When the church and government collide. When the church and government collide. Judy Logan Attorney Strategic Giving California Southern Baptist Convention.

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Presentation transcript:

When the church and government collide. When the church and government collide. Judy Logan Attorney Strategic Giving California Southern Baptist Convention

Why should your church incorporate? 1. Shield members from personal liability. 2. Church can enter contracts. 3. Church can sue or be sued. Its all about personal liability!

Question What type of Corporation is your church?

Nonprofit Religious Corporation Answer

501(c)3 1.A corporation is a matter of state law. 2.IRC 501(c)3 is a federal tax law and relates to tax-exempt status. 3.IRC 501(c)3 lists many different categories of exempt organizations. 4.All churches by default are exempt organizations under 501(c)3. 5.Churches may apply for IRS recognition (determination letter) that recognizes the churches tax-exempt status. There is no such thing as a 501(c)3 corporation.

What is the number 1 mistake churches make? orp_so100.pdf Failure to file Statement of Information.

How do you keep your church in good standing? File your statement of information!

Why are bylaws so important? 1.The bylaws are the rules of your Corporation. 2.A church must follow their own rules. (bylaws) 3.In litigation, a court will review the bylaws to see if the church has followed their own rules. 4.Make sure your church can live by their own rules. 5.A church can amend their bylaws, if changes need to be made.

Some areas of concern 1.A church facility use policy. 2.A formal membership policy. 3.Procedure for member-discipline. 4.Procedure for membership revocation. 5.All job descriptions should explain how the position furthers the mission of the church. 6.Statement of religious belief regarding marriage. 7.A policy of due diligence (background checks) for volunteers and staff who work with children. Churches should have the following:

Judy Logan, Attorney California Southern Baptist Convention Government Intrusion Incorporating a church does not give government more power to intrude on church business, instead it provides significant benefits.