Church 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…

Church 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…

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,…

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…

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…

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…

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…

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…

Churches may not think of themselves in competition with each other. After all, churches serve a higher purpose than seeking market share at the expense of other religious organizations. However, the contest for new church members among churches may be unavoidable. In some instances, businesses that compete with one another seek to keep their employees from leaving for a rival. One way organizations protect their turf is to have their employees sign a non-compete agreement….

I often advise church organizations on how to improve their corporate governance. Corporate governance is the process organizations employ to ensure efficient policy and strategic making. The reason I recommend churches undertake proper governance is to help ensure they are good stewards of their resources. A common misnomer is that governance is complicated and hard to install. This is not so at all. In fact, an effective system of governance makes church operations run smoother….