministry. The implications is that part time ministry is leading a small group of church member, or serving on a church committee as a volunteer.

Business Ministers, How many times have you heard when interviewing a job candidate. "I am happy to work here for now, but I'm looking for a job in full-time ministry. " This position, dropped with a hint of condescension, seems to say to us that the victim is willing to wait in purgatory until the Lord shows them mercy.

Believer, if this is your view of your role at work, please listen to a cry from  my heart to yours:

Join me in enterprising ministry.

I'm in full time ministry now, where every I am, Including my workplace. If you come to work here,

  • Please don't rent your boss your time, by the hour, to subsidize your church volunteer activities.
  • Don't be that distant Christian at work, interacting with people like you're under siege.
  • Your joyless, passionless efforts make believing in Jesus unattractive.
  • You make my job as a minister at work harder ever time you avoid a chance to serve on a committee at work and do just enough work to get by.
Join in, serving your Master, right now, wherever you are at work.

  • Who among your peers, your customers, your suppliers, your bosses are lost, or are prodigal?
  • Do you pray for them, care for them?
  • Do you look for opportunities to demonstrate Christ's love?
  • Do you care enough about them to let your work be credible to them so you can earn the right to be heard?
I invite you to join me in full-time ministry at work, if God has called you there. If not, pray that God will find a way to bring  you to a place of service that gives you the deepest joy, so that you add to God's Kingdom and don't detract from it.

In the mean time, right now, right where you are, God calls you to Full-Time Ministry. Join me there.

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Lee Royal

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Tuesday, February 2, 2010

Low Profit Limited Liability Company (L3C), a Business as MIssion Start up Solution

There is an emerging company in the US called the Low Profit Limited Liability Company (L3C). I believe that this company structure can resolve the problems we have experienced when investor try to give grant start up money to for profit companies.... Check this out.

Lee Royal

***************
A low-profit limited liability company (L3C) is a legal form of business entity in the United States that was created to bridge the gap between non-profit and for-profit investing by providing a structure that facilitates investments in socially beneficial, for-profit ventures while simplifying compliance with Internal Revenue Service rules for "Program Related Investments".

Contents [hide]
1 Background
2 Legal Structure
3 Capital Structure
4 Tax Implications
5 Advantages
6 Applications
7 Legislation
8 Proposed Legislation
9 See also
10 References
11 External links

The L3C is a low-profit limited liability company (LLC), that functions via a business modality that is a hybrid legal structure combining the financial advantages of the limited liability company, an LLC, with the social advantages of a non-profit entity. An L3C runs like a regular business and is profitable. However, unlike a for-profit business, the primary focus of the L3C is not to make money, but to achieve socially beneficial aims, with profit making as a secondary goal. The L3C thus occupies a niche between the for-profit and charitable sectors. As of September, 2009, an L3C can only be formed in the states of Michigan[1], Vermont, Wyoming, Utah, the Crow Indian Nation and the Oglala Sioux Tribe. On August 4, 2009, Gov. Pat Quinn signed Illinois' L3C Bill SBO239 and the law will take effect on January 1, 2010. [2]

Robert M. Lang, the creator of the L3C, CEO of The Mary Elizabeth &; Gordon B. Mannweiler Foundation Inc. and CEO of L3C Advisors, L3C the nations very first L3C recommends that you visit the web page for Americans for Community Development[1] for frequent developments on the L3C.

Legal Structure

The L3C is a form of limited liability company (LLC) and possesses many characteristics of a typical LLC. Like a traditional LLC, the L3C is a for-profit entity. Like a traditional LLC, the L3C offers a flexible ownership structure, wherein each member’s management responsibility and financial stake may vary according to individual needs. Like a traditional LLC, the L3C’s members enjoy limited liability for the actions and debts of the company. And, like a traditional LLC, the L3C is classified as a “pass-through entity” for federal tax purposes.

However, there is one important distinction between the L3C and the LLC. Although both are profit-making entities, the primary purpose of the L3C is not to earn a profit, but to achieve a socially beneficial objective, with profit a secondary goal. Whereas a traditional LLC may be organized and operated for any lawful business purpose, the L3C must be organized and operated at all times to satisfy the following requirements:

1. The company must “significantly further the accomplishment of one or more charitable or educational purposes,” and would not have been formed but for its relationship to the accomplishment of such purpose(s);

2. "No significant purpose of the company is the production of income or the appreciation of property” (though the company is permitted to earn a profit); and

3. The company must not be organized “to accomplish any political or legislative purposes.”

These three requirements, which must be specified in the L3C’s organizing document, deliberately mirror the requirements in the Internal Revenue Code governing Program-Related Investments (PRIs). Thus, the L3C is designed to meet the IRS requirements for qualifying as a recipient of PRIs. However, the IRS has not ruled on whether investments to L3C's will qualify as PRIs and has publicly stated that foundations may not rely on L3C status in determining whether or not an investment qualifies as a PRI.

PRIs are IRS-sanctioned investments made by private foundations, often into for-profit business ventures, to support a charitable project or activity. PRIs may involve high risk, low return, or both, but are made by foundations despite those apparent drawbacks because they are intended to achieve charitable purposes—and, as a result, receive special treatment under the federal tax law. Federal tax law generally requires private foundations to distribute at least five percent of their assets to social programs every year - or by making socially beneficial "program-related investments" of five percent or more of their assets every year in order to receive their tax benefits. [3]

PRIs usually are structured as below-market-rate loans, but may take other forms as well, including loan guarantees, purchases of stock or other equity security (including membership in an LLC), and letters of credit. For example, the federal tax regulations governing PRIs describe a business enterprise in an economically disadvantaged area that will receive loans from financial institutions only after it receives a below-market loan from a private foundation, and conclude that the foundation’s below-market loan qualifies as a PRI. The tax rules governing PRIs also permit private foundations to join conventional investors in financing enterprises that might—but are very unlikely to—provide the foundation a market-rate return. The key to a PRI is the foundation's motivation in making the investment. The legal form of the recipient is not determinative.

Presently, few foundations choose to make significant PRIs, in large part because of the difficulty and expense of ensuring that a proposed investment will qualify as a PRI.

[edit] Capital Structure
As a new, hybrid business form, L3C can leverage foundations' program-related investments to access trillions of dollars of market-driven capital for ventures with modest financial prospects, but the possibility of major social impact. An L3C enjoys a flexible ownership structure and can have different classes of investors—individuals, non-profits, for-profits, and even government agencies that have distinct investment goals and are willing to assume different levels of financial risk. [4] Because members of an L3C are not required to assume equal stakes in the venture, the structure of the L3C allows for tiered financing, also known as tranching. Tranching allows for the uneven allocation of risk and reward among investors, thus ensuring some investors a safer investment with lower returns.

