Steven and I attended a SEBTS chapel last week where we heard Mark Driscoll give a sermon about nine differences between the Gospel and Religion. Here's what he said..
1) A religious person says, "I obey so that God will love me". A gospel centered person says, "God loves me therefore I'll obey him".
2) Religion sees good people and bad people. The Gospel realizes that there's really just bad people and Jesus. Gospel centered people realize that they are always in need of repentance. Christians are called to live a life that is characterized by repentance. J.I. Packer says, "Heretics are people that don't practice repentance".
3) Religion is about getting something from God. The Gospel is about getting God (just him not all his stuff). Religious people keep God's rules so they can stiff arm God into giving them whatever idol they want. What does this look like? This looks like the guy or gal who gets upset when they don't get that job they wanted or their relationship breaks because they thought that God owed them the life they've always wanted - after all they keep their life 'clean' and always attended church. In the end they only obeyed God so that they could get what they wanted, namely a life with the right man or women, the job they always wanted, health, wealth, you get the idea.
4) What follows is this: Religion sees hardship as punishment. The Gospel sees hardship as disciple from a loving father. Gospel centered people remember that sin was judged/punished on the cross. The scripture says that there is no condemnation for those who are IN CHIRST (Romans 8:1).
5) Religious people are keenly aware of other people's sins. Gospel centered people are aware primarily of their own sins.
6) Religion deals only with external issues (what you eat, drink, where you go, how you dress). The Gospel deals with maters of the heart. Gospel centered people understand actions based on the intent of the heart.
7) Religious people are constantly uncertain about their salvation because God's acceptance of them rest wholly upon their performance. And we all know we're inconsistent, therefore, our assurance is up one day and down the next. Gospel centered people can wake up every morning and tell God, "Nothing I can do today can make you love me more, and nothing I can fail to do today can make you love me less". The Gospel gives us certainty about our standing with God (1 John 5:13).
8) Religion is about self-righteousness, but the gospel is about gift righteousness. The understanding that my righteousness is a gift ought to make me live a life of increasing humility.
9) Religion results in pride or despair. The Gospel leads to a holy happiness. Gospel centered people rest content, and are free to spend their lives for God in Joy.