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Who Owns a Church's Accounting Records?

Why church leaders must understand this important question.

Who Owns a Church's Accounting Records?

Q: Our treasurer frequently brings some of the church's financial records home to work on them. He claims that the records are his property, and not the church's, when they are in his home. Who owns a church's accounting records, and what are best practices for handling records?

A: Here are six observations in response to this question:

1. The nonprofit corporation laws under which most churches are incorporated require that corporations maintain various kinds of records, including financial books of account. To illustrate, the Model Nonprofit Corporation Act, which has been adopted by most states, provides that "a corporation shall maintain appropriate accounting records." While this language does not directly address ownership, how can a church maintain appropriate accounting records if they are possessed and "owned" by the treasurer? As a result, it should ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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  • April 21, 2015

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