Administrative Assistance

A rebuttal against those advocating the "Free Church" movement, expressing a fear of incorporating, and of being "501(c)(3)."  Essentially, the proponents of the ‘Free Church’ movement argue that to allow “Caesar’’ into our church by incorporating, or to take the steps to be 501(c)(3) compliant, will “give ‘Caesar’ control over the church.”

There is a fear of the IRS, and in may cases, rightfully so.  But the IRS cannot just arbitrarily “Come in” and investigate a church, unless they have a very good reason to do so.  EG – if the church withholds payroll taxes and then does not report and send those monies in  - this WILL get the IRS in bed with the church, and they then have their reason to look at everything else

The answer will be found within the church By-Laws.  Some churches have a ‘Democratic’ form of government, where the congregation [Membership] has all authority, while other churches are under virtual dictatorship by the pastor.  Church by-laws provide for Boards of Directors or Trustees; but what ‘rights’ the pastor has, is always defined in the By-Laws:

Unless, and until, authority has been granted an individual by action of the Board, no person [the pastor; the pastors wife; NO one] has authority to spend church monies.  The only exception to this is where a Budget has been set, [established] and monies have been approved for specific projects/programs.

Can [should] the minister file IRS Form 4361 and exempt from Social Security [SECA]?  Much counsel has been offered on this subject, but we offer an additional perspective on how to view, and make a decision on this important issue

Regarding Marriage, Employment or Volunteers - If it is the Churches Policy that church membership is a requirement to be involved in ANY church activity, this is the ultimate in having a "Fire wall" of protection from the homosexual activists, and aggressive sexual predators. And it's legally defenseable.

The church has every theological right to ordain whom they will, and has historically done so.  But will the IRS allow him all the tax privileges?  Ministry who live and minister in the US are subject to US tax laws.

There is great confusion over whether the Pastor is Self Employed, or a Staff Minister.  The answer is not simple, but YES - he is BOTH!  The one has to do with how taxes are paid, the other with how the church is required to report.

The practice of providing a Cell Phone to the Pastor, and or other employees, is a very big issue with the IRS.  It is also potentially a serious Liability problem.  Adopting a simple Policy would minimize both of these issues.

This information is provided to help you understand the process of creating your church non-profit corporation. You can save a lot of time and money, with the added benefit of knowing exactly what you have in your documents.