https://www.legalcounselforchurches.com/publications/Publications for church leaders from Legal Counsel For Churches.en-ushttps://www.legalcounselforchurches.com/new-leadership-orientation/https://www.legalcounselforchurches.com/new-leadership-orientation/Mon, 26 Sep 2022 11:39:24 GMTGovernanceAll organizations undergo leadership turnover. It is important to ensure that new church directors and leaders are fully equipped to be successful in their roles. The process of training new leaders is often called orientation. Orientation is a program where new directors, officers and management figures undergo an introduction to their roles in the organization. These leaders must become familiar with the church and their official roles. Here, we will explore some guidelines to help…https://www.legalcounselforchurches.com/avoiding-insider-church-lawsuits/https://www.legalcounselforchurches.com/avoiding-insider-church-lawsuits/Mon, 26 Sep 2022 11:37:12 GMTRisk ManagementRecently, 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…https://www.legalcounselforchurches.com/what-makes-an-effective-board-chair/https://www.legalcounselforchurches.com/what-makes-an-effective-board-chair/Mon, 26 Sep 2022 11:33:45 GMTGovernanceGood corporate governance begins at the top. For most organizations, the top is defined as the Board of Directors. Atop the board is the presiding officer. The presiding officer for the board is often called the chairman, chairperson, or chair. Some churches use different titles such as president, pastor, elder, or deacon. The governing board may also go by different names as well. Consistent with effective board leadership is the presence of a competent chair….https://www.legalcounselforchurches.com/the-right-level-of-church-capital/https://www.legalcounselforchurches.com/the-right-level-of-church-capital/Fri, 01 Jul 2022 20:23:59 GMTGovernanceMost leaders face the question of capital adequacy for their institutions. Having insufficient capital can empower or handicap an organization’s plans. This is a conversation around the amount of reserves a church should have on hand. In this article, we share a governance perspective on the dialog around capital. Capital is the church’s savings account for a rainy day. Capital is important because it provides a financial cushion for future perils. Officials who focus on…https://www.legalcounselforchurches.com/ma-strategy-for-churches/https://www.legalcounselforchurches.com/ma-strategy-for-churches/Fri, 01 Jul 2022 20:22:02 GMTGovernanceIt is not uncommon to see for-profit companies use a merger and acquisition (M&A) strategy to grow. These corporations believe combining their organizations with another can lead to greater profits and market share. It might seem unusual to think about churches in the manner of M&A activity. While not typical, church leaders have a responsibility to consider all possible strategies to improve their corporate performance. In the October 2019 edition of Legal Counsel for Churches,…https://www.legalcounselforchurches.com/private-emails-may-become-public-evidence/https://www.legalcounselforchurches.com/private-emails-may-become-public-evidence/Fri, 01 Jul 2022 20:18:37 GMTRisk ManagementIt 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…https://www.legalcounselforchurches.com/board-rotation-is-good-practice/https://www.legalcounselforchurches.com/board-rotation-is-good-practice/Mon, 21 Mar 2022 20:24:33 GMTGovernanceOne of the signs that an organization is ripe for underperformance is the stagnation of its board. A healthy board accepts the idea that rotation of its directors is good for its growth. In this article, we will explore why turnover can be an important governance strategy. All organizations go through turnover of its officers. People leave for various reasons. In some instances, officers leave for voluntary choices. There are also occasions when board members…https://www.legalcounselforchurches.com/the-importance-of-recording-dissenting-votes/https://www.legalcounselforchurches.com/the-importance-of-recording-dissenting-votes/Mon, 21 Mar 2022 20:21:37 GMTGovernanceA Lesson On The Duty Of Loyalty Church board members are generally not held personally responsible for the business decisions they make on behalf of the institution. This is one of the advantages of serving a corporation or an organization that has separate legal recognition. The protection from personal liability comes with strings attached. Directors are expected to uphold their fiduciary duties and act as any prudent corporate officer would under the circumstances. For the…https://www.legalcounselforchurches.com/corporate-governance-tips-from-the-irs/https://www.legalcounselforchurches.com/corporate-governance-tips-from-the-irs/Mon, 21 Mar 2022 20:19:12 GMTGovernanceCorporate governance is a vital duty for church leaders. Effective governance protects the church and its officers. Most organizations recognized under the 501(c)(3) law must file a tax return. The tax return form is called Form 990, Return of Organization Exempt from Income Tax. The Form 990 calls for reporting on the organization’s financials, accounting methods, property, activities, vendors, and compliance. For the purposes of this article, we focus on the governance and management section…https://www.legalcounselforchurches.com/how-to-avoid-a-church-failure/https://www.legalcounselforchurches.com/how-to-avoid-a-church-failure/Fri, 31 Dec 2021 23:08:01 GMTRisk ManagementChurches 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…https://www.legalcounselforchurches.com/strategic-planning-is-a-governance-matter/https://www.legalcounselforchurches.com/strategic-planning-is-a-governance-matter/Fri, 31 Dec 2021 23:04:26 