An Administrator's Guide to California Private School Law Compendium

L iebert C assidy W hitmore LCW

An Administrator's Guide to California Private School Law Compendium

www.lcwlegal.com/expertise/private-education

A BOUT THE A UTHORS

With offices in Los Angeles, San Francisco, Fresno, San Diego and Sacramento, Liebert Cassidy Whitmore services the needs of private schools and institutions of higher education. Our expertise includes the defense of educational institutions in actions brought by employees for claims such as harassment and discrimination, wage and hour violations, breach of contract, infringement of family and medical care leave rights, and wrongful termination. We are also experts in the defense of actions brought by students and their families alleging violations such as harassment, discrimination, and breach of contract. The Firm frequently works with Heads of Schools and their Boards to develop effective bylaws, contracts, policies, and handbooks. Liebert Cassidy Whitmore places a unique emphasis on preventive measures to ensure compliance with the law and to avoid costly litigation. For more than thirty-five years, the Firm has successfully developed and presented training on all aspects of education law to numerous private schools and associations. The Firm provides individual training to educational institutions, regular training to its consortium members, and frequently presents for state and national organizations such as the California Association of Independent Schools (CAIS), California Association of Private School Organizations (CAPSO), the National Association of Independent Schools (NAIS), and National Business Officers Association (NBOA).

LCW – The California Law Firm for California Schools.

This workbook contains generalized legal information as it existed at the time the workbook was prepared. Changes in the law occur on an on-going basis. For these reasons, the legal information cited in this workbook should not be acted upon in any particular situation without professional advice.

Copyright © 2019 Liebert Cassidy Whitmore. All rights reserved. No part of this publication may be reproduced, stored, transmitted, or disseminated in any form or by any means without prior written permission from Liebert Cassidy Whitmore.

T ABLE OF C ONTENTS

2019

Chapter 2 – Governance .............................................................................................................................................9 Document 2.A................................................................................................................................................................9 Checklist Of Basic Steps To Forming A New Private School ........................................................................9 Document 2.B..............................................................................................................................................................12 Checklist For Avoiding Excess Benefit Transactions ...................................................................................12 Document 2.C..............................................................................................................................................................17 Sample Articles Of Incorporation For Nonprofit Public Benefit Corporation ..............................................17 Document 2.D..............................................................................................................................................................21 Sample Articles Of Incorporation For Nonprofit Religious Corporation ......................................................21 Document 2.E ..............................................................................................................................................................25 Amendment Of California Nonprofit Articles Of Incorporation...................................................................25 Document 2.F ..............................................................................................................................................................31 Restated Articles Of Incorporation Of California Nonprofit Corporations ...................................................31 Document 2.G..............................................................................................................................................................37 Statement Of Information..............................................................................................................................37 Document 2.H..............................................................................................................................................................43 Domestic Nonprofit Corporation Dissolution Filing Requirements..............................................................43 Chapter 3 – Hiring.....................................................................................................................................................51 Document 3.A..............................................................................................................................................................51 Checklist: Screening Applicants....................................................................................................................51 Document 3.B..............................................................................................................................................................59 Pre-Employment Inquiry Guidelines Provided By The California Department Of Fair Employment And Housing .........................................................................................................................................................59 Document 3.C..............................................................................................................................................................64 Waiver And Release Of Information.............................................................................................................64 Document 3.D..............................................................................................................................................................65 Sample Election Form To Receive/Not Receive Public Records [In-House Reference Check] ...................65 Document 3.E ..............................................................................................................................................................66 Sample Interview Evaluation Form...............................................................................................................66 Chapter 4 – Employment Contracts And Separation Of Employees....................................................................67 Document 4.A..............................................................................................................................................................67 Checklist For Preserving At-Will Employment ............................................................................................67 Document 4.B..............................................................................................................................................................68 Checklist For Determining “Good Cause.” ...................................................................................................68 Document 4.C..............................................................................................................................................................69 Employment Contract Checklist....................................................................................................................69 Chapter 5 – Employee Evaluations ..........................................................................................................................71 Document 5.A..............................................................................................................................................................71 Checklist For Evaluations .............................................................................................................................71 Document 5.B..............................................................................................................................................................72 Sample Performance Evaluation ...................................................................................................................72 Document 5.C..............................................................................................................................................................83 Sample Written Classroom Observation .......................................................................................................83 Chapter 6 – Wage And Hour Laws..........................................................................................................................85 Document 6.A..............................................................................................................................................................85 Wage And Hour Compliance Checklist - Non-Exempt Employees..............................................................85

