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…

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…

One might think that churches would not be the mark of con-artists, swindlers and tricksters. The fact is churches are vulnerable to the same scams that plague secular organizations and individuals. Here is a common scheme that often catches victims off guard. In this scenario, a potential donor offers to make a substantial contribution to your ministry. The donor only has a cashier’s check. The donor offers to deposit the check in your offering basket…

During difficult economic times, many organizations look for new sources of revenue. For churches, the consideration of additional lines of income carries special significance. Notwithstanding the doctrinal concerns, churches should scrutinize new businesses just as any organization would. Business opportunities may be brought to church leadership by its membership. Members often mean well. However, such pro- posals should be viewed with an objective, arms-length approach. One type of business venture that may be presented to…

Churches, like many organizations, keep private information on their members. As leaders, you should consider the impact to your church should the sensitive information you have on your members be made public due to your negligence. Mistakes with member data could be a significant legal liability to a church, its leaders and congregation. Church leaders have a responsibility to safeguard the private information entrusted to them by their members. Private information is that which would…