At least two tranches of capital are involved in an L3C. The junior tier (or equity tranche)—the capital most at risk in the enterprise—is provided by foundations in the form of PRIs. The foundations holding PRIs in an L3C have the last claim on the assets of the enterprise upon dissolution and, for the reasons discussed above, are willing to accept a below-market rate of return. By allowing foundations to absorb excess risk and receive below-market returns, the junior tranche of PRI capital provides the financial backbone of the L3C, strengthening its balance sheet and positioning it to attract substantial additional capital from non-charitable investors.

The most senior tranche of capital in the L3C is provided by investors that need to generate market rates of return, but would like to invest in projects that provide tangible social benefits. With the PRI capital in place, the L3C can offer market rates of return at acceptable levels of risk to institutional investors (e.g., pension funds, banks, insurance companies, endowments) and other traditional investors. Thus, the L3C's investment structure can bring substantial new pools of funds to bear on problems normally only treatable by non-profit dollars, by providing socially beneficial investments that also are sound, market rate, and commercially viable.

In certain cases, an L3C’s capital structure may also include an intermediate tier, or “mezzanine” tranche, between the higher-risk/lower return junior tier designed for foundations’ PRIs, and the market-risk-and-return senior tier designed for profit-seeking investors. The mezzanine tranche is designed to attract socially-conscious investors whose definition of “return on investment” includes the achievement of socially desirable ends. Mezzanine investors are willing to forego market-rate financial returns and instead accept part of their return in the form of enhanced social welfare.

 Tax Implications
Although L3Cs are created to advance charitable purposes, they are not charities. Therefore, L3Cs are not exempt from federal or state tax and investments in L3Cs are not tax-deductible. While the L3C is designed to facilitate PRIs by private foundations, these foundation investments are governed by the federal tax rules applicable to PRIs.

Rather, an L3C—like a traditional LLC—is a “pass-through entity,” like a partnership or sole proprietorship. This means that no federal income tax is imposed on the L3C itself. Instead, items of income, expense, gain, and loss “pass through” the L3C to its members, are allocated in proportion to the members’ ownership shares, and are reported on members’ individual tax returns. Though L3Cs by their nature begin as enterprises that are expected to generate low overall profits, those profits are subject to taxation at the rates of tax that apply to their members.

As of July 2009, the IRS had not yet resolved several key questions with respect to the tax treatment of L3Cs. Foremost among these is whether investment by a private foundation in an L3C will constitute prima facie evidence of legitimate PRI. Another unresolved issue is whether profits flowing from an L3C to a tax-exempt member with a similar mission may be less subject to UBIT than if they had come from a traditional LLC.[5]

Advantages
The L3C is a defined entity organized under state laws.
It would allow the use of the more efficient free enterprise system unburdened by nonprofit regulation.
Its financial structure would allow the creation of a salable product by the financial industry
Foundations may buy ownership shares, make loans to, or otherwise financially interact with the L3C, and if these investments qualify as Program Related Investments, all or part of those investments will count towards the foundation's minimum payout requirement. [6] However, income from the investment must be added to the foundation's minimum payout requirement for the year in which it is received.
The L3C embodies the operating efficiencies of a for-profit along with a reduced regulatory structure. As an LLC, it can bring together foundations, trusts, endowment funds, pension funds, individuals, corporations, other for-profits and government entities into an organization designed to achieve social objectives while also operating according to for-profit metrics.

Under L3C status, a foundation (and its partner organizations) retains ownership and management rights in the L3C while possibly recovering its principal investment and potentially realizing a capital gain which, in turn, increases the amount of funds available to dedicate to the foundation’s charitable purposes.
The L3C creates an opportunity for the investment of private capital to further a social purpose. Because of its tranching structure; an L3C could be partially funded by money intended for prudent investment only such as state pension funds. This opens the door to trillions of dollars not currently available for socially beneficial investment.

Applications

Possible nonprofit structure for museums, concert halls, symphonies, recreational facilities and the hundreds of thousands of nonprofits that perform service for the government under contract, with the government as their primary source of revenue. As long as there is a definable revenue stream; the L3C is a potential vehicle.

The L3C is also a possible business structure for newspapers. While the IRS has not accepted newspapers as nonprofits, the federal legislation mentions L3C especially and it lists newspapers specifically. The idea of the Newspaper L3C is to bring back those journalistic contributions like neighborhood reporting, music reviews, book sections and even ads and make them part of the community services. An L3C is sustainable because it can tap into foundation money, and because an L3C business must meet a social purpose, it realigns newspaper with their mission of community service. "The participation of the foundation, which is seeking high social return but low monetary return serves as a catalyst for high investor return," said Marc J.
Lane, a Chicago-based attorney who authored the Illinois L3C legislation. [7]

L3C's investors can also offer low-interest loans to needy students, finance low-income housing projects, provide credit to disadvantaged business owners, combat community deterioration, and help alleviate other social strains. [8]

An L3C allows its investors to buy, say, an abandoned factory, rehab it as a LEED (Leadership on Energy and Environment Design) green building, and lease it at below-market rates to an ambitious, but cash-strapped manufacturer. The entrepreneur could become a successful employer and a catalyst for sustainable urban development. [9]

Legislation

Vermont. The pioneer legislation approving the L3C as a legally-recognized form of business entity (House Bill 0775) was approved by the full Vermont House of Representatives on February 27, 2008 and by the Vermont Senate on April 11, 2008. It was signed into law by Governor of Vermont James H. Douglas on April 30, 2008. As of August 10, 2009 Vermont lists about 60 L3Cs in the state database, including a chess camp, theater, alternative energy companies, publishers, food companies and numerous consulting firms. [10]
Michigan. Introduced by Traverse City Republican State Senator Jason Allen on July 24, 2008, Senate Bill 1445 was signed into law on January 16, 2009[11] as an amendment to the Michigan Limited Liability Company Act[12] by Governor of Michigan Jennifer Granholm. The bill was supported by the Council of Michigan Foundations[13], and the Michigan Department of Labor and Economic Growth[14].
Utah.

