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.

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

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

Now you can get:Bank Account

Donations

InsuranceIllini Community Insurance 217-

253-3993

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.

Music and Video Licenses

1. CCLI and CVLI www.ccli.com2. www.copyrightsolver.com/

services/performusic3. www.swank.com