Church & Ministry Administration | Lecture 4 : BC310-CMA-20260819
Watch on YouTubeVideo summary
The lecture focuses on the critical importance of establishing a legal entity for churches and ministries, particularly within the context of Indian regulations where religious work must be conducted under a registered religious trust rather than as an NGO or society. The speaker explains that while organizations can form as non-profits to engage in social work, attempting to mix religious activities with such structures has become legally risky due to stricter government enforcement aimed at preventing conversion through social aid. Consequently, Christian organizations are advised to register specifically as religious trusts to obtain tax-exempt status under section 12A, which exempts the organization from paying taxes on its income, while noting that donors cannot claim tax deductions under section 80G when giving to these religious entities.
Beyond legal registration, the session emphasizes the necessity of maintaining a blameless reputation and adhering to civic authorities as taught in Romans 13 and 2 Corinthians. The speaker illustrates this principle with a cautionary tale of a well-known ministry leader whose organization collapsed almost overnight after a television station exposed administrative negligence regarding mail handling, demonstrating how a lack of proper governance can destroy credibility regardless of spiritual anointing. This example underscores the biblical mandate to conduct oneself in a way that avoids offense and ensures accountability not only before God but also in the sight of people, thereby protecting the ministry from unnecessary scrutiny and legal trouble.
Practical steps for establishing a robust ministry include forming a legal entity with at least three trusted trustees who are deeply aligned with the vision and committed to long-term service, rather than rushing to include acquaintances who may later cause conflict. The lecture stresses the importance of maintaining separate bank accounts for personal and organizational finances to ensure transparency and protect personal assets from liability issues arising from contracts signed in the organization's name. Furthermore, when drafting the trust deed or articles of incorporation, leaders are encouraged to think broadly and include potential future activities like running schools or publishing books within the document to avoid legal hurdles later, ensuring the organization can grow and adapt without needing difficult amendments that could invite scrutiny or rejection.
Read the full video transcript
Okay.
All right, let's take a moment to pray
and then we get started.
Anyone with the mic? I'd like huh?
I hear my hands the mic.
Please.
>> Thank you heavenly father. Thank you for
this wonderful day that you're given us
of other God.
As we're going to learn your word of
other God give us wisdom knowledge of
other God. So whatever we learn of other
word we can understand properly way of
other God. You help us of other God.
Thank you Holy Spirit to lead us and
guide us of God. I
I surrender whole class into your hands.
Thank you hearing and answering my
prayer in Jesus name say Amen.
>> Okay.
Um
All right, let's get started. Online
students you can hear me on okay, right?
On online?
Okay, fine.
All right. So
today
we move into our next lesson
uh in church and ministry administration
lesson number three
where we're going to talk about
uh trust church trust and governance.
So this is basically
you know, in in India we call it
forming a trust a legal entity. So in
India it's called trust.
In other parts of the world they may
call it a different by a different name.
In the US
they call it uh
uh uh
a religious and charitable trust or
uh
uh 501c3 organization. So that kind of
gives it a tax exempt status in the in
the US.
But here in India we call it a trust a
religious trust. Mhm? So there are
different kinds of organizations you can
form.
And of course, there is the the
organizations that we form for business
and all of that, but in in in the space
that we are working in,
um you can form a religious trust, which
is typically if you're a church, or if
you're doing any Chris- any religious
work, any Christian work, it is
important to form it as a religious
trust.
Or you can form it as
um
a society or like a
NGO or non-profit.
But in India,
if you form it as a society or as a
as NGO,
technically, you're not allowed to do
religious work.
So, the problem that has happened in our
country
is in times past, and I'm talking about
in
in times past, what has happened is
people got away with it. So, people many
people formed an NGO. Oh, I'm running an
orphanage. I'm running
whatever some social work I'm doing.
And along with it, they decided or they
also did Christian work.
In times past, you know,
people didn't
they just got away with it. Nobody
raised an issue on it. So, they would
run an orphanage and they
you know, they it would be they would
maybe be have
uh you know, Bible reading, singing
classes, all
ministry, all of that together. It was
okay.
