Risk Management Archives - Legal Counsel For Churches

Search Newsletter Archive

Browse Titles By Category:

Compliance | Contracts | Governance | Risk Management

Avoiding Insider Church Lawsuits

From the October 2022 newsletter edition.
Category: Risk Management

Recently, we have received a spate of calls from potential clients dealing with internal quarrels. In most of these instances, church members are fighting one another over control of the church’s assets, ministries, and practices. The issues include spiritual and secular disagreements. These cases are often emotional, complicated, and expensive for the clients. When church disputes wind up in court, lines are drawn, lawyers file competing motions, and the public peers into family business. This…

Private Emails May Become Public Evidence

From the July 2022 newsletter edition.
Category: Risk Management

It can be a nightmare scenario when an embarrassing internal email among church officials become public. This situation is made worst when the threat of a lawsuit is underway. Emails can be an effective way to communicate. Emails often improve efficiency among parties. Used the wrong way, emails can become a liability. Emails often do not give the receiver the insight of any off-line facts surrounding the message. The nuances of emotions and body language…

How To Avoid A Church Failure

From the January 2022 newsletter edition.
Category: Risk Management

Churches are vulnerable to the same risks as other organizations. When negative conditions occur, churches can become unsuccessful. As leaders, you have a responsibility to the ministry to make strategic decisions that avoid failure. When a church fails, this is a moment for sorrow. It may feel personally painful for church leaders to admit that their work in the ministry fell short. Failure can also be a painful episode for a congregation. We believe it…

Church Officers Can Lose Liability Protections

From the October 2021 newsletter edition.
Category: Risk Management

Individuals who serve in an official capacity for an organization risk personal liability for their actions. Civil liability includes monetary damages in a lawsuit where one party alleges the actions of the officer harmed them. Corporate officers often purchase liability insurance and enact policies that provide for indemnification from civil liability. As a matter of law, church directors and officers are ordinarily immune individually from civil liability for official church actions. This is a public policy position taken in North Carolina…

When To Call Your Attorney

From the January 2021 newsletter edition.
Category: Risk Management

The business of running a church includes managing its risks and seizing available opportunities. It is crucial to recognize, every choice church leaders make includes potential consequences. In each instance, it is advisable for church leaders to seek knowledgeable counsel before making big decisions. It is important to consider the potential outcomes of a transaction before entering into a business arrangement. Here are some scenarios when church leaders should consult with their lawyers before getting too far…

Churches Can Face Music Rights Violations

From the January 2021 newsletter edition.
Category: Risk Management

We featured an article in the July 2015 edition of Legal Counsel for Churches on the topic of music copyright law. A copy of that article can be retrieved at www. legalcounselforchurches.com. We return to this subject because the pandemic has raised new concerns on this matter. The focus of the July 2015 article was on the importance of obtaining permission to use another’s works of art. This involves materials that are protected by a copyright. We…

Questions Church Leaders Should Ask

From the July 2020 newsletter edition.
Category: Risk Management

One of the fiduciary duties of a church leader is to make prudent decisions. In order to make the best decisions, leaders should ask the right questions. The right questions are the inquiries that help an organization explore the most important issues. Church leaders are faced with many kinds of decisions. Choices include which vendors to use, policies to enforce and strategies to pursue. Church leaders approve budgets, manage risks and supervise the operations. In…

Risk Management for Churches

From the January 2020 newsletter edition.
Category: Risk Management

Risk management for church boards comes with the responsibilities to minimize threats to the ministry. It is important that church leaders recognize and reduce the perils that can harm the church. Churches are confronted with some of the same challenges as other types of organizations. These risks can disrupt the operations, pose legal liabilities and damage the church’s reputation. Being a church or nonprofit religious organization does not lessen the need to be diligent in…

May A Member Sue The Church?

From the July 2019 newsletter edition.
Category: Risk Management

Occasionally, disputes arise between churches and their members. Some controversies come about as the result of action the church chose to take. In some cases, a member may feel wronged by another church member and wants the church to accept responsibility. When the situation reaches a boiling point, a member may decide to file a lawsuit against his/her church. The ability to pursue a legal claim against a church by one of its members depends…

Churches May Be Liable for Bad Marriages

From the April 2019 newsletter edition.
Category: Risk Management

Some churches have multiple ministers in their organizations who handle several duties for the ministry. One such task may be the performance of marriages for its church members and members of the community. Church leaders should understand the requirements in North Carolina to marry a couple. North Carolina does not recognize common law marriages. A common-law marriage is where a couple, intending to be recognized as married, carries on in such a way for a…

Call Legal Counsel For Churches

Call to discuss your church’s legal needs with M Smith Law, PLLC.

Call 919-362-0744

Contacting the firm does not create an attorney-client relationship.