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.”
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.
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.
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.
How can a church legally and spiritually cover an emerging ministry? Is there a way to minimize the start-up costs, annual expenses, any IRS involvement and liability? Yes there is - and on a Biblical basis.
The greatest concern for the church is liability. Even before calamity [lawsuits] strike us, we should be equipped to respond on a Biblical basis. As regards church discipline, we can only do what is clearly defined in our By-Laws.
Minutes are the "Memory" of the corporation, and should reflect that leadership has conducted all business according to the By-Laws. An incomplete Minute Book could be disastrous, but it can be 'caught up,' and all past actions ratified.
Precious little is taught in Bible School, preparing pastors to be the CEO of a Corporation, the legal entity. In the vacuum of understanding, attention to essential detail is often missing, leaving the church vulnerable to a lawsuit.
There is really no such thing as a, "Tax Number." What is usually thought of as a tax number is the FEIN. This is the "Federal Employer Identification Number." Something like our SS number. It is NOT required to put this number on the receipts you write, but it not a problem if you want to do so.
The adopted By-Laws, totally define “how” the church is to be governed. As a Democracy? Or Biblically? Sometimes called the “Articles of War, they can eliminate in-house disputes, allowing the pastor to lead with the freedom and authority God intends but, requiring accountability.
The costs to start the church are really not that great, usually less than $200.00. You can always decide to file for the IRS "Exemption Ruling Letter," the so called [501(c)(3), at a later time.
The word "Sin" means "Missing the mark," and it is no exaggeration to say that most churches have missed the mark in regards to this very important Organizational Meeting Minute. We explain what this is, in this article.
Starting a church is not complicated. And in this Article, we examine three different ways a church can begin. As for the IRS, there is no requirement for the church to file for an "Exemption Ruling Letter."
A 501(c)(3) is not something the church must apply for, "get" or "have." Rather, it is how we must be organized and operational.The church IS 501(c)(3). We do not have to apply to the IRS for a "Letter."