February 2009 - State Senator Lyle Hillyard (Utah politician) from District 25 introduced the Low-profit Limited Liability Company Act S.B. 148 on February 2, 2009. The Act is sponsored in the House by State Representative Kraig Powell of District 54.On March 23, 2009, Utah Governor Jon M. Huntsman Jr. signed the Low-Profit Limited Liability Company Act S.B. 148 into law. [15]
Wyoming.
January 2009 - Wyoming State Representative, Dan Zwonitzer, introduced the L3C bill HB0182. On February 26, 2009 Wyoming Governor Dave Freudenthal signed the L3C Legislation into law.
Illinois. August 2009 - Gov. Pat Quinn signed Illinois' L3C bill on August 4, 2009. The law took effect on January 1, 2010. [16] [2]

The law aims to make it easier for social enterprises to attract capital, said Sen. Heather Steans (D-Chicago), who sponsored the bill. "Foundations have a growing interest to not only make grants that achieve a social purpose but also use investments to do that," Steans said. Chicago attorney and financial adviser Marc Lane of Marc J. Lane Wealth Group, who helped spearhead the Illinois legislation, said the L3C law could create new jobs by supporting social enterprises that otherwise couldn't exist. [17] It's particularly timely given the credit crunch, he said. [18]
[edit] Proposed Legislation

Legislation allowing the formation of L3Cs is currently being considered in North Carolina, Georgia, Oregon, North Dakota, Tennessee, and Montana[19]. Marc J. Lane, a Chicago lawyer, who helped push for the L3C legislation in Illinois, and is the midst of helping start as many as 50 L3C around the country said this compelling concept has so much energy behind this movement.[20]

See also

Community interest company (similar legal structure under United Kingdom law)
Social entrepreneurship
Triple Bottom Line business theory

References
 Lane, Marc (1 September 2008). "L3Cs Hold Key To Solving State's Social Woes". Crain's Chicago Business. http://www.marcjlane.com/index.php?src=news&refno=288&category=2008%20Lane%20Reports.

 Lane, Marc (1 September 2008). "L3Cs Hold Key To Solving State's Social Woes". Crain's Chicago Business. http://www.marcjlane.com/index.php?src=news&refno=288&category=2008%20Lane%20Reports.

 http://www.cof.org/files/Bamboo/programsandservices/publicpolicy/documents/schultzletter.pdf

Meyer, Ann (Monday, December 28, 2009 “Nonprofits benefit from for-profit practices”. The Chicago Tribune.

Sally Duros (9 February 2009). "How to Save Newspapers". The Huffington Post. http://www.huffingtonpost.com/sally-duros/how-to-save-newspapers_b_164849.html. Retrieved 14 May 2009.

Lane, Marc (1 September 2008). "L3Cs Hold Key To Solving State's Social Woes". Crain's Chicago Business. http://www.marcjlane.com/index.php?src=news&refno=288&category=2008%20Lane%20Reports.

Lane, Marc (1 September 2008). "L3Cs Hold Key To Solving State's Social Woes". Crain's Chicago Business. http://www.marcjlane.com/index.php?src=news&refno=288&category=2008%20Lane%20Reports.

Meyer, Ann (Monday, August 10 2009). "New corporate structure could give social entrepreneurs new funding stream". Chicago, IL: Chicago Tribune. http://www.chicagotribune.com/business/columnists/chi-mon-minding-l3c-aug10,0,5321379.column. Retrieved 10 August 2009.

http://www.michiganfoundations.org/s_cmf/bin.asp?CID=10388&DID=23108&DOC=FILE.PDF
http://www.crainsdetroit.com/article/20090222/SUB01/302229972/1069
http://www.michiganfoundations.org/s_cmf/sec.asp?CID=6766&DID=14917
http://www.michigan.gov/documents/dleg/Analysis_of_Enrolled_L3C_Bills_261198_7.pdf http://le.utah.gov/~2009/bills/sbillamd/sb0148.htm
Lane, Marc (January 2010), "The Illinois Low-profit Limited Liability Company" http://marcjlane.com/clientuploads/l3cbook.pdf.
Senator Steans' Office.

Lane, Marc (December 2009) "The Family Foundation and the L3C"

http://marcjlane.com/clientuploads/NWSLTR_PHIL.pdf. Family Office Association.
Meyer, Ann (Monday, August 10 2009).
New corporate structure could give social entrepreneurs new funding stream". Chicago, IL: Chicago Tribune. http://www.chicagotribune.com/business/columnists/chi-mon-minding-l3c-aug10,0,5321379.column. Retrieved 10 August 2009.
http://www.americansforcommunitydevelopment.org/legislativewatch.html
Williams, Grant (Tuesday, November 10, 2009) “Dozens of Companies Are Sprouting with the Same Goal: Doing Good”. The Chronicle of Philanthropy.

External links
Introducing L3C
Balancing the Mission Checkbook: Where For-Profit and Nonprofit Meet
Legislative text for Vermont House Bill 0775
Americans for Community Development
Retrieved from http://en.wikipedia.org/wiki/L3C

The Rest @ Wikipedia

Wednesday, January 27, 2010

Haiti Update for Relief Teams

 USAID put out This map on 2/26/2010 shows the current status of  aid to Haiti Earthquaqe relief. If you are planning a mission trip or a BAM activity for Haiti Relief, you need this map.

On January 25, the USAID Disaster Assistance Response Team (USAID/DART) coordinated the donation of USAID/OFDA-funded U.S. urban search and rescue (USAR) tent supplies to the U.N. Children’s Fund (UNICEF) and area hospitals, including a total of seven tents to the University of Miami field hospital at the Port-au-Prince airport and the Port-au-Prince General Hospital and three tents to the Foyer L’Escale Orphanage in northern Port-au-Prince. UNICEF plans to utilize the tents to establish child-friendly spaces at the Foyer L’Escale orphanage, complementing efforts between UNICEF and the Government of Haiti (GoH) Ministry of Social Affairs to increase support for earthquake-affected populations.

  •  On January 25, two USAID/OFDA-funded flights carrying more than 5,400 hygiene kits and 5,000 body bags arrived in Port-au-Prince.
  • On January 26, one USAID/OFDA-funded flight carrying 18,000 water containers, nearly 2,500 hygiene kits, and four water storage bladders arrived in Port-au-Prince.
  • On January 26, USAID/OFDA provided $9 million in additional assistance to UNICEF for health, nutrition, protection, and water, sanitation, and hygiene activities in earthquake-affected areas. The recent contribution increases total USAID/OFDA humanitarian assistance to Haiti for the earthquake to more than $161 million to date.
NUMBERS AT A GLANCE

  • Estimated Deaths 112,250 GoH
  •  January 24 People Displaced in Port-au-Prince Metropolitan Area 609,000 GoH
  • January 22 People Departing Port-au-Prince 236,000 GoH
  • January 26 Estimated Affected Population 3 million U.N.
Current Situation

