Find out if your church is legal

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You are only 10 questions away from discovering the preliminary legal condition of your ministry. We've formulated these 10 questions to help locate potential pitfalls that could leave your church open to legal liability.

Answer each question to the best of your ability and click "Get Test Results".

You will instantly receive your evaluation.

What portion of your board is related?

The majority is related

The majority is not related

It does not matter what portion of the board is related

Who decides how much the pastor is paid?

The pastor makes the final decision on his/her own salary.

The board members/elders or members of the church make the final decision concerning the pastor’s salary.

The pastor’s spouse decides on the pastor’s salary.

Love offerings given to the senior pastor by the church have to be reported on a W-2 form.

True, but if the love offering was a cash offering then you do not have to report it

True, but only for love offerings that were given in the form of a check

True

False

For tax purposes, once you are ordained, you are always ordained and eligible for the tax benefits of ordination.

There are no tax consequences for organizations that give (or volunteers who receive) gift cards as “thank you” gifts so long as the gift cards are for less than $599.00.

True

False

False, because gross income includes the value of de minimis fringe provided to an employee

When a church board meeting or general business meeting takes place you should do the following:

Send out proper notices to each board member/member, take minutes of the meeting, record each motion and decision made, then create written board meeting minutes for final review.

Take minutes and then have them signed by the pastor.

Do not take minutes, but act together as a board.

True or False: It is OK to buy the church building in your name then have the church make mortgage payments. If at a later date the church either dissolves or moves to a bigger place, you can sell the property and keep the proceeds. After all it is your building.

If the church buys the pastor a new car, then the pastor does not have to pay federal income tax on the value of the car.

True

False

True, assuming that the church has been received its tax-exempt certification letter from the IRS

Church bylaws should include strategically and carefully worded clauses to specifically protect the church’s 1st Amendment rights today and in the future.

If a church does not have official 501(c)(3) status, and a donor makes a contribution to the church, which of the following statements below is true?

The donor cannot write it off on his/her taxes.

The donor can write it off on his/her taxes without any concern whatsoever.

The donor can write it off on his/her taxes, but if he/she gets audited, he/she has the burden of proving that the church operates and meets all of the qualifications of a 501(c)(3) organization.

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Find out if your church is legal

Let's get started!

Our gift to you!

Begin your test below!

1

What portion of your board is related?

2

Who decides how much the pastor is paid?

3

Love offerings given to the senior pastor by the church have to be reported on a W-2 form.

4

For tax purposes, once you are ordained, you are always ordained and eligible for the tax benefits of ordination.

5

There are no tax consequences for organizations that give (or volunteers who receive) gift cards as “thank you” gifts so long as the gift cards are for less than $599.00.

6

When a church board meeting or general business meeting takes place you should do the following:

7

True or False: It is OK to buy the church building in your name then have the church make mortgage payments. If at a later date the church either dissolves or moves to a bigger place, you can sell the property and keep the proceeds. After all it is your building.

8

If the church buys the pastor a new car, then the pastor does not have to pay federal income tax on the value of the car.

9

Church bylaws should include strategically and carefully worded clauses to specifically protect the church’s 1st Amendment rights today and in the future.

10

If a church does not have official 501(c)(3) status, and a donor makes a contribution to the church, which of the following statements below is true?

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Let's get started!

Our gift to you!

Begin your test below!

1

What portion of your board is related?

2

Who decides how much the pastor is paid?

3

Love offerings given to the senior pastor by the church have to be reported on a W-2 form.

4

For tax purposes, once you are ordained, you are always ordained and eligible for the tax benefits of ordination.

5

There are no tax consequences for organizations that give (or volunteers who receive) gift cards as “thank you” gifts so long as the gift cards are for less than $599.00.

6

When a church board meeting or general business meeting takes place you should do the following:

7

True or False: It is OK to buy the church building in your name then have the church make mortgage payments. If at a later date the church either dissolves or moves to a bigger place, you can sell the property and keep the proceeds. After all it is your building.

8

If the church buys the pastor a new car, then the pastor does not have to pay federal income tax on the value of the car.

9

Church bylaws should include strategically and carefully worded clauses to specifically protect the church’s 1st Amendment rights today and in the future.

10

If a church does not have official 501(c)(3) status, and a donor makes a contribution to the church, which of the following statements below is true?