Not understanding intellectual property law can be a VERY EXPENSIVE TRAP! David Middlebrook defines intellectual property as “ownership of nonphysical property rights in creative thought or works that have basically been recorded or reduced to written form.” (Nonprofit Law for Religious Organizations; John Wiley & Sons, © 2008) There are two types of intellectual property […]
Many churches pay little attention to the concept of “reasonable compensation”. Nonprofit organizations, of which churches make up by far the largest percentage, must serve public interests not private. As a result, an individual should not receive assets from a nonprofit entity simply because they have a significant relationship with the charity. If this happens, […]
It’s so difficult to say goodbye – firing right Churches should follow prudent steps in firing employees. This begins by making sure that the termination must be for a legitimate, nondiscriminatory reason. Prior disciplinary measures must be consistent with church personnel processes and policies The first step should be to schedule a meeting that includes […]
Happy together; managing your employees The best way to avoid mistakes in hiring and in firing is to employ simple, repeatable processes to help insure that the right things are done at the right time. One way to do this is to develop a “New Hire Packet” which should be given to each new employee. […]
Getting off on the right foot – hiring right One way to avoid unhappy situations is to begin on the right foot. And in personnel matters, that means hiring right. Churches should follow prudent steps in hiring their employees. For starters, a church must know what it is looking for in a new employee. That […]
The second trap, or thing to avoid, deals with payroll. Churches face risk in a variety of areas. Facilities, congregational unity, financial, security, and our next topic, personnel are just a few areas of danger. In business terms, churches are in the “service industry” and as a result, typically, 50% of church budgets are dedicated […]
That’s right! Even though churches normally do not have to file a tax return (most nonprofits have to file an informational return annually – IRS form 990), there is certain information that you must collect and provide to the IRS. And I’m not talking about payroll tax information – 941 and W-2 forms. If you […]
I have a friend who has reminded me to be thankful for annoying things such as the red light I am stopped at, because I am privileged enough to live in a country that has roads, and orderly ones at that. This same attitude can be applied to taxes—thankfulness for them and for the ability […]
Does your church have 25 or fewer full time employees? If so, the government wants to give you some money. The recently passed health care bill included a tax credit for small businesses that provide health insurance for their employees. Although churches do not typically file income tax returns, they are still eligible for the tax credit. […]
Some churches give pastors (or other employees) monthly expense allowances in their paycheck. The allowances provide a way to advance cash to employees so that they can purchase items needed for the church or to carry out their role within the church. There are two important things to keep in mind if your church does this. […]