  • On January 25, the GoH reported that population movements from Port-au-Prince to rural areas had slowed, with an estimated 1,000 people departing the capital between January 24 and 25.
  • Accounting for recent population movements, the GoH estimates that nearly 236,000 people have departed Port-au-Prince for rural areas since the earthquake.
  • An estimated 62,500 people are currently seeking shelter in Artibonite Department. Water, Sanitation, and Hygiene (WASH)
  • According to UNICEF, relief agencies continue to deliver water to an estimated 115 sites throughout Port-au-Prince, reaching at least 235,000 people.
  • The GoH is rapidly expanding water distribution to areas outside Port-au-Prince, according to the USAID/DART.
  • USAID/DART WASH specialists continue to assess water conditions in spontaneous settlements and hospitals throughout Port-au-Prince, Léogâne, and Jacmel.
  • The USAID/DART continues to inform relief agencies 1 USAID’s Office of Food for Peace (USAID/FFP) 2 USAID’s Office of Transition Initiatives (USAID/OTI) 3 USAID/Dominican Republic (USAID/DR) 4 U.S. Department of Defense (DoD)

  • Wolrd Food Programme  (WFP) has conducted initial assessments in areas sheltering displaced persons, including locations in Artibonite and Northwest departments.
  • WFP is currently working with implementing partners to scale-up assistance in these areas. 

  •  On January 25, Catholic Relief Services (CRS) distributed dry rations of soy-fortified bulgur, lentils, and vegetable oil to approximately 1,300 households in Port-au-Prince.
  • CRS plans to continue distributions in the coming days.
Logistics and Emergency Relief Supplies
  • As of January 26, Shelter and Non-Food Item Cluster partners reported the distribution of emergency relief supplies to more than 119,000 beneficiaries since the start of the response, according to IOM. \
  • On January 25, USAID/DART staff reported the delivery of more than 1,600 kitchen sets, benefiting approximately 8,160 individuals, and 210 rolls of plastic sheeting, benefiting an estimated 10,500 people, from the USNS LUMMUS. The commodities delivered on January 26 supplemented the more than 1,500 kitchen sets and 190 rolls of plastic sheeting delivered from the USNS LUMMUS on January 24.
  • The USAID/DART consigned the emergency relief supplies to IOM for distribution to populations in affected areas. Health
  • According to the Pan American Health Organization (PAHO), the GoH Ministry of Health (MoH) is shifting response focus from emergency surgical care to primary health care and hygiene promotion.
  • In addition, Health Cluster partners have identified the medical needs of displaced populations in rural areas outside Port-au-Prince as a key priority, according to the U.N. Office for the Coordination of Humanitarian Affairs (OCHA).
  •  The Health Cluster estimates that 20,000 people require medical assistance in Jérémie, Grand Anse Department.
Nutrition

  • At the Nutrition Cluster meeting on January 25,UNICEF presented a list of nutrition supplies available in Haiti, including Vitamin A, Plumpy’Nut, F-75 and F-100 milk, amoxicillin, oral-rehydration salts (ORS), zinc, and scales for infants.
  • UNICEF and PAHO are planning to establish procurement guidelines so that relief agencies may request nutrition supplies from UNICEF and medical supplies from PAHO.
  • In coordination with a request from the GoH MoH, UNICEF plans to collaborate with the Child Protection Cluster to coordinate immunizations and distribution of Vitamin A tablets, ORS, and fortified biscuits in orphanages.
  • According to the USAID/DART, the Nutrition Cluster has established a sub-cluster on infant and young child nutrition and community-based management of acute malnutrition.
  •  Relief agencies Concern, Save the Children, Infant and Young Child Nutrition, and Action Contre la Faim are leading the sub-cluster and collaborating closely with the GoH.
Shelter

  • USAID/DART staff report that 140,000 plastic sheets are either in Haiti or en route to contribute to addressing displaced person shelter needs. 
  •  According to the Shelter Cluster, as many as 800,000 people may be living in spontaneous settlements in Port-au-Prince.
  • The USAID/DART emphasizes that plastic sheeting—when combined with rope or other framing material as part of a kit—represents a preferred shelter option to tents. Plastic sheeting kits provide a larger living space, have more flexible applications to social and site conditions, can be used as transitional construction material for permanent shelter solutions, can be provided at a significantly lower cost, and serve as an economic stimulus to local economies, as the material is often purchased locally rather than imported, as tents tend to be.
Search and Rescue Operations
  • The Fairfax County USAR team remains on standby in order to respond to additional requests for assistance if needed. To date, U.S. USAR teams have rescued 47 people, while U.S. and other international teams combined have rescued 134 people.
Haiti Earthquake – January 26, 2010

On January 12, USAID/OFDA activated a Washington, D.C.-based Response Management Team to support the USAID/DART that deployed to Haiti early on January 13 to assess humanitarian conditions and coordinate activities with the humanitarian community. The 32-member USAID/DART continues to assess priority humanitarian needs and identify emergency relief supplies for immediate delivery to Port-au-Prince.

As of January 22, DoD had committed approximately $126 million in support of the Haiti earthquake relief effort. DoD has been supporting the humanitarian response through transportation of emergency relief personnel and commodities into Haiti. USG HUMANITARIAN ASSISTANCE TO HAITI FOR THE EARTHQUAKE FY 2010 Implementing Partner Activity Location Amount USAID/OFDA

ASSISTANCE1 DoD Logistics and Relief Supplies Affected Areas $40,500,000 U.S. Federal Emergency Management Agency (FEMA) Search and Rescue, Emergency Response Activities Affected Areas $36,000,000 U.S. Department of Health and Human Services (HHS) Health Affected Areas $33,000,000 IOM Logistics and Relief Supplies Affected Areas $7,000,000 OCHA Humanitarian Coordination and Information Management

 The Rest @ USAID .gov



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Lee Royal

Tuesday, January 26, 2010

BAM Survey Conclusions Still Relevant

What follows below my comments is an excerpt from a 2007 BAM Study from Kervin Ring's site. The survey sample size was a bit small (497 people in 38 countries), but the conclusions remain useful. It appears that, at the time of the survey, at least among survey participants, 10% may have been involved in "creative access" business ventures, and that the remaining 90% had a significant negative response to those who engage in creative access business.

