Faith-Based Organization Or Church? What Is The Difference?

I get a lot of questions about Faith-Based organizations. That is because I have always been affiliated with Faith-based and religious organizations for my business and in my personal life. Most of the questions are usually from the concern of a nonprofit founder wanting to keep their organization strictly faith-based.

First let’s define:”A Faith-based organization is an organization whose values are based on faith and/or beliefs and most often draws its activists (leaders, staff, volunteers) from a particular faith group.” (Wiki). Faith-based organizations share their faith with those that they help as a part of their overall mission. They are not a church and must apply for nonprofit exemption.

Primarily, Faith-Based organizations are distinguished by 1. A public declaration of their faith along with their nonprofit or community purpose. This usually happens in the initial organizing documents such as articles of incorporation or bylaws. It is also evident on a website or social media, and 2. The board of directors, leaders, and staff of a particular faith group work in the organization.

Churches are distinguished by in-house worship, meaning people gather together in person, have a creed, a form of worship, a regular congregation and service times, a school of training for the young (like Sunday School), distinct ecclesiastical government and it’s own literature.

Primarily, Faith-Based organizations are distinguished by: 1. A public declaration of their faith along with their nonprofit or community purpose. This usually happens in the initial organizing documents such as articles of incorporation or bylaws. It is also evident on a website or social media, and 2. The board of directors, leaders and staff of a particular faith group work in the organization.

Churches are distinguished by in-house worship, meaning people gather together in person, have a creed, a form of worship, a regular congregation and service times, a school of training for the young (like Sunday School), distinct ecclesiastical government and it’s own literature.

I always say to my class that “faith is tied to people and not to paperwork”.

Over the years, people and times may change, which may influence how people share their faith. Also, leaders may choose to separate faith and programs into separate departments such as the Salvation Army, founded by William Booth a minister in London and Goodwill Industries founded by Rev. J. Edgar Helms, an American Methodist minister.

So, if an organization is striving to remain a vibrant faith-based nonprofit, then its staff, board and volunteers must be actively involved in their community work as well as their faith.

Being a Faith based organization is a choice that has many advantages and a few disadvantages. No funding is set aside for Faith-based groups but “a level playing field” was established in 1996 when the Charitable Choice Law was signed. This law allowed Faith-based groups to compete for federal funding and purchasing contracts. While there are still some hurdles to overcome, many private foundations and corporations give to Faith-based groups based on their grantmaking criteria.

Remember: Grantmakers and donors are looking for organizations that match their mission and that have the capacity to solve the problem for which funding is needed. So, keep doing a great job serving your community!