If your ministry has employees to help it carry out its mission, an employee handbook is an essential tool for helping your ministry manage its workforce as well as protect the organization in case of employment litigation. The more employees you have, the greater the need for an employee handbook. “Unwritten rules,” even long-standing ones, are always subject to question if you wind up in court. Read More
The majority of nonprofits in Arizona are 501(c)(3) organizations that fall into the categories of religious, charitable, scientific, literary, or educational entities that are eligible for federal and state tax exemptions. To create an Arizona nonprofit, you first need to form an Arizona nonprofit corporation and then apply for tax-exempt status from the IRS and the state. Read More
Church employees have historically not been eligible for unemployment benefits since churches are exempt from paying unemployment taxes. However, due to the COVID-19 pandemic and its effect on the economy, recent federal legislation has opened the door for individuals usually ineligible for unemployment compensation, including church employees. Read More
Business interruption insurance typically covers financial losses to organizations caused by physical damage — a flood, a fire, high winds, or other covered perils outlined in the policy. Although some policies may include special endorsements that provide coverage for lost income due to disease or government shutdown, they do not typically cover operational shutdowns due to communicable disease contamination or infection. In fact, some business interruption insurance policies specifically exclude coverage for losses due to viral spread, especially those policies created after the 2003 SARS outbreak. Read More
Due to the COVID-19 pandemic, many charities have been restricted from holding in-person fundraising events to support the mission of their organizations. Many have turned to online auctions or raffles for their important fundraising activities, but nonprofits need to be careful about following the rules for these online events so as not to jeopardize their tax-exempt status. Read More
Federal law prohibits religious organizations that have 501(c)(3) tax-exempt status from making financial contributions to a candidate or a particular political campaign. Churches are also prohibited from organizing or making contributions to political action committees (PACs). Read More
Arizona has designated places of worship as an essential activity, requiring only that protected activities like social distancing be “conducted in a manner that provides appropriate physical distancing to the extent feasible.” Read More
As 501(c)(3) organizations, churches have been prohibited from supporting specific political candidates since the passage of the Johnson Amendment in 1954. The Internal Revenue Code provides that, by definition, 501(c)(3) organizations do not “participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.” Read More
In the lead up to the 2020 election—which many in both major American political parties are referring to as among the most important in our lifetimes—it is understandable that leaders of churches may feel the itch to lend their influence to the fray by endorsing a particular candidate. Some may even consider it a moral imperative. Read More
Every election season seems to bring a lot of questions from ministry leaders about what they can and cannot do when they intersect with candidates running for political office. Read More
