1742 Housing allowance decision

[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5853761/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″ placement=”top”]The federal district court for the Western District of Wisconsin recently held that the Tax Code’s housing allowance violates the First Amendment’s Establishment Clause. The decision in Gaylor v. Mnuchin, (W.D. Wis., Oct. 6, 2017), deals with 26 U.S.C. § 107(2). It does not affect the exemption from taxed income based on the value of a church-owned home, traditionally referred to as a parsonage, which is found in 26 U.S.C. § 107(1). Josh explains how the housing-allowance exemption works, why the court concluded it is unconstitutional, and what ministers and religious organizations should look for as the case progresses.

Continue reading “1742 Housing allowance decision”

1741 What to do with assets when a worshiping community closes

[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5826736/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″ placement=”top”]If history is any indication, every worshiping community’s life ends sometime. If that happens under the U.S. Tax Code, there are limits on how assets must be distributed. Musical instruments, books, and furnishings can’t just be given to the donors who funded them. Fair prices must be received. And any assets left at the end of the legal entity’s existence must be transferred to another charitable entity, like another house of worship, a denominational entity, relief agencies, or social service providers.

1740 Responding to allegations of sex abuse

What should you do if a leader of your religious organization is accused of sexual abuse? Assess the facts. Contact and coordinate with law enforcement. Contact denominational leaders. Disclose the facts to the congregation and invite other victims to report. Offer counseling to victims. Call your insurer. Prepare for negative responses and turbulent times. And remember that you’re not alone.

Continue reading “1740 Responding to allegations of sex abuse”

1739 Website privacy policies

[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5778727/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″ placement=”top”]If your religious organization has a website, it should have at least a basic privacy statement informing users what information you collect on the site, who has access to it, what you do with it, and how you protect it.

Continue reading “1739 Website privacy policies”

1738 Privacy and photos

[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5754568/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″]Religious organizations should be respectful when posting photos, videos, and audio from public events they host. Although nonprofits are exempt from the Child Online Privacy Protection Act (COPPA), they should adhere to its requirements for children under thirteen to respect children’s privacy and avoid possible regulatory implications. Before posting, it’s best to obtain permission from adults and parents, which can be done by announcing that photos will be used for promotional materials and inviting those with concerns to speak with a representative or obtaining the permission on registration or permission slips. To protect privacy further, you can post only to online pages that are protected, for example a password-protected page on your organization’s site or an invitation-only Facebook page. It’s also a good idea to avoid including names in captions and file names to decrease the likelihood that someone can find the image.

Continue reading “1738 Privacy and photos”

1737 Child Online Privacy Protection Act

[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5732543/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″ placement=”top”]Religious organizations and other nonprofits are not subject to the rules under the Child Online Privacy Protection Act (COPPA), but COPPA’s rules provide a good example of how to deal with information collected from children under 13. It requires verifiable parent consent, online privacy statements, and options for parents to control how providers use their children’s information. Since it sets the standard in the United States for protecting children online, Josh encourages religious organizations to follow its rules even when they aren’t required to do so.

Continue reading “1737 Child Online Privacy Protection Act”

1736 Obama overtime rules overturned

[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5706273/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″]A federal court declared Obama-era overtime rules invalid just in time for Labor Day. On August 31 the U.S. District Court for the Eastern District of Texas issued an order explaining that rules implemented under the Fair Labor Standards Act (FLSA) during the last months of the Obama administration overreached the Labor Department’s ability to interpret FLSA. The decision can be found here: Nev. v U.S. Dep’t of Labor, No. 4.16-cv-00731-ALM, (E.D. Tex. Aug. 31, 2017) (Memo. Op. and Order). The same court issued a preliminary injunction in November 2016 that prevented the rule from going into effect on December 1, 2016, as the Obama administration planned. The district court’s final judgment likely means the rule that more than doubled the previous minimum salary requirements to exempt employees from minimum-wage and overtime requirements is permanently defeated. Josh explains how the decision affects religious organizations.

Continue reading “1736 Obama overtime rules overturned”

E.D. Tex.: Obama FLSA rule changes invalid; salary increase for exempt employees struck down

E.D. Tex.: Obama FLSA rule changes invalid; salary increase for exempt employees struck down. A federal court declared Obama-era overtime rules invalid just in time for Labor Day. On August 31 the U.S. District Court for the Eastern District of Texas issued an order explaining that rules implemented under the Fair Labor Standards Act (FLSA) during the last months of the Obama administration overreached the Labor Department’s ability to interpret FLSA. The decision can be found here: Nev. v U.S. Dep’t of Labor, No. 4.16-cv-00731-ALM, (E.D. Tex. Aug. 31, 2017) (Memo. Op. and Order). The same court issued a preliminary injunction in November 2016 that prevented the same rule from going into effect. The Obama administration had planned for the rule to take effect on December 1, 2016. The district court’s final judgment likely means that the rule that would have more than doubled the previous minimum salary requirements to exempt employees from minimum-wage and overtime requirements is permanently defeated.

Continue reading “E.D. Tex.: Obama FLSA rule changes invalid; salary increase for exempt employees struck down”

1735 Authority to enter contracts

[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5686206/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″]How do you know whether a representative has the authority to enter into an agreement on behalf of an organization? In short, the governing documents and resolutions of the board of directors can authorize a representative. But many organizations are not careful with following these formalities. Josh discusses what can go wrong when they don’t, using the case discussed in this post as an example.

Continue reading “1735 Authority to enter contracts”

1734 Stop using comp time with nonexempt employees

[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5666870/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″ placement=”top”]Does your organization use compensatory time instead of paying employees overtime? Stop! Many mistakenly believe that nonprofits are allowed to give employees time off to make up for earned overtime. But this isn’t true. If an employee is subject to the Fair Labor Standards Act (FLSA), that employee must be paid time and a half for any time worked over forty hours in a seven-day work week. While some church employees may not be subject to FLSA, for those employees who do, it’s important to comply and pay overtime. For exempt employees and employees who are not subject to FLSA, these questions are likely decided by state law. See the notes below for resources on determining which employees are subject to FLSA and how to deal with comp time with exempt employees.

Continue reading “1734 Stop using comp time with nonexempt employees”