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Chapter 7 – Recognizing And Preventing Harassment, Discrimination And Retaliation..................................87 Document 7.A..............................................................................................................................................................87 Supervisor’s Checklist - What To Do When You Receive A Report Of Harassment...................................87 Document 7.B..............................................................................................................................................................89 Department Of Fair Employment & Housing Form 185 Regarding Sexual Harassment..............................89 Document 7.C..............................................................................................................................................................93 Sample Department Of Labor Whistleblower Posting ..................................................................................93 Document 7.D..............................................................................................................................................................97 Sample Notice Placing Accused Employee On Paid Administrative Leave Pending Administrative Investigation ..................................................................................................................................................97 Chapter 8 – Leaves And Absences ...........................................................................................................................99 Document 8.A..............................................................................................................................................................99 Checklist To Bring Your School Into Compliance With The Federal And State Family And Medical Care Leave Acts.....................................................................................................................................................99 Document 8.B............................................................................................................................................................101 Checklist When An Employee Requests Family And/Or Medical Care Leave ..........................................101 Document 8.C............................................................................................................................................................103 Checklist For Leave Of Absence For Employee’s Pregnancy/Childbirth ...................................................103 Document 8.D............................................................................................................................................................107 Checklist For Leave Of Absence For Employee’s Baby Bonding/Adoption/Foster Care...........................107 Document 8.E ............................................................................................................................................................110 Sample Medical Certification – Employee’s Serious Health Condition .....................................................110 Document 8.F ............................................................................................................................................................114 Sample Medical Certification – Employee’s Family Member’s Serious Health Condition ........................114 Document 8.G............................................................................................................................................................119 Certification of Qualifying Exigency For Military Famly Leave (Family and Medical Leave Act)...........119 Document 8.H............................................................................................................................................................125 Paid Sick Days Poster Template..................................................................................................................125 Document 8.I .............................................................................................................................................................129 Rights Of Victims Of Domestic Violence, Sexual Assault And Stalking ...................................................129 Chapter 9 – Interactive Process..............................................................................................................................133 Document 9.A............................................................................................................................................................133 Checklist For The Interactive Process And Accommodations - Students ...................................................133 Document 9.B............................................................................................................................................................136 Checklist For The Interactive Process And Accommodations – Employees..............................................136 Document 9.C............................................................................................................................................................139 Request For Doctor To Provide Fitness For Duty Exam For Employee .....................................................139 Document 9.D............................................................................................................................................................141 Letter To Direct Employee To Attend Fitness For Duty Exam...................................................................141 Document 9.E ............................................................................................................................................................143 Letter Inviting Employee To Interactive Process Meeting..........................................................................143 Document 9.F ............................................................................................................................................................144 Letter To Employee Regarding Failure To Attend Interactive Process Meeting ........................................144 Document 9.G............................................................................................................................................................146 Letter To Employee To Recap Interactive Process Meeting .......................................................................146 Document 9.H............................................................................................................................................................147 Notice Of Intent To Separate Employee Because Of Inability To Reasonably Accommodate...................147 Document 9.I .............................................................................................................................................................149 Interactive Process Meeting Script For Employees.....................................................................................149 Document 9.J.............................................................................................................................................................150 Useful Websites...........................................................................................................................................150

