Having fun is not determined by how drunk you get or how foolish you make yourself look. Alcohol is a mocker. This song is describing serving God as being likened to a party, you can have fun serving God.
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Story behind the song
Too often people think that to have fun they have to be drunk or their judgement has to be impaired is some way, well, that is not so. A lot of joy and fun is derived from serving God and that is expounded upon in this song.
Lyrics
Chorus:
Living for the Lord is like a party,
When you're serving and you're living whole hearted,
Come on everybody get started,
Come on ya'll stand up Come on throw your hands up