Articles of Incorporation

Some may wonder why churches should incorporate. Doesn’t that make them too much like the secular world and a business instead of a house of worship? Whether we wish to admit it or not, reality is, there is a side of the church that is a business. The church has the opportunity to demonstrate to the world how financial and leadership issues can be handled in a highly ethical and correct manner. One of leadership’s main goals should be to set the example of being good stewards of all the resources (money, facilities, and people) that God has entrusted to them. One way to demonstrate this is for the church to be incorporated.

Advantages of incorporating       

By incorporating, churches can receive the following advantages over being unincorporated:

• Limited liability of directors, officers, and staff – This is not an absolute, but in most cases, directors, officers, and staff are protected from personal liability in lawsuits. If the church is sued or finds itself in excessive debt, the creditors typically would not be able to touch the personal assets of the directors, officers, and staff. If the church is not incorporated, directors, officers, and staff may find themselves personally liable to creditors to settle debt or for lawsuit settlements. Even if the church is incorporated, in unusual situations, the assets of the directors, officers, and staff may be sought by creditors through “piercing the veil,” if the settlement is the result of gross mismanagement or self-dealing.
• Tax exemptions – An incorporated church is eligible for exemptions from the payment of federal and state corporate income tax as well as state sales tax.
• Receiving Public and Private Donations – The majority of foundations and philanthropists require nonprofits (churches) to be incorporated before they will consider them for grants.

Protecting those that serve the church should be top priority for any church. Over the last several years we have seen businesses fall and their leaders held accountable. We’ve even seen the same thing happen in the church. We live in a society that is quick to sue. These litigations can reach deep into pockets for settlements. People need to know that they are going to be protected from losing homes and assets if their name is attached to leadership decisions. Though incorporation is not a failsafe, it does protect leaders in cases that do not involve gross mismanagement or self-dealing. Conflict of interest policies can also help provide a safeguard against self-dealing.

There is an act that has passed that would protect the directors, officers, and staff of unincorporated churches just as if they were incorporated. The details of this act are listed below. Please keep in mind that only 11 states have passed this act into law.

Uniform Unincorporated Nonprofit Association Act 

During the annual conference meeting of the National Conference of Commissioners on Uniform State Laws held in San Antonio, TX in 1996, the Uniform Unincorporated Nonprofit Association Act was drafted. The purpose of this act was to “encourage involvement in small community groups and other organizations that aim to benefit the public but don’t want to establish a formal corporate structure.” (“Starting & Building a Nonprofit” by Peri H. Pakroo, p. 1/9)

 This act provides unincorporated nonprofits with legal status of being a separate entity for purpose of liability. Under this act, directors, officers, and staff would be protected from liability the same as their equals in an incorporated nonprofit.

 The act provides unincorporated nonprofits with five benefits:

1.   It gives the associations the legal capacity to receive, hold, and transfer real and personal property.

2.   It provides limited liability for members and functionaries of the groups for personal injury and contract claims.

3.   It gives groups the right to sue and be sued as associations.

4.   It creates a procedure for disposing of the property of inactive associations.

5.   It allows an agent of the association (such as the activities coordinator, the president, or just a simple member) to be designated for service of process – the designated person then has the authority to receive legal papers on the group’s behalf.

(ibid.: 1/9)

To date only 11 states have adopted the act. These states include:

Alabama

Arkansas

Colorado

Delaware

District of Columbia

Hawaii

Idaho

Texas

West Virginia

Wisconsin

Wyoming

For details in completing an Articles of Incorporation see Block A-4 – Incorporation and Bylaws or IRS Publication 557.

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At-Will Declaration

When preparing an employee handbook, an at-will declaration must be included if the church is in an at-will state. At-will means that the church or the employee has the right to break their employer relations without warning except if such a breakage is considered illegal.

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Bylaws, Amended vs. Revised

Some may confuse the terms amended or revised bylaws. If only one section or subsection of the bylaws is being changed, then the bylaws are being “amended.” If there are multiple sections or the body of the bylaws is undergoing a major re-writing, then the bylaws are being “revised.”

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Bylaws, Content

The contents of the bylaws basically describe how the church functions. These functions include, but are not limited to, who are voting members, who are the leaders, how are leaders elected or ratified, what powers or limitations the leaders have, how pastor(s) are called or removed, and/or how business will be transacted in the church.

