Religious Non-Profit Corporations and Regulations

As I mentioned in my previous post, Regulations, as they are referred to in Ohio, or By-Laws, as they are referred to in other States, are essential to the effective management of your Church. So, what kind of issues should be addressed in your Regulations? Ohio Revised Code section 1702.11 addresses the contents of Regulations. You are not limited by the provisions stated in O.R.C. 1702.11.

1. A statement of purpose for your Church. A statement of Faith should also be included.

2. Whether your church will operate in the Hierarchical or Congregational style. If your Church is the member of a larger governing body (i.e. Roman Catholic Churches, etc.) then you would operate in the Hierarchical style. If your church is self-governing and independent, you would operate in the Congregational style.

3. If you are obtaining tax exempt status, the required provisions for 501(c)(3) tax exemption.

4. LIMITATION OF LIABILITY for your Officers, Members and Volunteers.

5. Who may amend (members? directors? etc.) the Regulations and the method required to do so.

6. Identification of Members, Directors, Officers and others, the requirements to become one, the duties of each, and a method of removal and electing new ones.

7. Requirements to be a “member” if you choose to have members. Requirements to be a “voting member” if you choose to have voting members.

8. Rights of members. You should also provide a method for removing members.

9. Time and place of the Annual meeting of Directors (Directors may also be called “Elders,” “Deacons,” or other name.) This should include the specific month of the meeting every year.

10. Time and place of the Annual meeting of the Members of the Church.

11. Method for calling a “Special Meeting.”

12. Notice requirements for meetings.

13. quorum (quorum can be different for Members meetings than Directors meetings.)

14. Voting: how many people must vote to approve any action. It is usually a majority.

15. Method of dispute resolution. You can choose mediation, a hearing procedure, who will decide the issues, and any other procedural matters related to solving internal disputes.

16. Provisions regarding conflict of interests.

17. The organization’s fiscal year.

18. A dissolution clause.

19. Any other provision your Church would like to include.

20. I would recommend you set a date and method for regular review of your Regulations, so you can add, remove or replace provisions as needed. Every one to two years.

This is just an overview. When you meet with your Attorney you should bring up any and all issues that your Church would like to have addressed in writing. As long as your provisions are not in violation of law, you can include any rule or provision your Church deems necessary.

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