Some churches and religious organizations are led by a governing body. Sometimes the governing body is called a board of directors. In some instances, one of the church ministries serve as the governing body. Occasionally, it becomes necessary to welcome new members to the governing body. When new members are added, it becomes necessary to train the new board members on the church’s policies, practices and governance. One of the best ways to equip new…

Ordinarily, courts are reluctant to intervene in the governance of churches for First Amendment reasons. The First Amendment Establishment Clause of the United States Constitution warns the government off becoming entangled in the inner working of churches and other religious organizations. On the other hand, courts may scrutinize the governance of churches on issues that involve non-religious matters. Here is a recent North Carolina case that highlights this point. In 2013, former members of New…

News reports often mention the misbehavior of public figures. While bad conduct can happen in any organization, there are instances where a church can minimize inappropriate conduct. A Church Ethics Policy can help a ministry set the right expectations for their staff, officials and volunteers. A Church Ethics Policy should recognize the reputation and integrity of the church is one of its most valuable assets. Each employee or volunteer bears a special responsibility to conduct…

Succession planning is a recognized necessity for most organizations. It becomes even more important where the positions in an organization are critical to its survival. In a church, the Pastor and key leaders are vital. Churches should have a carefully crafted succession plan for the inevitable transition in leadership. Often when we talk about succession planning, we talk about the key executive officer. In the case of a church, the key officer is the Pastor….

Strategic planning is often thought to be an exercise reserved exclusively for corporations and for-profit businesses. Businesses engage in planning to select the right markets, products and prices for their customers. While strategic planning is essential to a business’ success, it is just as important for churches and ministries. Strategic planning is a corporate governance matter for boards and management of church organizations. In this article, we explore why strategic planning is important to church…

When it comes to governance, North Carolina law requires churches to decide on the type of corporate structure that will be followed. If the church operates with a board, the church should choose its type. For starters, the State law assumes that each church will have a board of directors. The board could be known by a variety of titles. In some instances, the deacons act as the governing body. Some churches are led by…

From time to time, churches find it necessary to have meetings with their members. Membership meetings may be held to handle routine business, elect officers and/or plan for the future of the church. One of the keys to holding a successful and legal church meeting is to provide adequate notice. Notification requires a publication that a meeting will occur and what topics will be discussed at the meeting. Generally, there are two kinds of church…

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…

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…

The start of a new year begins the practices of filing income tax returns, gathering receipts and finalizing the recordkeeping from last year. Donors may ask if your church is a tax exempt organization under the IRS rules. You may have wondered if your church should apply for a 501(c)(3) status. Now is a good time to have that conversation. There are two main advantages of having your church classified as a 501(c)(3) organization. First,…