Church Trustees Have Limited Immunity
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…
Read More...Naming Rights for Church Property
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…
Read More...Is Your Church Banker Talking Tough?
If your church has recently made an application for a bank loan, you may have noticed a different tone from your banker. Your banker may be asking for more information than the last time you applied for a loan. Some of the terms may seem a bit more burdensome. There is a good reason why your banker may be pickier this time around. The financial turndown in the economy has left banks and other financial…
Read More...Churches Subject to Copyright Laws for Music
Music can be an integral part of a church’s ministry. Music inspires the members of the congregation with stirring lyrics and familiar melodies. For many churches, music is an essential part of the worship service experience. Some churches find it appealing to play popular songs that are performed on the radio by recording artists. Musicians find this to be an effective way to connect with the listeners. Music may also be included in other aspects…
Read More...Churches Should Be Wary of Easy Money
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…
Read More...Church Organizations Could Lose Tax Exemptions
Churches are generally exempt from paying taxes on their related income. As such, churches are not normally required to file an income tax return. For some church organizations, the Internal Revenue Service (IRS) requires an information return. Some church activities may be incorporated as separate corporate charters. Activities such as recreational centers, daycares, housing projects and other community operations may be organized as their own legal entities. Because there is a connection to the Church,…
Read More...Churches Face Data Breach Risks
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…
Read More...Churches Can Be Liable for Third Party Harassment
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…
Read More...Churches Should Manage Their Agents
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,…
Read More...Protecting Church Officials From Personal Liability
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…
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