Featured Article
Preaching about Homosexuality
by Richard R. HammarIn October 2009, President Obama signed into law the Matthew Shepard and James Byrd Hate Crimes Act as part of the National Defense Authorization Act. This legislation created a firestorm of controversy, with exaggerated and unfounded claims being ma
Appeals Court: No Housing Allowances for More than One Home
by Matt BranaughIn an opinion issued last week, a federal appeals court reversed a decision that allowed ministers to use their housing allowances on more than one home.
Guard Your Tongue
by Richard R. HammarChurch office staff members often learn personal, and sometimes embarrassing, facts about other individuals. When it comes to passing on information, an administrator may feel confused or experience tension about what to say and to whom.
Hire Power
by Thomas G. DolanLooking to hire a janitor or a secretary? Maybe a senior minister? While some hires might involve a few more steps than others, it's all pretty basic, right? You've got the résumé, two or three references, and you know what the job requ
Supreme Court Affirms "Ministerial Exception"
by Richard R. HammarIn a ringing endorsement of religious liberty, the United States Supreme Court has unanimously affirmed the so-called "ministerial exception" barring civil court review of employment disputes between churches and ministers.
IRS Offers Help for Completing Forms
by Richard R. HammarThe IRS operates a centralized call site to answer questions about reporting information on W 2, W 3, 1099, or 1096 forms. If you have any questions about completing these forms, call the IRS at 1 866-455-7438, Monday through Friday, 8:30 a.m. to 4:3
The Top 10 Church Law Articles from 2011
by Matt BranaughWhich church law and tax headlines drew the most interest from church leaders in 2011? We posed that question and looked for the answer, using unique page views as our guiding metric. We found the answer and developed the Top 10 list below.
Ten Ways to Avoid Credit Card Fraud
by Richard R. HammarCredit card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your card number without your knowledge.
Updated W-4 Forms for Church Staff
by Richard R. HammarDecember is a good time to check with all nonminister church employees to see if they need to file a new W-4 form with the church. The W-4 form is used by employees to report withholding allowances.
Protecting the Church Treasurer
by Dan W. HessDon't ask me how it happened, because I honestly don't know.
Paying the Pastor
by Richard R. HammarCompensation planning for clergy and other church staff presents several unique tax issues that are not well understood by many church leaders and their advisers.
Secretary Sues Church for Age Discrimination
by Richard R. HammarA church hired a 63-year-old woman (Nancy) as an office secretary. Her duties included preparing the church bulletin and maintaining the church calendar, along with a number of other office and administrative tasks.
The Value of Tax-Exempt Status
by Richard R. HammarQ: I am aware that churches risk the loss of their tax-exempt status if they participate in political campaigns. Several people in our congregation would like for our church to be more politically active. As a practical matter, what difference would
Is a Compensation Agreement a Contract of Employment?
by Richard R. HammarAn Indiana court ruled that a "compensation agreement" between a church and its new senior pastor was in effect a contract of employment that was violated by the church board. In 1994, a church hired a new pastor (the "plaintiff") to succeed a former
Reading the Fine Print
by John R. ThroopThe deal sounded good.
About 50 churches in the Washington, D.C., area leased interactive electronic kiosks for their entrance areas so that members and visitors could check on activities and news and register for classes and meetings.
Firing Over Morals
by Richard R. HammarFederal laws, as well as the laws of many states, permit churches and religious schools to discriminate in employment decisions on the basis of religion. As a result, religious employers are free to employ only persons of a certain religious faith.
Drawing the Line on Danger
by Lee A. DeanChurches, by their nature, have an "open door" policy during worship services, so anyone willing to worship God and hear the good news of the gospel of Christ will be welcomed.
Copyright Law and Church Conferences
by Richard R. HammarA denominational agency conducts an annual convention for clergy and lay members. The convention lasts for 4 days, and includes business sessions, evening worship services, youth services, and various luncheons and banquets. Religious music is perfor
Exemption of Ministers from Social Security
by Richard R. HammarMinisters have a dual tax status. Most are employees for federal income tax reporting purposes, but they are self-employed for Social Security (except for some chaplains) with respect to services performed in the exercise of their ministry.
