Disclaimer: This notebook and seminar does NOT constitute legal advice.

Our Goal for “Keep Your Church Out of Court”:

• Provide an overview of important legal issues and litigation risks.
• Summarize the top 5 reasons churches go to court.
• Consider 5 key areas for mitigating lawsuit risk.
• Provide resources for more information.

“Keep Your Church Out of Court” presents a summary of legal issues with a view towards real-world application. The seminar content is:

• Organized by key areas of law/litigation
• Presented as a two-hour overview of general church legal issues
• Arranged in eight sections:
  • Section 1 – Legal Summary
  • Section 2 – Reasons Churches Go to Court by Church Law & Tax
  • Section 3 – Abuse Prevention
  • Section 4 – Liability & Personal Injury Lawsuits
  • Section 5 – Insurance Coverage Disputes
  • Section 6 – Facilities, Weddings & Funerals
  • Section 7 – Constitution/Bylaws & Administration
  • Section 8 – Keeping Your Church Out of Court by Texas Baptists

Administration and Law – Recognize that administration exists to facilitate:

• Ministry
• Gospel Impact
• The Great Commission

The application of the law is just another tool to facilitate (or impede) effective ministry.

Section 1 – Legal Summary

Seminar Outline* (4 pages)

“Church Legal Matters Overview” by Michael Best* (7 pages)

Corporate (Transactions & Governance)

• 501(c)(3) Subsidiaries – Consider subsidiary governance, boards, property and tax IDs.
• Corporate Governance Structure – See Section 7
  • How are important decisions made?
  • Does this mirror the organization’s constitution and bylaws?
  • Bylaw-defined roles for Lead Pastor, Church Staff, Deacons, Committees and Trustees should be found here.
  • Follow your governing documents. Not following these documents may constitute grounds for litigation.

Marriage/Gender Identity Views – See Section 6

• Doctrinal Statements are foundational, but may not be enough.
• Answer the questions: Who can be married at my church?
  What kinds of marriages may pastors at my church officiate?
• Marriage Definition
• Other Factors – Counseling, Covenant Marriage

Waivers of Liability – See Section 4

• It’s important to recognize that lawsuits can occur at any time and for any reason.
• Waivers simply mitigate risk and deter potential lawsuits.

Membership – See Section 7

• Because church membership typically confers special privileges, it is an important milestone.
• In most churches, members can: Serve in leadership, serve on committees, become a deacon, have a marriage ceremony, vote on church business, etc.
• Answer the question: Who can become a member?
• Define a Church Discipline Process in your bylaws.

Commercial Real Estate

• Real Estate Transactions
• Land Use and Zoning

Intellectual Property

• Licensing (CCLI/CVLI)
• Streaming and Social Media Content
• Data Privacy and Data Breaches

Employment Law

• Personnel Policy and Handbook
• Employee Classification –
  • FLSA Classification Tree for Churches and Other Religious Organizations (1 page)
  • Licensing, Ordination, Commissioning (1 page)
  • Ministerial Recognitions Q&A (2 pages)
• Background Checks and Drug Screenings
• Housing Allowances – A Minister’s Housing Allowance is designated as the lesser of: The amount actually used to provide a home, the amount officially designated as a rental allowance, or the fair rental value of the home, including furnishings, utilities, garage, etc.
  • Housing Allowance Computation* (1 page)
• Residency Program and Interns – Be sure to follow Labor Department rules for employee/intern classification, compensation and work hours.
  • “Internship Programs Under the Fair Labor Standards Act” (Fact Sheet #71) by U.S. Department of Labor* (2 pages)

Other General Legal Issues

• Financial Policy
• Church Discipline
• Security and Safety

   Seminar Outline

   Seminar Slide Deck

   Seminar Content

   Church Law & Tax

   Alliance Defending Freedom

   Michael Best