It is  a personal observation that now, three years later, most "creative aceess" ventures have either failed or become transparent. The premise of these ventures were flawed, and reflected a lack of understanding of kingdom business culture by traditional ministry leaders. In essence, asking God to bless a creative access business is no less a problem than a violation of the James 4:3 warning: "When you ask, you do not receive, because you ask with wrong motives, that you may spend what you get on your pleasures."  it might read "When you ask (pray) you do not recieve because you ask with the wrong motives, a motive to lie about who you are."  A "watcher" in a "creative access" target country woud say:
  • " a goat that pretends to be a sheep may some day be a snake pretending to be a sheep. Once a pretender, always a pretender. Nothing he says can be trusted."
Next, I agree with the following survey premise that Commercial Function, licitness, and management oversight are hallmarks of a genuine business as mission enterprise, or enterpising ministry. Without these key ellements, registering a business in a limited access country becomes a sham, unworthy to be associated with the name of Jesus, destructive of genuine evangalistic activity.

Tom Sudyk stated it more simply and starkly one day while he helped us review some business we were planning.

"If there's no Profit, There's No Business"

I agree.


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Lee Royal


*******************************************************
(the Survey Summary)

In order for Business as Mission objectives to drive the strategic management of BAM companies, the structure of a BAM company must align with those objectives.

Different strategies that integrate business activities with ministry efforts hold to different principles on how a business should operate. How each of these principles is manifest within a business is a subject of much debate. Core principles such as operating with integrity and honesty are universally accepted as important to Christians in business. However, research shows that three key considerations regarding [1] structure (commercial function) [2], licitness[3], and management oversight) are not universally accepted as vital elements of Business as Mission (Exhibit 5).

  • Nearly 10 percent of respondents do not think that commercial function and legal structure are vital for Business as Mission. (5.1 and 5.2)
  • One out of four respondents expressed no opinion about whether an advisory board is a vital element of a BAM business. (5.3)
Management Considerations

  • Aspects of corporate structure (licitness and commercial function) are recognized by 77 percent of respondents as important elements of BAM companies.
  • Both licitness and commercial function are considered to strongly influence a business’s ability to make a profit. Both also influence evangelism efforts and focus on the developing world.
  • A BAM company’s commercial function influences that company’s role in building the local economy.
Implication:
These results highlight the important role that a Business as Mission company plays in its marketplace and host country. Honoring the laws of a host country and offering a valuable product/service create legitimacy, which puts the business in a position of influence allowing it to achieve its goals.

  • Commercial function has a negative correlation with providing access to countries.
Implication:
the negative correlation between "Is a commercial enterprise" and "Provides access to many locations" may be a result of skepticism that has been created by missionaries that have taken advantage of countries’ openness to gain access with no intention of pursuing successful business.
  • Simply using BAM to gain access is contrary to legitimate market activities and as a result, associating BAM with creative access has a negative connotation.
Management oversight
  • Survey respondents heavily favor Management participation in discipling and accountability relationships (87 percent).
  •  Additionally, 68 percent agree that BAM companies should have an advisory board.
Results indicate that the primary influence of these two types of management support is on the company’s evangelism efforts and focus on the developing world.

Implication
There is a general belief that support at the management level is valuable; however, this support is focused on the missional aspects of the company.
  • The fact that respondents are doubtful of partnering with social service agencies and that management oversight does not have a perceived contribution to a company’s ability to make a profit, points to an inclination with BAM operators to hold back from engaging outsiders.
Whether this is a result of their entrepreneurial nature, a byproduct of the sacred/secular divide, or a reaction to unrealistic demands placed on BAM operators by people with very little at stake, if the BAM movement can find an acceptable way of engaging outside support, it would greatly increase the impact BAM has.

Sustainability

Sustainability is considered a highly important aspect of Business as Mission, with over 85 percent of respondents agreeing that
  • Net profitability of the organization,
  • Growth in capital base for future development of kingdom businesses,
  • Development of a succession plan are valuable elements.
Respondents correlate net profitability with the ability to build the local economy and to bless the nation.
Respondents also believe that developing a succession plan facilitates the ability to evangelize and the focus on the developing world.

Implication:
in order to have a lasting impact, BAM companies must be able to survive.

Additionally, given the dynamic environments in which these companies operate, it is important for BAM operators to plan for the long term. Considering that company leadership largely determines the mission strategy of a BAM company, a key area of concern is planning for transitions in leadership in such a way the preserves the company’s focus on its ministry.
All three aspects of sustainability are negatively correlated with the goal of gaining access through Business as Mission.
Implication: these results also highlight the association with creative access and spurious business efforts, since sustainability is not a key area of concern for illegitimate businesses.

--------------------------------------------------------------------------------

[1] The survey data is not robust enough to draw inferences about the nature of such links; however, it does point to the possibility of their existence. Further study of such correlations is important for helping to address the complexities of Business as Mission.

[2] Commercial function refers to the role a company plays in the marketplace, specifically the activities of providing goods and services and may involve financial, commercial, and industrial aspects. (Exhibit 5.1)

[3] Licitness refers to conformity to the applicable provisions of the laws of the countries of operation of a company. (Exhibit 5.2)
********************************************************
The Rest @ Kingdom Strategist

Monday, January 18, 2010

Business as Mission Books

Suggested Reading on Kingdom Business
As compiled by and with acknowledgement to Regent College


Books

Befus, David R. (2002).
Kingdom business: The ministry of promoting economic development.
Miami: Latin America Mission.
Befus writes from his experience in integrating ministry with economic activity and presents five models of integration. There are both Spanish and English translations.
Burkett, Larry (1998).
Business by the Book: The complete guide of Biblical principles for the workplace.
Nashville, TN: Thomas Nelson.
Practical advice for how to apply Biblical principles to business operation and management.

Bussau, David, and Russell Mask (2003).
Christian micro enterprise development: An introduction. Regnum Books.
A handbook to equip practitioners and donors to build Christ’s Kingdom through Christian MED.

Chan, Kim-kwong, and Tetsauno Yamamori (2002).
Holistice entrepreneurs in China: A handbook on the World Trade Organization and new opportunities for Christians.
Pasadena, CA.: William Carey International University Press.
Practical information on the economic changes taking place in China and the opportunities for Christian business entrepreneurs being created.

Danker, William J., Beaver. R. Pierce ().
Profit for the lord: Economic activities in Moravian missions and the basel mission trading company.

De Soto, Hernando (2000).
The Mystery of capital, why capitalism triumphs in the West and fails everywhere else.
New York, NY: Basis Books.
Examines the problem of why some countries succeed at capitalism and others fail. He finds a link to the legal structure of property and property rights of each nation.

Eldred, Ken (2003).
God Is At Work: Transforming people and nations through business.
Ventura, CA: Regal Books
Deals with Kingdom business as an emerging mission movement, one in which Christian business people are meeting significant spiritual and economic needs in the developing world. They are pursuing for-profit business ventures designed to facilitate the transformation of people and nations. There are both Spanish and English translations

Gibson, Dan (1997).
Avoiding the tentmaker trap. Ontario, Canada: WEC International.
Practical guidance for the prospective tentmaker, including a comprehensive resource list of books and organizations.

