Author Archives: Jay Butchko
Legal Alert: Court of Appeals Dismisses Atheist Group’s Challenge to Ministerial Housing Allowance
This time last year, a federal judge in Wisconsin ruled that the ministerial housing allowance, which gives ministers a tax break on funds they receive from their congregation for use on housing, was unconstitutional. Co-presidents of the atheist organization Freedom from Religion Foundation (FFRF) brought the lawsuit, claiming that the law is discriminatory and… Read More »
Granting Money from a U.S. Charity or Church to a Foreign Individual or NGO: Substantial Risks and Best Practices
Many times, conducting charitable work necessitates broadening an organization’s reach, which often in turn requires working outside of the United States. Unfortunately, while these endeavors are exciting, they are complicated and risky for the churches and nonprofit organizations who are involved. Of the many types of risks involved, one of the primary areas involves… Read More »
BREAKING LEGAL NEWS: Hobby Lobby and What It Means for Churches and Nonprofits
The Supreme Court recently delivered a decisive, though limited, victory for religious liberty in its decision in Burwell v. Hobby Lobby Stores, Inc. In a 5-4 decision, the Supreme Court held that the Department of Health and Human Services’ (HHS) contraceptive mandate violates the Religious Freedom Restoration Act (RFRA), a statute that was passed… Read More »
Seventh Circuit to Hear Constitutional Challenge to Ministerial Housing Allowance
Does your organization have ordained ministers? Do you give them a tax-free payment yearly to help with their housing? If so, read more about the upcoming hearing that challenges the constitutionality of this practice, as well as what it means and does not mean for your organization. Later this year, in the case… Read More »
Unrelated Business Income Tax Primer for Nonprofits
What do all the following scenarios have in common? A nonprofit youth camp leases its facilities during the off season for weekend business conventions; a homeless shelter forms a joint venture with private investors to raise money for the construction of a new facility; a church sells Christmas trees at twice their cost to… Read More »
Is My Church Being Overseen by Wise Counsel or Wise Guys?
Starting and running a church can be a more complex task than it appears at first blush. There are the usual requirements for starting a church: finding a good pastor, finding a place of worship, and building a strong member community. Even with these elements, however, a church can run aground of basic legal… Read More »
Christian Mediation and Arbitration: How to Keep Your Church or Non-profit Out of Court
Every year, thousands of lawsuits are filed in America against churches, schools, other non-profits, and related entities. These lawsuits range from injuries on church property to disagreements over employment, from accidents on youth group trips to cases of sexual abuse. Indeed, the recently publicized sexual abuse cases and multi-million dollar settlements within the Catholic… Read More »
Common Pitfalls to Avoid in Hiring and Firing
In our tight economy, hearing “You got the job!” may be one of the most thrilling moments a person can have, while hearing “You’re fired!” may consequently be one of the scariest moments. As an employer, you hold in your hand the fate of your employees and the fate of dozens of well-qualified potential… Read More »
Reporting Child Abuse: What is Your Duty?
Consider the following scenarios: • Parents tell the pastor they believe, based on examination and the strange behavior of their 2-year-old daughter, that she was molested by her Sunday School teacher. • A volunteer tells the pastor she has seen an adult Praise Factory worker take the same 3-year-old child to the bathroom alone… Read More »
EZ Does It, or Not: The New Form 1023-EZ for Nonprofits
Achieving tax-exempt status as a 501(c)(3) nonprofit organization has always been an arduous process, with numerous checks and double-checks built in by the Internal Revenue Service to prevent the fraud that the nonprofit sector seems to attract. Now the IRS has taken a major step to streamline the process, but not everyone is thrilled… Read More »
