Category Archives: Blogroll

Vehicle being Towed

Towing Vehicles From Private Property

Can You Tow a Vehicle from Your Church? Over the years of managing church properties, it sometimes becomes necessary to tow or remove vehicles from a parking lot. On one occasion, I even authorized the tow of a boat that had been gutted and left abandoned; luckily it was still on its trailer. The following is some basic information that will assist in removing vehicles from private property in California. Allowing them to remain presents an issue of liability. Although this brief summation of the towing laws is looking from […]

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Deductible Donations For Congregation Members

Of Course I can deduct my donation; right? Most attendees donate funds to their church or other organization for one reason or another. They usually claim their donations, be it monetary, property, labor, or goods on their annual tax return as a deduction. However, what most don’t realize is that if the organization to which they contribute is not a recognized qualified organization by the IRS, that contribution may not be tax deductible. Whether or not a contribution is deductible depends on whom it is given to, when it was […]

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Corporations in Suspension

Just forming a Corporation is not enough… In California, all corporations, regardless of whether they are formed for profit or not, may be created for any lawful purpose. Unless in suspension, the corporation is recognized by the State and granted certain rights and privileges. In addition to granting, so too can the State take them away. In maintaining a corporation in Active and Good Standing with the State of California requires certain steps be taken, some annual and others biannual. Should a corporation fail to comply with the laws that […]

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Churches and Unrelated Business Income Tax

Churches and Income Tax Although much of what follows generally applies to all tax-exempt organization, this article briefly describes how Unrelated Business Income Tax (UBIT) affects churches. Defined: According to the IRS, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the exempt purpose that is the basis of the organization’s exemption. An exempt organization that has $1,000 or more of gross income from an unrelated business must file with the IRS and must pay estimated tax if it expects […]

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Churches and Property Tax Exemptions

Church Property Tax ExemptionsCounties throughout California are looking to churches as a way of increasing their revenue. One way to do so is by revoking all or part of an organization’s property tax exemption. Generally speaking, once a property has been classified as exempt, there is no specific guarantee the organization will continue to be exempt from the general tax levy against their property.In General:Churches are not exempt from special assessments, but only from taxes. Taxes are imposed on both real and personal property; with very few exceptions, special assessments […]

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Church Officer and Director Liability

Liabilities of being a Board MemberMore often than not, I attend church council meetings that require some action be taken by the church board that results in some form of a corporate resolution. In many cases, the board members present can’t tell me who the officers or directors of the corporation are, or whether or not a quorum is present to ratify their actions. In my attempt to walk the board through the legal impact of their corporate bylaws, many are surprised to hear of the affect that particular document […]

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