Why does every state have a nonprofit corporation law that also governs “church corporations” in some manner?
The purpose of the nonprofit corporation statutes of each state and the District of Columbia is to give nonprofit organizations, including churches, the opportunity to incorporate if they so desire. There are certain benefits and advantages to incorporating a church. States decided some time ago to allow churches to incorporate so they could enjoy the many benefits and limited liability that is afforded other corporations. Virginia and West Virginia began allowing churches to incorporate only recently. Among other advantages, the corporation serves as a vehicle for promoting and carrying out the activities of a church with more seamless participation in our modern, business-oriented society. It also helps protect church members from legal liability.
