Church leaders are often confused by their well-meaning friends (or their Attorney’s), when they are told they must “Get” a 501(c)(3). What they mean to say is, “Do you have a favorable “Ruling Letter” from the IRS.” If a church chooses to file the IRS Form 1023, they will be reviewed and likely receive a [...]
In this article, we will examine three different ways a church can get started. Starting a church in the United States is relatively simple. Please keep in mind the church is always the people, and what this article is about is the Administrative/Legal/IRS aspect of the organization. To get an approximate cost to start a [...]
The following are a few of the points we discuss in The Church Administration “How To” Manual. What Records Do The IRS Evaluate In An Audit? A church audit would be a programmatic oriented audit, placing emphasis on reviewing the governing documents and the minutes of the voting members and Board of Directors. In addition [...]
When sharing with church leaders, I tell them my greatest concern for the church is from a liability perspective. Yes – we need to file and report everything according to the IRS regulations, and conduct all business with accuracy and accountability. But the area where we can lose absolutely everything, and see the church destroyed, [...]
We sometimes criticize those ‘as too worldly,’ putting too much focus on estate planning and retirement, but if the truth be known, church leaders don’t do enough planning and thinking ahead. I had occasion recently to counsel with a minister friend, who recently lost her spouse. They had been co-pastors in their church and suddenly, [...]
We write this as a rebuttal against those advocating the “Free Church” movement; Yes, I am aware of the “Free Church” concerns: Those who express a fear of incorporating the church, and being “501(c)(3).” Essentially, the proponents of the ‘Free Church’ movement argue that by incorporating, we are allowing “Caesar’’ into our church; Or [...]
The question often arises; can the church give gifts to the pastor, the church employees, or its staff members? How about gifts to faithful teachers, hard working volunteers, or to those attending our church for the first time? What should we keep in mind in giving gifts of “Benevolence to the homeless, or even our [...]
This is not a new subject, but I find that most churches are [for the most part] blissfully unaware of the HIPAA law, and it’s ramifications for the church. This law actually came into effect on April 14, 2003, so as I said this is not a new issue at all. Following is a bit [...]
There is no state or federal law requiring you to have By-Laws. But without By-Laws, your church [or fellowship] would not be tax exempt by either the state or the IRS. And in the event of an audit, if it is discovered there are no By-Laws, any and all income would likely be ascribed to [...]
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