Administrative Assistance

There is no state or federal law requiring you to have By-Laws.  But without By-Laws, your church [or fellowship] would not be tax exempt in the eyes of either the state or the IRS. And in the event of an audit, any and all income would likely be ascribed to the leader [pastor] or leadership

This is not a new subject, but I find that most churches are [for the most part] blissfully unaware of the HIPAA law, and it’s ramifications for the church.  This law actually came into effect on April 14, 2003, so as I said this is not a new issue at all.   Following is a bit of information you really need to be aware of.

   The question often arises; can the church give gifts to the pastor, employees, or its staff members? How about gifts to faithful teachers, hard working volunteers, or to those coming to our church for the 1st time?  What should we keep in mind in giving gifts of "Benevolence to the homeless, or even our own church members?"

Written as a rebuttal against those advocating the "Free Church" movement, expressing fear of incorporating, and being "501(c)(3)."  Essentially, the proponents of the ‘Free Church’ movement argue that by incorporating, we are allowing “Caesar’’ into our church;  Or to take 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, except where a Budget has been established, with monies 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.