Can a religious corporation provide insurance to all of its churches under its control? For instance, if the church's headquarters is located in New York and it owns or provides loans on physical structures across the USA, can the corporation receive insurance payments from those individual churches? Headquarters will send invoices for payment and the individual church congregations will pay the bill. In case of a catastrophic loss, headquarters will pay for the loss.
But my question is, can an non-profit entity avoid the paying of taxes with such a format?
2006-07-12 02:13:37 · 4 answers · asked by JW 1 in Business & Finance ➔ Insurance
Depending on the type of insurance, a religious corporation can "self insure". I say type of insurance, because in NY, they would still be required to purchase Workers Compensation coverage.
Most larger religions such as the Catholic Church would have a master policy, covering, say, $25,000,000,000 in damages with a deductible of $500,000. They can "assess" each parish a portion of the $500,000 deductible, then kick it over to a church that burns.
**Note** I have no information that the Catholic Church actually does this, it's just an EXAMPLE of how a large SIR works
NO idea about the tax question - although I don't know of any states that tax insurance premium with an admitted carrier; and non-profit organizations are NOT exempted from paying surplus lines tax with a non-admitted carrier.
2006-07-12 02:24:07 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
Avoid paying taxes? On what? I am assuming you are meaning the religious corporation that is receiving the premiums on the insurance policies? If not, what taxes?
2006-07-12 09:18:04 · answer #2 · answered by miketorse 5 · 0⤊ 0⤋
Nope. Conflict of interest laws. Taxes or not.
2006-07-12 09:18:12 · answer #3 · answered by Ricky J. 6 · 0⤊ 0⤋
sounds illegal to me......... find a good lawyer
2006-07-12 09:17:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