To be exempt from federal income tax, nonprofits must file for recognition of tax-exempt status with the IRS. However, churches are automatically recognized as exempt by the IRS and are not required to file for recognition of tax-exempt status. Read More
Due to the COVID-19 pandemic, most churches have been streaming services online in order to continue to minister to their congregations. Some churches live-stream their services on their Facebook pages or post their services there after the live event. Since many services use copyrighted worship music and lyrics — either through public platforms like YouTube assuming their right to use the material falls under “fair use” law, or by having a licensing agreement with entities like Christian Copyright Licensing International (CCLI), Christian Video Licensing International (CVLI), or Christian Copyright Solutions (CCS) — churches may assume they are protected. But this is not always the case. Read More
Just because your nonprofit has directors and officers liability insurance (D&O) does not mean that board members are immune from potential liability risk. To help manage the liability risk of nonprofit board members and reduce their exposure to legal claims, consider these five tips for reducing board liability: Read More
If your church has been served with a lawsuit, there are a number of legal defenses that may be raised to defend against the suit. These legal defenses are categorized as either negative defenses, where a legal claim may be defeated by disproving key elements of the case, or as affirmative defenses, where the underlying cause of the claim may be true but the defendant is not responsible. Read More
Child abuse in all its forms — physical, sexual, or mental abuse or neglect — is a crime in Arizona, and churches should bear in mind that if facts show that church leaders knew about the abuse and failed to stop it, they may have committed crimes as well. In some cases, the church itself can be prosecuted. Read More
Volunteers often make up an essential core of a nonprofit’s operations, helping with daily administration duties and activities. They may also help with special events, like public outreach drives. A nonprofit’s leadership team may even be comprised of a mix of volunteers and salaried employees. When an organization relies on the help of volunteers, it needs to understand how it may be held liable for its volunteers’ actions. Read More
The COVID-19 pandemic has created a boom in remote workers for many churches, an arrangement that may remain in place for an unspecified period of time. Until the time comes when it is safe for church employees to return to work, employers need to either update their existing employment policies or devise new remote work policies for employees unable to return to work due to health or safety concerns. Read More
Since churches and ministries are exempt from Title III of the Americans with Disabilities Act (ADA), they are typically not required to allow service or emotional animals on their premises. However, if a church or ministry wishes to accommodate service or emotional support animals, it is always best to do so via a written policy that is communicated to all congregants. Read More
The term ‘governance’ generally refers to the administration or management of an organization. However, nonprofit governance covers more than setting policies and financial controls because a nonprofit has a purpose or mission beyond just keeping the doors open. The need to support both the mission and the organization’s operations can be daunting. Read More
Broadly defined, a fiduciary duty is one owed by an individual in a leadership or management position to the organization itself as well as its members. Although the phrase usually pops up in the context of for-profit companies, it also applies to the religious and nonprofit sectors. Fiduciary obligations are in place whether or not a person is paid for serving on a board. Read More
