1.
Is it true that only a church or church denomination can start a
church?
No,
that is not true. Although churches and church denominations
start new churches all the time, it is not necessary to already have
a church in order to start a new one. Any group of people that wants to worship
together, even a small group, may start a church. In addition, an
individual may start a church on behalf of a group. This book
will walk you through the simple but necessary steps of starting a
legitimate church.
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2.
Does a person have to be an ordained minister to start a church?
No,
a person does not need to be an ordained minister prior to starting a
church. The Bible doesn’t teach that only currently ordained
clergy may start a church. Anyone who has been called by God
into the ministry is qualified to start a church, and may thereafter
be ordained through that church. Individuals who were
previously ordained through a church or church denomination may
start a church even if their ministerial credentials have been
revoked. If you
believe that you've been called by God to enter the full-time
ministry but you'd like to be ordained in a new church that you
start or help to start, rather than in an existing one, you may be
ordained in that new church. This book will show you how.
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3.
Is a layperson (someone who is not an ordained minister) qualified
to start a church?
Yes, a
layperson is qualified to start a church for at least two reasons.
First, the Bible does not prohibit it but more likely encourages it.
The
scriptures teach that we are all ministers of the Word of God.
And we’re all called to spread the gospel of Jesus Christ and to
“seek and save the lost.” Second, starting a church is a personal expression of the religious
freedom that is guaranteed to all citizens under the First Amendment of
the United States Constitution. Anyone who has been inspired by God to help start a
ministry, is qualified to start a church and may thereafter help ordain
someone else through that church. Building On Faith will
show you how.
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4.
Does any government body have authority to legislate where, why, how or
who may start a church?
No, absolutely not!
Contrary to what some may believe, no government body in America,
whether local, state or federal, has authority to legislate where,
why, how or by whom a church may be started. Such legislation
would clearly be unconstitutional under the First Amendment.
Imagine a small town in America where most of the residents believe
in Jesus Christ, but where no “church" currently exists.
Consider the absurdity of a law that forbade the community from
starting a church unless it was done in a certain way, at a certain
time and place, or by someone with certain credentials. If
those requirements couldn’t be met, the people would effectively be
prohibited from worshipping together. That happens in other
countries. But it doesn’t, or shouldn’t, happen here.
When it comes to erecting an actual church building, zoning codes
are important to keep in mind. But starting a church is not
the same thing as erecting a building. This book will
teach those whom God has called into the ministry or inspired to
help start one, how to start a legitimate church.
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5.
Can a church have just one member, or
one family as its sole members?
This is an interesting question
whose answer is "Yes" and "No." As a matter of
constitutional
and religious freedom, a church can have only one member, or one
family as its sole members. One of the most wonderful things
about living in America is that we are free to believe anything we
want, and act on those beliefs, as long as they are not harmful or
dangerous to ourselves or to others, or violate any laws or any
clearly established public policy.
However, as a matter of tax
law--where a church takes the position that
it should be tax-exempt--a church may NOT have only one member, or
one family as its sole members. If that were allowed, then
anyone could call himself, or any family could call itself, a church and stop paying taxes.
But that is not allowed. Therefore, any individual or
family attempting to start a "church" should not expect to secure
tax-exempt status, or to otherwise reduce or
eliminate their tax liability, in connection with that
"church."
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6.
Why does every state have a nonprofit
corporation law that also governs "church corporations?"
The
purpose of the nonprofit corporation statutes of each state and the
District of Columbia is to give churches the opportunity to incorporate
if they so desire. There are certain benefits and advantages to
incorporating a church. States decided some time ago to allow
churches to incorporate so they could enjoy the many benefits and
limited liability that is afforded other corporations.
Virginia and West Virginia began allowing churches to
incorporate only recently. Among other advantages, the
corporation serves as a vehicle for promoting and carrying out the
activities of a church with more seamless participation in our
modern, business-oriented society. It also helps
protect church members from legal liability.
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7.
Is church incorporation a requirement?
No, church
incorporation is not a requirement. A church may instead be formed
as an unincorporated association of individuals who come together
for a common religious purpose.
However, although churches do not have to incorporate, there
are certain benefits and advantages to incorporating a
church.
