Blog Archives

Valid for God’s Purposes, but Illegal

4/30/2018

He had married people in his small North Carolina Community for years and there never seemed to be a problem, but then the bottom fell out. In a divorce proceeding of a young couple, the man’s attorney decided to check the legality of the Minister’s Credentials. During a thorough examination it was determined that the Minister had been ordained by someone who was not legally authorized to do so.

The ruling led to an annulment of the young couple’s marriage and since there was no legal wedding ceremony, alimony was denied. This prompted a stir among others whose ceremony was officiated by this Minister.

This modern trend of “Spiritual fathers,” and young Ministers desirous of their “Spiritual father’s” blessing, has generated a huge number of illegally ordained clergy. A formal ordination ceremony may qualify one to do pulpit ministry, but it does not necessarily mean the credentials are legally recognized by law or the IRS. Unless the credentials are legally recognized, the Minister has not only placed others in unique positions, but also himself (especially if he has taken advantage of tax benefits available to Ministers).

According to one report, as much as 86% of Ministers in the USA have credentials that are not legally recognized.

Just because someone prayed over you, gave you a piece of paper, and said you were called to preach doesn’t mean those credentials are legally valid. In some states someone performing wedding ceremonies without legal credentials, may result in time in jail. If the credentials you have do not require the below listed criteria, your credentials are illegal.

Criteria for Legally Recognized Credentials

- All corporate documents, including your articles of incorporation, Church bylaws, board meeting minutes, and 501(c)(3) application must contain language stating that you intend to have or already have a licensing and ordination program.

- You must require that Ministerial Applicants meet certain criteria.

This should include thorough background checks, letters of recommendation, faithful service to a local Church and Pastor, and an examination requiring a reasonable minimum score.

- An application fee is a must, and credentials must be subject to a valid renewal process.

- The credentials should contain an expiration and renewal date.

Never provide lifetime credentials.

- Have guidelines in place that ensure all Ministers properly convey the Church or organization’s mission and tenets of faith.

- All Ministers are to maintain a meaningful relationship with the ordaining organization.

This is to be accomplished by the attendance of conferences or services at least annually.

- Have a documented formal commissioning process.

- Keep good records of all that are ordained and licensed including those who are active, inactive, or revoked.

- The organization which ordained you must continue to be an active organization. If your ordaining body ceases to exist, your credentials are no longer legally valid.

Failure to adhere by these simple, but necessary requirements categorize the ordaining body as nothing more than a credential mill.

An Easier Way

The International Congress of Churches and Ministers has become the largest non-denominational ordaining fellowship in the world.

Our credentialing process is detailed and rigorous. Although, it only takes about 30 days to complete our process, the applicant knows that he or she has not been handed a piece of paper, but has earned their Ordination Certificate and all honors that apply. Most importantly, our credentials are legal.

If you are serving in a Ministry position, i.e. Pastor, Minister of Music, Youth Minister, etc., do not serve another day in that capacity without legal credentials. We have the answer to which you have been looking. You will be glad you contacted us.

Why You Need to Attend the Next Church Management Conference

At our Church Management Conferences across the USA we spend considerable time and detail on what it required for an ordination to be legally compliant.

To register for our next conference, visit us at www.cmtc.org or call 800-344-0076. If you cannot wait until the next conference to obtain legal ordination credentials call 800-854-5891, or visit us at www.iccmworldwide.org and begin the ordination process today.

At Chitwood & Chitwood and the International Congress of Churches and Ministers it is “A Ministry – Not a Job!”

By Dr. Michael Chitwood

Protect Your Donors Contributions for Tax Deduction

4/26/2018

As I travel across the country assisting Churches and Clergy with their Church books and records I am constantly amazed at the number of Churches and Pastors who feel as if they are not required or should not obtain a legal 501(c)(3) exemption for their Church and Ministry. Nothing could be further from the truth.

Mr. Jack Taylor of the Indianapolis Baptist Temple (IBT) was denied tax-deduction credit for his donations. The Internal Revenue Service and the Court Judge declared that Mr. Taylor did not prove that IBT was a legitimate church. The Judge declared that all donations for tax credit were solely at the mercy of the IRS and its agents. This snafu cost Mr. Taylor a lot of money in back taxes, penalties, and interest.

