Q: When a church sells its building that’s in the church’s name. Doesn’t the monies stay with the church?
The church has a new pastor, the building sold. Does that money remain with the church because the church is still in existence. It just has a new pastor. The building is deeded in the name of the church, not a person.
A: This is correct. If any entity sells an asset, the proceeds stay with the entity. The proceeds can be used for any lawful purpose the entity may choose.
A: A church is typically organized as a non-profit corporation with the state, and all assets are required to be used for non-profit purposes. If the church corporation sells its assets, the money must be used only for non-profit purposes. Operations of non-profit corporations are reviewed by the Attorney General's office, and any improper uses of assets can be pursued against the church officers. Use the Find a Lawyer tab to retain a local attorney who can assist the church in properly handling its assets and making required filings with the state.
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