January 4, 2017
When an organization becomes incorporated, it gains the same legal rights and responsibilities as an individual. That’s true for churches and ministries, just as it is for businesses. Incorporation takes the weight of responsibility off the shoulders of individuals and instead, places it on the organization. In contrast, a court may find all members of an unincorporated church legally responsible for negligent or criminal actions committed by one church member.
Incorporated churches and ministries have several advantages
Churches and other ministries should consider incorporation for a variety of reasons. The most important is to protect individual members from personal liability associated with the negligent actions of fellow members.
Incorporated ministries also enjoy other benefits:
Complete incorporation at the state level
Incorporation takes place at the state level, often through the Secretary of State’s office. When incorporating, first contact an attorney who is familiar with not-for-profit laws in your state. The attorney will prepare a document known as Articles of Incorporation and help you establish your corporation’s unique name, a statement of organizational purpose, and operational bylaws.
According to Michael Allison, vice president and chief counsel at Brotherhood Mutual Insurance Company, church bylaws should include the following elements:
Once you establish your church’s bylaws, use the bylaws as a guide by which your ministry operates. Doing otherwise can create legal problems, especially if church leaders reach major decisions in a manner inconsistent with your bylaws.
Review bylaws regularly
Your ministry should appoint a task force to evaluate its bylaws at least every two years. This group should operate strictly within the established rules for changing bylaws and should consult an attorney before finalizing official changes. Many states also require incorporated ministries to submit annual paperwork, such as an annual report to the Secretary of State’s office.
The ability to inspire others to give is a blessing. Because fundraising can be both exciting and challenging, there are some important details to consider that can help your donors, and organization, have a smooth and successful experience.
Has your church or school ever been asked to loan or rent one of your vans or buses to another ministry? Rather than running the risk of loaning or renting your own vehicle, you could consider aiding them financially in renting or chartering a vehicle from a rental agency.
Having insurance coverage specifically designed for long-term international missions helps protect your people and organization from the financial impact caused by injuries, lawsuits, property damage, and more.
With the holiday season right around the corner, it’s wise for ministries to evaluate their fire safety plan. Whether your ministry is hosting a holiday party, prepping treats for charity, or running a community kitchen, make sure you’re well-prepared with these tips.
As school is back in session, it’s important to make sure your school is equipped with the correct safety procedures. Thinking about your school’s physical security as a series of layers can help you find gaps in your plan. Transportation and volunteers are just two important aspects of your school safety plan to think about.
Anyone who turns on the news, flips through a magazine, or browses the web can see that American society and culture are experiencing rapid transitions. Some ministries have valid concerns that issues surrounding societal shifts may expose them to negative publicity, governmental scrutiny, or litigation.
The questions become: when and how can ministries operate within their deeply held religious beliefs when they may conflict with others’ rights?
Cyber security is increasingly crucial in our technologically advanced world. Scammers use many schemes when attempting to steal your data, but you can outsmart them by understanding their methods.
Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.
April is National Child Abuse Prevention Month. Though child abuse may not be something you could ever imagine happening within your ministry, sexual abuse of a minor is one of the top five reasons churches end up in court, according to Church Law & Tax. Studies also show that a child is much more likely to be sexually abused by a trusted adult than a stranger.
When severe storms strike, they can produce high winds and tornadoes. Damaging winds can wreak havoc on your ministry’s property and to buildings. A high wind event can crash debris through your windows, strip your siding, down trees on your parking lot, peel shingles off your roof, and fling back the flashing.
Thieves are taking advantage of soaring precious metal prices. Take steps to protect your ministry’s vehicles and property.
Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.
A mid-November deadline in the Boy Scouts of America’s (BSA) bankruptcy proceedings may have you wondering what the organization’s bankruptcy filing means for your ministry if you ever hosted or chartered Boy Scout Troops.
Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.
The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.
Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.