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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…

COVID-19 Prompts Governance Duties

From the October 2020 newsletter edition.
Category: Governance

Church governing board and their management teams should determine to what degree their operations continue to be disrupted by the coronavirus outbreak. In this special feature of Legal Counsel for Churches, we explore some legal issues churches should consider as they address the threat of COVID-19 on their congregations, ministries and operations. Like many discussions about corporate governance, we begin with a reminder about the fiduciary duties leaders have to the church and congregation. Essentially,…

How To Recruit Church Directors

From the October 2020 newsletter edition.
Category: Governance

Finding qualified candidates for a Church Board is an important responsibility. A church should be intentional when it seeks to add or replace board members. Church leaders have a duty to create a process for director recruitment. For churches that operate with a board of directors, the authority for certain decisions may be delegated to the body. Usually, the board is charged with setting policy, reviewing financial decisions and creating strategies. The board is often…

7 Habits of High Performing Church Boards

From the July 2020 newsletter edition.
Category: Governance

Over the years, I have had the opportunity to work with several company boards. The boards of successful organizations have a few traits in common. High performing organizations are usually governed by high performing boards. This is because the directors are responsible for setting the tone, direction and strategy for the enterprise. This is also the case for churches. A high performing church board understand its fiduciary duties. Church leaders often realize they are an…

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…

Churches Should Discuss Data Exit Clauses

From the April 2020 newsletter edition.
Category: Contracts

Some churches enter into contracts with outside vendors for their technology needs. Vendors provide valuable services to help church operations run smoothly. Church leaders should consider how to unwind a technology contract before entering into a new arrangement. Technology vendors provide a variety of services for churches. In some instances, the service supplier has custody of church records and files. This means the church information is stored on the vendor’s computers. When the agreement ends,…

Fund Development a Governance Issue

From the April 2020 newsletter edition.
Category: Governance

Most organizations seek dependable sources of funding to fulfill their missions. Churches are no different. For some nonprofits, fundraising is a formal program within their organizations. In these instances, fund development is an important tool for attracting donations. Fund development is a program that nonprofits often use to pursue substantial donations. These charitable gifts are often structured to fit the interests of the donors and the needs of the charity. Here’s how fund development may…

Church Merger is a Strategic Matter

From the January 2020 newsletter edition.
Category: Governance

Deciding to merge with another organization may be one of the most difficult decisions a board will face. This can be an emotional moment for a board. This is especially so for a church that is steeped in history and tradition. Here are some important consideration for churches on the issue of combining their congregations and ministries. A church board, management and congregation may consider a merger with another church for several reasons. First, the…

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…

Succession Planning For Churches

From the October 2019 newsletter edition.
Category: Governance

There is little doubt that new leadership will be needed for your church someday. One of the most important responsibilities of church governance is to ensure a successful succession process when the time comes. When most people think about church succession planning, the focus often goes to the senior pastor. Leadership succession involves more than one person. Leadership includes the individuals who head ministries, auxiliaries, functional teams and internal departments. Many churches rely on trained…

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