IV. Government Regulations and Procedures
A. Bulk Mail Permit | B. Tax Exempt Status 501(C)(3) | C. "When Faith and Politics Clash" - Article on Tax - Exempt Status | D. Tax ID / Employee Identification Number | E. Incorporating Your Church

 

E. Incorporating Your Church

Introduction:
The Covenant strongly recommends that all churches be incorporated. We require new churches to become incorporated before receiving any official denominational recognition. Incorporation is a simple and inexpensive procedure that has several advantages:

• It helps protect the members of your church from being personally sued over an accident or debt that should be the church's responsibility.
• It makes it easier for the church to buy, sell and own real estate, operate bank accounts and engage in other business transactions.

Presentation:
To determine if your church is incorporated, you can check your files for articles of incorporation. You can also call and check that your church has been incorporated and that the corporation currently is in good standing with the state. Here is how to call:

*Call directory assistance for your state capitol city and obtain the number for the state corporations bureau. (It may also be a division under the Secretary of State's office.)

*Call the corporations bureau and ask if your church is incorporated and if the corporation is in good standing.

*It is best to call early in the morning right after opening because lines may be busy or there may be a wait. In some states, church corporations need to file an annual report of 1 to 2 pages listing officers and addresses. If the church fails to file required reports, the corporation's good standing can lapse. The form, if required, is usually mailed to the church. In other states this is not required. If the form asks who the board of directors is, list the church council members or executive board members. If the church is not incorporated, you can obtain the forms (which are relatively simple) from the state corporations bureau. There is usually a small fee of $20 to $40 when you send in the completed forms. If you have questions about completing the forms, you can obtain informal advice about how other churches have answered the questions from the

Secretary of the Covenant or the Director of Technical Services of Church Growth and Evangelism at the Covenant Offices, 773-784-3000. Many lawyers will also complete this form at no charge for a church.

IRS regulations now require new churches to include certain language about not-for-profit status when they incorporate. This language is not on the state forms and must be added to them. Copies of the appropriate wording can be obtained from the IRS regulations or from the Director of Technical Services, 773-784-3000.

The State of Virginia has a different process than the rest of the U.S. or Canada.