I Thought Churches Were Not Required to File 1023

Although Churches do not have to file Form 1023 requesting a legitimate 501(c)(3), the Court Judge declared that nothing in the law “. . . relieves a church from having to meet the requirements of section 501(c)(3).” It also declared that “. . . contributors must prove the church’s right to an exemption under section 501(c)(3) in order to be entitled to a deduction for their contributions.”

Burden of Proof

Without legal 501 (c) (3) status it is solely the responsibility of the donor to prove that the Church to whom he or she donated is in fact an IRS recognized Church.

In another IRS court case the court said that anyone who contributes to a church that does not have 501(c)(3) status “. . . may deduct that contribution from his or her income, but if the contributor is audited, he or she has the burden of establishing that the church in fact meets the qualifications of a section 501(c)(3) organization . . .” in order to get a tax-deduction.

Why would any Church or Ministry place this onus on the back of its faithful donors? To do so is irresponsible. Without the 501(c)(3) the donors may have to prove they deserve the deduction.

Charitable donations to Churches are covered in IRS code section 170(c) and states that donations to Churches are deductible. However, that section also clearly states that the organization must operate in a manner that is consistent with section 501(c)(3). This means that in the absence of the church’s official 501(c)(3) status, the donor must bear the burden of proving that his or her donation is tax-deductible by showing that the church meets all of the requirements as outlined in section 501(c)(3).

Let Us Help

There is no reason that any donor to a Church should ever have to face the burden of having to prove that the Church to which they donated is indeed a Church. For Churches to be non-compliant in this area means one of two things: Either the Pastor and Church do not care about any burden they are placing upon their donors; or the Pastor and Church Leaders did not know? I choose to believe that the Pastors and Church Leaders did not know.

If my premise is correct, take the necessary steps now to ensure that your donors and their generous gifts of support are protected for tax-deduction credit. To do so, attend the Church Management and Tax Conference in the city nearest you. To register, call 800-344-0076 or visit www.cmtc.org. “An ounce of prevention is worth a pound of cure!”

As the Ultimate Church Management Firm in the USA, we know how to protect your Church and Ministry from any IRS violations that may unknowingly loom over you. The reason for our confidence is because Churches and Ministries are all we have done for more than 78 years. As our client you can rest assured that your Church or Ministry receives our utmost attention and expertise.

Remember, for us it is “A Ministry – Not A Job!”

By Dr. Michael Chitwood

Clergy Day

4/24/2018

Where would our world and nation be without the great men and women of God that we call Pastor, Rabbi, Priest, Evangelist, and Minister? It has been these individuals that have made a unique and significant contribution in shaping the value system of America. These men and women have caused to occur and continue to exist, the unique pluralistic religious society found only in the United States of America.

According to surveys and studies in this arena, religious practitioners are three times more likely than those not belonging to religious congregations, to be involved in social services, such as feeding the hungry, housing the homeless, caring for the elderly and sick, and providing child care.

Independent studies have determined that Church members provide money, apart from their own expenses, for such services twice that given by all corporations and foundations combined.

In the forefront of these religious congregations are those we call Pastor, Reverends, Priests, Bishops, Rabbis, and Ministers. Leading such an awesome group called the Church or Synagogue takes a heavy toll.

Preaching/Teaching Takes Its Toll

According to the Mayo Clinic and the National Church Survey, every hour a Pastor teaches or preaches is the equivalent of 7.2 hours of wear and tear on the physical body. When this is coupled with the fact that 97% of Pastors who retire at age 65 will retire broke and/or sick, it should stir the saints to action.

These are sad statistics for those who have dedicated their lives to bringing balance to a chaotic world while fighting daily to snatch the souls of men and women from the clutches of a fiery hell.

Add to the above the fact that Pastors have one of the highest suicide attempt rates in the USA, and it becomes easy to determine that Clergy are some of the most worked, under-appreciated, and least paid (high salaried TV and mega-church preachers, excluded) of any profession in America. Upon learning these facts, one should be quick to determine that we should do everything possible to protect the integrity, well-being, and life of these men and women of God. Honor your Pastor with this Senate Proclamation: https://cmtc1.org/clergy-proclamation-download/

Chitwood and Chitwood, the Premier Church and Clergy professionals in the world, understand the stress, frustration, and turmoil of the life of a Pastor. We have spent 80 years protecting Churches and Pastors across the USA. As such, it is our ultimate desire that every Pastor and Minister in the USA fulfill God’s call on their life as healthy and stress free as possible. We long to see Pastors and Ministers retire healthy and have the financial wherewithal to live their remaining days in peace and tranquility.