Greene, Mark (2001).
Supporting Christians at work: A practical guide for busy pastors.
London: London Institute for Contemporary Christianity

Grudem, Wayne (2003).
Business for the Glory of God: The Bibles Teaching on the Moral Goodness of Business. (Wheaton, IL: Crossway.)
Examines how business, in particular ownership, employment, profit, money, inequality of possessions, competition etc. may glorify God.

Hamilton, Don (1987).
Tentmakers Speak: Practical Advice from Over 400 Missionary Tentmakers. Duarte, CA.: TMQ Research, 1987.
Research led book sharing insights from tentmakers’ real life experiences.

Hammond, Pete, R. Paul Stevens and Todd Svanoe (2002).
Marketplace Annotated Bibliography: A Christian Guide to Books on Work, Business and Vocation. Downers Grove, IL: InterVarsity Press.
Comprehensive listing of 1200 books on marketplace-faith integration. The authors include a historical survey of the marketplace-faith movement and a variety of thematic indexes.

Hill, Dr. Alexander (1997).
Just Business - Christian Ethics for the Marketplace. Downers Grove, Ill.: InterVarsity Press.
An introduction to business ethics and help for examining ethical issues that arise in any business development context.

Humphreys, Kent (2004).
Lasting investments: A pastor’s guide for equipping workplace leaders to leave a spiritual legacy. Colorado Springs, CO: NavPress.
Rediscovering the common goals and visions that pastors and workplace leaders share.

Knoblauch, Jorg and Jurg Opprecht (2004).
Kingdom Companies: How 24 Executives Around the Globe Serve Jesus Christ Through Their Businesses. Self published.
Introduces kingdom companies - those businesses that operate on biblical values and as a means of spreading the gospel. Highlights principles for kingdom companies through short company profiles.

Lai, Patrick (2003).
Window businesses: Doing tentmaking in the 10/40 window. Pasadena, CA: William Carey International University Press.
Practical guide for starting businesses as a tentmaker in countries at various economic stages.

Lewis, Jonathan, ed. (1997).
Working your way to the nations: A guide to effective tentmaking. Downers Grove, IL: InterVarsity Press.
A study guide and handbook on tentmaking, with a series of practical essays by experienced specialists. Available at http://www.tentmakernet.com – free to download in English, Spanish, Portuguese, Korean and Arabic.

Myers, Bryant (1999).
Walking with the poor: Principles and practices of transformational development., (Maryknoll, N.Y.: Orbis.)Theological basis for economic development and holistic mission, with discussion on the application of these principles.

Nash, Laura, Ken Blanchard and Scotty McLennan (2001).
Church on sunday, work on monday: The challenge of fusing Christian values with business life. San Francisco, CA: Jossey-Bass.
A guide to improving communication between the worlds of church and business. The authors draw on extensive research including case studies and interviews, and define the obstacles to such communication.

Novak, Michael (1996).
Business as a calling: work and the examined life. New York, NY: The Free Press.
Examines the interplay between religion and business and the effect on the moral and social condition of a nation.

Olsen, J. Gunnar (2004).
Business unlimited: Memories of the coming kingdom, (ICCC, 2002: Scandinavia Publishing House.
The autobiography of Gunnar Olson, founder of the International Christian Chamber of Commerce. A story of an intimate walk with God which has lead to the author being used to influence nations.

Prahalad, C.K. (2005).
The fortune at the bottom of the pyramid: Eradicating poverty through profits. Upper Saddle River, NJ: Wharton School Publishing.
The relationship between business and development in developing nations. Examining the entrepreneurial ability and buying power of the poor.

Rundle, Steve, and Tom Steffen (2003).
Great Commission Companies: The emerging role of business in missions. Downers Grove, IL: InterVarsity Press.
Introduces principles for Great Commission Companies in the context of globalization. Provides five case studies from businesses involved in mission.

Silvoso, Ed (2002).
Anointed for business: How Christians can use their influence in the marketplace to change the world. Ventura, California: Regal.
Silvoso shows how ministry in the marketplace should go hand in hand with building God’s kingdom and transforming society. He urges the church to overcome the barriers that remain to integrating business and ministry.

Schlossberg, Herbert, Ronald J. Sider and Vinay Samuel, Eds. (1994).
Christianity and economics in the Post-cold war era. Grand Rapids, MI: Eerdmans.
Developed from the second Oxford Conference on Christian faith and economics, this book reproduces the 1990 Oxford Declaration itself and eleven critical responses on the subject of Christian faith and economics.

Suter, Heinz and Dr. Marco Gmur (1997).
Business Power for God’s Purpose. Greng, Switz.:VKG Publishing.
Introduction to the role of business in the task of world evangelization, including history and ethics and some cases.

Swarr, Sharon B. and Dwight Nordstrom (1999).
Transform the world: Biblical vision and purpose for business. Center for Entrepreneurship and Economic Development.
A Biblical introduction to the domain of business followed by some practical guides and principles for developing ‘Great Commission businesses’.

Tsukahira, Peter (2000).
My father’s business. Self-published.
By drawing from his experience as both a pastor and a business leader, Tsukahira gives guidelines for ministry in the marketplace.

Wilson, J. Christy, Jr. (1979).
Today's tentmakers. Wheaton, IL: Tyndale.
Introduction to the idea of tentmaking from one of the founding fathers of the modern tentmaking movement.

Yamamori, Tetsunao (1993).
Penetrating missions' final frontier: A new strategy for unreached people. Downers Grove, IL: InterVarsity Press.
Yamamori presents a challenge for tentmakers to go out into places other missionaries cannot, all in the light of the remaining task of world missions.

Yamamori, Tetsunao, and Kenneth A. Eldred, Eds. (2003).
On kingdom business: Transforming missions through entrepreneurial strategies. Wheaton, IL: Crossway Books.
This is a thorough introduction to the concept of Kingdom business from a broad range of experienced contributors, and is divided into three parts: case studies, essays and conclusions.

Articles and Papers:

Befus, D. (2002, April). Kingdom business: A new frontier in missions.
Evangelical Missions Quarterly, 204-209.

Dwight Baker (2001). William Carey and the business model for missions. Unpublished Manuscript.


K.C. Chan and Scott McFarlane (2002, October). Business as missions: Stewardship and leadership development in a global economy at Christian Business Faculty Association annual conference, Northwest Nazarene University.

