Employee issues: Legal advice can benefit from hiring, firing, setting up a board of directors, developing employee behavioral expectations, and other employee-related activities. Regardless of the size or type of church, there are legal considerations. Every church, synagogue, mosque or other religious organization should have a trusted lawyer on its leadership team. While a church may have charitable status, a spiritual entity often functions as a small business or business. With so many legal aspects of its operations and nonprofit status, a church can face a variety of legal issues. Common legal mistakes made by church leaders are listed below. The aggrieved party brings an action in the civil courts. The party must prove several elements to win, but the legal standard required for one party to prevail is not as difficult as that used in criminal trials. This makes cases of bodily injury a particular source of problems for churches. Contracts: A religious organization should always have legal counsel who reviews any type of contract or other legally binding documents and ensures that employees who handle money are bound and understand their fiduciary responsibilities. An experienced advocate for churches and religious organizations to help you deal with legal issues can be key to a positive outcome.
Under the guidance of a former missionary and graduate of Biola University, the Church Law Center has years of knowledge to skillfully meet the special legal needs of churches and religious organizations. Call us today at (949) 892-1221, email us at msteeves@churchlawcenter.com or contact us online to learn more about how we can help. In a series of occasional reports, “Religion and the Courts: The Pillars of Church-State Law,” the Pew Forum on Religion & Public Life examines the complex and fluid relationship between government and religion. Topics to be studied include religion in public schools, the display of religious symbols on public property, conflicts over the free exercise of religion, and state funding of religious organizations. 3 This is called the “neutral principles” approach because it allows the courts to apply ordinary legal principles independently of the beliefs and internal structure of the religious organization. (back to text) 3. In cities like Edisto Beach, South Carolina, churches are denied use of public facilities — even though they offer to pay the same prices as everyone else. This has a major impact on church planting and other small communities that otherwise cannot afford to build or rent larger private facilities. Free exercise and legislative and executive October 2008 A look at state and federal laws that protect religious freedom. For more information, see this collection of articles. In addition, ChurchLawAndTax.com offers the exclusive 50-State Child Abuse Reporting Laws Survey for Clergy and Church Leaders, which provides a comprehensive review of each state`s legal requirements and processes for reporting actual and suspected abuse. 2.
The FFRF also questions the exemption of churches from filing Form 990 with the IRS. Alliance Defending Freedom (ADF) represents a church in Washington, D.C. This challenge, if successful, would force churches to disclose sensitive information to the government and the public. It would also pave the way for further tax exemptions. Like any economic entity, churches and religious organizations need legal support to build and maintain their business structure and day-to-day operations. A proactive approach to these legal issues can help protect your business in the future. These legal functions may include: The First Amendment to the U.S. Constitution and similar provisions in state constitutions provide protection to churches when these types of conflicts arise. Similarly, the Law on Religious Use of Land and Persons in Institutions (RLUIPA) provides additional protection. Hammar explains these protections in more detail in the zoning law section of Chapter 7 of Pastor, Church & Law. The Internal Revenue Service grants tax-exempt status to churches and other religious organizations. Maintaining tax-exempt status under Section 501(c)(3) of the Internal Revenue Code requires a church to comply with the restrictions set forth in the tax code.
For example, churches cannot engage in political or legislative lobbying activities, or risk losing their tax-exempt status. Religious leaders may have difficulty identifying what behavior is simply preaching a sermon or making a point of view, such as a vision of how a politician or government organization works, or fundraising for a charitable cause, and what behavior crosses the line of political or legislative activity. A dedicated nonprofit attorney can help you maintain your tax-exempt status, advise you on activities that could compromise your tax-exempt status, and defend against allegations that your organization has disqualified itself from tax-exempt status. A second type of case also concerns disputes within a religious organization, but instead of property, these cases specifically concern the employment of clergy. Federal and state laws generally prohibit employers from discriminating against their employees on a variety of grounds, including race and gender. But many courts have found that the First Amendment exempts religious organizations from these anti-discrimination laws when making employment decisions through their own clergy. For example, the Roman Catholic Church is free to employ only men as priests. But the strength and scope of this exception — known as the “ministerial exception” — is still uncertain because the U.S. Supreme Court has never explicitly ruled on it, and lower courts are often divided on exactly how the doctrine should be applied. However, this uncertainty may soon come to an end, as the Supreme Court agreed to hear an exceptional ministerial case in the fall of 2011. Since the early 1980s, lawyer and CPA Richard Hammar, co-founder and editor of Church Law & Tax, has read thousands of cases involving churches, religious organizations and educational institutions.
Church leaders may misuse model charters or create bylaws without legal input. Legal documents are readily available online, but they are rarely suitable for all circumstances. A church should draft a bylaw that is specific to its congregation and is created under the direction of church leaders and an advocate. Legal review can ensure compliance with personnel, accounting, tax and other operational requirements and laws. Church Law Center lawyers and staff are there to represent the interests of your church or religious organization, regardless of the type of legal problem you are facing.