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Document 9.K............................................................................................................................................................151 Request For Doctor To Provide Examination For Student..........................................................................151 Chapter 10 – Privacy Rights Of Students And Employees ..................................................................................153 Document 10.A..........................................................................................................................................................153 HIPAA Privacy Authorization For Release Of Information .......................................................................153 Chapter 11 – Mandated Reporting ........................................................................................................................157 Document 11.A..........................................................................................................................................................157 Mandated Reporting Checklist ....................................................................................................................157 Document 11.B..........................................................................................................................................................158 Reporting Checklist.....................................................................................................................................158 Document 11.C..........................................................................................................................................................159 Reasonable Suspicion In Practice................................................................................................................159 Document 11.D..........................................................................................................................................................161 Suspected Child Abuse Report....................................................................................................................161 Document 11.E ..........................................................................................................................................................165 Guidelines For Mandated Reporting ...........................................................................................................165 Document 11.F ..........................................................................................................................................................168 Acknowledgment Of Mandated Reporting Requirements, Receipt Of Training, And Receipt Of Penal Code Statutes ........................................................................................................................................................168 Chapter 12 – Investigations ....................................................................................................................................185 Document 12.A..........................................................................................................................................................185 Checklist: The Basics Of Investigating Complaints Of Employee And Student Misconduct .....................185 Document 12.B..........................................................................................................................................................197 Sample Memo Used To Notify Accused Employee Of Investigative Interview.........................................197 Document 12.C..........................................................................................................................................................198 Sample Memo Used To Notify Employee Witness Of Investigative Interview..........................................198 Document 12.D..........................................................................................................................................................199 Sample Statement And Questions For Use At The Beginning Of The Investigative Interview.................199 Document 12.E ..........................................................................................................................................................200 Sample Statement In The Event Employee Refuses To Respond To Questions Or Submit To Investigative Interview .....................................................................................................................................................200 Document 12.F ..........................................................................................................................................................201 Sample Memo Used To Notify Complainant Of Completion Of Investigation ..........................................201 Document 12.G..........................................................................................................................................................203 DFEH Workplace Harassment Guide .........................................................................................................203 Chapter 13 – Student Applications And Enrollment Contracts..........................................................................215 Document 13.A..........................................................................................................................................................215 Enrollment Contract Checklist ....................................................................................................................215 Chapter 14 – Pupil Records ....................................................................................................................................217 Document 14.A..........................................................................................................................................................217 Pupil Records Checklist ..............................................................................................................................217 Document 14.B..........................................................................................................................................................220 Maintenance Of Pupil Records....................................................................................................................220 Chapter 15 – Student Discipline .............................................................................................................................221 Document 15.A..........................................................................................................................................................221 Checklist Regarding Student Discipline......................................................................................................221

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Chapter 16 – Off Campus Activities ......................................................................................................................225 Document 16.A..........................................................................................................................................................225 Checklist For Preparing For Off Campus Trips ..........................................................................................225 Document 16.B..........................................................................................................................................................227 Sample [International] Travel Waiver.........................................................................................................227 Chapter 17 – Construction......................................................................................................................................239 Document 17.A..........................................................................................................................................................239 Construction Terms .....................................................................................................................................239 Document 17.B..........................................................................................................................................................243 Guideline For Conducting Initial Analysis Of Disputes With Contractor During Construction .................243 Chapter 18 – Political Activity................................................................................................................................247 Document 18.A..........................................................................................................................................................247 Checklist......................................................................................................................................................247 Document 18.B..........................................................................................................................................................248 IRS Guidance And Hypotheticals Regarding Electioneering......................................................................248 Chapter 19 – Fundraising .......................................................................................................................................257 Document 19.A..........................................................................................................................................................257 Sample Auction Receipt And Disclosure Letter..........................................................................................257 Chapter 20 – Intellectual Property.........................................................................................................................259 Document 20.A..........................................................................................................................................................259 Checklists For Protecting Copyrights, Trademarks, And Trade Secrets .....................................................259 Document 20.B..........................................................................................................................................................262 Confidentiality Agreement ..........................................................................................................................262 Chapter 21 – Preschools..........................................................................................................................................265 Document 21.A..........................................................................................................................................................265 Checklist For Obtaining A License To Operate A Preschool......................................................................265 Document 21.B..........................................................................................................................................................267 Director Qualifications ................................................................................................................................267 Document 21.C..........................................................................................................................................................268 Fully Qualified Teacher Qualifications .......................................................................................................268 Document 21.D..........................................................................................................................................................269 Non-Fully Qualified Teacher Qualifications...............................................................................................269 Document 21.E ..........................................................................................................................................................270 Preschool Teacher – Child Ratios ...............................................................................................................270 Document 21.F ..........................................................................................................................................................271 Employee And Volunteer Personnel Records .............................................................................................271 Document 21.G..........................................................................................................................................................273 Children’s Records......................................................................................................................................273 Document 21.H..........................................................................................................................................................274 Posting Requirements..................................................................................................................................274 Document 21.I ...........................................................................................................................................................275 Accessible Documents ................................................................................................................................275 Document 21.J...........................................................................................................................................................276 Documents To Parents And Legal Guardians .............................................................................................276 Endnotes ...................................................................................................................................................................277

