January 18, 2017
Lawsuits against churches and ministries are on the rise, making their board members especially vulnerable. Sometimes, courts have found directors and officers personally liable when their actions have resulted in financial damages.
Consider these examples:
Even well-meaning actions could put the personal assets of board members at risk. However, by taking steps to limit liability, church and ministry boards can find stronger legal positions in which they can properly function.
Incorporate your ministry
If a church is incorporated, board members can gain the same legal protections that apply to board members in businesses. This protection comes with two requirements:
When incorporating, first contact an attorney who is familiar with not-for-profit laws in your state.
Include bylaw protection
If your bylaws do not include indemnification provisions, enlist the help of a local attorney to draft some. These provisions could prevent board members from having to pay out-of-pocket costs if they are sued in connection with their ministry work. Evaluate your bylaws regularly by appointing a task force to review the bylaws for necessary changes or additions.
Consider charitable immunity laws
Most states have charitable immunity laws that can protect volunteer workers—and potentially board members—from being sued in connection with their volunteer service. That immunity, however, is limited because the laws generally:
Charitable immunity laws are complicated and vary by state. Ask a local attorney to review applicable state and federal charitable immunity laws with you.
Insure your board members
Standard general liability insurance policies do not cover claims against directors or officers for financial damages resulting from their failure to perform their duties. Separate directors and officers coverage helps protect board members’ personal assets in the event of certain financial damages and lawsuits. It also covers financial damages that other parties undergo when leaders fail to perform their duties properly.
If your church is anything like mine, Vacation Bible School (VBS) is a big deal. Not just because it is central to our ministry’s outreach to young families, but because of the important role that VBS plays in the spiritual formation of children.
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.
As the Director of Ministry Safety for our agency, I am dedicated to finding ways to help safeguard ministries like yours.
As temperatures plummet, the risk of freezing pipes soars. Frozen pipes can cause costly messes that could also put your ministry on hold while you clean up.
On behalf of our agency, I recently participated in one such training which focused on strategies and tactics for responding as a single officer to an active safety threat in a school building.
If you’re anything like me (and maybe the rest of the world for that matter), you’re grateful to put the craziness of the past year behind us.
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.
Ministries are creatively scrambling to continue their operations and safely engage their congregations with an array of online technologies during the coronavirus pandemic. Unfortunately, hackers are ready to take advantage of the confusion with scams designed to steal valuable data or siphon funds from your ministry.
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.
If your ministry buildings were damaged as a result of these tornadoes, or if you plan on sending ministry volunteers out to assist with disaster recovery, be mindful of the dangers involved.
Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.
July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.
National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.