Credential
More men and women today are serving in nondenominational or interdenominational settings. There has been a growing need to provide a ministerial license or ordination that reflects credibility and leadership focus in a contemporary setting. The NLA credentialing process was created in response to this specific and significant need among emerging Christian leaders. Being credentialed with Next Leadership Association provides accountability, credibility and close proximity to people with a bias for action and a bent toward calculated risk.
One of the services NLA offers is a professional credential to those in church-based and parachurch ministries. Leaders ask, "What is the difference between licensing vs. ordination?"
NLA holds to a broad definition of the word, "minister," which originates from the Protestant Reformation and the New Testament. However, we also believe that some people derive their income from full-time ministry and should take advantage of benefits offered by the IRS and, more importantly, the spiritual, relational and emotional benefits of being in voluntary fellowship with like-minded ministers/leaders.
From a biblical standpoint:
Only God ordains. We don't start the fire, we fan the flame.
"You did not choose me, but I chose you and appointed (ordained) you that you should go and bear fruit and that your fruit should abide, so that whatever you ask the Father in my name, he may give it to you." Matthew 15:16 (ESV)
"For we are his workmanship, created in Christ Jesus unto good works, which God hath before ordained that we should walk in them." Ephesians 2:10 (KJV)
From a leadership standpoint:
Iron sharpens iron and men and women with leadership gifts, a passion for excellence and a bias for action enjoy running together.
From an accountability/gifts-based standpoint, we believe that a license is a better fit for those who are in non-pastoral ministry in or outside a church setting. Counselors, administrators, stewardship pastors and other specialized positions fall into this category. Ordination is a better fit for pastors and those regularly involved with sacerdotal functions including preaching, teaching, ceremonies, etc. An ordination requires two years of ministry experience. These guidelines are just that and NLA staff is happy to work with applicants to find the most credible and honest fit.
From an IRS standpoint, there is no difference between a license and ordination.
According to publication 517: “Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. They are given authority to conduct religious worship, perform sacerdotal functions, and administer ordinances or sacraments according to the prescribed tenets and practices of the church or denomination.”
Regarding Housing Allowance for Ministers:
"If you are a minister and receive as part of your salary (as a minister) an amount officially designated as a rental allowance, you can exclude from gross income the amount that is used to provide or rent a home. However, the exclusion is limited to the lesser of the fair market rental value (including furnishing, utilities, garage, etc.) of the amount officially designated (in advance of payment) as a rental or housing allowance, or the actual amount used to provide a home, and cannot exceed what is reasonable pay for your services. The payments must be used in the year received."
Please See Internal Revenue Service Publication 517 for complete information on Housing Allowance Eligibility, Social Security and Other Information for the Members of the Clergy and Religious Workers.