What Legal Papers Does a New Church Really Need?

Starting a new church is a big step that takes a lot of vision, faith, and the desire to make a difference in your community. You need to have the necessary legal papers in place, though, to run a ministry that works and follows the law. A lot of new church planters want to know what legal papers they need for their new church. This complete handbook lists all the important legal papers that every new church needs to protect its ministry, follow the law, and lay the stage for development. To prevent making costly mistakes and getting into legal issues later, it's important to comprehend these documents, which include incorporation papers, bylaws, and tax filings.

1. Articles of Incorporation

The Articles of Incorporation make your church a nonprofit company with the state. This paper:

• Legally makes your church a distinct business
• Tells you the name of your church, what it does, and who its registered agent is
• Gives a basic basis for governance

The first step toward getting formal legal recognition is to file your Articles of Incorporation. You must do this before you can seek tax-exempt status.

2. Rules for the Church

Bylaws are the guidelines that your church follows to run itself. They say:

• Requirements and rights for members
• The organization and duties of the board or leadership
• How to run meetings and what the quorum is
• How to make decisions and settle disagreements
• How changes to the rules are made

Bylaws make things clearer for the business and assist in keeping things running well and avoiding problems with governance.

3. EIN (Employer Identification Number)

You need an EIN to do things like file taxes, open a bank account, and hire people for your church. It's like a Social Security number for your church.

• Available for free online from the IRS
• Needed to get tax-exempt status and open bank accounts

4. Form 1023 or 1023-EZ from the IRS (Application for Tax-Exempt Status)

When your church gets 501(c)(3) status, it doesn't have to pay federal income tax, and those who give money to it can deduct it from their taxes. Form 1023 is the comprehensive application that bigger or more complicated churches need to fill out. For smaller groups, Form 1023-EZ is a simpler version. It is very important to fill out this form correctly in order to get approval.

5. Policy on Conflicts of Interest

This policy protects your church by making sure that leaders and board members tell the church about any personal interests that could get in the way of church decisions.

• Helps keep things open and honest
• Required by many funders and a part of good governance

6. Rules and Policies on Money

For responsibility and stewardship, it is important to have written financial controls. These should include:

• Making and approving the budget
• Reimbursements for expenses
• Accepting gifts and managing donations
• Auditing and reporting on finances

Clear rules around money can assist in stopping fraud and the misuse of finances.

7. Agreements for Work and Volunteering

Written agreements make it clear what each person's position, duty, and expectations are, whether they are paid personnel or volunteers. Includes employment descriptions, pay, privacy, and a code of behavior. Keeps both the church and the person safe.

8. Policies for Protecting Children

If your ministry works with kids, you have to have strong child safety policies that follow the law. These often have:

• Checks of personnel and volunteer backgrounds
• Rules for training and supervision
• How to report claims of abuse

These rules protect your church legally and keep vulnerable groups safe.

9. Minutes and Decisions from Meetings

It is against the law to not keep detailed minutes of board meetings and official decisions, and it shows that the board is doing its job right. Write down who was there, what motions were made, how people voted, and what actions were taken. Safe storage for audits and legal purposes.

10. Policies for Insurance

Insurance policies are technically contracts, but they are also very important legal papers that keep your church's assets and leaders safe from loss and responsibility.

Why These Papers Are Important

Having these legal papers ready:

• Gives your church a legal identity and makes it more trustworthy
• Keeps your ministry and leaders safe from legal problems
• Makes sure that IRS and state rules are followed
• Makes governance and operations clear and consistent
• Gains the trust of funders, members, and the community

How Church Law and Strategy Can Help

Regan leads Church Law and Strategy, which helps churches prepare, evaluate, and keep up with all of their important legal papers. Our membership options, like The STARTUP PLAN and The FOUNDATION PLUS PLAN, give you templates, legal credits, and one-on-one advice to make sure you get these important papers properly.

Checklist of Important Legal Documents for New Churches

• Incorporation Articles
• Bylaws for the Church
• Number for Employer Identification (EIN)
• Form 1023 or 1023-EZ from the IRS
• Policy on Conflicts of Interest
• Policies and Procedures for Money
• Agreements for Work and Volunteering
• Policies for Protecting Children
• Minutes and Decisions from Meetings
• Policies for Insurance

The End

It's like building a house without a foundation if you start a church without the necessary legal papers. With the right paperwork, your ministry will be safe, compliant, and ready to grow. Church Law and Strategy is ready to help you build on a firm foundation if you are starting a new church or going over your old papers.

Links Inside

• Find out more about the legal package for starting a church.
• Look into the services of a church governance lawyer.
• Learn about church compliance and legal audit reports.

Links to Other Sites

• IRS page on Starting a Nonprofit
• ECFA article on Church Governance and Compliance
• Christianity Today’s guide on Church Planting Best Practices

This blog article is simply meant to give you information and is not legal advice. Reading this material does not make you a client of Church Law and Strategy or its representatives. Please talk to a professional lawyer for particular legal counsel that is right for your church or organization.