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8.
Do you
recommend church incorporation?
I recommend
that you carefully consider all the available options and
the reasons for each, then do what is right for your church.
Many churches elect to incorporate because of the
many benefits and advantages they perceive of doing so. It is true
that a church
corporation shields individual church members from risks and liabilities
that may be incurred by the church. If that important to you,
Building On Faith provides the quickest
and simplest road map to incorporating a bona fide church in any state
and the District of Columbia, so that individual church members may feel
free to worship without the threat of personal liability hanging over
them. A church corporation is also qualified to own
property in its name, while an unincorporated association is not.
Also, a church corporation may sue
and be sued. Although no church
wants to be sued, the fact is that litigation against
churches continues to soar through the years, where not long
ago, it was unheard of. Some church leaders may believe that
incorporating is better than having the individual members of an
unincorporated association be sued for acts or omissions of
the church.
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9.
Is it possible to form a church as an association of
individuals and completely forego incorporating it?
Yes.
A church may elect to organize as an unincorporated
association. Keep in mind that ministries that choose that
form potentially submit their individual members to risks and liabilities
for the acts
or omissions of the association, and it's members. In other words, each
member of the association could face
personal responsibility for the debts and
liabilities of the church. It hardly seems right, but with
litigation against churches on the rise, this may be a
distinct possibility in some states. In addition, an unincorporated association
cannot legally do many things that a corporation may do, such as own
property in its name. You may or may not care about that.
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10.
Is starting a church a constitutionally guaranteed
act of religious freedom?
Yes. Starting a
church is most definitely a constitutionally guaranteed act and expression
of religious freedom. However, for the purposes of
tax law,
which is a very important matter for every church to
consider, not just every "church" will be considered tax
exempt. So long as taxation is the "law of the land,"
the state has a "compelling interest" in making
sure that only "bona fide" churches--those that are not
formed solely for the purpose of skirting the tax
laws--secure tax-exempt status.
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11.
Why does the federal government have a test for what a church is or
is not?
The simple
answer is that, as far as we know, churches have not been
recognized as having a "Constitutional right" to be free
from taxation. Having said that, it's important to
understand that a "bona fide" church is automatically
considered tax exempt by the IRS, upon formation.
Nevertheless, in administering its taxing duties, the Internal Revenue
Service
applies the
federal “church” test
in reviewing the Section 501(c)(3) tax-exemption
applications of religious organizations. The test is not meant
to infringe on religious freedoms. Rather, its
intent is to help define a "bona fide" church for tax law purposes
only. A tax-exemption application is
filed by religious groups that want the IRS to recognize them as
churches, and therefore, exempt from federal income taxes.
If the IRS
does not receive an application from a religious group, it does not
automatically apply the test to that organization. But when it does receive an
application, it wants to make sure that the applicant is a legitimate
church, and not just a scheme to avoid paying taxes. The criteria used to evaluate church status are imperfect and
perhaps even short-sighted. They may even be legally challenged on
several constitutional grounds. But the goal of the test is to help the
IRS define the term “church” in a way that doesn’t restrict religious
freedoms, and yet prevents abuses by groups, families or individuals that may want to unfairly
avoid taxation. In the view of the IRS, if the “church test" did not exist, then anyone,
including individuals, families, and commercial and social enterprises
could claim “church” status to avoid paying taxes. And that would harm
legitimate churches.
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12.
Isn’t a
church automatically tax exempt?
Yes, a legitimate
church is automatically tax exempt under federal law and there is no
requirement that it file Form 1023, the 501(c)(3)
application for recognition of tax-exemption. But, in
the eyes of the IRS, an
organization that would not pass the federal "church test" is
NOT
automatically tax exempt, even if it elects not to file a
501(c)(3) tax-exemption application. Individuals,
families, commercial endeavors, or any other enterprise that
creates a scheme to reduce or eliminate their tax
liabilities under the guise of a "church," may be prosecuted
by the IRS
and required to pay taxes.
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13.
Is filing an application
with the IRS for 501(c)(3) tax exemption required for churches?
No, a bona
fide church is not required to file a Section 501(c)(3)
tax-exemption application (IRS
Form 1023) to be recognized either as a church or as tax exempt.
