1. The Changing World of Church Planting New Church Starts and the Government

2. What does the CA Employment Development Department require of Church Starts? Per the EDD http://www.edd.ca.gov/pdf_pub_ctr/de231ee.pdf Per the EDD http://www.edd.ca.gov/pdf_pub_ctr/de231ee.pdf http://www.edd.ca.gov/pdf_pub_ctr/de231ee.pdf Employees of a church or convention or association of churches or an organization that operates primarily for religious purposes and is operated, supervised, controlled, or principally Employees of a church or convention or association of churches or an organization that operates primarily for religious purposes and is operated, supervised, controlled, or principally

3. What does the CA Employment Development Department require of Church Starts? supported by a church or convention or association of churches are not subject to UI, ETT, and SDI but are subject to PIT withholding. supported by a church or convention or association of churches are not subject to UI, ETT, and SDI but are subject to PIT withholding. (UI) Unemployment Insurance (UI) Unemployment Insurance (ETT) Employment Training Tax (ETT) Employment Training Tax (SDI) State Disability Insurance (SDI) State Disability Insurance (PIT) Personal Income Tax withholding (PIT) Personal Income Tax withholding

4. What does the CA Employment Development Department require of Church Starts? Ministers who are duly ordained, commissioned, or licensed in the exercise of their ministry and members of a religious order in the exercise of duties required by such order are not subject to UI, ETT, SDI, or PIT withholding. Ministers who are duly ordained, commissioned, or licensed in the exercise of their ministry and members of a religious order in the exercise of duties required by such order are not subject to UI, ETT, SDI, or PIT withholding.

5. What Policies and Procedures are necessary at start up? ■ the organization must be organized and operated exclusively for religious, educational, scientific, or other charitable purposes, ■ the organization must be organized and operated exclusively for religious, educational, scientific, or other charitable purposes, ■ net earnings may not inure to the benefit of any private individual or shareholder, ■ no substantial part of its activity may be attempting to influence legislation, ■ net earnings may not inure to the benefit of any private individual or shareholder, ■ no substantial part of its activity may be attempting to influence legislation,

6. What Policies and Procedures are necessary at start up? ■ the organization may not intervene in political campaigns, and ■ the organization may not intervene in political campaigns, and ■ the organization’s purposes and activities may not be illegal or violate fundamental public policy ■ the organization’s purposes and activities may not be illegal or violate fundamental public policy

7. What Policies and Procedures are necessary at start up? Childcare Policy Childcare Policy Youth Ministry Policy Youth Ministry Policy Marriage Act Policy Marriage Act Policy Personnel Policy Personnel Policy Building Rental Policy Building Rental Policy www.yourchurchmatters.com www.yourchurchmatters.com www.yourchurchmatters.com

8. Does filing our federal exemption change if we want to do social ministry? Churches that meet the requirements of IRC section 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS Churches that meet the requirements of IRC section 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS

9. Does filing our federal exemption change if we want to do social ministry? Recognition as an exempt organization has benefits: Recognition as an exempt organization has benefits: − Members know contributions are tax exempt − Churches are eligible for grants Group Exemption or Individual church recognition with IRS form 1023 Group Exemption or Individual church recognition with IRS form 1023

10. Does filing our federal exemption change if we want to do social ministry? Welfare Exemption Welfare Exemption http://www.irs.gov/Charities-&-Non-Profits/Other-Non- Profits/Life-Cycle-of-a-Social-Welfare-Organization http://www.irs.gov/Charities-&-Non-Profits/Other-Non- Profits/Life-Cycle-of-a-Social-Welfare-Organization http://www.irs.gov/Charities-&-Non-Profits/Other-Non- Profits/Life-Cycle-of-a-Social-Welfare-Organization http://www.irs.gov/Charities-&-Non-Profits/Other-Non- Profits/Life-Cycle-of-a-Social-Welfare-Organization Form 1023 Form 1023 http://www.irs.gov/pub/irs-pdf/f1023.pdf http://www.irs.gov/pub/irs-pdf/f1023.pdf http://www.irs.gov/pub/irs-pdf/f1023.pdf How the IRS sees a church How the IRS sees a church http://www.irs.gov/pub/irs-pdf/p1828.pdf http://www.irs.gov/pub/irs-pdf/p1828.pdf http://www.irs.gov/pub/irs-pdf/p1828.pdf

11. 11 (559) 256-0858 direct line (559) 287-7840 cell phone rwiltrout@csbc.com Rod Wiltrout Church Finance Specialist www.csbc.com/financialmatters