[Church Name] Facility Rental Policy

I. Introduction

This Facility Rental Policy (the “Policy”) outlines the terms and conditions under which the [Church Name] (“Church”) facilities are available for rent to individuals and organizations. The Church’s mission and values must be respected by all renters. Use of the facilities is subject to the Church's discretion and compliance with Internal Revenue Service (IRS) regulations.

II. Eligibility

Rental applicants may include congregants and non-congregants, nonprofit organizations, community groups, and businesses, provided that their use of the facility does not conflict with the values and mission of the Church. Political activities or events that explicitly endorse or oppose any political candidate are strictly prohibited.

III. Deposit Requirement

A. Upfront Deposit: An upfront, refundable security deposit is required to secure the rental of Church facilities. This deposit is to ensure the facility is maintained and left in the same condition as found.

B. Amount: The deposit amount shall be [Specify Amount] which is equal to [percentage] of the total rental fee.

C. Refund of Deposit: The deposit will be fully refunded within [number] days after the rental period, provided that no damage has occurred, and all Policy conditions have been met.

IV. Rental Fees

Rental fees must be consistent with fair market value and in line with IRS guidelines to maintain the Church’s tax-exempt status. Specific rental fees for various facilities within the Church are available upon request and are subject to change.

V. Use of Church Property

Rental includes access to specified Church facilities as agreed upon in the rental agreement. Church property must be used with care and respect. Any equipment or property damage will result in forfeiture of the deposit and potential additional charges.

VI. Restrictions

The Church prohibits any activity that is inconsistent with its religious purposes. This includes but is not limited to, activities that are illegal, unsafe, or non-compliant with local regulations.

VII. Cancellation Policy

Cancellations must be made [number] days before the event for a full refund of the deposit. Cancellations made less than [number] days before the event may result in forfeiture of the deposit.

VIII. Indemnification

Renters agree to indemnify and hold harmless the Church, its officers, employees, and agents from and against all liabilities, claims, damages, expenses, and costs arising out of or in any way related to the renter’s use of the Church facilities.

IX. Agreement

All renters must sign a Rental Agreement that outlines the specific terms of use, including the date and time of the event, spaces to be used, fee structure, and any other special provisions.

X. Compliance with IRS Guidelines

The Church shall ensure that all facility rentals are conducted in compliance with IRS guidelines regarding unrelated business income and non-discrimination. The Church reserves the right to refuse rental to any individual or group that may jeopardize the Church’s tax-exempt status.

XI. Policy Amendments

The Church reserves the right to amend this Policy at any time without prior notice.

This template is intended as a starting point for a church facility rental policy. It is essential to customize the Policy to the specific needs and circumstances of the Church and to ensure that it complies with all IRS regulations, local laws, and the Church's bylaws and doctrine. Regular review and consultation with legal and tax professionals are recommended to maintain compliance and address any legal changes or concerns.

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