7 Ways to Protect Your Church: Strengthening Your Governing Documents

In today’s culture, legal threats to churches seem to be mounting on every side as many localities seek to restrict access to prime real estate through zoning, opponents of religious liberty attempt to dismantle tax-exempt benefits for churches and clergy, and disputes about church property and other issues increasingly wind up in the courts.

According to ChurchLaw&Tax.com, the top five reasons churches wind up in court include:

1. Property Disputes

2. The Sexual Abuse of Minors

3. Personal Injury

4. Insurance Coverage Disputes

5. Zoning Issues

In this changing legal landscape, how can you protect your church from harm and increase your chances of staying out of court? Here are seven ways to protect your church:

1. Leverage the Law in Your Favor

2. Strengthen Your Governing Documents

3. Minimize Your Liability Through Effective Policies

4. Develop Effective Employment Practices

5. Maintain Insurance Specific to Your Needs

6. Clarify Property Issues Early

7. Protect Your Children, Students, and Volunteers

Step Two: Strengthening Your Governing Documents

Often pastors call my office asking about employment practices, land purchases, incurring debt, or removing a leader. In the face of such crises and/or opportunities, I usually ask pastors two questions. The first is, “What do your governing documents say about it?” If they don’t answer, the second question is, “Can you find your governing documents?’ Often, the question in return is, “What are our governing documents?”

Your Church’s Governing Documents

Your church’s governing documents include its articles of incorporation, its constitution and bylaws, and any policies adopted by the board of directors. The articles of incorporation were drafted and filed with the state when the church was incorporated and may have been amended over the years; the articles serve as the ultimate set of rules for the church, meaning if there is a conflict between the articles and the constitution and bylaws, the articles prevail. In the same way, the constitution and bylaws come next in the pecking order, and likely are not filed with the state. Finally, there are policies adopted by the board of directors. This blog focuses primarily on the constitution and bylaws or simply the bylaw as corporations are not required to have both. A church often has both a constitution and bylaws to separate in the constitution its mission, affiliation, identity, and statement of faith from their operating bylaws with a higher percentage vote required to amend the constitution than the bylaws.

Simple, Strategic, and Secure

To make the documents simpler, a church’s constitution and bylaws should be reviewed and revised in light of the best practices for nonprofit corporations and churches with the goal to eliminate antiquated language and confusing legalese.

To make the documents more strategic, a church’s constitution and bylaws should be reviewed and revised in light of the responsibilities that are normally reserved for the bylaws and those normally reserved for policy and/or operation manual. Some types of material fit better in the bylaws versus the policy manual and vice versa. The biggest effect here is that the policy manual can often be amended by the board of directors, while the bylaws most often require a vote of the membership, meaning policies that may need to be reviewed regularly and updated may fit better in the policy and/or operations manual. This could include the following:

1. Financial Policies

2. Transportation Policies

3. Facility Use Policies

4. High-Risk Ministry Policies

To make the governing documents more secure, a church’s constitution and bylaws must be reviewed in light of Internal Revenue Code § 501(c)(3) and the current legal environment to determine if the governing documents provide the appropriate protections to the Church.

To provide the church with more security, the constitution and bylaws should include the following clauses:

1. Statement of Faith and Moral Teaching Clause

2. Formal Membership Requirements and Responsibilities Clause

3. Mutual Interest Clause

4. Ultimate Authority in Matters of Doctrine and Moral Teaching Clause

5. Religious Employment Clause

6. Incorporation and Tax-Exempt Purposes Clause

These clauses work together to provide the church with an increased level of security in matters pertaining to its faith and doctrine, the discipline of members and non-member volunteers, the church’s position as a religious employer, whose employees are all essentially engaged in fulfilling the church’s religious purposes.

Reynolds Law Group, PLLC can help you church review its governing documents through the Your Church Attorney program. For more information on how Reynolds Law Group, PLLC can assist your church, call us at 757.219.2500 for an appointment or email assistant@ReynoldsLawGroup.com.