Can a member of a church run a for profit business using space at the church or does that jeopardize the church’s non-profit status?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a member of a church run a for profit business using space at the church or does that jeopardize the church’s non-profit status?
A member has approached the leadership about using the church building for children music education. For them, it will be a source of income. Their hope is that it will also, as a by-product, expose new families to the church as a potential outreach. Is this arrangement permissible or does it violate our 503(c) non-profit status? Does charging a rental fee make any difference?
Asked on July 27, 2012 under Business Law, Ohio
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
It is a misconception that having a 503(c) corporation status means that you can not make a profit. To the contrary, you are supposed to make as much money as you can. It is the use of the money that counts. Employ an accountant and attorney (for the contract) to make sure that everything is on the up and up and rent the place out. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.