Understanding the plight of the average Preacher/Pastor in America, we took our case to the Senate and were successful in getting the second Monday in August declared as Clergy Day.

We Value You

Ensuring the well-being of Churches and Ministers across America is not something we take lightly – for us it is our God-called, God-ordained ministry. For 80 years we have traveled this nation rescuing distraught Pastors and Churches. Whether it was bringing solace and hope to a Pastor whose 12 year old daughter became pregnant, or working night and day to keep a preacher from IRS criminal charges, we do not rest until we have exhausted every avenue to bring hope to the hopeless and peace to the chaos.

NO ONE is concerned for those in Ministry like Chitwood and Chitwood. I encourage every Pastor, Minister, and Church Leader to do whatever it takes to attend the Church Management and Tax Conference nearest you. Whatever your ministry problem, we can help. Call 800-344-0076 or visit us at www.cmtc.org to register. You will be glad you did.

By Dr. Michael Chitwood

Religious Freedom Attacked Again—Could Your Church Survive

4/23/2018

In Philadelphia, four members of Repent America – with police approval – were arrested for preaching on a public sidewalk. They were preaching, distributing Gospel literature and carrying banners with Biblical messages near “Outfest” a homosexual event.

The radical homosexual activists, Pink Angels, surrounded the group, holding up large pink symbols of angels to cover up the Christians’ messages and they blew high pitched whistles to drown out their preaching. Rather than arrest the homosexual activists who were infringing on the First Amendment Free Speech rights of the Christians, the police arrested and jailed the Christians. The Christians were charged with eight crimes, including three felonies: possession of instruments of crime (a bullhorn), ethnic intimidation (proclaiming homosexuality is a sin) and inciting a riot (reading from Scripture some passages relating to homosexuality).

Fortunately, the Christians won their case in court.

Anti-Christian Climate Encircles the Globe

In Canada, House of Commons introduced a bill that defines speaking or preaching against homosexuality as a hate crime. Their bill would therefore define Biblical references against homosexuality as a hate crime, punishable by imprisonment.

In January 2017, Pastor Kim Burrell found herself in hot water after her homosexuality comments during her sermon. She stated: “That perverted homosexual spirit, in the spirit of delusion and confusion, has deceived many, many men and women.”

In July 2017, Gordon Larmour was charged by police after telling a homosexual teenager the story of Adam and Eve and preaching Gods views on homosexuality. Mr. Larmour, a street preacher, was accused of threatening or abusive behavior “aggravated by prejudice relating to sexual orientation,” and despite any form of offensive language, was hauled off to jail. Fortunately, he was also cleared of wrong doing.

In Vermont Rev. Paul Horner, a Pastor of the Christian Proctor Church, was sentenced to one year in Federal prison after he refused to marry a gay couple.

Just a few days ago, the California General Assembly passed Assembly Bill 2943 which will make sales of the Bible and Biblical based teaching illegal in California. Although, some have said it does not affect what someone preaches or how we pray for someone, the bill may easily be used to ban the sales of the Bible, Biblical Teaching, and any preaching that would be anti-homosexual. Any court in California would uphold that interpretation of that bill as it is written.

Protect Yourself and Your Church NOW!

With the ungodly tide that is sweeping the globe, Pastors, Ministers, Church Leaders and Churches must act now to protect themselves against the onslaught of this demonic trend. Every Church MUST update their bylaws and ensure they include proper legal language and ample Scripture to defend the Scriptural beliefs of that local Church.

Your bylaws must include a wordy Scriptural Conduct Living Provision section and should be backed up by eight legal documents signed by every member. Pastors, Ministers, and Church Leaders can go to this link now: https://cmtc.americommerce.com/store/p/225-Eight-Legal-Requirements-Documents-That-will-protect-your-ministry-Now.aspx. If you do not get these, get to an attorney and have them drafted for your Church. But, remember, whether you use ours or have an attorney draft some for you, get every Church member to sign them.

Why You Need Us!

