A church must have the consent of a majority of its total membership in order to incorporate. While that may not be difficult for a new congregation, it can be a major hurdle for a long-standing church that continues to carry many non-resident or inactive members on its rolls, she said.

Another problem is that unless churches review their articles of incorporation periodically, they may not realize their period of duration has expired.

"The church's charter can be forfeited if this happens," she said. "It can be corrected by filing articles of amendment and making the period of duration perpetual."

Bylaws must stipulate the requirements for a quorum, voting rights of members, information about how business meetings are called, the percentage vote required to approve items and who has authority to conduct business on the church's behalf.

Bylaws also should clarify procedures for calling and dismissing staff, for disciplining or withdrawing fellowship from disruptive members and for amending the bylaws, the lawyer said.

Another pitfall is the failure of churches to implement prudent policies concerning the prevention of child abuse in a church.

The "$75-disclosure rule" says the church must provide a donor at the time of a donation a receipt for a "quid pro quo" payment of more than $75. The receipt must state the amount of payment, the value of an item purchased, and stipulate that only the difference is deductible.

For instance, a church may hold a golf tournament in which participants pay a set amount to participate with the understanding that proceeds go to a charitable cause. The church should provide participants a receipt noting the value of green fees, golf cart rentals and any souvenirs such as shirts or golf balls provided to those who play. The receipt should indicate that only the difference between the total entry fee and the total amount of the itemized list is deductible.