Organizations 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….

Most 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…

Clients often ask me to review their contracts before they sign on the dotted line. It is a good practice to have a lawyer provide counsel when the church is negotiating a new agreement. In some instances, a lawyer can help the church steer clear of potential problems. There are lots of issues an attorney looks for when helping a client with a new contract. We want to ensure the contract has all the requirements…

We recently received a contract from a client asking us to review the terms for its reasonableness. Our client was seeking catering and hospitality services from a hotel. The organization was planning a social event that included a banquet and overnight lodging for its guests. This is not an unusual scenario for churches. Churches often host social events that include catering and overnight accommodations. Most of these arrangements call for hiring third parties to provide…

Churches enter contracts for all kinds of purposes. Some agreements are for equipment purchases, to acquire vendor services or miscellaneous commercial transactions. Occasionally, a church may find that a party did not perform as expected. When this happens, the church may look to a legal remedy to resolve the conflict. There are several ways to clear up a dispute with another party. In some instances, the parties negotiate a mutually- beneficial solution. This is usually…

Your church has started a negotiation with a potential party. The deal could involve a real estate transaction, new ministry or partnership with another organization. In many of these instances, one party may ask the other to sign a Letter of Intent. Churches should be cautious with this agreement. A letter of intent is a document where the parties agree to work on an endeavor. Because some deals can be time consuming and costly, parties…

Many organizations have a written contract with their chief executive officer. The agreement sets forth the terms of employment and establishes a common understanding of the position description. There are many benefits to having a written employment contract. One of the most important duties of a presiding church board is coming to an agreement with the pastor on employment issues. Employment concerns may include compensation, benefits, retirement, performance expectations and length of the engagement. Employment…

Some churches offer naming rights for their properties. The rights may extend to assets such as church pews, stained-glass windows or even a building itself. Church leaders should consider the issues that can arise with naming rights. Granting someone the right to name a church asset can have several purposes. Some donors may wish to honor a family member. Businesses could be interested in naming rights for marketing awareness. As for the church, naming rights…

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…