But
since the last maybe recent
10 years or so, or maybe last 15 years,
things have changed.
Hey, government has become very strict.
If you say you're a society or you say
you're an NGO, you have to function as
NGO. You're not allowed to do any
religious work.
And then they put the same thing on the
religious work
before, you know, churches, Christian
organization used to do a lot of social
work. So, even we at ABC,
we were working with the, you know, the
mission hospitals.
Uh we were doing, you know, um
uh social action like, you know, when we
helped the slums and all of that. Now,
things have changed. You're not allowed
to do your religious organization,
you're not allowed to do religious uh
social work.
So, we had to stop everything.
Because
their their argument is you're using
social work to get people into the
church.
Like for conversion.
That's why you're giving food. That's
why you're working in the slums. That's
why you're doing this this this.
So, they've maybe become very strict,
you know, they've things. So, we need to
be mindful of that.
So,
if you are going to set up a Christian
organization, a church,
or a ministry,
you will most likely you will have to,
at least in India, you'll have to
register it as a religious
trust. Very clear.
Right?
Um if you want to do social work, purely
social work, okay, then you register as
a NGO.
Now,
in India,
NGOs have tax benefit. Uh let me let me
give me and make So, uh
if you're registered as a religious
trust,
or an NGO, you have a tax benefit in
that you don't pay tax on your income.
Okay? As long as you apply for it. So,
there is a status called 12A.
Right? Uh 12A
talks about a tax status for the
organization. So, the organization
First, you form the organization, then
you apply for a 12A status. That means
you don't pay tax on the money that
comes into your
organization.
You're with me so far?
Yeah.
Let me just check. I'm hearing some
sounds coming from online. So,
I wonder if anybody is asking questions
or
Okay, we'll take up questions.
Uh Renita, you have your hand up. Is
there a question or
Um
Do you have a question? No, maybe not.
All right, let's continue.
Uh
so
in India, you know,
it's called 12A. That means you don't
pay tax
on your
um income. But you have to maintain that
12A status. It has to be renewed every 5
years.
Okay? In the US, for example,
um it's called 501c3 status. So, if you
form a religious organization, you have
to get this 501c3. You have to apply,
you'll get it. If you get it, then it's
fine, right? Uh you
So, in India, you have a tax exempt.
Then there's another one called 80G.
That's another application.
In India, religious organizations cannot
get that status.
The 80G means you you're giving a tax
benefit to your donors.
That means the people are giving money,
they don't have to pay tax on the money
they give you.
You're understanding, right? So, one is
as an organization, you don't pay tax on
money that comes to you. That is 12A
status.
If you also get 80G status, then there's
a tax benefit to your donors. That means
if people give you money, they don't pay
tax on the money they give you. That is
deducted from their income, right? So,
that is only available for
NGOs.
It is not available for religious
organization in India.
So, in India, our people who give money
to the church, they don't get any
benefit.
Tax benefit.
They have to pay tax on it.
You understood, right? So, uh so, a lot
of organizations, you know, will say,
"Okay, I want to get ADG status,
but I also want to do religious uh
Christian work." It's it's very
dangerous now.
We don't We shouldn't play with the
government rules.
You know, and a lot of organizations
have gotten into trouble because they
they want 12A status, they want ATG
status,
uh
and they want to do
religious work, but you're not allowed
to do that.
In India, things are becoming very
strict. Okay? So, be clear in your mind
what kind of an organization you want.
Are you want a Christian religious
organization? Stay with that.
Form a religious organization,
get your 12A status, stay with that.
You know?
Uh
don't
try to do this where I form a NGO, I get
a 12A and ATG, and I want to do
religious work.
It is very likely you'll get into
trouble.
Understood? Okay? So, that brings us to
the you know, we want to first of all
say that, "Look, the Bible teaches us
Romans 13,
1-7.
The Bible teaches us that we have to be
submitted to civic authorities."
Right? So, some people some Christians
would say, "Hey,
I'm doing God's work. Why I should
submit to man?
Why should I pay tax? Why should I
follow the rules? Hey, Bible tells us
follow the rules.
Right?
