Jump directly to the content

Pastor, Church & Law

written by Richard R. Hammar, J.D., LL.M., CPA

Merger and Consolidation

Volume 2 . Chapter 6 . § 6-14
Key point 6-14. Two or more religious congregations can merge or consolidate. In a merger, one corporation absorbs the other and remains in existence while the other is dissolved, whereas in a consolidation a new corporation is created and the consolidating corporations are extinguished. The procedure for merging and consolidating incorporated churches is specified by state nonprofit corporation law.

Although the terms merger and consolidation frequently are used interchangeably, they have separate legal meanings. In a merger, one corporation absorbs the other and remains in existence while the other is dissolved, whereas in a consolidation a new corporation is created and the consolidating corporations are extinguished.

One court has observed ...

Article Preview

This article is currently available to ChurchLawAndTax.com subscribers only. To continue reading:

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."

Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.


Church Property & Administration: Volume 2 of Pastor, Church & Law

Church Property & Administration: Volume 2 of Pastor, Church & Law

Topics: inspection of records, federal reporting requirements, incorporation, zoning laws, and more.
Church Fundraising Campaigns

Church Fundraising Campaigns

Discover tips on raising and borrowing money.