Davies, Stanley. (2001, October). Business & mission or business as mission: A report by Stanley Davies. Global Connections, London.

Derek Christensen (1997). Training endurance food for serious tenmakers. International Journal of Frontier Missions 14, 3, 133-138.


John Cox (1997). The Tentmaking movement in historical perspective. International Journal of Frontier Missions 14, 3, 111-117.


Denise Daniels, Tim Dearborn, Randel S. Franz, Gary L. Karns, Jeff Van Duzer and Kenman L. Wong (2003, July). Toward a theology of business. The Fifth International Symposium on Catholic Social and Management Education, Bilbao, Spain. -

Judith Dean (2003, January). “Why trade matters for the poor.” The 20th Anniversary Conference Association of Christian Economists, Washington, DC.

Norm Ewert (1992). The role of business enterprise in Christian mission. Transformation 9, 7-14.

Stanley J. Grenz (1999). God’s business: A foundation for Christian mission in the marketplace. Crux 35, 1, 19-25.

Guthrie, S. (1995, November 13). Tentmaking put down stakes in missions movement. Christianity Today, 39, 13, 80(2).

Hammond, A. L., Prahalad, C. K. (2004, May 11). Selling to the poor. FP Foreign Policy.

Patrick Lai (1998). Starting a business in a restricted access nation. International Journal of Frontier Missions 15, 1, 41-46.

Bob Lupton. (2003, August). Markets and missions. EC Institute.

Mark Markiewicz (1999). Business as mission, or how two grocers changed the course of a nation” at Central Asia business consultation. Published by Business Professional Network.

McLoughlin, M. (2001, May). Back to the future of missions: The case for marketplace ministry. Youth with A Mission (YWAM), Marketplace Mission.

Patrick Lai (2000). Tentmaking: In search of a workable definition. Unpublished Manuscript.

David Llewellyn (2004). The witness of work: Business as mission. Unpublished Manuscript.

Scott McFarlane (2004). Six ways to get involved in the business as missions movement. Regent Business Review 11.

Robert Morris (1998). Shrewd yet innocent: Thoughts on tentmaking integrity. International Journal of Frontier Missions 15, 1, 5-8.

Dwight Nordstrom and Jim Nielsen (1998, Janaury-March). How business is integral to tentmaking. International Journal of Frontier Missions 15, 1, 15-18.

J.I. Packer (1990). The Christian’s purpose in business. In Richard C. Chewning, Ed. Biblical Principles and Business: The practice. Colorado Springs: NavPress.

Padilla, C. R. (2000, April-June). Holistic mission: Crossing frontiers to transform lives.

Price, D. J. (1997, July-September). The tentmaker’s mandate. International Journal of Frontier Missions, 14. 3.

Jim Reapsome (1997). Paul: The nonprofessional missionary. Occasional Bulletin.

Steve Rundle (2000). Ministry, profits and the schizophrenic tentmaker. Evangelical Missions Quarterly 36, 3, 292-300.

Steve Rundle and Tom Steffen (2004). Building a Great Commission Company. Regent Business Review 11.

Dr. Kent W. Seibert and Scott McFarlane (2004, October). For the love of business: Demonstrating the reality of God through the practice of business. The 20th Annual Christian Business Faculty Association Conference.

Ruth E. Siemens (1998). Why did Paul make tents? A Biblical basis for tentmaking. GO Paper A-1.

Ruth E. Siemens (1997). The tentmakers and their Churches: Mutual responsibility. GO Paper A-9.

Ruth E. Siemens (1997). The tentmaker’s preparation for work and witness. GO Paper A-5.

Karen Schmidt (1999). Versatile vocation – Using marketplace skills to reach the world for Christ. World Christian, 31-33.

R. Paul Stevens (2001). The marketplace: Mission field or mission. Crux 37, 3, 7-16.

Sharon B. Swarr and Dwight Nordstrom (1999). Best practice for business as missions. Transform the World.

Smith, K. (1998, January-March). Tentmaking: The practical dimension. International Journal of Frontier Missions, 15, 1.

Suter, H., & Gmur, M. (1998, January-March). Business power for God’s purpose. International Journal of Frontier Missions, 15, 1.

Gary Taylor (1998). Don’t call me a tentmaker. International Journal of Frontier Missions 15, 1, 23-24.

Tsukahira, Peter (1997). The business of the kingdom: Guidelines for businessmen and women in the relationship between business and ministry.

Mats Tunehag (2000). Business as mission. Unpublished Manuscript.

John H. Warton, Jr. (2002). Employment and the dignity of life – the economic agenda of the Church. Convention of Christian Businessmen in Panama and Argentina.

J. Christy Wilson, Jr. (1997). Successful tentmaking depends on mission agencies. International Journal of Frontier Missions 14, 3, 141-143.

The Rest @ Now People (Korea)

Saturday, January 9, 2010

WHAT IS BUSINESS AS MISSION?

 A group of global Christian business leaders got together in 2004 and developed an historic working document, the Lusassane Occasional Paper 59 guiding an emerging concept called Business as Mission ( BAM. Luassane leaders recongized that this was different from Tentmaking Some BAM pioneering events and organizations which followed were:
The first acheivement of the authors of Lusassane Occasional Paper 59 was to define what BAM was, was and what it was not, for clarification purposes.

-Lee Royal

Introduction

The purpose of this chapter is to briefly clarify a few key terms and
expressions. The descriptions used here are simply to aid us to communicate clearly
and consistently. It is not our aim to create a ‘Business as mission orthodoxy’ or
terminology, or to exclude groups or initiatives that prefer other terms and definitions.

Other expressions commonly used in the movement include ‘transformational
business’, ‘great commission companies’ and ‘kingdom business’. The authors
recognise that in some contexts ‘Business as mission’ is not the most helpful or
preferred term. The expression ‘Business as mission’ itself can be considered a fairly
broad term that encompasses various areas where business and missions connect.
Our terms here are further limited both culturally and linguistically, since this
paper was prepared in English.

We expect alternative expressions to be developed which communicate meaningfully in other languages, and other religious, political and cultural settings. The parameters outlined in this document should beconsidered as a ‘dotted line’ that allows for future change and for anomalies which will force us to reconsider and revise according to the situation and its specific needs.

Business as mission is based on the principle of...HOLISTIC MISSION Holistic mission attempts to bring all aspects of life and godliness into an organic biblical whole. This includes God's concerns for such business related issues as economic development, employment and unemployment, economic justice and the use and distribution of natural and creative resources among the human family.