GMTGovernanceOne of the most important responsibilities of corporate leaders is strategic business planning. Strategy planning is the forward- looking exercise that defines where a business is going and how it plans to arrive. This is a governance issue as a matter of reasonableness. Church directors and officers have a fiduciary duty of care in their capacities. This duty is measured by the reasonable person standard. Courts look to what a reasonable person would do under…https://www.legalcounselforchurches.com/ministry-agreements-help-church-management/https://www.legalcounselforchurches.com/ministry-agreements-help-church-management/Fri, 31 Dec 2021 23:01:47 GMTContractsOrganizations often find it productive to divide their businesses into various departments. Departments often include functional areas such as accounting, human resources, and data processing. These divisions may act like mini businesses within the corporation. Most churches have ministries that are charged with carrying out specific functions. Some ministries provide services to the community. Others focus on addressing the needs of the congregation. In both instances, the ministries operate as divisions within the church structure….https://www.legalcounselforchurches.com/church-officers-can-lose-liability-protections/https://www.legalcounselforchurches.com/church-officers-can-lose-liability-protections/Wed, 22 Sep 2021 16:47:43 GMTRisk ManagementIndividuals 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…https://www.legalcounselforchurches.com/how-to-prepare-effective-minutes/https://www.legalcounselforchurches.com/how-to-prepare-effective-minutes/Wed, 22 Sep 2021 16:45:41 GMTGovernanceKeeping effective records of all official meetings is an important job for the governing board of a church. Minutes memorialize actions for historical purposes. Minutes help inform future boards of the rationale for past policy choices. A written record can help demonstrate the board’s diligence to its fiduciary duties. The minutes-keeping role is usually delegated to the elected Secretary. In some instances, a staff person is appointed assistant secretary to attend meetings and record the minutes. However,…https://www.legalcounselforchurches.com/a-church-must-notify-of-security-breach/https://www.legalcounselforchurches.com/a-church-must-notify-of-security-breach/Wed, 22 Sep 2021 16:43:12 GMTComplianceIt has become common to hear about security or data breaches at large companies. Some breaches arise from ransomware attacks where information is held hostage in lieu of a payment of money. In other cases, the data is leaked to the public risking identify theft of the customers. Every organization is at risk. Church leaders should consider what risks the ministry faces when it comes to security breaches. To a hacker, a church may be…https://www.legalcounselforchurches.com/small-print-can-lead-to-big-problems/https://www.legalcounselforchurches.com/small-print-can-lead-to-big-problems/Mon, 22 Mar 2021 20:55:29 GMTContractsMost contracts come with small print. This is the language that includes the underlying terms of the deal. Don’t be misled by the size of the font. Small prints in contracts can make a big difference. Some parties dismiss the importance of some contract terms. There are several misconceptions that cause one to treat some clauses less seriously. Some believe the small print is a necessary formality in legal agreements and therefore should be accepted as…https://www.legalcounselforchurches.com/how-church-directors-get-in-trouble/https://www.legalcounselforchurches.com/how-church-directors-get-in-trouble/Mon, 22 Mar 2021 20:52:12 GMTGovernanceChurch directors have a fiduciary duty to make decisions that are in the best interests of the church. These duties include a duty of care, duty of loyalty and duty of obedience. These responsibilities are the same for any board of directors. No matter the organization, industry or charter, directors must keep a primary focus on the institution’s interests. Board members must act prudently to fulfill their obligations. Courts weigh a director’s conduct by comparing his/her actions…https://www.legalcounselforchurches.com/emeritus-directors-can-improve-governance/https://www.legalcounselforchurches.com/emeritus-directors-can-improve-governance/Mon, 22 Mar 2021 20:47:20 GMTGovernanceChurch leadership is responsible for making wise decisions. In many instances, the best decisions are the choices that take into consideration the history of the church. When long-serving church directors decide to step down from the board, the vacancy could leave a void in historical leadership. Church officials who have seen the ministry through its challenges over a course of time bring valuable experience. The church should consider finding a way to tap this source of knowledge for future…https://www.legalcounselforchurches.com/when-to-call-your-attorney/https://www.legalcounselforchurches.com/when-to-call-your-attorney/Mon, 14 Dec 2020 21:58:07 GMTRisk ManagementThe 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…https://www.legalcounselforchurches.com/church-growth-a-governance-issue/https://www.legalcounselforchurches.com/church-growth-a-governance-issue/Mon, 14 Dec 2020 21:55:33 GMTGovernanceChurch leaders have a fiduciary responsibility to make decisions that reflect the best interest of their ministry. This commitment is called the Duty of Care. The Duty of Care is a legal directive that corporate managers act in a reasonable manner. What a court considers reasonable depends on how they believe others would act under similar circumstances. The Reasonableness Test is not limited to business leaders only. A court may hold church leaders to the…