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| Featured Download:Launching a Business at Church Coffee shops, bookstores, daycare centers, private schools—many churches are turning to business enterprises like these to extend and fulfill their ministry goals. But, as any entrepreneur will say, starting a business is complex. There are a multitude of legal and financial details to consider. Not-for-profit ministries face the added complexity of risking their tax exempt status if revenues aren't properly accounted for, not to mention all of the employment-related issues that go along with running a business. To help you navigate these business concerns so you can maximize the potential ministry opportunity, our sister site YourChurchResources.com has created a new download titled Launching a Business at Church. Our free article this month addresses an additional business concern—the issue of filing Form 5578 for churches operating or supervising a school, one of the most neglected federal reporting requirements. Also in this newsletter, you'll find the following helpful information:
 Marian Liautaud Editor, Your Church Resources churchtreasurerupdate@yourchurch.net advertisement
 Filing a Certificate of Racial NondiscriminationOne of the most neglected federal reporting requirements.
 Train Your Board Members on Legal Issues—In Just 4 HoursMost church board members have had little training on the vital legal issues that your church could face during their term. Find key legal concepts vital to protecting your ministry from harm.
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How do you report a part-time pastor's salary entirly as housing income?  Richard Hammar is an attorney, CPA, and best-selling author specializing in legal and tax issues for churches and clergy. A graduate of Harvard Law School, he is the author of more than 100 books, including Pastor, Church & Law and the annual Church and Clergy Tax Guide. He also writes the Church Law & Tax Report and has contributed to numerous journals and publications.Q: We have a part-time associate pastor who has asked the church to designate his entire salary as a housing allowance. Do we need to issue him a W-2 form at the end of the year reporting no income? A: This is a surprisingly complex question. Here's why. Up until 1974, section 6051 of the federal tax code required a Form W-2 to be issued to (1) each employee from whom income, Social Security, or Medicare tax is withheld, or (2) each employee from whom income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4. Churches were not required to issue a W-2 to pastors under this provision since their wages are exempt from tax withholding. Read more.  Legal Issues for PastorsUnderstand laws affecting pastors and why they are important for church boards and ministers to know. Employment contracts, the legal authority of ministers, termination, and more are addressed.
May 10
Important Tax Developments! Congress enacted two more tax bills during the past year. The Small Business and Work Opportunity Act and the Tax Relief and Health Care Act contain several provisions of direct relevance to churches and church staff. These developments, plus dozens of recent IRS rulings and court cases, are explained fully in the 2008 edition of Richard Hammar's Church & Clergy Tax Guide. To stay up-to-date on the most recent tax law changes impacting your church and its employees, order this resource by calling 1-800-222-1840.
 Investment FraudA church board appoints an investment committee consisting of five businesspersons in the congregation having financial expertise. The board relies on the recommendations of the committee in investing church funds. A board member asks if the board is still potentially liable for poor investments. Start by completing the following exercise to test your knowledge. Then read on for a summary of this topic.
 Are Your Church's Board Members at Legal Risk?Find an overview of many different theories of liability, along with a description of immunity laws that provide uncompensated officers and directors with limited protection. Only $9.95. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the online publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Church Finance Update Delivered free via e-mail to subscribers monthly. We encourage you to distribute this newsletter freely and ask only that you not change its contents.
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