Churches and Playground Liability
by Richard R. HammarAn Arkansas court ruled that a church was not liable on the basis of gross negligence for injuries to a young child who was pushed off a piece of playground equipment by another child
Plaintiffs Drop Case against Housing Allowances
by Matt BranaughA constitutional challenge to the tax-free housing allowances and parsonages provided to thousands of American pastors is over after the plaintiffs who filed the original lawsuit voluntarily requested its dismissal Friday in a California district cou
Bottom-Line Training: Refunds of Charitable Contributions
by Richard R. HammarA church member donates $2,000 to her church during the first six months of the year. She then becomes upset with the pastor and begins attending another church. She contacts the business administrator of her former church and demands a refund of all
Health Care Reform Provisions Every Church Must Know—Now
by Richard R. HammarPresident Barack Obama signed the "Affordable Care Act" into law in March 2010. Constitutional challenges immediately emerged, and slowly are making their way through the courts.
Top 10 Documents for Church Treasurers
by Richard HammarAs a church treasurer, you should be familiar with and able to identify the following documents:
The Legality of Graduation Prayers
by Richard R. HammarPastor Keith is the youth pastor at his church. A number of the members of his youth group ask him if he would offer a prayer as part of the graduation ceremony at the local public high school.
A Tax Credit for Churches?
by Richard R. HammarIs there really a "tax credit" available to churches based on last year's health care reform? For those offering health care to employees, the answer is quite possibly yes.
The Risks of Not Reporting Abuse
by Richard R. HammarIt is common for ministers to learn that a minor is being abused. This can occur in a number of ways, including a confession by the perpetrator, or a disclosure by a friend or relative of the victim or perpetrator.
Potential 'Lethal Blow' Dealt to Housing Allowance Challenge
by By Richard R. HammarThe Freedom from Religion Foundation ("FFRF") and several other plaintiffs are challenging the constitutionality of the clergy housing allowance exclusion—a significant tax benefit used by tens of thousands of ministers nationwide—in a fe
IRS Addresses the "Neighborhood Land Rule"
by Richard R. HammarMany churches rent some or all of their property. For example, a church purchases four homes adjacent to its property to facilitate future expansion. The church has no immediate plans to expand its facilities, so it rents the homes.
Would a Criminal Background Check Have Protected Katie?
by Richard R. HammarA mother alleged that a Sunday School teacher ("John") sexually molested her minor daughter, Katie, on two occasions. One of the incidents allegedly happened during a lock-in on church property.
Rabbi Claims Disability Discrimination
by Richard R. HammarMost courts have concluded that they are barred by the First Amendment guarantees of religious freedom and non-establishment of religion from resolving challenges by dismissed clergy to the legal validity of their dismissals.
The Importance of Objective Employee Evaluations
by Richard R. HammarA federal court in Pennsylvania ruled that a denominational agency did not engage in unlawful "national origin" discrimination against a Romanian-born employee as a result of (1) a single comment that the employee heard another employee
When Layoffs Loom
by John R. ThroopThe local church may be a community of faith, but it is also a local employer. Like all employers, churches hire people to fill staff positions. They also face the tough, and sometimes risky, decisions to lay off people.
How to Hire an Attorney for Your Church
by Richard R. HammarThere are occasions when a church board must hire an attorney. Here are some examples:
Computer Privacy at Church
by Richard R. HammarIt is important for employers to have an appropriate computer policy. Such a policy will minimize or eliminate employees' expectations of privacy in employer-provided computers, thereby providing a viable defense against alleged Fourth Amendment viol
Churches Are Not Exempt from State Licenses
by Richard R. HammarRequiring a license does not violate constitutional rights of a church-run program
New Compensation Tool and Survey for Church Staff
by Matt BranaughDo salary freezes remain in effect at your church? If so, it may be time to revisit that strategy, even if giving levels haven't picked up yet.
What to Know about Tax Preparation Software
by By Michele M. WalesTax preparation software packages, such as TurboTax, TaxACT, H&R Block At Home, and CompleteTax, are becoming popular ways for individuals to prepare their own income tax returns.
Compensation Quick Tips
by Richard R. HammarA church pays its senior pastor a salary plus "25 percent of offerings." A church board member has heard that compensation of church employees based on a percentage of revenue may jeopardize the church's tax-exempt status. Is this true?
When Employees Violate Moral Standards
by Richard HammarFederal laws, as well as the laws of many states, permit churches and religious schools to discriminate in employment decisions on the basis of religion. As a result, religious employers are free to employ only persons of a certain religious faith. T
Campaign Activities
by Richard HammarDuring a presidential election year, a religious denomination publishes a pamphlet that it distributes to affiliated churches to assist church members in making informed decisions regarding the candidates. The pamphlet "rates" candidates based on the
Sharing Ministry Space
by Richard HammarA charity permitted an outside group to use its facility for a Christmas party. During the party, a woman suffered serious injuries when she fell on a slippery floor. As a result of her injuries the woman underwent surgery for a complete hip replacem