Uh recently
there was some big big and I don't want
to talk about it and stuff.
And our our Christian people get into
all kinds of trouble because they break
the rules.
Right? And after breaking the rules, you
get into trouble, we shouldn't call it
persecution.
I'm being persecuted. You're not being
persecuted. You broke the rules, so the
government is holding you responsible.
What to do?
Right?
So, it is better
from the beginning
follow government rules.
Mhm.
So, now last week
in our state
they came out with a rule.
You cannot gather in public places.
So, till now we were happily going
around, you know, doing
you know, we can stand on the roads. And
we should do happily go on the roadside,
sit there, sing carols, or sing
Christmas Christian songs.
But now they've come out with a rule,
you cannot do that on the roads.
They're saying it's government space.
You cannot do that unless you have
permission. And they won't give
permission if it they already said if
it's a religious thing, they won't give
permission.
So, what to do now? Now, we have to
follow the rules.
You can't say no, I'm Jesus said go
preach the gospel to every creature. I
will come and stand on the road and sing
every Yeah, then the police will come
and
So, yes, Jesus said go preach the
gospel, but obey the rules.
And
with that you proclaim the gospel, you
know, you follow those. Uh otherwise
unnecessary. They So, they also follow
whatever the rules are.
Um
Let's go to 2 Corinthians. I want us to
read this, please. Uh 2 Corinthians
chapter 6
verses
3 and 4. 2 Corinthians 6
Um,
let's read that, verses 3 and 4.
>> We'll give no offense in anything that
our ministry may not be blamed, but in
all things we commend ourselves as
ministers of God in much base
patience, in tribulations, in needs, in
distresses.
>> Mhm.
So, notice Paul the apostle, what he's
saying.
We give no offense in anything that our
ministry may not be blamed.
Let's say I try to be careful.
We don't want to offend anybody or
offend the government or
so that we want to have a ministry that
is without blame. Nobody can point a
finger.
That's how we want to conduct ourselves
in the ministry.
And so, I want to encourage all of us,
you know, do your best.
Uh,
even when you do your best people will
find fault, but
don't give reason for fault, right?
Don't give a reason.
So that you conduct yourself in a
blameless way.
And he says
in in in all things, verse 4, in all
things we commend ourselves as ministers
of
God. In everything, you know, the way we
conduct ourselves we People should see
us and say, "Yeah, that's how a minister
of God should carry themselves or
conduct themselves basically, right?"
So, Paul Paul himself is saying, "Look,
we we hold ourselves to this standard."
You know,
uh, don't
give people a chance
to point a finger.
Right? Now, we are focusing especially
on
uh, how the church and the ministry is
organized and administered. Be very
careful. I
remember and this was back in the
in the
late '80s, early '90s.
There's a wonderful man of God in the
US.
One wonderful wonderful ministry. Now,
he had to graduate from Oral Roberts
University. Beautiful ministry.
And God had raised him up
at a national level.
Especially in the ministry of prayer.
So, he had a thriving church, very
church with lots of people, growing very
fast. One of the At that time, one of
the fastest growing churches in the US.
And
he would
conduct prayer.
Going to different cities.
Stadiums were packed.
They would rent the stadium.
And people would come
for prayer.
Packed the stadium. Now, you know, of
course, you know, if you have a worship
concert, we know. People come for nice
worship and music. But, this is you're
coming for prayer.
You know,
this a real move of God
happening throughout the US.
Prayer. He he he he written some good
books on prayer.
One of his books,
"Could You Not Tarry With Me?" Could you
not tarry one hour? You know, so that
became a
like a best-seller globally. People were
reading the book on prayer.
And so, God was using him powerfully.
But,
in his local church
in the church where and of course, it's
not only him, right? He had a big team,
ministry, lots of everything going on.
But,
one incident
uh a TV station came
and they just recorded what was it? So,
lots of people were writing in those
days letters, not emails. So,
people were sending their offering check
and all by mail.
Or they would write letters, check by
mail, send it. So, people in the in in
in the church, the staff,
they were getting all these So, huge
volume of mail, letters.
So, they were handling it.
