Giving
How to tithe when you're self-employed or paid irregularly
In short
When you're self-employed, revenue is not income yet. Take out business costs, then set aside money for taxes, and give from what is left (your profit or your owner's pay), applying the same percentage each time money arrives. On $8,000 of monthly revenue with $2,000 of costs and $1,500 set aside for taxes, a tithe on profit is $600 and a tithe on what's left after tax savings is $450.
A salaried household can read its giving base off a pay statement. A freelancer, contractor or small-business owner sees revenue land in one account, costs leave from the same account, and taxes come due months later. Ten percent of revenue can leave too little to cover business costs and the taxes that come due later.
This guide separates the three amounts, shows the two common giving bases with one worked example, and gives a rule that works when deposits are uneven.
Revenue, profit and what you can actually spend
Revenue is everything customers paid. Profit is revenue minus the costs of running the business: supplies, software, mileage, contractors, a share of rent. What the household can spend is profit minus the money you set aside for income and self-employment taxes.
Giving 10% of revenue treats the business's costs as your income. Two reasonable bases are profit, or what's left after setting aside taxes. Which one is a conviction to settle; the important thing is to name it and use it every time.
A worked month
A hypothetical month for a freelance designer. The figures are illustrative, not tax advice; your own tax set-aside rate depends on your situation.
| Line | Amount | 10% of it |
|---|---|---|
| Revenue from clients | $8,000 | $800 |
| Business costs | −$2,000 | |
| Profit | $6,000 | $600 |
| Set aside for taxes | −$1,500 | |
| Left for the household | $4,500 | $450 |
Give as money arrives, not from an estimate
A fixed monthly gift can be hard to keep in a slow month. Instead, apply your percentage to each payment's share of your chosen base when it lands. If a $3,000 invoice is paid and your rule is 10% of profit at a 25% cost ratio, the gift from that payment is $225.
Keep a running note of what you have already counted. When a client pays late, or pays twice by mistake and you refund it, adjust the giving record so the same money is not counted twice.
Keep business and household money apart
A separate business account makes every step above easier: costs leave from it, tax money sits in its own savings, and a regular owner's pay moves to the household. Giving then follows the owner's pay like any paycheck.
Gifts from a business account can have different tax treatment from personal gifts. An accountant can tell you which applies to your business structure.
Key takeaways
- Revenue isn't income: subtract business costs first.
- Set tax money aside before deciding what the household can give from.
- Pick a base (profit, or what's left after tax set-asides) and use it every time.
- Give a percentage of each payment as it arrives; keep a record so nothing is counted twice.
Questions people ask
Should I tithe on revenue or profit if I'm self-employed?
Revenue includes money that will pay the business's costs, so many self-employed givers use profit or the amount left after setting aside taxes instead. Choose the base that fits your convictions and apply it consistently.
How do I tithe on irregular income?
Apply your percentage to each payment as it arrives rather than giving a fixed monthly amount from an estimate. A slow month then gives less and a strong month gives more, always in proportion.
Do I tithe before or after setting money aside for taxes?
Both are used; choose one you can keep. Giving after tax set-asides ties the gift to money the household can actually use; giving on profit ties it to what the business earned. Write your choice down so every payment follows it.
Give a share of every deposit as it lands, and keep giving first in the household budget.
Plan giving first in UniFiThis article is general information, not tax or legal advice. Consult a qualified professional about your situation.