Representation of Churches

Legal Church Representation

Massey, Stotser & Nichols, PC headquartered in Birmingham, Alabama and serving Southeastern Alabama is a full service law firm with a practice group in the area of church representations or nonprofit, tax-exempt organizations. Churches and church activities entities can be public charities, religious organizations, private foundations, social welfare organizations, child care facilities, food banks, hospitals, schools at all levels including colleges and universities, and trade associations.

Nonprofit Tax Exempt Organizations

Business are formed for profit or nonprofit purposes, and churches generally operate as nonprofit entities. The monies the religious organization raises are not distributed to shareholders but instead are used to fund programs and outreach activities consistent with the tenets of the faith involved.

The formation and dissolution of a nonprofit organization is just like the formation of a for profit business. The religious organization completes the below steps.

1. Choose name and ensure it is available for use.
2. File paperwork, including articles of incorporation, that explain nature and purpose of the nonprofit organization.
3. Apply for federal and state tax exempt status.
4. Create corporate bylaws.
5. Hold appropriate incorporation meetings, including the first meeting of the Board of Directors.
6. Obtain any required licenses or permits from the county or state governments.

Once these items are complete, the organization petitions the Internal Revenue Service to grant it tax exempt status.

Difference Between Nonprofit and Tax-Exempt Status

Nonprofit status is determined at the state level and governed by the law in Alabama. When an organization is granted nonprofit status in Alabama it is eligible for benefits like state sales, property and income tax exemptions. Tax-exempt status is a separate benefit and applies to the organization’s federal income tax, often referred to as 501(c) status. When granted by the Federal government, the organization is exempt from federal income tax.

Legal Representations of Churches

Religious organizations offer many services to their communities. Some of the activities are directly related to the church and operation of the church, while others involve the community outreach. Because of the diverse and varied nature of church activities law firms that represent churches assist churches with the following transactions:

Guidance on day to day operations of the church
Guidance on corporate governance of nonprofit exempt organization
Representation of church before governmental agencies, including the Internal Revenue Code
Representation of church in actions where the church is the plaintiff or vice versa
Setting up and dissolving nonprofit organizations
Provide advice and counsel on legal questions about general and specific corporate matters
Develop children’s safety procedures
Develop employment procedures including new hire program and employee handbook
Develop volunteer procedures
Develop temporary staffing procedures for events or missions
Obtain necessary travel documents and visas for international church activities or retreats
Representation of church in real estate transaction including buying and selling church property, renting church property, processing bequeaths or estate gifts
Representation of church in litigation
Representation of church in mergers or acquisitions of other churches
Investigating white collar crimes and creating financial controls to minimize theft of church funds or property

Legal Representation for Alabama Churches

To learn more about how we can help your church, schedule a case consultation.

1780 GADSDEN HWY
BIRMINGHAM, AL 35235

No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.