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C HAPTER 2 – G OVERNANCE D OCUMENT 2.A

C HECKLIST O F B ASIC S TEPS T O F ORMING A N EW P RIVATE S CHOOL  Determine what corporate form the school will take: Public Benefit or Religious Nonprofit Corporation.  Prepare Articles of Incorporation:  Select a name for the corporation.  Broadly state the purpose of the corporation (for Public Benefit Corporations only).  Specify the type of nonprofit corporation (Nonprofit Public Benefit or Nonprofit Religious Corporation).  Identify the initial agent for service of process. If the initial agent is a natural person, identify the agent’s California business or residence address.  Include mandatory statement that assets of the corporation are irrevocably dedicated to religious, charitable or educational purposes.  OPTIONAL (may instead be included in Bylaws): Identify the name and addresses of the corporation’s initial directors.  OPTIONAL (may instead be included in Bylaws): Specify the classes of members, if any, or specify that the corporation’s trustees/directors will be deemed to have all the rights and privileges normally given to members.  OPTIONAL (may instead be included in Bylaws): Specify any restrictions on amending the Articles of Incorporation or Bylaws.  File Articles of Incorporation with the California Secretary of State.  Prepare Bylaws:  Specify the number of directors of the corporation, unless already stated in the Articles. This may be stated as a range with a minimum and maximum number of directors.  Specify the time, place and manner of calling, conducting and giving notice of meetings for members, directors and committees.  Specify the qualifications, duties, powers and compensation (if any) of the directors.  Specify the method, time for election and term length for directors.  Specify the classes of members, if any (if not already included in the Articles).

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 Specify the quorum requirements for directors and committee meetings and the percentage of votes required for certain actions.  Identify any “core” standing committees that the corporation intends to utilize every year (e.g., Executive Committee, Finance Committee, Nominating Committee, Development Committee, Audit Committee and Compensation Committee) and any restrictions on the makeup of the committees.  Specify whether creation of additional, ad hoc committees is permitted.  Include a bylaw stating the procedure to avoid self-dealing transactions by Directors.  Include a non-discrimination statement applicable to students.  Include a prohibition on partisan activities.  Include bylaws specifying that the corporation will establish and abide by the following policies: whistleblower policy; document retention and destruction policy; and joint venture policy. (The policies themselves should not be included in the bylaws.)  Bylaws (and any amendments) are NOT filed with the Secretary of State but are kept with the school’s permanent records.  Apply to the IRS for 501(c)(3) status:  Apply for an Employer Identification Number by filing IRS Form SS-4.  If someone other than the CEO or Director will be representing the school with respect to the application, file IRS Form 2848, the Power of Attorney and Declaration of Representative.  Within 15 months after incorporation, file IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3).  NOTE: Form 1023 does not need to be filed at all until gross receipts are more than $5,000. Once that threshold is exceeded, Form 1023 must be filed within 90 days of the end of the year in which it exceeded the threshold.  Await issuance of the IRS determination letter recognizing the school’s tax exempt status.  Keep determination letter in school’s permanent records.  Apply to the California Franchise Tax Board for state tax exempt status:  File FTB Form 3500A along with a copy of the IRS tax exempt determination letter.  Apply for property tax exemption, if necessary, in the county in which the school is located.

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 Between October 1 and 15, file Form R-4, the Private School Affidavit, with the Superintendent of Public Instruction through the California Department of Education website ( http://www.cde.ca.gov/sp/ps/rq/affidavit.asp ). NOTE: The affidavit only needs to be filed once the school has at least one student.