Robert’s Rules of Order Newly Revised, 10^th Edition describes the contents of bylaws on page 12 as:

“prescribes how the society functions; and includes all rules that the society considers so important that they (a) cannot be changed without previous notice to the members and the vote of a specified large majority (such as a two-thirds vote), and (b) cannot be suspended (with the exception of clauses that provide for their own suspension under specified conditions).”

In the process of defining the purposes and functions of the church, pastors and church leaders need to make sure that the following items are included in the bylaws:

• Name of the Church – As registered with the Secretary of State
• Address of the Church
• Object or purpose
• Definition of members
• Officers
• Meetings
• Executive Board
• Committees
• Parliamentary Authority
• Amendments

Additional items should be considered:

• Nominations, elections, or ratifications
• Pastoral Relations
• Member Relations
• Dissolution
• Indemnification
• Quorum
• Order of meeting

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Bylaws, Revision Guidelines

In Block A4 – Incorporation and Bylaws of the ABC’s of Church Management Manual, guidelines for revising bylaws are presented in a step-by-step fashion. The section also includes many examples of appropriate wording.

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Board, Governance

The governance board functions as the gate keeper. They set the boundaries within which the pastor(s) and any committees must function.

“A governing board can create and enforce guiding principles that not only define the outcomes desired from pastoral leadership but also set the boundaries of acceptable means to pursue those outcomes.”

(John Edmund Kaiser, Winning on Purpose, page 65)

Guiding principles can be compared to a rule book and the governing board is the referee. So long as the players are playing by the rules, the governing board shouldn’t need to blow their whistle. However, the governing board has the responsibility to hold the players accountable if they violate the rules. By functioning under the concept of guiding principles or boundaries, leaders are empowered to do ministry without having to constantly clear every move with the governing board.

Besides setting the guiding principles, the governing board has the responsibility of supporting and holding accountable the pastor or senior pastor. They do not manage support staff but work directly through the pastor or senior pastor. They should be the cheerleaders for the pastor. They should empower and not micromanage the pastor.

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Board Member Training

One of the short falls of most church boards is that they do not take the time necessary to orient new leaders to board processes, procedures, and strategies. Just as it is important to get training when taking a new job in the secular world, it is essential that new leaders on church boards and committees receive training as well.

Depending on what the board is trying to achieve in a training session, it may be accomplished in two hours or it may take up to a two-day retreat.

An orientation for new board or committee members can usually be accomplished in a two to three hour meeting if there is already a mission statement, policy manual, and strategic plan in place.

For examples of possible training session see Block A7 – Board & Committee Members.

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Calling Agreement

Once a church and pastor have reached an agreement on salary package, it should be put in writing. For an example of a calling agreement see Block B4 – Ministerial Transition Issues.

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Clergy-Penitent Privilege

Clergy-penitent privilege means that communication between a minister and a penitent is privileged and can not be forced to be revealed in a court of law. Each state has specific laws regarding this privilege. Ministers/pastors should contact their State Attorney General to learn their state’s rulings.

For more details see Block C1 – Clergy and the Law.

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Clergy Removal

Ministers/pastors can lose their ministry positions in one of two ways:

• The church fires them.
• Their credentials are revoked.

Unfortunately ministers/pastors find little help in the court system since the courts classify this an ecclesiastical issue. Under the first amendment courts are forbidden from addressing issues deemed to be ecclesiastical in nature.

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Code of Ethics

A code of ethics describes the behavior that is expected not only on the part of pastors and staff but also for the congregation. It is a statement that calls for accountability. A code of ethics provides:

·   guidelines which reflect the values of ministry.

·    expectations of minister’s and congregation’s conduct in relationship to peers and community.

·    support and protection to the individual and the minister.

·    (in specific relation to pastors) defines the ministerial profession and competence.

 (Joe E. Trull & James E. Carter. Ministerial Ethics:Being a good minister in a not-so-good world. pages 194-196)

For examples of code of ethics see Block A3 – Directional Statements.

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Complaint Policies

When preparing an employee manual, a complaint policy needs to be included. The complaint policy details the process through which complaints can be filed. It should include who complaints are filed with. Keep in mind that complaints may be against the pastor so provide an alternate person or committee that employees may complain to.

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Compensation, Pastoral

Establishing pastoral compensation packages are very detailed. Block B4 – Ministerial Transition Issues of the ABC’s of Church Management Manual provides a detailed step-by-step process for developing a pastoral compensation package. Additional resources include www.cogpension.org or Richard Hammar’s, Compensation Handbook for Church Staff.

