How Zoning Code Effects Church Property Use
Zoning laws can limit how a church uses its property, even after decades of the same use. Learn how nonconforming use, conditional permits, and “grandfathering” apply to church real estate.
Blog
What is a Letter of Intent?
Looking to sell your property? Whether or not your property is on the open market, your church may receive a Letter of Intent from a prospective buyer. Simply put, a Letter of Intent is nothing more than one party putting into writing their intent to perform a specific act. In the real estate world, this usually means that a potential buyer has provided you with the basic terms in which they intend to purchase your property. But should you sign it? Nearly every single Letter of Intent we have seen has […]
Choosing the Right Entity
What Type of Business Entity is Right for your Church? Although this article will focus on the formation of a corporation, it is important to understand all the different types of business entities and how they will affect your church. Entity Type: Unincorporated Association An association is formed once two or more individuals mutually agree to act for a common lawful purpose, whether for profit or not. An unincorporated association can act and conduct business in the same manner as the other entities listed below, including holding ownership of real […]
Cell Towers at Churches
Are Cell Towers and churches a good fit? This article does not focus on the negotiations involved with leasing your property for cell towers at your church; which can be challenging. Rather, the intent of this article is to provide a resource for churches to use when considering whether or not to permit a cell tower at their location; in no particular order. Risk vs. Reward: If you’re like most churches, your primary concern is in the amount of monthly income you will receive in rent. In short, is the […]
Preventing Mechanic’s Liens
How to protect your church from mechanic’s liens in California. Learn about preliminary 20-day notices, joint check payments, conditional and unconditional lien releases, filing a Notice of Completion, and recording a Notice of Non-Responsibility for tenant improvements.
First Right of Refusal
First Right of Refusal; those magic words: On occasion, during the negotiation process with a tenant in church owned property, the tenant may request that the agreement contain those four magic words, First Right of Refusal. On its face, the words appear harmless enough; if the property owner decides to sell the real property, the tenant will be the first in line to be the buyer. However, what those magic words don’t tell is the price the property is to be purchased at, or how it is to be calculated. […]
Towing Vehicles From Private Property
How to legally tow vehicles from your church parking lot in California. Learn the California Vehicle Code requirements for signage, authorization, timing, the one-hour grace period, and how to avoid liability for improper towing under CVC §22658.
Deductible Donations For Congregation Members
Of Course, I can deduct my donation; right? Most attendees make donations 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 […]
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 […]
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 […]