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501(c)(what???) And All Those Headaches.. Disclaimer We aren’t lawyers. This session is not legal advise. If you have legal questions, get a lawyer.

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Presentation on theme: "501(c)(what???) And All Those Headaches.. Disclaimer We aren’t lawyers. This session is not legal advise. If you have legal questions, get a lawyer."— Presentation transcript:

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2 501(c)(what???) And All Those Headaches..

3 Disclaimer We aren’t lawyers. This session is not legal advise. If you have legal questions, get a lawyer.

4 Resources 1.www.plantingchurches.org (Legal Category) 2.www.hurwitassociates.com/l_s_annual _md.php 3.www.newchurches.com/legal-- organizational/

5 General Tips 1.It’s ok to be churchy 2.Keep it simple, clear and above reproach 3.When you don’t know ask 4.Plan ahead

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7 Articles of Incorporation 1.The form is on the Secretary of State website 2.Resident agent is the official liason between the state and church 3.Add a addendum with: Purpose statement, Limitation on Activities, Inurement, Dissolution Statement

8 Employer Identification Number 1.It’s like a Social Security number for the church 2.https://sa1.www4.irs.gov/modiein/ind ividual/index.jsp 3.Required for almost anything financial

9 Now you can get: Bank Account Donations Insurance Illini Community Insurance 217-253- 3993

10 Hold First Board Meeting 1.Use legalese “Whereas XYZ, It is resolved that XYZ.” 2.Approve all legal docs 3.Appoint officers 4.Principal Office 5.Approve hiring docs and set housing allowance

11 Corporate Records Book 1.Include all legal documents 2.Board Meeting Minutes 3.Financial Balance Sheets 4.Insurance Policies 5.Contracts 6.Membership Register

12 Withholding Number 1.Needed for payroll 2.State number used to withhold taxes from your paycheck. 3.Filed quarterly

13 Payroll 1.Understand the different types of church employees 2.It is your responsibility to make sure it is set up correctly. 3.Outsource it

14 Bylaws 1.Answers the question, “How does the church function in a legal sense.” 2.Include a statement of faith 3.Membership doesn’t mean what you think 4.Conflict of interest policy 5.How to make amendments

15 501c3 1.Good news: Churches are automatically 501c3 organizations 2.Bad news: No one recognizes that. 3.2 – 6 month turnaround 4.They want to see you are a legitimate church

16 State Sales Tax Exemption 1.Department of Revenue of Taxation 2.Stewardship Issue 3.Each state is different 4.California churches receive no exemption

17 Bulk Mail Permit 1.Costs $190 for application $190 annual fee 2.Lowest postage rate is 6.6 cents 3.PS 3615 and PS3624.

18 Music and Video Licenses 1.CCLI and CVLI www.ccli.com 2.www.copyrightsolver.com/services/p erformusic 3.www.swank.com


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