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Conditional Deeding

Many denominations, movements, and non-hierarchical structured groups are beginning the process of conditional deeding or safeguarding church properties and assets. Though the following is written to address the Church of God, Anderson, Indiana, the contents would apply to any group.

Myth 1: We are an autonomous church and we can do with our property whatever we want and no one can tell us what to do.

WRONG: The IRS is very specific about what you can and can not do with your property should the church close. In IRS Publication 557 on page 19, the IRS states:

Assets of an organization must be permanently dedicated to an exempt purpose. This means that should an organization dissolve, its assets must be distributed for an exempt purpose…or to the federal government or to a state or local government for a public purpose. If the assets could be distributed to members or private individuals or for any other purpose, the organizational test is not met.

A church, being an exempt organization under the group letter of the General Assembly of the Church of God, Anderson, Indiana (yearbook recognition) or through their own 501(c)(3) filing, is required to have a dissolution clause in their organizational documents. This means that a church must list where their property and assets will be distributed if the church should cease to exist. One good place for this to be listed is in the Articles of Incorporation but it should be in the bylaws as well.

The best way to make sure that the property is distributed as the church desires is to have quitclaim deeds drawn that specifically designate where the property and assets will be distributed. Each state has specific requirements for conditionally deeding properties. Churches should contact their Area Administrators/State Ministers for templates for preparing these quitclaim deeds. This distribution should be listed in the Articles of Incorporation as well.

Myth 2: If we conditionally deed our property to our state ministry, we will have to get their permission every time we desire to do something to our property.

WRONG: The church does not have to ask permission to remodel, paint, expand, or make changes to the property. They only have to notify the state office if they plan to sell the property for relocation or to dissolve the church. If the church is wishing to relocate, whoever they have the property conditionally deed to will have to release their claim before the property can be sold.

Myth 3: If our church property is conditionally deeded to our state ministry, they can force our church to close to sell the property to settle any financial debt our state ministry has.

WRONG: When church property and assets are conditionally deeded, the church maintains control of the property. The autonomous nature of the Church of God does not give the state offices the power to mandate any church to close or to sell its property. Closure of a church will be the joint determination of the remaining congregation and the state office.

Benefits of Conditional Deeding:

Now that we’ve broken the myths of conditional deeding, let’s look at the benefits:

• Conditional deeding keeps property and assets in the Church of God in your state and can be used to further the ministry of the Church of God either in the community where the property is located or in new communities.
• A conditional deed keeps property and assets from being removed if an outside group of a different persuasion tries to remove the church from the Church of God.

The last thing church leaders want to think about is the possibility of having to close a church. However, if the church leaders do not designate in their Articles of Incorporation and/or bylaws, who receives the property or proceeds from the property, the property can become the responsibility of the courts to distribute as they see fit.

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Confidentiality

Many aspects of communications between pastors and their members, pastors and staff, and in board meetings are confidential. This means that the contents are not to be disclosed to another person including spouses and family members. Breaching confidentiality is considered a breach of fiduciary duty of due care and can be destructive to pastors, members, and the church as a whole. Breach of confidentiality needs to be taken seriously.

For detailed information see Block C1 – Clergy and the Law.

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Conflict

Conflict arises in the church in a variety of ways. It can be handled in constructive ways that have positive impacts on the church. Or it can be handled in destructive ways that have lasting negative impacts. Block E1 of the ABC’s of Church Management Manual addresses various ways to constructively address conflict.

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Conflict of Interest

The potential for conflict of interest to occur happens when these business people also serve as board members. It is not that these individuals should not serve as board members since their business skills can be of great help to the church, but that there should be a clear policy in place to address the protocol that should be followed if a conflict of interest arises.

Mark Warda states the following warning:

“Avoid keeping any conflicts secret. If the organization is dealing with an insider or an insider’s family member, do not try to hide it. Explain the person’s relationship to the organization and put the transaction in the records.”

How to Form a Nonprofit Corporation, Sphinx Publishing, 2004, p. 47

If a church board votes to use a church member’s or family member’s business or services, they should clearly state in board or congregational minutes the relationship of this person to the business and the procedures used for selecting that particular business. If the church member or family member is serving on the church board, he/she should abstain from any voting and have that abstention recorded in official minutes of the board or congregational meeting.