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D OCUMENT 2.B

C HECKLIST F OR A VOIDING E XCESS B ENEFIT T RANSACTIONS Section 4958 of the Internal Revenue Code (“IRC”) sets forth the rules for excess benefit transactions. An “excess benefit transaction” is a transaction in which an economic benefit is provided by a tax-exempt organization such as a school, directly or indirectly, to or for the use of a “disqualified person,” and the value of the economic benefit exceeds the value of consideration, including the performance of services, received by the organization providing the benefit. (IRC § 4958, subd. (c)(1)(A).) Three Part Test for Excess Benefit Transactions A three part test will determine if a school provided an employee an impermissible excess benefit. If the answer to all three of the following questions is “yes,” an improper excess benefit was provided:  Is the entity providing the benefit a 501(c)(3) or 501(c)(4) tax-exempt organization? 1  Is the person receiving the benefit a “disqualified person?” A disqualified person is: (a) Any person who during the last 5 years was in a position to exercise substantial influence over the affairs of the school , including, but not limited to, a voting member of the school’s governing body or the school’s CEO, COO, or CFO; (b) A member of the family of the person described in (a); (c) An entity in which individuals in (a) or (b) own more than 35%; (d) A person described in (a) through (c) with respect to a 509(a)(3) supporting organization of the entity; (e) A donor or donor advisor with respect to a donor advised fund; or (f) An investment advisor to a 509(3) supporting organization of the entity. 2  Is the transaction an “excess benefit transaction?” (See Section II, below.) “Excess Benefit Transaction” The total compensation paid by a school to a disqualified person must be fair and reasonable. To determine if a compensation package is an excess benefit transaction, a school must perform the following analysis:  I.  II.

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 Examine all consideration and benefits exchanged between the disqualified person and the school. Consideration and benefits to a disqualified person include, but are not limited to:  Salary  Bonuses  Deferred compensation  Commissions  Royalties  Fringe benefits  Severance payments  Retirement and pension benefits  Expense allowance  Insurance benefits  Payments by a 509(a)(3) supporting organization. The following other transactions could constitute excess benefit transactions if not done at fair market value:  Rental or sale of real or personal property or facilities  Loans to the disqualified person  Assets sold or exchanged between the school and the disqualified person  In order to determine whether compensation is fair and reasonable, gather comparable data regarding what similarly situated individuals running similar schools are paid. The disqualified person’s compensation must be an approximately equal exchange of benefits between the school and the disqualified person. Several factors can help determine if compensation paid to a disqualified person is fair and reasonable, including the following:  The compensation paid by similar schools in the area,  The school should fully and accurately describe all aspects of a compensation package and how it determined the package,  The school should have adequate documentation, such as comparable salaries paid by similar schools and fair market value of property or goods exchanged, that show the reasonableness of the compensation package,  The school should have documentation showing that the total reportable compensation agrees with the amount on the disqualified person’s W-2,

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The school’s need for particular services of the person,



 The uniqueness of person’s background, training, education, experience, responsibilities,  If the compensation was approved by an independent Board of Directors or its approved committee,  The school should have adequate documentation that its Board of Directors approved the package and that the disqualified person or his or her relative did not participate in the approval process,  The size and complexity of the school’s income and assets and number of employees,  The disqualified person’s prior compensation arrangements,  The disqualified person’s job performance,  The school should maintain an adequate description of the disqualified person’s duties and responsibilities,  The amount of hours worked by the disqualified person, and  The relationship of disqualified person’s compensation to compensation paid to the school’s other employees. If the school can show documentation displaying the disqualified person’s compensation package is fair and reasonable, the school should have a strong defense that it is not providing the disqualified person an excess benefit and thus avoid potential sanctions for an excess benefit transaction. Rebuttable Presumption The Internal Revenue Service (“IRS”) created a rebuttable presumption that payments to disqualified persons are presumed to be reasonable and not excessive if the following conditions are satisfied by the school:  The total compensation package was approved in advance by the school’s Board or the Board’s authorized committee and no individuals who had an actual or potential conflict of interest with respect to the compensation arrangement participated in deliberations. 3  The school’s Board or the Board’s authorized committee obtained and relied on appropriate comparability data prior to making its determination. 4  If the school’s annual gross receipts are less than $1,000,000, the Board will  III.

be considered to have appropriate comparability data if it has data on compensation paid by three comparable schools in the same or similar communities for similar services. 5

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 The regulations and IRC are silent as to schools with annual gross receipts of more than $1,000,000, but it can be inferred that such schools must have comparability data on more than three comparable schools.  The school’s Board adequately and contemporaneously documented the basis for its determination. 6 Accurate documentation must note the following:  Terms of the approved transaction;  Date it was approved;  Members of the governing body or committee who were present during approval and those voting for approval;  Comparability data relied on and how it was obtained;  Actions taken related to any member who had a conflict of interest with respect to the transaction; and  Basis for determination of fair market value, if applicable. 7 If a school completes these three steps, the IRS may only rebut the presumption of reasonableness if it can show the comparability data relied on by the school was inappropriate.

