Category: Churches and Religious Organizations

Churches Should Plan for Disasters and Shooter Situations

Posted on under Articles, Churches and Religious Organizations, Newsletters.

Emergency situations involving churches are making headlines more often than many churchgoers would like to believe. As recently as November 16, 2013, tornados touched down in Illinois on a Sunday evening when many were attending church. Churches were targeted in at least 108 incidents of violence in 2011 and over 135 incidents in 2012.[1] In addition, many churches were affected by technological disasters, such as leaks from industrial plants, roadway spills, and power failure. Continue reading “Churches Should Plan for Disasters and Shooter Situations” →

Exercise Caution When Relying on Sales Tax Exemptions

Posted on Wednesday, November 7th, 2012 under Churches and Religious Organizations, Nonprofits.

Many states provide sales tax exemptions to non-profit organizations.  Exemptions are usually one of two types: a purchaser exemption or a seller exemption.  A purchaser exemption exempts the organization from paying sales tax on purchases of goods for the organization’s use, whereas a seller exemption exempts the organization from charging sales tax to those who purchase goods that the organization sells.  Seller exemptions are usually narrower than purchaser exemptions and may apply to specific products.  A non-profit organization desiring to use either type of exemption should carefully evaluate the exemption to determine if it falls within its parameters.  Understanding how exemptions apply may require information that does not appear in the express language of the statute.  Thus, it is advisable for a non-profit organization to seek legal advice from counsel experienced in sales tax exemptions before relying upon an exemption. Continue reading “Exercise Caution When Relying on Sales Tax Exemptions” →

Should Churches Endorse Candidates?

Posted on Friday, September 28th, 2012 under Churches and Religious Organizations.

During the last few election seasons, an effort known as “Pulpit Freedom Sunday” encourages pastors to publicly endorse political candidates in their Sunday sermons.  The purpose of Pulpit Freedom Sunday is to challenge the constitutionality of a federal law that restricts the political activities of churches.  The law applies not only to churches, but to all organizations that are exempt from federal income tax under section 501(c)(3).  The restriction prohibits 501(c)(3) organizations from “directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.”[1] Continue reading “Should Churches Endorse Candidates?” →

Voting Procedures Between Board Meetings

Posted on under Articles, Churches and Religious Organizations, Nonprofits.

Alliance for Children and Families, September 15, 2011

Boards can make decisions between Board meetings if they do it properly. This is a primer for Board voting procedures without a meeting.

Get Out the Vote
A primer for board voting procedures without a meeting

Because the Internet has become an integral part of daily life, it’s not surprising that it has changed the way nonprofit boards function. Email and web portals are increasingly popular for sharing meeting materials, distributing updates, and coordinating meeting times and locations. Continue reading “Voting Procedures Between Board Meetings” →

Should Churches Incorporate and Seek Confirmation of Tax Exempt Status from the IRS?

Posted on under Articles, Churches and Religious Organizations, Nonprofits.

A client recently brought to my attention a website article that said that churches should not be “501(c)(3) corporations.” It contained dire warnings about Big Brother muzzling the church if it becomes a 501(c)(3) organization. The article contained numerous factual errors and a considerable amount of confusion about the issues involved. I see these same misunderstandings surface from time to time, usually when a member of a congregation is trying to understand some of the legal work we are doing for a church and searches the Internet and finds these unreliable websites. In this article, I will address the most common misunderstandings in order to put the unfounded fears to rest. The comments addressed to “churches” in this article are applicable to other similar religious organizations including synagogues, temples, and the like. Continue reading “Should Churches Incorporate and Seek Confirmation of Tax Exempt Status from the IRS?” →

Consumer Product Safety Improvement Act and Resale Shops

Posted on under Articles, Churches and Religious Organizations, Employment, Nonprofits.

Operators of resale shops should be aware of the Consumer Product Safety Improvement Act (CPSIA).  The CPSIA, enacted in 2008, makes it illegal to sell any recalled product or any children’s product that contains lead or phthalates exceeding certain limits. Under CPSIA, a children’s product includes any consumer product designed or intended primarily for children aged 12 years of age or younger.  Numerous products could fall within the scope of CPSIA, such as toys, furniture, clothing, jewelry, and books.  Provisions of CPSIA lower allowable levels of lead and phthalates in children’s products in 2009 and 2010.  In August 2011, the total allowable lead content of children’s products is scheduled to become even more stringent.  This standard is subject to change every five years based upon available technology. Continue reading “Consumer Product Safety Improvement Act and Resale Shops” →

Avoiding Liability when Disciplining Pastors or Church Members

Posted on under Articles, Churches and Religious Organizations.

A pastor resigns his position at Old Church, a prominent church that ordained the pastor several years earlier. Shortly thereafter, the pastor founds New Church in a growing neighborhood of the community. The pastor is ordained by New Church and begins his pastoral duties. Several years elapse, and rumors begin to circulate in Old Church that the pastor has engaged in marital and financial misconduct. The elder board of Old Church sends the pastor a letter threatening to rescind his ordination. The letter requests that the pastor appear at a hearing before the elder board to defend himself. Continue reading “Avoiding Liability when Disciplining Pastors or Church Members” →