For examples of conflict of interest policies see Block A7 – Board & Committee Members.

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Congregational Survey

The congregation survey is an important tool in the pastoral search process. The survey helps the pulpit committee in several ways.

1.  The congregational survey gives the members of the congregation an opportunity to express their opinion about the church and what they would like in a new pastor.

2.  The congregational survey provides a way for the congregation at large to be heard.

3.  The congregational survey helps the pulpit committee to better understand the congregation.

4.  The congregational survey helps the pulpit committee evaluate candidates in light of congregational needs and desires.

5.  The congregational survey helps the Area Administrator “weed out” candidates that would not fit a specific congregation.

The congregational survey is a tool that must be evaluated with a critical eye. A congregation may well know what it wants but not be aware of what it needs. Therefore, the survey should have questions that pertain to the needs of the congregation as well as the wants.

The congregational survey should cover several critical areas of church life:

1. Opinions on the congregation’s strengths and weaknesses.

2.  Information on the one filling out the survey

a.      Age

b.      Occupation

c.      Length of time in the church

d.      Yearly income

e.      Gender and Marital Status

f.        Education

g.      Involvement in the life of the church

h.      Distance to church from where they live

3.  Expectations of a pastor

4.  Hopes for the future of the church

5.  Preferable age and experience of the next pastor

The pulpit committee would be wise to put together information that would help a candidate understand their congregation.

1.  A list of the church’s core values.

2.  A brief history of the church including pastoral tenures, splits or major disruptions, greatest victories, etc.

3.  Factors that contributed to the growth or decline of the congregation.

4.  Demographic composition of the congregation and community.

5.  Attendance trends in the last decade.

6.  Leadership styles of the last 2 or 3 pastors and the style with which the congregation is most comfortable.

For examples of congregational surveys see Block B4 – Ministerial Transition Issues.

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Core Values

Core values are consistent, passionate, and particular convictions that have a biblical basis for influencing our decisions, driving our ministry, and describing our behavior. They are the penetrating motivators which describe an organization’s intrinsic excellence or desirability. They describe the essence of an organization. Written in the present or past tense, they state the organization’s driving passion.

Core values will remain in tact throughout an organization’s duration. They may be tweaked, but they may not be changed. Will these values stand the test of time?

Associated with emotions and intellect, they inspire and move people to action. Do these values generate enthusiasm and energy? Do these values touch people’s emotions?

Core values describe the essence of a person’s or organization’s existence. They must be based on biblical principles which reflect God’s unique assignment. Can these values be found in scripture?

Decisions are made based on clearly expressed values. Are the core values comprehended so that the correlating behavior will be recognized? Are decisions of the organization based on the stated values?

When everyone in the organization shares the values, then they act together for the common cause. Can the motivations of strong commitment within the organization be tied to the statement of values?

The characterization of the organization will be recognized by the stated values and the way in which they are exercised. The values will be congruent and model a consistency of behavior. Does the performance of the organization reflect the core values?

For examples of core values see Block A3 – Directional Statements.

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Department of Labor

Below is the contact information for the states’ Departments of Labor.

 

Alabama

Department of Industrial Relations

334-242-8990

www.dir.state.al.us

 

Alaska

Department of Labor and Workforce Development

907-465-2700

www.labor.state.ak.us

 

Arizona

Industrial Commission

602-542-4411

www.ica.state.az.us

 

Arkansas

Department of Labor

501-682-4541

www.state.ar.us/labor

 

California

Department of Industrial Relations

415-703-5050

www.dir.ca.gov

 

Colorado

Department of Labor and Employment

303-318-8000

www.cowork.force.com

 

Connecticut

Labor Department

860-263-6505

www.ctdol.state.ct.us

 

Delaware

Department of Labor

302-761-8000

 

District of Columbia

Department of Employment Services

202-671-1900

http://does.ci.washington.dc.us

 

Florida

Agency for Workforce Innovation

850-245-7105

www.floridajobs.org

 

Georgia

Department of Labor

404-656-3011

877-709-8185

www.dol.state.ga.us

 

Hawaii

Department of Labor and Industrial Relations

808-586-8865/8844

http://dlir.state.hi.us

 

Idaho

Department of Labor

208-334-6112

www.labor.state.id.us

 

Illinois

Department of Labor

312-793-2800

www.state.il.us/agency/idol

 

