Operations 103Tax & Legal, Class 8

Today’s Topic

Whenever one deals with money, there are legal and tax issues to be considered.  Beginning with tax issues, the role of profitable enterprises in the church needs to be examined.  Whether your church runs a small café, a mid-sized bookstore or has a massive 2,000 car for-profit garage, there may be places where you are garnering unrelated income.  This class will explore the taxable consequences and the reporting issues involved.  We will also examine tax and legal mistakes that can put your 501c(3) exempt status in jeopardy.   The role of arbitration clauses in all types of church settings (from employment letters to youth trips) will be examined.

Church Law Group

Matt Anthony & David Middlebrook are nationally noted attorneys and founders of The Church Law Group of Grapevine, Texas.  David’s practice emphasizes tax-exempt organizations. He has authored and published numerous articles on nonprofit topics and is a frequent speaker on church-related legal subjects.  He wrote The Guardian System for the prevention of child abuse, and was awarded an Evangelical Christian Publishers Gold Medallion award. 

Church Law Group

Matt Anthony’s practice focuses in the area of nonprofit organizations with an emphasis on compliance issues, executive compensation and litigation/arbitration.  He is AV Rated by the Martindale Hubbell Peer Review Rating System. An AV rating is a testament to the fact that his peers rank Mr. Anthony at the highest level of professional excellence.

501(c)3 Issues

Why bother to Incorporate?

Why are bylaws important? Sets the internal rules Outlines the purpose Defines policies

How often should you look at the bylaws?

Governance Documents

Does a church have to file?

Does a church need to file?

IRS Form 1023

Bookstores & Profit Centers

Unrelated Business Income (UBIT) Operated within church walls? Sell only religious merchandise? Separately incorporated? If on church grounds, open only when church is in

use? Open to general public? Engage in advertising? What is the relative size of revenue in comparison to

church revenue?

Bookstores

Does a church have to pay state sales tax?

Can a church own or engage in a profitable enterprise? How? Common mistakes

Sales Tax Issues

Investment Issues

Is a church a Public Charity?

Carrying out the organizations charitable purpose?

Can you save for a rainy day?

Investment Issues

Child Safety

Policies and procedures for the Children’s Ministry

Prevention of abuse S.T.O.P.

Screen Train Operate P.L.A.N.

Children’s Safety

P.L.A.N. Prevent Interaction Listen to person making report Assemble the response team Notification procedures

Background Checks for all staff/volunteers

Children’s Safety (cont)

Lawsuit Avoidance

What is mediation? What is Christian mediation? What is Arbitration? Arbitration Clauses

Enforceable? Advisable? Where to you put them?

Lawsuit Avoidance

Benefits of Church Law Group

Client Member Cost: $195/monthly or $2100/yearly 25% off published hourly rates One hour of consultation with an attorney monthly Discounted rate services After-hours, emergency legal assistance Webinars on important legal topics  Hosting of Your Board Meetings at Anthony & Middlebrook with

attendance of a Church Law Group attorney PEACE OF MIND!

Q & A

David Middlebrookdavid@amlawteam.com

Matt Anthonymatt@amlawteam.com

www.ChurchLawGroup.com 972-444-8777