501(c)(what???) and all those headaches.. disclaimer we aren’t lawyers. this session is not legal...
Post on 22-Dec-2015
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DisclaimerWe aren’t lawyers. This session is not legal advise. If you have legal questions, get a lawyer.
Resources1. www.plantingchurches.org
(Legal Category)
2. www.hurwitassociates.com/l_s_annual_md.php
3. www.newchurches.com/legal--organizational/
General Tips1. It’s ok to be churchy2. Keep it simple, clear and above
reproach3. When you don’t know ask4. Plan ahead
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
Employer Identification Number
1. It’s like a Social Security number for the church
2. https://sa1.www4.irs.gov/modiein/individual/index.jsp
3. Required for almost anything financial
Hold First Board Meeting
1. Use legalese“Whereas XYZ, It is resolved that XYZ.”
2. Approve all legal docs3. Appoint officers4. Principal Office5. Approve hiring docs and set
housing allowance
Corporate Records Book
1. Include all legal documents2. Board Meeting Minutes3. Financial Balance Sheets4. Insurance Policies5. Contracts6. Membership Register
Withholding Number1. Needed for payroll2. State number used to withhold
taxes from your paycheck.3. Filed quarterly
Payroll1. Understand the different types
of church employees2. It is your responsibility to
make sure it is set up correctly.
3. Outsource it
Bylaws1. Answers the question, “How
does the church function in a legal sense.”
2. Include a statement of faith3. Membership doesn’t mean
what you think4. Conflict of interest policy5. How to make amendments
501c31. Good news: Churches are
automatically 501c3 organizations
2. Bad news: No one recognizes that.
3. 2 – 6 month turnaround4. They want to see you are a
legitimate church
State Sales Tax Exemption
1. Department of Revenue of Taxation
2. Stewardship Issue3. Each state is different4. California churches receive no
exemption
Bulk Mail Permit1. Costs $190 for application
$190 annual fee 2. Lowest postage rate is 6.6
cents3. PS 3615 and PS3624.