Recently, there have been highly publicized accusations of negative conduct against famous people. In some cases, there were accusations of illegal, unethical and/or immoral behavior. The results left a stain on the companies’ reputations associated with these individuals. Church leaders should accept that no organization is immune to allegations of negative conduct. The problem may arise from a scandal that involves a church official or member of the clergy. The challenge could come from a…

In some respect, a church operates like any other business. It must be concerned about the bottom-line. For this reason, a church should watch its revenue, monitor its expenses and keep an eye on its properties. To get the most from its assets, a church might look for ways to increase its revenue. One place a church might look for higher earnings is the investment of its idle cash. Some churches keep their extra cash…

It is not uncommon for churches to offer transportation to members of their congregation and the public. Group rides are given to persons who attend church services and other events. For many churches, transportation is provided on 15-passenger vans. The National Highway Traffic Safety Administration (NHTSA) has issued a consumer advisory urging colleges, church groups, and other users of 15-passenger vans to take specific steps to keep drivers and passengers safe — including buckling up…

Churches face the same kinds of risks as other businesses. Churches have assets that should be protected. Churches face the dangers of theft, fraud and embezzlements. Churches need proper safeguards to safeguard their properties. One of the most common activities of a church is the receipt of donations from its membership. Contributions are often the primary form of revenue for a church. Church members are eager to support their ministry. As a result, church members…

Church trustees have important responsibilities. The North Carolina general statutes outline the broad powers of church trustees. Under certain circumstances, trustees may be sued as a result of their actions taken in this role. It is important for churches to understand the statutory limitations that protect trustees from liability. The statutes state that trustees have the power to receive donations and purchase, take and hold property in trust for the church. The law states that…

One might find it unimaginable that someone would cheat a church. After all, churches stand for doing the right thing. The reality is churches are as vulnerable to scam artists as other organizations. I have written on this subject before. I bring it up again because recently I’ve been asked to evaluate a number of potentially bogus offers. In every case, the offers were indeed fraudulent. I have found common elements to most of these…

Recent events in the news illustrate the damage a data breach can cause to an organization. Churches are subject to many of the same risks that plague most businesses. One type of risk is the threat that unauthorized persons will gain access to private information. I raise this issue because this is a real risk that should have the attention of church leaders. Further, there are corporate governance implications for not taking prudent actions. Most…

In a recent North Carolina case, a Federal Court determined that an employer can be liable for the harassment of its employees by third parties. This case illustrates the importance of churches as employers to monitor the conduct of others who have contact with their employees. In this case, an employer was found negligent for allowing a customer to harass an employee. The court found that the employer knew of the harassment. The employee complained…

Churches rely on a number of individuals to carry out their missions. Some of these persons serve in official clergy positions. Others may be employees and volunteers who perform routine operations. In all cases, churches should be clear to all who have explicit authority to represent their ministries. Individuals who represent others are known as agents. Church agents may have specific authority to act on behalf of the church. These actions may include signing contracts,…

Being a church official carries the reward of personal satisfaction. However, being a church pastor, minister, deacon and trustee comes with risks to personal liability. This risk includes the threat of lawsuits for conduct taken on behalf of the church. Many churches offer their officials group liability insurance to protect them from civil liabilities. In addition, many churches have indemnification provisions in their policies. These are good tools. Unfortunately, under certain situations, these practices may…