These are aspects of God’s redemptive work through Jesus Christ and the Church.
Evangelism and social concerns are often still addressed as though they were separate and unrelated from each other. This assumes a divide between what we consider ‘sacred’ or ‘spiritual’ and what we consider ‘secular’ or ‘physical’. The biblical worldview rather is one that promotes an integrated and seamless holistic
view of life. Ministry should not be compartmentalised or fragmented into the ‘spiritual’ and the ‘physical’. Business as mission is an expression of this truly holistic paradigm.

Business is a mission, a calling, a ministry in its own right.

Human activity reflects our divine origin, having been created to be creative, to create good things by good processes, for us to enjoy – with others. Business as mission has a Kingdom of God perspective... KINGDOM BUSINESS

Kingdom businesses start from the theological premise that all Christians have a calling to love and serve God with all of their heart, soul, strength and mind, as well as to love and serve their neighbours. God calls people to work for His kingdom in business just as certainly as He calls people to work in other kinds of
ministry or mission ventures. In this paper, we will often use the term ‘kingdom business’ rather than
‘Business as mission-business’. We recognise the importance of extending God’s kingdom through business in any context. However, we want to highlight the biblical mandate to serve the poor and oppressed, in particular in those areas where the gospel has yet to be received. This will lead us to a focus on cross-cultural activity and should draw our attention to areas of endemic poverty and/or unevangelised communities. We acknowledge that this does not automatically suppose the crossing of international boarders and will be necessary within culturally ‘near’ communities as well.

A function of Business as mission is to act as a catalyst, to inspire and encourage people to get into business and to stay in business, especially in the developing world.

Business as mission is different from but related to...WORKPLACE MINISTRIES

Workplace Ministries are primarily focused on taking the gospel to people where they work, preferably through the witness of co-workers and professional colleagues. These ministries encourage the integration of biblical principles into every aspect of business practice, to the glory of God. Business as mission naturally includes these elements of workplace ministry.

When a workplace ministry is initiated in a business owned by believers to intentionally advance the kingdom of God, there will be substantial overlap.Workplace ministry can choose to limit its focus solely "within" the business context itself. Business as mission is focused both "within" and "through" the business. It seeks to harness the power and resource of business for intentional mission impact in the community or nation at large. Workplace ministry may occur in any setting.

However, Business as mission is intentional about the "to all peoples" mandate, and seeks out areas with the greatest spiritual and physical needs.

Business as mission is different from but related to...TENTMAKING

"Tentmaking" refers principally to the practice of Christian professionals, who support themselves financially by working as employees or by engaging in business. In this way they are able to conduct their ministries without depending upon donors and without burdening the people they serve. Tentmaking infers the integration of work and witness, with an emphasis on encouraging evangelism by lay Christians
rather than clergy and ministry professionals. Where tentmakers are part of business ventures that facilitate their mission goals, there is substantial overlap with Business as mission. However, although a tentmaker might be a part of a business, the business itself might not be an integral part of the ministry as it is with Business as mission. Business as mission sees business both as the medium and the message. Business as mission most often involves ‘job-making’ as an integral part of its mission. Tentmaking may involve this, but is more often simply about ‘job-taking’ – taking up employment somewhere in
order to facilitate ministry.

Business as mission is different from...BUSINESS FOR MISSIONS

Profits from business can be donated to support missions and ministries. This is different from Business as mission. One might call this business for missions, using business ventures to fund other kinds of ministry. We recognise that profit from a business can be used to support “missions” and that this is good and valid. Likewise employees can use some of their salary to give to charitable causes. While this should be encouraged, none of us would like to be operated on by a surgeon whose only ambition is to make money to give to the church! Instead we expect he has the right skills and drive to operate with excellence, doing his job with full professional integrity. Likewise a Business as mission-business must produce more than goods and services in order to generate new wealth. It seeks to fulfil God’s kingdom purposes and values through every aspect of its operations. A 'business for mission' concept can limit business and business people to a role of funding the 'real ministry'. While funding is an important function, Business as mission is about forprofit
businesses that have a kingdom focus.

Business as mission does not condone...NON-BUSINESSES AND NONMISSIONS

Two approaches to business that do not come within the scope of ‘Business as mission’ by any definition are:

  • (1) Fake businesses that are not actually functioning businesses, but exist solely to provide visas for missionaries to enter countries otherwise closed to them.
  • (2) Businesses that purport to have Christian motivations but which operate only for private economic advantage and not for the kingdom of God. Neither do we mean businesses run by Christians with no clear and defined kingdom strategy in place.
Business as mission pursues...PROFIT

Business must be financially sustainable, producing goods or services that people are willing to pay for. Sustainability implies that the activity is profitable. Profits are an essential element of all businesses, in all cultures. Without profit the business cannot survive and fulfil its purpose. Accordingly, Business as mission - businesses are real business that genuinely exist to generate wealth and profits. Business as mission does not view profits as inherently evil, bad or unbiblical. Quite the contrary, profits are good, desired and beneficial to God and His purposes, as long as they are:
  • not oppressive,
  • or derived from gouging customers
  • or selling products and service that do no honour Christ and His gospel.
Temporary subsidies may be utilised to establish a Business as mission initiative. Permanent subsidies or financial support without expectation of ultimate profitability are closer to charitable or donor-based ministries than Business as mission based ministries.

The business of business is business. And the business of Business as mission is business with a kingdom of God purpose and perspective.

Business as mission comes in all...SHAPES AND SIZES

The methodologies, as well as the business and ministry strategies used, will be creatively diverse, just as God created us in infinite variety. Does the size of the business matter? Yes and No! Christian micro-enterprise programmes exist that help provide necessary income for families and individuals resulting in community development, churches being planted and discipleship taking place. In short, Christian micro-enterprise development has been well accepted and is highly effective for the kingdom. A significant body of work already exists dedicated to it. It has a legitimate place in the broader definition and practice of Business as mission.

However, our focus will be on larger scale business, where there has been a comparative lack of attention. If we are to tackle the enormity of the challenge before us we need to think and act bigger, beyond micro to small, medium and large size businesses.

The Russian Mafia also creates jobs and gives people a chance to earn money. Creating jobs and earning money is not an end in itself. Work and business are ordained by God. Work is a human and divine activity providing a means to support our families and to contribute to the positive development of our communities
and countries. However, Business as mission is not a Christianised job creation scheme. The goal is not simply about making people materially better off. Business as mission is actively praying and incarnating Jesus’ prayer: “May your kingdom come, may your will be done” even in the marketplace. The real bottom line of Business as mission is “ad maiorem Dei gloriam”, for the greater glory of God.

Laussane Occasional Paper 59. Section 1. you can see the entirer 88 Page document here.


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