Church and Non-Profit Issues

Most Churches fail not because of a lack of commitment, or spirituality, or good works, or a higher calling. Most churches fail because they do not operate as a business and follow the state and federal laws. Churches need  an experienced tax attorney for tax and not for profit legal advice.

1. Obligations

Churches have obligations to:

❏    The IRS for the correct Tax Filings. Even though you are NON-PROFIT you still have to file tax information returns and meet the requirements of the IRS. The failure to file the 990 Tax Information return for 3 years can cause AUTOMATIC REVOCATION of your tax exempt status.
❏    State governments for annual legal filings and tax compliance
❏    Local and county governments for Zoning, Planning and Building issues.

Only after the Churches meet those Government Obligations can the church address its other obligations to:

❏    The congregation and members
❏    The Pastors
❏    The National and World Church Organization
❏    The Public.

2. Mistakes

●    It’s sad when a Church Minister comes to me and says “What does it mean when our Charter is Revoked” by the State Government. [It means the state is shutting you down.]

●    It’s sad when the IRS starts auditing the Church Books and Records and they are nonexistent. [Non-Exempt Business Activity.]

●    It’s sad when the IRS is attacking the Minister with audits, hefty tax penalties and interest. [Failure to file right.]

●    It’s sad when members of a church are ripping the church community apart by fighting over the organization and it turns out the Church legal documents are a complete mess. [They are no guidance instead of solving the issues.]

These Churches and Ministers all made the same mistake - They did not get the right legal help in starting their church.  They did not get the ongoing legal advice from a tax and nonprofit attorney that every non-profit organization needs.

You are spiritual leaders. Unfortunately, in today’s world we need more than a spiritual calling. Churches must have the right Tax and Legal Organization.

Preventing Problems!

Churches need an experienced non-profit lawyer to prevent the legal, tax and organization problems that will inevitably occur

Are You Tax Exempt?

Tax exemption is accorded to church organizations that fulfill the criteria of the Internal Revenue Code. Income tax exemption will be available to churches, and associations of churches under IRC §501(c)(3).

Ronald J. Cappuccio, J.D., LL.M.(Tax)
Counsellor at Law
1800 Chapel Avenue West
Suite 128
Cherry Hill, NJ 08002
856-665-2121