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D OCUMENT 2.C

S AMPLE A RTICLES O F I NCORPORATION F OR N ONPROFIT P UBLIC B ENEFIT C ORPORATION

See Attached

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ARTS-PB- 501(c)(3) Articles of Incorporation of a Nonprofit Public Benefit Corporation To form a nonprofit public benefit corporation in California, you can fill out this form or prepare your own document, and submit for filing along with: – A $30 filing fee. – A separate, non-refundable $15 service fee also must be included, if you drop off the completed form or document. Important! California nonprofit corporations are not automatically exempt from paying California franchise tax or income tax each year. A separate application is required in order to obtain tax exempt status . For more information, go to https://www.ftb.ca.gov/businesses/exempt_organizations or call the California Franchise Tax Board at (916) 845-4171. Note: Before submitting this form , you should consult with a private attorney for advice about your specific business needs.

This Space For Office Use Only

For questions about this form, go to www.sos.ca.gov/business/be/filing-tips.htm Corporate Name (List the proposed corporate name. Go to www.sos.ca.gov/business/be/name-availability.htm for general corporate name requirements and restrictions.)  The name of the corporation is ____________________________________________________________________________________________________________ Corporate Purpose (Item 2a: Check one or both boxes. Item 2b: The specific purpose of the corporation must be listed if you are organizing for "public" purposes, or if you intend to apply for tax-exempt status in California.)  a. This corporation is a nonprofit Public Benefit Corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law for: public purposes. charitable purposes. b. The specific purpose of this corporation is to ________________________________________________________________________________________ . Service of Process (List a California resident or an active 1505 corporation in California that agrees to be your initial agent to accept service of process in case your corporation is sued. You may list any adult who lives in California. You may not list your own corporation as the agent. Do not list an address if the agent is a 1505 corporation as the address for service of process is already on file.)  a. _____________________________________________________________________________________________________________________________________________ Agent's Name b. _____________________________________________________________________________________________________________________________________________ Agent's Street Address (if agent is not a corporation) - Do not list a P.O. Box City (no abbreviations) State Zip Corporate Addresses  a. _____________________________________________________________________________________________________________________________________________ Initial Street Address of Corporation- Do not list a P.O. Box City (no abbreviations) State Zip b. _____________________________________________________________________________________________________________________________________________ Initial Mailing Address of Corporation, if different from 4a City (no abbreviations) State Zip Additional Statements (The following statements are required to obtain tax exemption from the Internal Revenue Service or the California Franchise Tax Board under Internal Revenue Code section 501(c)(3). Note: Corporations seeking other types of tax exemptions should not use this form.)  a. This corporation is organized and operated exclusively for the purposes set forth in Article 2a hereof within the meaning of Internal Revenue Code section 501(c)(3). b. No substantial part of the activities of this corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, and this corporation shall not participate or intervene in any political campaign (including the publishing or distribution of statements) on behalf of any candidate for public office. c. The property of this corporation is irrevocably dedicated to the purposes in Article 2a hereof and no part of the net income or assets of this corporation shall ever inure to the benefit of any director, officer or member thereof or to the benefit of any private person. d. Upon the dissolution or winding up of this corporation, its assets remaining after payment, or provision for payment, of all debts and liabilities of this corporation shall be distributed to a nonprofit fund, foundation or corporation which is organized and operated exclusively for charitable, educational and/or religious purposes and which has established its tax-exempt status under Internal Revenue Code section 501(c)(3). This form must be signed by each incorporator. If you need more space, attach extra pages that are 1-sided and on standard letter-sized paper (8 1/2" x 11"). All attachments are made part of these articles of incorporation. CA

___________________________________________________________________________

_________________________________________________________

Incorporator - Sign here

Print your name here

Make check/money order payable to: Secretary of State Upon filing, we will return one (1) uncertified copy of your filed document for free, and will certify the copy upon request and payment of a $5 certification fee.