And maybe they were not handling it
correctly. So, they would tear the
envelope, take the check, but not even
read the
letter.
Throw it.
Sometimes even the check also might go.
So, this um
this TV station, they came, they
recorded all this.
Say, this is what is actually happening
when you send your letter to this
organization, this ministry. This is how
they're handling your letters.
And it went on national TV.
It became a big issue.
People are looking, "Hey,
you know, when we send a letter to this
ministry, see what is happening.
Your letters are being in not even read.
They're all being dumped in the trash
can. Sometimes even check is being Now,
it was not this preacher's
It was a godly man,
anointed by God. He's not sitting and
opening the letters.
Correct?
It is people in the organization who are
handling all this.
He's a godly man. God has anointed him.
God has raised him. God is using him
powerfully. But,
when this news went on national
television.
It really shook
the ministry.
Because both the Christians and the
the world
laughing at that. What is going on?
We're sending letters to the thing
hoping that people will open it,
somebody will pray for the request.
At least read the letter first.
Pray for the request and yes, graciously
they're putting an offering and sending.
But it's it is how it is being handled.
Nobody's even reading the letter.
Overnight almost overnight.
First of all, he was so affected he went
into depression.
It really shook his ministry.
I can say he was a good man.
Right? He was just serving God, but
something went wrong in the
administration.
The whole ministry collapsed overnight,
almost overnight.
Collapsed.
I don't know.
So,
one point one, you know, something
somebody found that they could blame.
Put it on TV.
Those days it was big thing.
Uh it really affected the whole
ministry.
You are understanding, right? So, now we
understand how what Paul is saying, you
know,
we don't want to give any offense in
anything.
So, that our ministry should not be
blamed.
In all things we want to approve
ourselves as ministers of God.
So, you have to be careful.
You know? And um it is true that as a as
a leader
he was
not
directly responsible. Meaning, he was
not the one opening the envelopes.
But it was under him.
You know? So, to that extent
he should have
emphasized, "Hey guys, this is what we
are going to do. When a letter comes,
you must open it. You must read it. You
must pray. If there's a request, you
have to pray.
And maybe even send a reply saying we
have received, send a thank you,
something." You know, that that that
whole thing has to have been put in
place. Instead, it went off out of hand
and it became a very sad thing.
Yeah.
So,
how we conduct ourselves,
we must be careful.
And especially in finances. Let's go to
2 Corinthians 8 and verse 21, please.
2 Corinthians 8 and
21.
Somebody could read that.
>> For we aim at what is honorable, not
only in the Lord's sight, but also in
the sight of men.
>> Mhm.
So, here Paul is actually talking about
how they were handling money. Right?
He's saying, "Okay, I'm sending Timothy.
He's going to come. They're going to
collect offering." And he was collecting
an offering to send it to Jerusalem. The
people in Jerusalem needed help. Paul
was just facilitating this whole
collection and sending it to people in
Jerusalem. But even handling that, he
says in verse 21, "We want to do it
honorable in a way that's honorable not
only in the sight of the Lord, but also
in the sight of man."
You see that, right? So, I want to be
right in God's sight, but also in
man's sight. How I am handling this
money.
He's doing a good thing.
Mhm? Take an offering and send it to
people in need. He's doing a good thing.
But how you're doing the good thing, you
should do it in a way that is right
before God and man.
Because man is going to come and say,
"Hey, what is going on?"
You know.
So, we shouldn't excuse ourselves
saying, "Hey, I'm doing it right in the
eyes of God. I'm I'm I'm sending a money
to the church who is in need." Of
course, that's a very good thing to do.
But, do it in a way that's right before
God and man.
Right? So, that's the objective, right?
In in having good governance,
uh administration, and ministry.
Acts 23:1, let's read one more verse
then get into the practical things here.
Acts 23:1, Paul says,
>> "And looking intently at the council,
Paul said, 'Brothers, I have lived my
life before God in all good conscience
up to this day.'"
>> Yeah.
So, this is again Paul. He's his own how
he's he's conducting his own ministry.
So, I want to live with a good
conscience.
So, ultimately,
you should ask yourself, "What is my
conscience? Does my conscience allow me
to do this?"