Indiana

Department of Labor

317-232-2655

www.ind.gov/labor

 

Iowa

Iowa Workforce Development

515-281-5387

800-JOB-IOWA

www.iowaworkforce.org/labor

 

Kansas

Department of Human Resources

785-296-4062

www.dol.ks.gov

 

Kentucky

Department of Labor

502-564-3070

www.kylabor.net

 

Louisiana

Department of Labor

225-342-3111

www.ldol.state.la.us

 

Maine

Department of Labor

207-287-3787

www.state.me.us/labor

 

Maryland

Department of Labor, Licensing, and Regulation Division of Labor and Industry

410-767-2236

www.dllr.state.md.us

 

Massachusetts

Department of Labor and Workforce Development

617-727-6573

www.state.ma.us/dlwd

www.mass.gov/dlwd

 

Michigan

Department of Labor and Economic Growth

517-373-3034

www.cis.state.mi.us

www.michigan.gov/cis

 

Minnesota

Department of Labor and Industry

651-284-5005

800-342-5354

www.doli.state.mn.us

 

Mississippi

Department of Employment Security

601-321-6100

www.mesc.ms.gov/wps/portal/#null

 

Missouri

Department of Labor and Industrial Relations

573-751-4091

573-751-9691

www.dolir.mo.gov

 

Montana

Department of Labor and Industry

406-444-2840

http://dli.mt.gov

 

Nebraska

Department of Labor

402-471-2239

402-595-3095

www.dol.state.ne.us

 

Nevada

Division of Industrial Relations

775-684-7260

http://dirweb.state.nv.us

 

New Hampshire

Department of Labor

603-271-3176

www.labor.state.nh.us

 

New Jersey

Department of Labor

609-292-2313/2323

www.state.nj.us/labor

 

New Mexico

Labor of Industrial Division Department of Labor

505-827-6875

505-841-8993

www.dol.state.nm.us

 

New York

Department of Labor

518-457-9000

www.labor.state.ny.us

 

North Carolina

Department of Labor

919-807-2796

800-625-2267

www.nclabor.com

 

North Dakota

Department of Labor

701-328-2660

800-582-8032

www.state.nd.us/labor

 

Ohio

Division of Labor and Worker Safety

Department of Commerce

614-644-2239

www.com.state.ohio.gov/laws

 

Oklahoma

Department of Labor

405-528-1500, ext. 200

888-269-5353

www.okdol.state.ok.us

www.ok.gov

 

Oregon

Bureau of Labor and Industries

503-731-4200

www.boli.state.or.us

 

Pennsylvania

Department of Labor and Industry

717-787-5279

www.dli.state.pa.us

 

Rhode Island

Department of Labor and Training

401-462-8000

www.dlt.state.ri.us

www.det.state.ri.us

 

South Carolina

Department of Labor, Licensing, and Regulation

803-896-4300

www.llr.staet.sc.us

 

South Dakota

Division of Labor and Management

605-773-3681

http://dol.sd.gov

 

Tennessee

Department of Labor and Workforce Development

615-741-6642

www.state.tn.us/labor-wfd

 

Texas

Texas Workforce Commission

512-463-2222

www.twc.state.tx.us

 

Utah

Labor Commission

801-530-6801

800-222-1238

www.labor.state.ut.us

 

Vermont

Department of Labor and Industry

808-828-2288

www.labor.vermont.gov

 

Virginia

Department of Labor and Industry

804-371-2327

www.dli.state.va.us

 

Washington

Department of Labor and Industries

360-902-5800

800-547-8367

www.lni.wa.gov

 

West Virginia

Division of Labor

877-558-5134

304-558-7890

www.wvlabor.com/newwebsite/Pages/index.html

 

Wisconsin

Department of Workforce Development

608-266-3131

www.dwd.state.wi.us

 

Wyoming

Department of Employment

307-777-6763

http://wydoe.state.wy.us

 

U.S. Department of Labor

202-693-4650

www.dol.gov

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Diagnosing Conflict

What are the signs of conflict?  Is there a way to measure the severity?  How will I know when to respond?

Knowing one’s condition and accepting an honest appraisal or diagnosis is vital toward a restoration of health.  A desire to “win” at all costs almost always ends in a “loss” for all parties.  Thus it is our desire to promote wholeness and health rather than a sense of justice.  That is not to say that fairness and fair play are not important but simply an acknowledgement of the destructive power that individuals can wield when waging a holy war.

