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Nonprofit Law/Issues with church appinting directors of a separate 501c3 school


Our church has as one of it's ministries a K-12 school.  As part of setting up this school the school obtained their own 501c3 status and has it's own Bylaws, Board, etc. Part of the Bylaws state that any new Directors are voted on by the board to be submitted to the churches governing body for examination and final approval/disapproval.  There is also a Board policy to submit the annual budget to the church for approval/changes.  Are there any legal issues with this setup as far as the IRS?  The reason things were setup this way is to ensure that the church maintains oversight over who governs the school and it's budget while keeping the budget separate from the rest of the churches other budget.  Thank you for your time.

I don't see any problem as to IRS regulations, as long as the church is not controlled by one family.

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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