Chitwood & Chitwood is the number one Church Management Firm in the USA. With 80 years of experience of providing oversight for Churches and Ministries, we know what others do not. This is why some of the largest ministries in this nation look to us for direction.

It would profit every Church, Pastor, Pastor’s Spouse, and Church Leader to attend the next Church Management Conference. During this one day seminar, we provide insight as to how Churches and Ministries must protect themselves against lawsuits and other legal and tax issues that are an onslaught against Christianity in this nation.

To register visit us at www.cmtc.org or call 800-344-0076. This will probably be the best investment you make for your Church or Ministry this year.

By Dr. Michael Chitwood

Cell Phone Protection Policy Saves Church

4/19/2018

John served as the Senior Pastor of the little Church in rural Connecticut. Their attendance rarely exceeded 100, yet they were proud of the work they had done throughout the year in their community. Their small Church structure and modest property may not have been that of the mega-ministries, but Pastor John and his congregation were proud of it and ensured that it was maintained in pristine condition.

Unfortunately, one Sunday, the Pastor had someone go to the local supermarket for some grape juice for their morning communion service. On the way to the store, the driver began texting and had a terrible accident. Everyone was grief stricken because of the damage done to lives and property. However, one of those injured sought recompense from the Church (since the texting driver was on Church business).

It looked as if this would be the demise of Pastor John’s ministry and result in loss of the Church property to pay the lawsuit. But Pastor John and his Church were covered.

Chitwood’s Cell Phone Policy Saves the Day

Almost six months prior to the accident, Pastor John had attended a Church Management Conference. There he engaged our services and purchased the Cell Phone Protection Policy. He wasted no time getting the licensed drivers in his Church to sign the policy. Use this link to download your Cell Phone Protection Policy: https://cmtc1.org/cell-phone-policy-download/

Since this particular texting driver had signed the policy, the Church was free from any damage claims sought by the injured parties.

It’s Not What You Know that will Hurt You

Pastors and Church Leaders all across the USA never think scenarios, like mentioned above, could happen to them. That is naivety personified.

Just because you or your Church has not been subjected to this kind of action, or any other legal activity, does not mean it cannot happen quickly. To assume your Church will be spared from any type of lawsuit or investigative action, demonstrates that you do not know the world in which we live.

As my grandmother used to say, “An ounce of prevention is worth a pound of cure.” In other words, it is better to have it and not need it, than to need it and not have it.

As a blessing to Pastors and Churches across the USA, you may download this Cell Phone Protection Policy via your e-mail address. Click on this link and follow the instructions.

We Are the Best

For 80 years Chitwood & Chitwood has been providing oversight for thousands of Churches across this great nation. At our Church Management Conferences we teach what Pastors and Church Leaders should know and provide them with resources to protect their Church, not only from the IRS, but also from lawsuits in this tort-focused society in which we live.

Every Pastor, Pastor’s Spouse, and Church Leader must attend the next Church Management Conference. It is not what you know that will hurt you—it is what you don’t know. To register for a conference nearest you visit us at www.cmtc.org or call 800-344-0076. You will be glad you did.

By Dr. Michael Chitwood

Are You and Your Church Next?

4/16/2018

Pastor Jason called the office needing to speak with one of our experts immediately. He was so frantic that they put his call through to my office. When I got him calmed down enough so I could understand what he was saying, he began to relay to me his dilemma.

Pastor had been pasturing his Church for 20 years and never dreamed something of this nature could happen to them. His youth leader had an affair with a 16 year old member of the Church youth group. Rightfully, they dismissed the youth leader and reported him to law enforcement authorities. The young lady’s father had served as the Chairman of the Deacon Board for 10 years. He assured the Pastor that he would not seek any kind of retribution against the Church. And it seemed as if the gentleman meant what he said.

Unfortunately, the 16 year old daughter needed professional counseling to help her cope with the trauma brought about by her youth leader’s inappropriate actions. Counseling was a weekly necessity for the young lady and the counseling had continued for more than one year. The father had already paid more than $10,000.00 out of his pocket since his medical insurance did not cover the counseling fees. The father approached the Pastor for reimbursement of his expense, but when Pastor Jason called the Church insurance company he discovered there was no insurance to cover their situation.

