Churches are often more than just a place of worship or a building for services. Many times churches want to participate in providing coffee shops, gift shops, book stores, day cares, and even book sales. However, each of these unrelated church business incomes are separate from the church’s operating purposes, and can even threaten the…
When Should a Church Form a For-Profit Subsidiary?
Why and When to Establish a Nonprofit Corporation
Have you ever wondered whether you should start a new corporation? Maybe you’ve just founded a church or just started itinerating on a regular basis. Or, maybe you are launching a major new initiative for an existing church or ministry. Let’s look at some commonly asked questions concerning why and when to form a new…
6 Requirements to Starting a Nonprofit
So you want to start a church or ministry? Pastors today face an increasingly litigious and regulated environment that can threaten their church’s success, so it’s vital that you do things the correct way from the start. At the Law Office of Dan Beirute, we incorporate churches and ministries all over the United States so…
Liability of Directors of Nonprofit Organizations
Individuals who are approached to serve on the Board of Directors of a nonprofit organization will often ask about a nonprofit volunteer’s liability exposure. Can a volunteer director or volunteer trustee of a nonprofit organization be held personally liable for his or her actions on behalf of the nonprofit? A little-known piece of federal legislation,…
When Should Churches Form Subsidiary Corporations?
When should a church or ministry establish a for-profit corporation? A church or ministry should never be established as a for-profit corporation, since doing so would prevent the church or ministry from obtaining tax-exempt status. However, a church or ministry may own a for-profit corporation. For example, assume that a church wants to start a…
Church corporations – part 3
Our last post discussed how a church corporation or ministry corporation is formed. Today, let’s consider: Who are incorporators, directors, and officers? When establishing a church corporation or a ministry corporation, it is important to understand the meaning of these terms. First, what is an incorporator? An incorporator is simply the person who signs the…
Church corporations – part 2
Our last post discussed some of the basic reasons for forming a church corporation or ministry corporation. Today, let’s consider: What type of corporation should be used for a church or ministry? Churches and ministries are formed as non-profit corporations. Unlike for-profit corporations, non-profit corporations have no owners / shareholders and do not issues shares. They…
Church corporations – part 1
Have you ever wondered whether you should start a new corporation? Maybe you’ve just founded a church or just started itinerating on a regular basis. Or, maybe you are launching a major new initiative for an existing church or ministry. Let’s consider some commonly-asked questions concerning why and when to form a new corporation. Today’s…
Computer Use Guidelines Your Staff Must Know
The Internet can be both a useful tool and a destructive force for a church. On one hand, the Internet allows churches to market inexpensively to potential churchgoers and to quickly and efficiently relay news and information to members and supporters. On the other hand, the Internet can bring lewd and inappropriate content into the…