However, many churches choose to file the tax-exemption application because of the advantages they
believe exist
in doing so.
For
example, a tax-exemption determination
letter makes it clear to church members that their contributions are tax
deductible. Some church leaders believe that, otherwise, members could never be sure
if their contributions were deductible, and that
uncertainty could discourage their willingness to make contributions,
especially substantial contributions, to the church.
In addition,
every state and the District of Columbia, have a set of laws that
allow churches to secure exemptions from some or all of the
following taxes: corporate, income, sales, use,
personal property, and real property taxes. Without an IRS determination letter, it
could be difficult to secure some of those exemptions.
Also, vendors
that are asked to forego sales taxes for churches often require proof
in the form of a determination letter. Otherwise, they are hesitant to
give a sales tax break to an organization that may not be a legitimate
church. With respect to ministers, religious organizations whose status and ordination
practices the IRS has evaluated and recognized as tax exempt, make it easier
for their clergy to claim “parsonage” or “housing allowance” exclusions
on their personal income tax returns, as well as other special clergy
tax privileges.
Some church
leaders believe that, overall, a tax exemption determination letter from
the IRS gives churches a stamp of legitimacy. Not
because the government has the right to approve of churches,
because it doesn't. But rather, because Christian
churches have good reason to claim all the advantages of the
tax laws, and to allow reasonable scrutiny into their
legitimacy in doing so.
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14.
Are churches free to ordain anyone they see fit to be in the
ministry?
Yes, churches are
absolutely free to choose whom they believe is fit
for ordination into the ministry. In fact, churches may ordain many
different kinds of ministers, including ministers of music, of
education, of youth activities, etc…as well as ministers for the
pastoral ministry. When churches ordain their ministers, they do so in
accordance with their religious doctrine and principles. That
expression of religious freedom is a constitutional right.
However, a church's "ordained" ministers may not necessarily be
considered "ministers" for federal tax law purposes. To take advantage of the special federal tax benefits that
are available to clergy, a minister must meet the
requirements of the federal "minister test."
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15.
Why is there a federal test for who is "minister?"
The federal test of who is a “minister” is
strictly for federal tax law purposes. The IRS has no right telling a
church who or how to ordain. But the IRS does not extend the
special tax privileges for bona fide ministers to every person ordained
by a church. Otherwise, a church could literally ordain all of its
employees, officers and directors for the purpose of helping them avoid
the payment of taxes. That would be illegal under the tax laws and potentially subject those individuals to prosecution for tax
evasion. It would also harm
legitimate churches.
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16.
Why is it important to be very careful about who we entrust
our church start-up to?
You will find that some of the
vendors and so-called "experts" who sell books and services
to assist a church start-up carefully omit specific
information about their credentials. They create the
impression that they're knowledgeable by repeating and
restating some facts about church-startups. They even peddle
resources that require legal expertise for their
effectiveness, but never mention where those resources came
from, or who wrote them. They speak as "pseudo-authorities"
hoping you'll simply ignore the fact that legally sound
resources should be written by legal professionals with
experience and expertise in the specific area of law. Some
hope you won't notice that their resources may have been
"hired out" to "Ghost Writers."
Despite their shortcomings and
lack of authority they boldly give legal advice, even on
their websites, much of which is ill-advised and plain
wrong. For example, when it comes to church-related policies
and procedures, constitutions and bylaws, and similar
documents, you should take special care not to be fooled.
Some of these vendors seem well-intentioned even if they
lack competence. Others seem to care less. In general, never
trust your church start-up to anyone who: (i) does not have the
credentials to assist you with such an important endeavor;
(ii) does not exhibit a firm, ongoing commitment to Christian
ministries; (iii) does not provide you with a complete solution
including issues that are unique to churches; (iv) does not
disclose all costs up front, and (v) does not provide you
with an excellent guarantee, preferably a 12 month,
no-questions-asked, money back guarantee.
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17.
Is it true that we should include as many biblical concepts
as possible in our constitution or bylaws because we are
prohibited from bringing our Bibles into a courtroom?
