Thrive Culture's mission for churches and Christ-centered organizations is to provide a framework for starting enterprises that improves sustainable income streams outside of tithes and donations.

 

If you lead a non-profit, you know that it can be challenging to maintain a level of giving that sustains both the internal needs of the organization and the outreach/mission needs that the organization wishes to achieve in the community (and abroad).

 

Instead of the pressure and focus on how many members and donations are needed to meet these expenses and goals, business ventures can establish a more predictable revenue stream that becomes the primary supply source. This places giving as the extra that is not entirely relied upon but is always welcomed.

 

Thrive Culture helps accomplish this in 2 ways:

1. You already have your 501c3 designation, which gives you your tax-exempt status for the donations and the ministry opportunities the church engages.
2. The LLC operates essentially as a corporation, sole proprietorship, and partnership all in one. An LLC affords its members limited liability as they cannot be personally liable for the company's debts.
3. While LLCs are not awarded the same tax benefits as a non-profit, limitations on a non-profit's spending abilities do not apply to an LLC. In addition, a non-profit has restrictions on political speech that an LLC does not.
4. The other distinction between an LLC and a non-profit is the economic purpose of establishing it. The primary purpose of any non-profit is to provide a service to the general public, whereas forming an LLC is to earn profit for its members.
5. Operating an LLC is relatively simple, with very little required paperwork and limitations.
6. However, a non-profit generally faces an uphill battle when attempting to register within the state where it operates, which will include a lot of paperwork and proof that it will operate to serve the needs of the public.
7. Furthermore, non-profits must ensure that the earnings distributions do not go to any shareholders or employees.
8. The LLC has the church as its Member and appoints individuals to run the LLC and report to the Member.
9. The CEOs of the LLC determine how the LLC pays the Member dividends. These are taxable to the Member.
10. The LLC CAN distribute earnings to the Member and other employees
11. The LLC can secure business loans and repay with interest.
12. The LLC can also be a part of local business organizations working in the local community, opening doors for evangelism and shaping the local business culture.
13. The LLC can start enterprises that compete with other businesses. A non-profit can not engage in business enterprises because of its tax-exempt status.