By Mail Secretary of State Business Entities , P.O. Box 944260 Sacramento, CA 94244-2600

Drop-Off Secretary of State 1500 11th Street, 3rd Floor Sacramento, CA 95814

Corporations Code §§ 5130-5132 et seq ., Revenue and Taxation Code §§ 23151 et seq. and 23701 et seq.

2013 California Secretary of State www.sos.ca.gov/business/be

ARTS-PB-501(c)(3) (REV 06/2013)

D OCUMENT 2.D

S AMPLE A RTICLES O F I NCORPORATION F OR N ONPROFIT R ELIGIOUS C ORPORATION

See Attached

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ARTS-RE Articles of Incorporation of a Nonprofit Religious Corporation To form a nonprofit religious corporation in California, you can fill out this form or prepare your own document, and submit for filing along with: – A $30 filing fee. – A separate, non-refundable $15 service fee also must be included, if you drop off the completed form or document. Important! Nonprofit corporations in California are not automatically exempt from paying California franchise tax or income tax each year. For information about tax requirements and/or applying for tax-exempt status in California, go to https://www.ftb.ca.gov/businesses/exempt_organizations or call the California Franchise Tax Board at (916) 845-4171. Note: Before submitting this form , you should consult with a private attorney for advice about your specific business needs.

This Space For Office Use Only

For questions about this form, go to www.sos.ca.gov/business/be/filing-tips.htm Corporate Name (List the proposed corporate name. Go to www.sos.ca.gov/business/be/name-availability.htm for general corporate name requirements and restrictions.)  The name of the corporation is ____________________________________________________________________________________________________________ Corporate Purpose  This corporation is a Religious Corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Religious Corporation Law exclusively for religious purposes. Service of Process (List a California resident or an active 1505 corporation in California that agrees to be your initial agent to accept service of process in case your corporation is sued. You may list any adult who lives in California. You may not list your own corporation as the agent. Do not list an address if the agent is a 1505 corporation as the address for service of process is already on file.)  a. _____________________________________________________________________________________________________________________________________________ Agent's Name b. _____________________________________________________________________________________________________________________________________________ Agent's Street Address (if agent is not a corporation) - Do not list a P.O. Box City (no abbreviations) State Zip Corporate Addresses  a. _____________________________________________________________________________________________________________________________________________ Initial Street Address of Corporation - Do not list a P.O. Box City (no abbreviations) State Zip b. _____________________________________________________________________________________________________________________________________________ Initial Mailing Address of Corporation, if different from 4a City (no abbreviations) State Zip Additional Statements (The following statements are for tax-exempt status in California.)  a. The specific purpose of this corporation is to ________________________________________________________________________________________ . b. This corporation is organized and operated exclusively for religious purposes within the meaning of Internal Revenue Code section 501(c)(3). c. No substantial part of the activities of this corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, and this corporation shall not participate or intervene in any political campaign (including the publishing or distribution of statements) on behalf of any candidate for public office. d. The property of this corporation is irrevocably dedicated to religious purposes and no part of the net income or assets of this corporation shall ever inure to the benefit of any director, officer or member thereof or to the benefit of any private person. e. Upon the dissolution or winding up of this corporation, its assets remaining after payment, or provision for payment, of all debts and liabilities of this corporation shall be distributed to a nonprofit fund, foundation or corporation which is organized and operated exclusively for charitable, educational and/or religious purposes and which has established its tax-exempt status under Internal Revenue Code section 501(c)(3). This form must be signed by each incorporator. If you need more space, attach extra pages that are 1-sided and on standard letter-sized paper (8 1/2" x 11"). All attachments are made part of these articles of incorporation. CA

___________________________________________________________________________

_________________________________________________________

Incorporator - Sign here

Print your name here

Make check/money order payable to: Secretary of State Upon filing, we will return one (1) uncertified copy of your filed document for free, and will certify the copy upon request and payment of a $5 certification fee.

By Mail Secretary of State Business Entities , P.O. Box 944260 Sacramento, CA 94244-2600

Drop-Off Secretary of State 1500 11th Street, 3rd Floor Sacramento, CA 95814

Corporations Code §§ 9130-9132 et seq. , Revenue and Taxation Code §§ 23151 et seq. and 23701 et seq.

2013 California Secretary of State www.sos.ca.gov/business/be

ARTS-RE (EST 05/2013)