No. Those are two of the most
dangerous fallacies that some non-authoritative vendors
create as they peddle their resources on the internet. It is
NOT true that we cannot bring or use our bibles in an
American courtroom. I can think of few suggestions more
absurd than that. If we find ourselves in a courtroom having
to convince a court that it should not entertain a
plaintiff's claim because it involves purely religious
matters, we would most definitely use our bibles to assert
that argument. This is one of the most obvious ways to help
a court understand what our specific religious convictions
are based on.
It is also NOT true that you
should include as many biblical concepts in your
constitution or bylaws as possible. That suggestion is based
on pure ignorance and a blatant lack of competence in
advising churches. You should never accept such advice from
anyone other than a legal professional with extensive
experience and expertise in working with churches. The
danger in throwing as many biblical concepts as possible
into a constitution or bylaws is that you cannot predict the
religious or biblical issues you may have to tackle in a
courtroom. But, in trying to be exhaustive, you end
up being exclusive. In other words, if you overlook
and fail to include a certain concept in your constitution
or bylaws, you give the opposition an opportunity to argue
that by not including it you intended to exclude it. This
can be very hard to overcome.
There are certain biblical
concepts that are important to include in a constitution /
bylaws. But, you should rely only on competent, experienced
guidance for these matters. Courts will not entertain claims
that require them to adjudicate purely religious matters.
Instead, they consider claims that are based on the
neutral (i.e., not religious) principles of law. A main
goal of your constitution / bylaws should be to define
relationships, duties and responsibilities in biblical or
religious terms for the specific purpose of insulating them
from legal scrutiny. Merely throwing as many biblical
concepts as possible into the document can be
counter-productive to that goal.
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18.
Is it wrong to
incorporate churches and file tax exempt applications with
government agencies because it creates "state" run churches?
I respect and appreciate
Christian leaders who hold these beliefs because it's important
to encourage thought, discussion, and healthy skepticism
about any form of state requirement or intervention into the
lives of churches. State regulation or domination of churches
is absolutely something we should remain vigilant against
and be prepared to oppose.
The main reason this is a hot
topic of discussion is that churches requesting IRS
recognition of their tax exempt status are required to
relinquish their constitutional right to support or oppose a candidate for public office
from the pulpit, or as part of church teaching. Nor can they
engage in substantial fundraising for their favorite
political candidates or causes.
The idea that a government
agency, federal or otherwise, would require that churches forego certain
constitutional rights is incendiary to many
church leaders, and I agree. In a perfect world, churches would be tax exempt
as a matter of Constitutional right, and
also be allowed to
preach about and become active in political campaigns and
causes as they see fit.
But that is not the "law of the
land" at this time. And there's a very simple reason for
that. The federal government, and most states, believe that
churches do not have a fundamental constitutional right to be free from the imposition of
income taxes.
It's important to understand
that churches are NOT required to incorporate or
file any type of form or application with any local, state
or federal governmental agency for tax exemption. As
discussed above, churches are automatically federally tax
exempt and can form as unincorporated associations. So,
becoming a "state" church, so to speak, is certainly not
compulsory. Alternatively, churches can elect to pay taxes
just like most individuals and for-profit entities.
Also, whether or not churches
elect to
incorporate or request tax exemption from the IRS, or their
own state, they are not required to change any of their
political beliefs. They just can't preach or teach about
them in the context of church activities if those teachings can be seen
as "for" or "against" a candidate for public office. (Having
said this, it's hard to understand how a church entity is
capable of having political beliefs of its own. In truth,
political beliefs are the unique realm of individuals. And
to be sure, the answers to what ails the world will not be
found in political solutions. Ask yourself... "Who is the
answer? Jesus or some political course of action?" I believe
the answer is clear.)
Now, here's why this matter
doesn't tend to be a major issue for me. I know that God is
sovereign. There is no authority in heaven or earth that is
above God. And no one, including a worldly government, has
the power to hold back the hand of God or the advancement of
His kingdom. I do not believe this IRS requirement for
churches that claim tax exemption will ever prevent God from
fulfilling His will through His church.
Of course, should the day ever
come that churches are required to become "state"
organizations for the purpose of governmental regulation
into their religious and spiritual activities, you can count
on me to be among the first and loudest protesters.
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