From The Christian Post, Erik Stanley:  For some time now, the IRS has not been auditing churches. As I explained in more detail in this post, the IRS’ decision to “suspend” church audits stems from a 2009 federal court decision finding the IRS’ regulations on church audits to be unlawful. Since that decision, the IRS, [...]

QUESTION:  What does recognition of tax exemption mean? ANSWER:  Eligibility for tax-exempt status is different from recognition of that status.  When the IRS recognizes the exempt status of an organization, it makes a written determination that the entity constitutes a tax-exempt organization.  When exercising this function, the IRS reviews, analyzes, and interprets the law, and [...]

QUESTION:  What is the income exclusion available for ministers of the gospel by use of a parsonage or housing allowance? ANSWER:  Section 107 allows a minister of the gospel to exclude from income the rental value – including utilities – of a home the church furnishes as part of his or her compensation (a parsonage) [...]

QUESTION:  What right does a church have to discipline or expel a member, and what cautions should be used in understanding discipline proceedings? ANSWER:  In accordance with the Free Exercise Clause of the Constitution, a church has the protected right to expel or discipline its members.  A church member who concludes that he or she [...]

A crucial part of the church’s training program should include the prevention of sexual harassment.  Many churches overlook this area of risk because they do not think that it will happen in a church context. Unfortunately, the church is not immune from episodes of sexual harassment from taking place within its walls.  It is crucial [...]

QUESTION:  Should religious nonprofit organizations use employment contracts? ANSWER:  Generally, yes.  It is not a contradiction to use an employment contract while maintaining the employment at-will relationship.  An employment contract may be useful to a religious nonprofit organization for many purposes, apart from the basic and traditional specification of duties, terms of compensation, and period [...]

The Obama administration, trying to defuse one of the most contentious issues in its healthcare law, proposed a new way to shield religiously affiliated organizations, such as hospitals and universities, from having to provide contraceptive coverage directly to their employees. Instead, the employees would obtain coverage through a separate, private insurance policy at no cost. [...]