How Laws and Tax CodesImpact Our Fellowship

“Everyone must submit himself to the governing authorities, for there is no authority except that

which God has established.” Romans 13:1

Monmouth church of ChristSeptember 26, 2004

Source: Church Law and Tax Report, 2003-2004

Topics To Be Covered

• Cash Donations

• Non-Cash Donations or Gifts

• Political Statements

• Confidentiality Rules

• Sexual Orientation

• Prayer Lists / Medical Privacy Issues

Deductibility of Cash Donations

• Cancelled check• Record of cash given

with date / amount / name of church

• Receipt from the church saying how much was given

Members, not the church, are responsible for record keeping.

Deductibility of Individual Cash Donations over $250

• Documentation must be obtained by the donor from the church or charitable institution

• Burden is on the donor to obtain the documentation

• Cancelled check is not sufficient documentation

$250

Deductibility of Non-Cash Donations to the Church

• More then $500, need to file IRS Form 8232

• More than $5000, need an appraisal, cannot assume “blue book” value

• See IRS Publication 4302

Deductibility of Non-Cash Donations to the Church

• Must make donation to the church, not specific individuals.

• Individual programs within the church can be specified, however.

• This general rule applies to all “donations”, cash or non-cash

Political StatementsThe church cannot…

• Contribute to political campaign funds

• Public statements, verbal and written, in favor of or in opposition to, candidates for public office

• Distribute a “voters guide” containing questions demonstrating a bias on certain issues

• Endorse candidates

• Engage in political fund raising

Confidentiality “Privileged Communications”

• Statements made by a member of the congregation to a minister (or shepherd) in the “professional” character and position as a spiritual advisor or counselor

• Statements made to a minister outside this “professional” relationship are not privileged.

Confidentiality “Privileged Communications”

Exception:

Ministers are required reporters of child abuse/neglect under a conservative interpretation of NJ laws on mandatory child abuse reporting.

Can Churches Discriminate in Employment on the Basis of Sexual

Orientation?NJ Ruling:

“It shall not be an unlawful employment practice for a religious association or organization to utilize religious affiliation as a uniform qualification in the employment of clergy, religious teachers or other employees engaged in the religious activities of the association or organization, or in following the tenets of its religion in establishing and utilizing criteria for employment of an employee.

Medical Issues: Privacy

Medical Issues: HIPAA

The Health Insurance Portability and Accountability Act (HIPAA)

- Hospitals cannot “call the church” to inform them when a member has been admitted to the hospital

- Hospitals can inform designated clergy with:* Patient’s name* Patient’s general condition * Location in the Hospital* Religious affiliation

Medical Issues: Privacy

Privacy Violations or “Invasion of Privacy”

Recent court ruling uses this language:

“The right of privacy is the right of a person to be let alone,

To be free from unwarranted publicity, and to live without unwarranted interference by the public in matters which the public is not necessarily concerned.

Medical Issues: Privacy

• The medical condition of a church member in the hospital may be shared with congregation only with the member’s consent.

• A medical worker in a hospital or clinic may not share medical information about a patient with the congregation without the patient’s consent.

Medical Issues: Privacy

• Implied consent – the agreement that known information will be shared with the congregation unless the patient/member advises otherwise

• The member/patient informs the office as to what is appropriate to share in the bulletin

• The congregation asks the member/patient what is appropriate to share