You know.
I remember, and you may have heard this,
I don't know.
Um but, uh
2008
2008, I think, we had tremendous
persecution in Odisha in Kandhamal
uh in that Kandhamal area in Odisha,
2008, I think it was.
Uh very bad persecution. People were
being attacked.
And then,
uh
things spread.
Uh we also had we also later on we had a
lot of persecution in Karnataka.
St- here. Uh
churches were being attacked, especially
uh in in in in Bangalore city itself. We
had a couple of incidents, which is very
rare, that in the city you'll have
church attacked.
But outside of the city, like in in in
in
in in the rural areas,
especially Mangalore side, all that.
Uh
Almost every other day
there were incidents
of churches being attacked, pastors
being beaten, all these things, churches
burned. So, it was a very bad time.
So, at that time,
pastors here in our city, we got
together.
Uh and I think when that meeting at
there must have been at least 30
pastors, leaders of of all the big
churches, all of that.
Uh independent churches, you know, not
the mainline churches. They were kind of
okay, the attack churches that were
independent were the ones who were being
attacked, because they're kind of alone,
you know. Uh whereas you're part of a
big organization, like a CSI, you know,
they were leaving them alone. But
so, about 30 of us got together. We had
this meeting, you know, what do we do?
How do we First of all, help these
churches get back on their feet? Help if
the churches are burned, how do we
put things back together, all that. So,
we had all these meetings, you know.
So, we were trying to help, and a lot of
plans were done. Anyway, um
part of the whole process, we formed an
organization, we collected money,
all of that. So, there was some work
done. And then, uh there was a again,
later on we had a meeting, and this skip
fast forwarding a lot of things. But
later on, when things calmed down, all
of that, we had another meeting, and
that time we had collected some money
to do some work with this to help
churches outside of Bangalore.
But
so, from APC, in that particular
contribution,
we had given 1 lakh rupees. Not much,
but it was initial amounts. Okay, we'll
give one lakh to the common pool so that
we'll do something.
But that particular project didn't
actually happen. It was not executed.
Then when we had another meeting, we
said, "Okay, let's return the money
to
the church." So, yeah.
Okay?
Then after all that meeting, like
following week, I get a call from the
the person who's handling all this. He
calls me.
He says, "Pastor, you know, we've
decided we should return the money.
Uh, we received one lakh.
Do you want the check in your name
or do you want the check in the name of
the church?"
So, you imagine.
You're getting a call.
They say, "Pastor, we want to return one
lakh."
That's 100,000 rupees.
"Do you want the check in your name or
you want the check in the name of the"
So, he is speaking to me. Nobody else is
listening. Only God is listening.
I got so angry.
I got so angry. I said, "What kind of a
question this is?"
And I kind of you know, on the phone I
like try to scold him a bit.
What kind of What kind of a question are
you asking?
I said, "Where did the money come from?"
He said, "From all people's church." I
said, "Then who should the money go to?"
All people's church.
I said, "Why are you asking me this
question?"
Right?
Okay, pastor. Okay, okay, fine.
But then I was thinking, "Hey,
I gave him this answer,
but I don't know what I'm I'm not I'm
not trying to be self-righteous or
nothing, but
what
what what else is happening there? Like
if he calls other people
and they say, "Yeah, put it in my name."
That could happen.
He should not be asking this question
from anybody.
Right? It came from the church, it
should go back to the
church. That is it.
So, here's the thing.
Your own conscience
must keep you accountable.
Right? Because it is easy, no? Yeah,
yeah, yeah, put it in my name.
You put it in You go to your account.
Only Only he will know and God will
know. Nobody else will know.
But, will your conscience allow you to
do it?
No.
Paul said, "I have lived with a good
conscience."
Don't violate your own conscience.
Your conscience,
you know, it should be a good
conscience, clean conscience.
Cannot allow you to do
these kinds of things. So, even if
nobody else knows who I don't care, I'm
not living for other My own conscience
has to be clean
before God.
You understanding? Right?
So,
uh So, these are some levels of
accountability. There's the
accountability to the government.