For details in diagnosing see Block E1 – Resolving Church Conflict.

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Directional Statements, Code of Ethics

See Code of Ethics

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Directional Statements, Core Values

See Core Values

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Directional Statements, Evaluation

See Evaluation of Directional Statements

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Directional Statements, Goals

See Goals

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Directional Statements, Mission

See Mission Statements

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Directional Statements, Objectives

See Objectives

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Directional Statements, Strategic Planning/Action Plans

See Strategic Planning/Action Plans

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Directional Statements, Vision

See Vision Statements

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Disciplining

When conflict arises in the church, disciplining may be necessary. This may take the form of teaching, mentoring, or removal from position.

For details on disciplining see Block E1 – Resolving Church Conflict.

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Discrimination

Employment Discrimination laws seek to prevent discrimination based on race, sex, religion, national origin, physical disability, and age by employers. There is also a growing body of law preventing or occasionally justifying employment discrimination based on sexual orientation. Discriminatory practices include bias in hiring, promotion, job assignment, termination, compensation, and various types of harassment. The main body of employment discrimination laws is composed of federal and state statutes.

Title VII prohibits discriminatory conduct ranging from hiring to termination and everything in between. Under Title VII it is illegal for an employer to “fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s race, color, religion, sex, or national origin” 42 U.S.C.  2000e-2(a)(1).

Usually the question of whether your ministry is covered by Title VII, will not be clear cut. Your ministry may also be subject to state law which prohibits similar types of discrimination. Therefore, it is best for you to attempt to comply with Title VII, rather than risk a lawsuit. Most ministries do not want a reputation for discriminating on the basis of race, sex, color or national origin, regardless of whether they are subject to Title VII.

For additional information see Block B2 – The Church & the Law.

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Dissolution Clause

The IRS requires that when a nonprofit organization dissolves, its assets must be distributed to another nonprofit organization. Churches are not permitted to dissolve to themselves and distribute the assets among the remaining members.

IRS Publication 557 states the following on pages 19-20:

“Assets of an organization must be permanently dedicated to an exempt purpose. This means that should an organization dissolve, its assets must be distributed for an exempt purpose described in this chapter, or to the federal government or to a state or local government for a public purpose. If the assets could be distributed to members or private individuals or for any other purpose, the organizational test is not met.

To establish that your organization’s assets will be permanently dedicated to an exempt purpose, the articles of organization should contain a provision insuring their distribution for an exempt purpose in the event of dissolution. Although reliance may be placed upon state law to establish permanent dedication of assets for exempt purposes, your organization’s application probably can be processed much more rapidly if its articles of organization include a provision insuring permanent dedication of assets for exempt purposes.

Revenue Procedure 82-2, 1982-1-C.B. 367, identifies the states and circumstances in which the IRS will not require an express provision for the distribution of assets upon dissolution in the articles of organization. The procedure also provides a sample of an acceptable dissolution provision for organizations required to have one.

If a named beneficiary is to be the distribute, it must be one that would qualify and would be exempt with the meaning of section 501(c)(3) at the time the dissolution takes place. Since the named beneficiary at the time of dissolution may not be qualified, may not be in existence, or may be unwilling or unable to accept the assets of the dissolving organization, a provision should be made for distribution of the assets for one or more of the purposes specified in this chapter in the event of any such contingency.”

For additional information see Block A4 – Incorporation and Bylaws or Block B5 – Conditional Deeding.

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Drugs and Alcohol

Even though we are talking about churches on this website, a church’s employee handbook needs to have a drug and alcohol policy. It is possible for pastors or church employees to have drug and/or alcohol issues. Having a policy in place allows the church to respond proactively instead of reactively should a situation arise.

