Church’s and the Attorney General
California’s Attorney General has real oversight power over religious nonprofits. Learn when your church needs AG approval for a merger, sale, or major transfer of assets.
Category Archives: Church Formation & Governance
What Type of Business Entity Is Right for Your Church?
A comparison of entity types for churches — unincorporated association, LLC, corporation, and nonprofit corporation — and the liability and tax tradeoffs of each.
Real Property Ownership by Unincorporated Associations
How unincorporated associations can hold title to real property in California. Understand the legal risks, liability exposure, and why most churches should incorporate before acquiring real estate.
Forming a church in California
The key steps to forming a church in California: choosing a legal structure, filing Articles of Incorporation, drafting bylaws, and securing tax-exempt status.
Conflict of Interest Policy
A conflict of interest refers to a situation where an individual or entity has competing interests or obligations that could potentially compromise their impartiality, objectivity, or ability to make decisions in the best interest of another party. It occurs when personal, financial, professional, or other interests conflict with the duties, responsibilities, or obligations the person or entity holds. Types of Conflicts: Conflicts of interest can undermine trust, transparency, and fairness in decision-making processes. Organizations and individuals often establish conflict of interest policies and procedures to identify, disclose, and manage conflicts […]
Employment Discrimination and Religious Employment
Religious employment refers to employment that is directly related to the religious activities or mission of a religious organization, such as a church, mosque, temple, or synagogue. Religious employment can include positions such as clergy, religious educators, music directors, and administrative staff. Civil Rights Act of 1964:A landmark federal law in the that prohibits discrimination on the basis of race, color, religion, sex, or national origin in a variety of areas including employment, education, and public accommodations. It was signed into law by President Lyndon B. Johnson on July 2, […]
Independent Contractors
Individuals who are “independent contractors” are not considered employees for wage and hour purposes. California Assembly Bill 5 addresses the “employment status” of workers when the hiring entity claims the worker is an independent contractor and not an employee. Additionally, Assembly Bill 2257, enacted in 2020, intended to clarify AB 5 and provide additional exemptions to the test for determining whether an independent contractor has been misclassified as an employee. Why it Matters:California’s labor law protects employees, but not independent contractors. Additionally, employees can go to state agencies such as […]
Endowments
Per Investopedia, “an endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose. An endowment can also refer to the total of a nonprofit institution’s investable assets, also known as its “principal” or “corpus,” which is meant to be used for operations or programs that are consistent with the wishes of the donor(s). Most endowments are designed to keep the principal amount intact while using the investment income for charitable efforts. Taxation:When the donated endowment accrues dividends, capital […]
Conflicts of Interest in Church Governance
Understand what conflicts of interest look like in church leadership, and how a clear disclosure policy protects both the board and the congregation.
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