There's accountability to
not only God, but man.
And there's accountability to your own
conscience.
Right? Sometimes we can cheat the
government.
Sometimes you can cheat other people.
But, you cannot cheat God and your own
conscience.
Cuz that God is always watching and your
own conscience is there. It knows what
you have done, what you have not done,
right? So,
I have So, those are some principles,
you know, that we have to live by for
proper church governance.
Now, let's get into what we want to talk
about. So,
what we want to talk about is
uh you know, when you start a church or
a ministry,
it is a spiritual work, but because
we're operating in uh in
on the earth, part of
you know, all these this these um
government rules and all that, it is
important that you form a legal entity.
Register your organization.
Okay, that is forming a legal entity.
Uh
uh
so,
uh initially, there's an incubation
period. That means when you start, maybe
it's just you, maybe one other person.
You're starting the ministry. So,
there's a time where you just wait for
it to for things to grow, right? You may
not be you may not be able to do it
immediately.
So, one thing is to form an organization
at least here in India, you need three
people.
And so,
don't be in a hurry to find these three
people.
You need three people who you trust,
who are committed to the vision.
They should not become a problem
later on.
Right? They should be committed.
Otherwise, if there is problem within
the three people, then the organization
itself will not function properly.
So, don't be in a hurry, right?
Uh un- unless
you have three people who are together,
one heart, one mind, wait.
Right?
And um
then why must you form this uh legal
entity? Uh
one is
uh first of all, it gives you
credibility.
That people know that, okay, this is a
organization.
So, for example,
suppose you put sign,
House of God church or something,
whatever. You give a name.
You're starting service, people come.
Then they say, "Okay, pastor, I want to
write a check.
What name should I write? House of God?"
Then if House of God is not registered,
the name of the church is not
registered, it doesn't have a bank
account,
what are you going to say? You'll say,
"Put it in my name."
Then immediately they will feel
uncomfortable.
Cuz they want to give it to the church.
But church is not registered. Church
doesn't have a bank account.
So you're saying put it in
personal name, it's this
it loses credibility. Hey, personal
account, what is he doing?
Where it is going?
So it is so much better to say, "Put it
in the this name of the church. We will
put it in the church account." Right? So
in many ways, right? Uh having a legal
entity, having an account in the name of
the organization, whatever it is there,
whatever name.
People are
People are giving money, they feel
there's credibility to this. And I'm not
giving it to some person, I'm giving it
to the organization because that that'll
do the ministry. Right?
And um
also it's very important to have
separate bank accounts.
Your personal bank account and your
ministry bank should be separate.
That is again a very big problem.
Nowadays, you know, and I And many
people may pastors, they don't think
about this. Everything goes to the
personal account.
Then they lose track.
Huh?
What was supposed to be used for the
church, what was supposed to be used for
what is actually your personal,
everything mixed.
Then lose track.
Uh there's no idea, no accountability.
Right? So it is better to have separate
bank accounts and also when you're
signing a contract, you're renting a
hall or a venue,
that contract everything is in the name
of the church.
It's not your personal
It's a church that's renting the place.
It's a church that's signing the
contract.
And also there's a protection from
liability. That means if something goes
wrong, your personal assets meaning your
personal money or personal things are
not going to be attached to the problem,
right? It's It's the organization that
signed the contract. The organization
will be held responsible. So, at least
your personal things are kept safe.
Otherwise,
if it's all done in your name,
everything you have can be taken.
Right?
Fourthly, when you want to engage
professional agencies,
you can engage them in the name of the
church. Example, accountant.
The accountant will come and do the work
for the church.
And they get paid from the church.
Then there are other benefits like we
said, the tax-exempt status.
You know, like you can apply for the 12A
or tax-exempt status. Then you don't pay
tax on the money that comes in.
You can have access to certain grants
that that that may be available so on,
right?
When to form a legal entity?
You let the work that you're doing gain
some momentum.
You see that you have a core team and
most important, find
the right people.
Find the right people who are going to
be part of this
organization, the the members, the
trustees
who are going to be there.
And of course, you need to have
sufficient money to pay for the legal
expenses and all that.
