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Does Your Church Have Adequate Liability Insurance?

From the July 2014 newsletter edition.
Category: Risk Management

If your church carries liability insurance for its officials, you should review the policy every year. When conducting an annual review of your liability insurance policy, the church should look at the coverage amounts and limitations. This is important because you want to ensure you have adequate coverage for potential claims. Most insurance policies state the maximum the policy will pay for claims in a period. The maximum amount is often phrased as an aggregate…

Church Loans Come With Strings Attached

From the July 2014 newsletter edition.
Category: Compliance

If your church ministry needs to expand, you may be feeling growing pains. This is the time many churches decide it’s time to build a new facility. Perhaps, your church is considering the purchase of new equipment or another vehicle. If your church needs a loan to finance its growth, you should be aware of some common covenants found in bank loans. A loan covenant is a promise. The promise most people think of is…

Reporting Child Abuse Is A Church Duty

From the April 2014 newsletter edition.
Category: Compliance

Churches come into contact with children in many ways. Children attend regular church services as congregants and participate in some of the ministries. Some churches have daycares and special activities for its young members. Children may be found involving themselves in church events throughout the week at various times. Most adults and parents want the best for our children. We want our children to be happy and safe. The unfortunate fact is not all children…

Members May Inspect Church Records

From the January 2014 newsletter edition.
Category: Governance

All churches have a business side to their operation. As businesses, churches keep records on a number of subjects. Sometimes churches struggle with what right do its members have to see certain records. Some church records may be considered too sensitive to release to the public. Such records include employees’ salaries, congregant financial records and sensitive strategic plans. When a church member asks to see church records, a church may have concerns about how to…

When Churches May Stand Their Ground

From the January 2014 newsletter edition.
Category: Compliance

Some churches have security ministries to protect their members and property. These ministries often patrol the church grounds during services, provide security for the pastor and watch over the collections of money. Given the recent occurrences of incidents, churches are justified to consider the risks they face. Security personnel may include volunteers and/or employees. Employees may be on the church’s payroll or contractors through a professional security firm. Some security personnel may only carry a…

Guarding Against Third-Party Risks

From the October 2013 newsletter edition.
Category: Risk Management

Churches face all kinds of risks. These risks include threats to its reputation, finances and members. Such risks can come directly from its operations and staff. Increasingly, risks can also be caused by third parties. Church officials should understand the risks they are subject to from outside organizations. Third parties are the other organizations and vendors with whom churches do business. These can include companies for services, partner organizations and contractors. The conduct of a…

Does Your Church Have A Speaker’s Agreement?

From the October 2013 newsletter edition.
Category: Contracts

Some churches occasionally have guest speakers at their services. Guest speakers may preach, teach or sing at revivals, conferences, concerts and regular worship services. In some instances, the guest speaker may travel a considerable distance to participate in your church’s event. Making arrangements for guest speakers often involves many details. Some speakers have special travel demands. Because there can be multiple matters to address, it may be a good idea to have a written agreement…

Beware of Automatic Renewal Clauses in Church Contracts

From the July 2013 newsletter edition.
Category: Contracts

Your church likely has multiple outstanding contracts. These agreements cover a wide range of services and products. The contracts may be for everything from equipment maintenance service to landscape care. Most church officers know that due diligence is advisable before signing a contract. During the negotiation period, attention is paid to the terms of the bargain. It is important to understand that due diligence with contracts does not end with the signature on the dotted…

Churches Face Child Care Laws

From the July 2013 newsletter edition.
Category: Compliance

A popular activity for many churches is the operation of a child care facility for its members and the community. Depending on a number of factors, a church child care facility may be subject to specific North Carolina laws. It is important for church leaders to know the laws and ensure its child care is in compliance. To understand the law, churches must know if the facilities they have are considered child care programs. In…

How to Hire a Church Attorney

From the January 2013 newsletter edition.
Category: Governance

Sooner or later, most churches will find themselves with a need to hire an attorney. The situation may arise from a routine transaction or a dispute. No matter how the situation comes about, the risk of mishandling a legal question can be costly. For this reason, choosing the most appropriate legal counsel becomes an important decision. When circumstances become serious enough for an attorney to be involved, there are usually substantial rights and/or money at…

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