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Conger, MN | Depending on the goals and purpose of your group -- and your comfort level for assuming potential liabilities -- you may or may not want to simply "take over" the existing church entity . . . and do new bylaws, etc.
Unfortunately, there have been countless churches (and other groups that work with kids) held liable for activities of employees many years and decades ago. Beyond that, there could be liabilities for tax audits, unpaid bills, etc. that you might not know about. Without knowing more, it would seem leaning against doing a "stock purchase" of the church would not be the best route to go.
Also, does your group want/need "tax exempt" status (501(c)(3) or other) from the IRS any way? Or would the only purpose be do accept the church? If the later, then doing the work to complete the IRS application (and the ongoing obligations of being tax exempt) may very well outweigh the benefit.
How much is the building really worth? Some old church buildings are not worth much at all, and it might be
Lastly, how confident are you that your organization will still be operating 5 years from now? If it is not 99% certain, maybe you are best just forming a non-profit entity right now (which is relatively easy and inexpensive), and apply for the 501(c)(3) later, if things seem to go well.
If you delay the 501(c)(3) application, you could just lease the building from the church entity for some period of time. That way, the title work could be avoided or delayed, and the fees to the CPA and IRS could be avoided or delayed.
Now, if you are 100% confident in this venture -- and if you want to be able to solicit tax free donations from supporters -- then biting the bullet and applying for tax exempt status right now might be the way to go. | |
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donating a building
