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.
How to form a church in California. Learn the steps from choosing a legal structure and filing articles of incorporation with the Secretary of State, to drafting bylaws, obtaining an EIN, and applying for federal and state tax-exempt status.
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 […]
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, […]
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 […]
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 […]
Serving as an officer, director, trustee, elder, or pastor of a church comes with certain conflicts of interest. The most important of which is acting in good faith in the best interest of the church. In short, when servicing is such a position on the church council/board, one must not act in their interest at the expense of the church by usurping a corporate opportunity, having an interest in a particular transaction, or competing with the corporation to advance one’s personal interest. Conflicts of interest often arise when entering into […]
Not every church incorporates. Learn how unincorporated associations work in California, including liability risks, tax-exempt eligibility, and when forming a corporation makes more sense.
Understanding the principal and agent relationship in real estate transactions. Learn about agency duties, scope of authority, fiduciary obligations, and how these rules apply to church property sales in California.
