Author Archives: Jay Butchko
Am I Giving Away the Church This Christmas?
Historically, churches have been a source of relief for the needy in their congregation and their community at large. Any movie set in Medieval Europe will almost certainly contain a church scene with a friar or monk seeking “Alms for the poor!” One of the primary missions of the early church was to help… 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 »
Church Third Party Use Agreements: What You Don’t Know Can Hurt You!
Renting or allowing use of church and ministry facilities has many new added risks: child abuse liability, unwanted purposes (same sex marriages) or activities on premises (illegal or risky), liability that is not covered by insurance or renters’ indemnity, and getting dragged into court by renter/user for some unforeseen offense. The optimum “Church Facilities… Read More »
“Today’s Sermon Is Brought to You by…” – Intellectual Property and Ownership
A church recently updated its website. The webmaster has recommended to the leadership to record and upload the weekly worship service, including the sermon, onto the website. The outstanding majority of the deacons agree with the recommendation as it would allow members who are unable to attend services to watch remotely and allow those… 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 »
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 »
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 »