Uh and uh
you finalize the articles of
incorporation or it's called trust deed
and bylaws. We'll go through that
shortly. Right?
How to select members or trustees or
office bearers? They should be people
who are aligned to the vision.
They're willing to serve, not looking
for position.
People that you have a good relationship
with. Remember a long time ago, one of
our
people who served with us,
he just graduated from Bible college. He
worked with us here in Bangalore for 2
years, I think. Then he came and said,
"Pastor, I want to go back to my own
place and started APC there."
Oh, sure. We prayed, blessed him, sent
him.
So, he went back to his own town. This
was in Orissa.
And he started He just started work,
started ministry, just starting.
Uh then
one person came.
I said, "You might tell him or he told
me, 'No, I've just come. I've come from
Bangalore, this church, church, etc. I'm
here just to plant a new church, new
ministry starting.'
Then this person came and said, "See,
you have to form a
organization.
Uh I will become one of your
office bearers, trustees."
Uh so, he called me, the person that we
sent, our young person.
That time he's young, now it's 20 years
ago, but
uh
So, he called. He said, "Pastor,
this person seems to be a nice man.
Uh he came met me. He wants to be one of
And of course, he was also in a hurry to
form a
trust, right? To get things organized.
He wants to be part of the trust.
And I said, "No.
How You You just known him for like
about a month.
And what is his real motive
in wanting to be a office better
trustee?
Is he ready to serve?
Is he committed to this vision?
Is he going to be with you for the long
run, right?
Or is he just going to come and cause
problems?
So I told him I said, "See,
don't do anything now.
Don't form the trust. And definitely
don't put them on the
uh on the trust.
You wait and see.
See, you get to know him. Get to know
his heart. Get to know if he's really
committed to this vision.
Tell him no right now.
Told him no right now. After 1 month,
he's gone.
He's not not around anymore.
It means his real interest was not to
serve in the vision or be part of the
journey. He just wanted a place to
control.
And especially if money's coming from
here, then hey,
who knows what he would have done. I
don't know.
So, that was just a real life example
where
we have to be careful.
You know, don't just uh blindly Oh, you
want you're my friend. Come on this
trust. Because once their name is on
that legal documents,
it is official.
They can they have power in that
organization.
You know, and it's very it's not easy to
get it out.
So, you have to be careful.
Right? So, select the people
who are going to be part of the trust
very carefully.
Uh in India, you can have family
members. In the US,
it used to be you can have, but recent
laws have changed.
Uh they don't encourage
family members to be on the same
religious organization.
So, the laws have changed. In India, as
of now, it's okay. You you know,
and you know example, you your wife
can be on the same trust. Okay?
But those laws might change. We never
know.
Uh
so ideally people that you really
were aligned to the vision
you know.
So when we started APC
when we formed trust, so what happened
was even I didn't know who all I mean I
know I would be on the trust, Amy would
be on the trust because we come here to
start the work.
But you need at least three or more.
Right?
So I didn't know who who else to have.
So we just waited.
But when we started APC
a friend of mine from school days
So I knew Georgie and his
at the time he was not married.
But I knew Georgie from school days. We
used to do ministry together in school.
He came and I know his heart and knew
his heart.
Sincere.
So happy.
That means I have found a friend
whom I know
we've done ministry before.
Uh
yes, there was a long gap because we had
gone out of town, but
uh now we're connecting again. Now he's
married.
And uh his wife also seemed to be a good
lady. So four of us
were the first trustees on APC.
Okay? That means I I
Georgie was a person I knew. We really
really you know, we just had we just
knew each other.
And so it was was very comfortable.
And Georgie was one of our worship
leaders from the beginning along with
Amy. They used to lead worship in
church.
So that's how
we formed the trust, right? Basically
people that you know
uh you're aligned with.
Right?
And then very important when you're
forming a trust, you need to have these
articles of incorporation. That means
what is this trust going to be all
about?
Um and I've I've given you a sample of
the trust our trust deed.
Uh
we have made some amendments to it.
Maybe one or one or two amendments to
it. But generally that's the early early
trust deed. We'll go through it.
