Faith Organization Asset Sale Agreement

What a good one includes

• A formal clause confirming that the governing board or religious council has voted on and legally approved the sale in accordance with the organization’s bylaws.
• A precise, itemized list of all physical property, equipment, or sacred items being transferred, including their current condition and any excluded religious artifacts.
• Explicit language documenting approval from any regional or national governing body, which is often required for faith-based property transfers.
• A clear statement outlining how the sale proceeds will be handled to ensure compliance with tax-exempt non-profit regulations and the organization's charter.
• Standard protective clauses stating that the goods or property are sold as-is to shield the faith organization from future maintenance or performance disputes.
• Provisions specifying any spiritual or ethical restrictions on how the buyer may use the transferred property or items in the future, if applicable.

Common mistakes to avoid

• Failing to secure or document the mandatory approval from a parent denomination or regional bishop, which can completely invalidate the sale.
• Neglecting to specify which religious artifacts, pews, or altar pieces are excluded from the sale, leading to painful disputes with the buyer or congregation.
• Overlooking state-specific laws that require attorney general notification or court approval for the sale of substantial religious non-profit assets.
• Relying on verbal agreements or informal handshakes without attaching signed board resolutions that legally authorize the signing officers to execute the contract.

Frequently asked questions