Nonprofit Law for Religious Organizations

Nonprofit Law for Religious Organizations: Essential Questions & Answers is a hands-on guide to the most pertinent and critical legal issues facing those who lead and manage religious tax-exempt organizations with an emphasis on tax, employment, property and constitutional law. This timely book is a response to the need for guidance, direction, and clarification of legal and tax laws affecting churches and other religious organizations.

Part I Creation of a Nonprofit Organization 1

Chapter 1 Nonprofit Organizations—Generally 3

Chapter 2 Governance: Principles and Documents 13

Chapter 3 Religious Nonprofit Organizations and Churches—Generally 27

Chapter 4 Administration of a Congregational Church 35

Chapter 5 The Board of Directors 43

Chapter 6 Conflicts of Interest 53

Chapter 7 Expenditure of the Religious Nonprofit Organization’s Funds 59

Chapter 8 Acquiring Tax-Exempt Status 67

Chapter 9 The IRS Annual Information Return 97

Part II Ministers, Employees, and Volunteers 107

Chapter 10 Clergy, Ministers, and Pastors 109

Chapter 11 Employee Rights 127

Part III Operation of a Religious Nonprofit Organization 139

Chapter 12 General Operations 141

Chapter 13 Charitable Giving Rules 147

Chapter 14 Combinations of Entities 175

Chapter 15 Liability of Religious Organizations 199

Chapter 16 Insurance Coverage Considerations 207

Chapter 17 Real Property and the Religious Nonprofit 213

Chapter 18 Competition and Commerciality 219

Chapter 19 Intellectual Property 233

Chapter 20 Lobbying and Political Activities 239

Chapter 21 Employee Compensation 249

Chapter 22 Intermediate Sanctions 273

Chapter 23 Unrelated Business Activities 293

Chapter 24 IRS Audits of Religious Nonprofit Organizations 313

Part IV The Constitution, Religious Freedom, and Interaction with the Government 325

Chapter 25 Protection of Religious Liberties 327

Chapter 26 Guidance on Partnering with the Federal Government 333

Index 347

Bruce R. Hopkins is the country's leading authority on tax-exempt organizations and is a senior partner with the firm Polsinelli Shalton Flanigan Suelthaus PC. He is the author of twenty books, including The Law of Tax-Exempt Organizations, Ninth Edition (Wiley), and the magazine Bruce R. Hopkins' Nonprofit Counsel.

David O. Middlebrook is a senior partner with the firm of Anthony & Middlebrook, PC, whose clients include all types of charitable, religious, and educational organizations. He has authored numerous articles on religious nonprofit topics, and is a recipient of the national Gold Medallion book award in recognition of publishing excellence.

Praise for Nonprofit Law for Religious Organizations Essential Questions & Answers

"Years ago, sincerity and compassion were all that was needed to sustain a vibrant and effective house of worship. Today, there are a myriad of legal issues facing the church that constantly arise, challenging even the most prudent and well-intentioned minister. Nonprofit Law for Religious Organizations: Essential Questions and Answers covers a wide variety of important legal topics in an easy-to-read question-and-answer format. This book is a must-read for every minister who desires excellence in their ministry and wants to circumvent needless mistakes and avoid poorly made and costly decisions."
—Bishop T.D. JakesThe Potter's House of Dallas

"Bruce Hopkins and David Middlebrook have written a comprehensive and easily understood handbook on religious nonprofit tax law that is a must-read. The question-and-answer format is user-friendly and provides straightforward answers to complex legal issues. Pastors, lawyers, accountants, and nonprofit leaders should have this volume in their library. This book is a tremendous resource."
—Jay Sekulow, Chief CounselAmerican Center for Law & Justice (www.aclj.org)

"As a media consultant, the most serious challenge I believe religious organizations face today is the criticism over perceived abuses. The truth is, 90% of the mistakes made by churches and ministries isn't willful or criminal conduct, but is simply unintentional. Hiring, tax, accounting, administration, and other mistakes have crippled or actually shut down great organizations. Once that mistake is publicized, the damage is done. But in Nonprofit Law for Religious Organizations: Essential Questions and Answers, you'll find everything you need about operating correctly, with integrity and confidence. Don't get caught making a mistake. Get the information that will help keep your perception where it needs to be and keep your mission on target."
—Phil Cooke, media consultant and producer (www.philcooke.com)