Um and let me pause here. We have 10
more minutes. Any questions so far?
Okay, there's a question here. 80G
status is applicable only for churches.
Okay. So Sriraj, there were two things.
One is the 12A
and 80G.
12A
is applicable
for churches, religious organizations.
80G
is not applicable for churches. So 12A
basically is tax exemption for the
organization. That means the
organization doesn't need to pay tax on
the money that comes in.
So that's a 12A status.
80G is the organization can give tax
benefit to its donors.
So that's not available for religious
organizations. That 80G status is only
available for
uh NGOs.
Uh
non-religious
organizations. And so that's 80G status.
Yeah, I hope um
I clarified that.
Yeah?
Okay.
Uh any questions? I I didn't want to
jump into the document now, but uh if
we'll take questions before.
Okay, you're all good so far? All right,
I'll just make mention of a few thoughts
and then we'll get into the document
next class.
So, when you're putting together the
articles of incorporation, of course,
you can use the sample that I gave you
and make it better, modify it. But,
here's some thoughts to keep in mind.
When you When you're forming a legal
entity, you're required to submit what
is called as
articles of incorporation, or in India,
we call it trust deeds.
Or some cases, they call it bylaws, the
laws of the organization.
Some thoughts, yeah, and we'll get into
details, but some thoughts.
It is important that in the
articles of incorporation,
write everything that you would
possibly do in the future.
So, example,
let's say
you are
Let's say you are forming a Christian
home for children.
Orphanage. Christian. So, you're you're
doing it as a religious organization.
Okay?
But, don't just say
"We will run a Christian home.
We will have
children. We'll give them food."
Whatever like that.
Anything else that you could possibly do
in the future, include it in the
document. Why?
Because in the future, suppose you want
to do something,
the reference point is is it legally
allowed? Is this this document which you
are written in forming the organization,
does it allow you to do it? So, you say,
"I want to start a school, Christian
school."
Okay, beginning, you only thought about
a Christian
orphanage, home.
That time, you're not thinking about
school school.
But, maybe 10 years later, you feel you
want to start a Christian school.
If it's not in this document,
legally you're not allowed to
do it.
Government can come, hold this document
in your face and say shut it down.
Why? It's not there.
Correct. But,
if it was in your document, you can
actually go and start
former Christian core, whatever. I'm
just giving example, right? So,
in this article of incorporation, it's
important.
Think Think big. Like, what could you
possibly do
uh
20 years, 30 years. You don't want this
document to become a
a hindrance. So, put everything there.
Even if you're not going to do it
immediately,
maybe 10 years from now, maybe
30 years from now, whatever you can
imagine. Maybe we would start a school.
So, put it there. Uh this organization
is allowed to start a school. This
organization is allowed to print books.
This organization is allowed to use
media.
This organization is allowed to, you
know, plant churches. This is allowed
Whatever, just put it in the document.
Otherwise, I'm not saying it cannot be
done. Otherwise, what you have to do,
you have to go through a process. You
have to go and make amendment.
Uh when you're making amendment, this
person sitting in the office asks, "Why
are you changing now?"
You can't say because I feel like it. Uh
there has to be some reason. You know,
unnecessary questions. You have to sit
and answer. And sometimes if people want
to cause problems, they can simply cause
problems.
They can refuse to give make that
amendment,
then you're stuck.
You know? So, it is better
when you're writing these uh
the articles of incorporation or the
trust deed,
uh anything that you would possibly be
doing as a ministry, put it down.
Even if you don't do it, it's perfectly
okay.
Doesn't matter. Nobody's going to say
you have to do it. Just saying, you
know, this organization is allowed to do
all of these things. Put it down.
Uh
and in the future, when the opportunity
comes, you can do it. The problem is, if
it's not in there and you go to it,
uh you could get into problems.
Okay. So, I'll stop with this thought
and then we'll pick it up next week.
We'll actually go through the document,
get some ideas and stuff. Okay?
All right. Any questions before we
close? Everyone's okay?
Okay.
We'll close for today. We'll continue
this next week. Thank you.
>> Thank you, sir.