Pastor Receives A Shocking Wake-Up Call

A week after informing the young lady’s father that the Church insurance policy did not cover inappropriate situations such as the youth leader’s actions, Pastor Jason was served with a court notice of a lawsuit against him and the Church. The lawsuit was seeking $1,000,000.00 in actual and punitive damages.

For Pastor Jason there was not much that could be done. Had he and his Church been one of our clients we would have ensured that they had an ample liability policy in existence to cover the damages the father was seeking.

Unfortunately the Church was told to pay the father’s legal claim and end the lawsuit.

Church Lawsuits Are A Common Occurrence

A report in Christianity Today reported the following statistics:*1

Child abuse is no longer the most common reason that churches go to court. For more than a decade, sexual abuse of a minor was the No. 1 legal matter involving US congregations. It made up more than 1 in 9 of all church lawsuits. . . But last year, the top reason for church litigation became a different problem: property disputes. More churches went to court in 2016 due to their building itself rather than any abuse that occurred inside of it.

The same article listed the top five reasons Churches are involved in lawsuits as follows:

1. Property Disputes
2. Sexual Abuse of a Minor
3. Personal Injury
4. Insurance Coverage Disputes
5. Zoning

The property disputes are apparently stemming from disputes between conservative and liberal factions within a congregation. The personal injury disputes are for a litany of reasons. Some of the personal injury lawsuits stem from mishaps during the altar portion of a service while the minister is praying for people.

Your Best Precautions May Not Be Good Enough

Most Pastors do not think they or their Church will ever be involved in a lawsuit. That is naïve. Churches are being sued at an average of 1000 per month and many of those lawsuits are generated by Church members.

As prayerful as the Pastor and Board may be, they do not have the legal wherewithal to foresee every possible scenario. That is why Churches need the outside support of a reputable Church Management Firm.

We Are the Experts

Chitwood & Chitwood has been the number one Church Management and Structure Firm in the USA for 80 years. If it involves a Church, Pastor, or Church Leader, we have seen it and know actions needed to properly protect the Church, Pastor, and Leaders.

At our Church Management Conferences across the nation we teach Church Leaders how to ensure their Church will be protected in the event they discover they are the target of a lawsuit or if they are targeted by the IRS.

Every Pastor, Pastor’s Spouse, and Church Leader should attend the next Church Management Conference. To register visit our website at www.cmtc.org or call 800-344-0076. It will be the best investment your Church makes this year.

Valid for God’s Purposes, but Illegal

Criteria for Legally Recognized Credentials​

An Easier Way​

Why You Need to Attend the Next Church Management Conference​

By Dr. Michael Chitwood​

Protect Your Donors Contributions for Tax Deduction

I Thought Churches Were Not Required to File 1023​

Burden of Proof​

Let Us Help​

By Dr. Michael Chitwood​

Clergy Day

​Preaching/Teaching Takes Its Toll​

We Value You​

By Dr. Michael Chitwood​

Religious Freedom Attacked Again—Could Your Church Survive

Anti-Christian Climate Encircles the Globe​

Protect Yourself and Your Church NOW!​

Why You Need Us!​

By Dr. Michael Chitwood​

Cell Phone Protection Policy Saves Church

Chitwood’s Cell Phone Policy Saves the Day​

It’s Not What You Know that will Hurt You​

We Are the Best​

By Dr. Michael Chitwood

Are You and Your Church Next?

Pastor Receives A Shocking Wake-Up Call​

Church Lawsuits Are A Common Occurrence

Your Best Precautions May Not Be Good Enough​

We Are the Experts​

By Dr. Michael Chitwood​

Archives

Categories

Criteria for Legally Recognized Credentials

An Easier Way

Why You Need to Attend the Next Church Management Conference

By Dr. Michael Chitwood

I Thought Churches Were Not Required to File 1023

Burden of Proof

Let Us Help

By Dr. Michael Chitwood

Preaching/Teaching Takes Its Toll

We Value You

By Dr. Michael Chitwood

Anti-Christian Climate Encircles the Globe

Protect Yourself and Your Church NOW!

Why You Need Us!

By Dr. Michael Chitwood

Chitwood’s Cell Phone Policy Saves the Day

It’s Not What You Know that will Hurt You

We Are the Best

Pastor Receives A Shocking Wake-Up Call

Your Best Precautions May Not Be Good Enough

We Are the Experts

By Dr. Michael Chitwood