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Duty of Care

One fiduciary duty a board member is responsible to carry out is duty of care. Duty of care can be defined as:

“Requires the individual to discharge duties in good faith, in a manner one reasonably believes to be in the best interests of the organization, and with the care an ordinarily prudent person in a like position would exercise under similar circumstances. The individual must devote the time, attention and resources necessary to understand and prudently oversee the affairs of the foundation.”

http://www.mcf.org/publictrust/wegsk_fiduciary.htm

Good faith for a board member is that behavior that they would expect another to implement if they were serving in a similar board position. To make sure a board member meets the compliance of duty of care, the following should be kept in mind:

• Attend all board meetings and/or committee meetings.
• Know and understand the bylaws of the church.
• Understand and question, when necessary, all financial reports of the church.
• Make sure that accurate minutes are being kept of all board meetings. This includes accurate minutes of any annual or special meetings of the congregation.
• If a decision is being voted on that the board member can not agree with in good conscience, the board member should make sure that the minutes reflects that they are abstaining.
• Board members need to be intentional in protecting the church property and investments.
• Board members should understand the federal and state tax issues that pertain to the church and clergy.
• Board members should be intentional in providing security in the hiring and appointing of paid and/or volunteer positions in the church.
• If allegations are brought forth, the board members are obligated to investigate such allegations.

To prove a breach of duty of care, negligence must be proven. To date, lawsuits proving breach of duty of care by church board members are minimal. However church board members shouldn’t find security in that point. It is better for the church board to be proactive and forward-thinking as opposed to costing the church thousands of dollars in legal fees should a lawsuit arise.

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Duty of Loyalty

Another fiduciary duty a board member is responsible to fulfill is duty of loyalty. Duty of loyalty is defined as:

“Requires the individual, when making a decision or acting on behalf of the foundation, to set aside personal or conflicting interests and act solely in the best interest of the foundation.”

http://www.mcf.org/publictrust/wegsk_fiduciary.htm

Basically the duty of loyalty means that a board member will not use their position on the board for personal gain. This would include not using the church’s assets for personal gain.

This duty includes the concept of conflict of interest. What exactly is “conflict of interest?” If a person’s personal or professional concerns interfere with his/her ability to put the church before personal benefit, conflict of interest exists. Many churches will have members that are involved in a variety of businesses. These can be contractors, lawn care services, roofers, painters, sales people, etc.

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Employee, Benefits

This section details health care coverage, state disability insurance, workers’ compensation, and unemployment insurance. This section may or may not be applicable for the church. If the church is not able to provide health care insurance, that needs to be stated. The church needs to contact their state department of labor to see if they are exempt from unemployment insurance or not. Basically churches are exempt from unemployment insurance as far as ministers but the state may have different rulings for non-ministerial positions. Churches are not exempt from workers’ compensation. Contact your insurance agent for more information.

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Employee, Classification

The church’s employee handbook must contain a section which defines whether employees are temporary, full-time, part-time, exempt or nonexempt. This section needs to be described clearly because many benefits will depend on the employees’ status.

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Employee, Manual

Very few churches have an employee manual because they do not see the need for one. This may be true for a church where the pastor is the only employee but even in that case it is wise to have a document that spells out what is expected of the church’s employees.

Employee manuals provide all employees specific information regarding vacation, work hours, dress codes, leave time, benefits, expected behavior, and much more. For the most part the church has the freedom to set most of the information found in the employee. However there are some categories that must comply with specific state or federal laws.

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Employee, Privacy

Because of computer technology, employees need to understand the church’s position on workplace privacy. Be upfront and detailed in this section. Do not lead employees to believe their communications either by letter, email, or phone are free from monitoring.

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Employee Records

Employee records contain personal information such as social security numbers and contact information. These records need to be kept in a locked file with limited access. This section includes:

·        How employee records will be handled.

·        The church’s policy on confidentiality.

·        How to make changes to personal information.

·        Who can and how to inspect personnel records.

·        How the church will protect medical records.

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Ending Employment

When an employee chooses to leave or the church ends the employment relationship, employees need to know what they can expect from the church. This section should describe:

·        When the employee will receive a final paycheck.

·        If severance packets are an option.

·        What happens with the employee’s health care coverage.

·        Will the employee be permitted an exit interview.

·        Will the employee be permitted to use the church or their supervisor as a reference?

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Ethics

The ABC’s of Church Management Manual offers a complete block regarding ethics in the church. This block addresses ethical character, integrity, forms of misconduct, relationships, counseling, and formation of ethical practices. See Block C3 – Pastoral and Leadership Ethical Practices.

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Evaluation of Directional Statements

Evaluation is the ending activity which provides new insight for futuring. Assessment and compliance help to determine if the direction of the organization has remained on target.

How well did we achieve the objectives and goals?  What changes needed to be made in the strategy and action plans? What would we do differently if we were just starting the journey now? How did we respond to road blocks and difficulties? What did we learn that will guide a new directional plan for the organization?

