Congressman Charles W. Boustany Jr., MD (R-LA), Chairman of the Subcommittee on Oversight of the Committee on Ways and Means, announced that the Subcommittee will hold a hearing examining operations and oversight of tax-exempt organizations. This will be the first in a series of hearings by the Subcommittee on the tax-exempt sector and IRS oversight [...]

With the rise of social media, pastors and church employees have an increasingly public arena in which they can have their voices heard, whether it is through streaming sermon videos, podcasts or in written form through twitter, Facebook or blogging. Most often, pastors and churches utilize these forms of written social media as a means [...]

QUESTION:  A member of our staff has committed several violations of the employee handbook and has not taken any steps to rectify his behavior despite being notified of his need to do so. Are there any specific procedures we should follow when terminating this employee? ANSWER:  Generally, once a decision to terminate an employee has [...]

According to a recent speech by Lois Lerner, director of IRS Exempt Organizations, there is a direct correlation between an organization’s good governance and overall tax compliance.   Specifically, the IRS asserts that a well-governed organization is more likely to be compliant with the tax law and as a result, is taking an active examination of [...]

A Kentucky jury awarded $2.15 million in damages Thursday to the estate of a boy who was killed in 2009 when a youth minister at Big Springs Assembly of God church let him drive his vehicle.  This is a reminder to all churches of the need to  ensure appropriate employment agreements are in place and that proper liability [...]

QUESTION:  A member of our Board has mentioned that our organization should have an independent compensation committee.  What is the purpose of such a committee and is it necessary that we have one? ANSWER:  An independent compensation committee is a committee appointed by the board of directors to conduct fact finding of comparability data regarding [...]

Identity Finder, a software that protects sensitive information, found that 132,362 organizations published more than 472,866 Social Security Numbers between 2001 and 2006.  Although all Forms 990 are open to public inspection and are generally published on the internet for public viewing (through sites like Guidestar), charitable organizations should carefully review the Form 990 and [...]

QUESTION: What are the legal standards for operation of nonprofit organizations? ANSWER:  The legal standard by which all aspects of operations of the organization should be tested is that of reasonableness and prudence. Everything the organization does should be undertaken in a reasonable manner and to a reasonable end. Also, those working for or otherwise [...]

Is your church navigating the minefield of emerging technology? Does your SOCIAL MEDIA message match with what you TEACH, PREACH, and BELIEVE? Watch as David Middlebrook covers these questions and many other important topics related to SOCIAL MEDIA and the CHURCH.

As we blogged a few months ago, the IRS has automatically revoked the tax-exempt status of organizations who did not file an information return for the prior three years.  To date, more than 433,000 exempt organizations had their tax-exempt status revoked as a result.  The IRS believed that such automatic revocation would “clean the books” [...]