Can the coronavirus inspire another Clapham Movement?

This article was originally published here by The Christian Post

— by Henry Kaestner

What if faith-driven entrepreneurs, not just in the U.S. but worldwide, went all-in to commit their creative talents and abilities to advance God’s kingdom and be the agents of change for justice, equality and eradication of poverty?

What would happen if a new Clapham-style movement weren’t limited to an influential area near London, the world’s most consequential city at the time, but a worldwide movement of faith-driven entrepreneurs — all tackling the unique problems and injustices that they’ve been called to, and working together with a singular purpose to advance God’s kingdom on earth? When you combine that idea, with the estimate that Christians manage $150 trillion dollars — over half of the world’s wealth — the potential for real change is exponential…

Click here to read the whole article
on The Christian Post website

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Unveiling a New Marketplace for Faith Driven Entrepreneurs

— by Amanda Lawson

God’s Kingdom is advancing where commerce happens. Much of this marketplace transformation is happening through entrepreneurs and investors. They shape the internal culture of a company, the economy of a city, and even the society of country. When like-minded investors are strapped to the mast with entrepreneurs, they can weather the fiercest storms and sail into blue oceans filled with opportunity.

For faith driven entrepreneurs, Marketplace offers access to a network of faith driven investors—funders who are seeking like-minded entrepreneurs as partners in bringing the gospel and the glory of God to every industry, office-space, and board room. Marketplace helps entrepreneurs connect their passions with capital, engage in a community centered on biblical encouragement, and provides entrepreneurs with a space to develop and share their ventures through coaching sessions, the Bridge2Impact Platform, and the Faith Driven Entrepreneur Conference. 

The mission behind Marketplace for faith driven entrepreneurs is to help bring the kingdom on earth. It is a global movement and for the first 12-18 months, it is free to join. You can learn more about Marketplace at the Faith Driven Entrepreneur Conference and hear from several of the participating members. Even better, you can hear from and connect with faith driven investors who are looking for opportunities to partner with entrepreneurs like you, for the glory of God and the sake of the gospel. 

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Phil Vischer on Identity at the Faith Driven Entrepreneur Conference

— by Amanda Lawson

As faith driven entrepreneurs, identity is crucial to our work. It shapes the way we view and interact with employees, customers, and ourselves. But understanding our identity conceptually and having the skills to confidently walk in it are at times very different. Phil Vischer will speak to this struggle and the surprising freedom of an identity rooted in the unchanging claim of Christ on our whole lives, including our work. 

Ever since he shared how his entrepreneurial journey led to the discovery of his true identity in Christ, Phil Vischer has been one of our favorite guests. We are thrilled that he will speaking more about this journey next week for the Faith Driven Entrepreneur Conference. Those who have seen VeggieTales may identify Phil first as the iconic Bob the Tomato; if you have heard our podcast episode, “Have you ever had a dream?” you may have heard parts of his story on how entrepreneurial success and failure helped shine a light on his identity. At the FDE Conference, Phil will discuss how understanding this identity manifests relationally and what it looks like to learn to walk in it. 

His talk is sure to encourage, enlighten, and challenge the audience. Vischer will undoubtedly bring solid biblical truth helpful for, as Paul charged Timothy, “teaching, rebuking, correcting, am training in righteousness, so that the man of God may be thoroughly equipped for every good work” (2 Timothy 3:16-17, NIV). As we aspire to walk in the good works God has prepared, our identity as firstly faith driven, then entrepreneurs will be central. 

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The Redemptive Nonprofit by Praxis Labs

We continue to count down the Top 100 Books for Faith Driven Entrepreneurs with…

The Redemptive Nonprofit

by Praxis Labs

In the century since its invention, the nonprofit organization structure has powered immense social good, by enabling countless entrepreneurial leaders to address problems not adequately served by the market. But when it comes to delivering that social good today, many nonprofits fall short of the durable impact they hope to deliver. Our friends at Praxis proposes that there is a higher horizon of opportunity for the redemptive nonprofit—one that seeks the renewal of the larger society as well as all the stakeholders involved in the work.

They hope to inspire a new generation of leaders to go beyond the baseline of ethics and excellence that should characterize any organization (whether or not it receives a tax exemption)—to building nonprofits that embody the radical hope of the Christian gospel and its power to transform persons, communities, and the course of history.

Click on the book cover to check out the Reviews and Purchase at Amazon


Professionally and Mentally Healthy Entrepreneurship with Jewel Burks Solomon

— by Amanda Lawson

Jewel Burks Solomon has an impressive resume: co-founder of Partpic, managing partner of Collab Capital, and current head of Google for Startups. Through it all, we are amazed by the consistency of her advocacy for representation and access in the tech industry. Her expertise in the tech industry is matched by her desire to encourage and enable budding faith driven professionals. Jewel is a promoter of discipleship—sharing her experiences and wisdom, pointing people to the hope of the gospel— and investing in people in the middle of their professional lives, to nurture healthy investors and entrepreneurs not only in their craft but also in their mental, spiritual, and emotional well-being. 

Also an upcoming podcast guest for both Faith Driven Investor and Faith Driven Entrepreneur, Jewel Burks Solomon is speaking at the Faith Driven Investor Conference to share her expertise on the value and practical application of entrepreneurial community. We are incredibly excited to hear her passion for equity and the role community plays in developing excellent and healthy entrepreneurs and investors. Join us to hear about more about how to incorporate a biblical model of discipleship and love in the daily actions of a faith driven professional. 

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Faith Based 401(k) Plans for Christian Business Owners

This article was originally published here by Light Point Portfolios

— by Cassandra Laymon

As a Christian business owner, are you are attempting to integrate biblical principles into every aspect of your business?  How about your retirement plan? Is it even possible to honor God through your 401(k) plan? If yes, how?

There are a number of factors that impact the stewardship of your retirement plan, and as a plan sponsor, you may have much more responsibility than you realize. Here are the common areas where business owners may be at risk and it’s costing them money.

  1. Who’s on The Hook? Your financial advisor likely refers to this as your “fiduciary responsibility”. Did you know that business owners bear personal liability as the “Fiduciary” of their company retirement plan? As such, it is your responsibility to:

  • manage the plan assets prudently

  • act with complete loyalty to the plan,

  • avoid conflicts of interest

  • act solely in the best interest of plan participants

  • and, to assume personal responsibility and accountability for their actions and advice.

Wait a minute. Personal liability?

You make think your financial advisor (who is likely what is called a 3(21) fiduciary) is bearing these responsibilities for you. However, unless you are working with a 3(38) fiduciary, you still shoulder that responsibility. This is the primary area where lawsuits occur — when employees file complaints that the funds in the plan have fees that are too high, or that they are under-performing.

The most important differences come down to risk and responsibility.

  • A 3(21) Fiduciary is an advisor who makes recommendations.

  • A 3(38) Fiduciary is an investment manager who acts. That means they handle the due diligence review, the selecting and monitoring of available investment options, make decisions, and ultimately take responsibility for your plan’s day-to-day management.

Fix it:

  • Find out if your advisor is a 3(21) or 3(38) fiduciary.

  • If you don’t have a 3(38) fiduciary, hire one and delegate your responsibility for managing your plan’s investments.

2. What’s it really costing you? Very few business owners have a clear idea of what they are paying for their 401(k) plan. Not surprising. The fees in a plan come from several different sources, and they are easy to bury so you can’t figure out the bottom line. It’s your fiduciary responsibility to know these fees so you can make the best choices for your employees.

Plans with insurance companies tend to be more cost-effective in the very early stages of starting your plan, but tend to be more expensive once your plan grows to $500,000. A turn-key plan that offers all services bundled together tends to be less expensive, but it’s important to know what you are paying for TPA/Recordkeeping fees, 3(38) fiduciary fees, custodial fees, advisor fees, and the expense ratios of the funds in the plan.

Fix it:

  • Put out a request for proposal to get a comparison on how your current fees compare with other options. It’s your duty as a fiduciary of the plan to do this every 3-5 years, or to delegate this to a 3(38) fiduciary who will provide this service for you.

  1. What are you investing in? You might not have a deep understanding of the funds in the plan. As a result, it is likely that you have funds that include business practices that oppose your values, for example in the abortion and pornography industries and companies that prey on human addiction. It’s hard to avoid these unless you are very intentional about it. As a fellow Christian business owner, I am guessing that avoiding exposure to these is as important to you as it to me.

I like to explain it this way: When you invest in a business you are in effect praying with your dollars for that company to do more of what they are already doing (either good or bad) and thrive, so they make a big profit and share it with you. I believe that what we invest in makes a very big difference to God (it is his money after all!) and it is possible to invest in companies and funds that promote human flourishing instead of causing the suffering and exploitation of our brothers and sisters. Screening negative business practices out of your investments is one more way to live out your faith in a practical and meaningful way.

Fix it:

  • Have your fund investment options screened for business practices that don’t align with your values. Not sure how to do that? Visit our beaconwealth.com and select the “Screen my Funds” button to see what business practices you are invested in.

  • Add faith-based investments to your fund line-up.

  1. Could you be keeping more of what you’ve earned? Are you paying too much in taxes? Business owners often find that could save more on their personal taxes (and therefore use that money in other more effective ways) but they are unable to contribute fully to their 401(k). In fact, they often get a refund check at the end of the year.

This is the result of a poor plan design.  The structure of your plan should allow you and the other owners of the business to also contribute to the plan – sometimes up to $250,000 per year – in order to most efficiently save for your own future while relieving some of your tax burden. You may need to make a small contribution to your employees’ accounts, which will result in your ability to substantially increase your personal contributions and thereby reduce your taxes.

Fix it:

  • Schedule a review of your plan design to uncover improvements that can be made to the structure of the plan.

  1. Are you serving your team? As a business owner, you want to take great care of your employees. Front line employees rarely have the knowledge and skill to create their own portfolio in a given fund line-up and rely heavily on an advisor to guide them.  Sadly, after the implementation of a 401(k) plan, few are served well. I typically hear business owners say they haven’t seen or heard from their advisors in months or sometimes even years.

Having a dedicated advisor to educate your employees will help them appreciate the importance of contributing to their 401(k). If your employees are not participating in the plan, they are not receiving the full benefit of the plan. Unfortunately, not only will it have a negative impact on their future, but it may hinder you from contributing as much as you’d like.

Fix it:

  • Schedule a meeting with your current advisor to discuss a regular meeting schedule for them to meet with employees to provide ongoing investor education.

  • If your advisor is not willing to provide this service, consider hiring a new advisor. You are paying to have an advisor serve your participants and you should be getting what you pay for.

It’s important to have a retirement plan that meets the criteria of the Department of Labor and the IRS, but you don’t have to go it alone. Delegating the management of your 401(k) plan will give you peace of mind that you are in compliance while serving your employees and investing in God-honoring funds and companies.

Cassandra Laymon, MBA, CFP, CPFA is a Certified Plan Fiduciary Advisor, and the President of Beacon Wealth Consultants, a 3(38) fiduciary provider through the Kingdom(k)Ò, a faith-based 401(k) plan for Christian business owners.

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