How did our efforts remain congruous with the mission and values of our organization? Where and why did we deviate from our directional statements?

To see how you have done, review your list of objectives and goals. How are you doing? How many were accomplished? How many were done well? What are the road blocks that kept you from accomplishing other objectives and goals? What can be done to eliminate those road blocks?

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Evaluations, Pastoral

As with any type of employment, pastors need set expectations and evaluations on how they are doing in meeting those expectations. Evaluations must address effectiveness of ministry and not become a personal attack.

For examples of pastoral evaluations see Block B4 – Ministerial Transition Issues.

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Fiduciary Responsibilities, Duty of Care

See Duty of Care

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Fiduciary Responsibilities, Duty of Loyalty

See Duty of Loyalty

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Goals

A goal is a statement of dated intent to obtain a describable quality and/or quantity of results. It is written as a measurable, attainable, pragmatic, and specific plan for accomplishing an objective. It serves as a precise concentration for task attainment.

A goal should contain a quantifier which provides the standard for measuring completion. Does the goal describe a means for determining the level of achievement?

A realistic goal is reachable. Can the goal be accomplished?

Given the needs and available resources, is it practical to invest time and talent in the goal? Is it a sensible and worthy cause?

A goal states in detail the task to be accomplished and when it will be completed. Does the goal state what the organization wishes to accomplish and the time frame for completion?

For examples of goals see Block A3 – Directional Statements.

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Governance, Board

See Board Governance

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Governance Structure

In times past, it was standard for a church to operate under a church council structure with multiple committees. In some cases this structure called for more positions than there were people attending the church to fill them. In recent years, churches have been moving towards elderships, leadership team, steering committee, and other governance structures.

There is no one structure that is perfect for every church. Determining the proper governance structure of a church should take into consideration the vision and mission of the church, the size of the church, and the training/mentoring of leaders.

Before a church can determine how it’s going to operate, it needs to know where they are going and what it is they are trying to accomplish. Remember that Robert’s Rules of Order Newly Revised 10^th Edition on page 12 states:

“…bylaws…of a society are documents that contain its own basic rules relating principally to itself as an organization…”

Just as bylaws are specific for a particular organization, the governance structure should be selected based on the vision and mission of the church. The governance structure should be such that it enhances the ministry vision and mission and not bog it down.

If the church leadership has not established the vision and mission statements for the church, it should stop the bylaw revision at this point and concentrate on those statements first. See Block A3 – Directional Statements for guiding questions in formulating these statements. Once the statements are agreed upon, the congregation needs to be educated about them. The statements should become living statements of the congregation. Every ministry, church event, or program should be assessed to see if they are in alignment with the vision and mission statements. If they do not enhance or accomplish the vision and mission of the church, it may be necessary to determine whether that ministry, church event, or program should be discontinued, eliminated, shelved, or not started.

Once these statements have been established, the next item to consider is the size of the congregation. If the size of the congregation is 30 but the governance structure calls for 45 positions, there is a problem. Don’t laugh, this really happens in churches that have faced decline but have not revised their bylaws to address the decline. On the other side of the coin is the governance structure that calls for 3 to 5 people while the congregation has grown to over 400. These 3 to 5 individuals become overwhelmed and burned out trying to keep up with the expanding ministry needs.

The governance structure should be fluid in that it can be increased or decreased depending on the life cycle of the church. Governance structures are not a “one size fits all.” Each needs to be designed to meet the specific calling of the individual church. Each needs to be designed so that ministry can occur effectively and efficiently. Waldo J. Werning is his book, 12 Pillars of a Healthy Church, quotes George Barna on page 33:

“…Most of our research suggests that the typical church is structured in ways that prevent it from effectively ministering to people. In most cases, the very organizational framework of the congregational church is inappropriate for addressing the needs resident in today’s world…The design of the typical local church – which remains the primary model of ministry – sets them (and us) up for defeat….They often confuse structure and methods with theology and message.”

To assist in determining the best structure for a particular church, the church leaders must be ready to address some hard questions. These questions call for complete honesty and courage to evaluate what the church is currently doing against what God has called it to do. This evaluation may call for some “sacred cows” to be sacrificed. At this point every function, duty, ministry, and event must be evaluated against the mission and vision statements. As each is evaluated consider the following questions:

• Why are we doing this?
• Does it help us accomplish our mission effectively?
• If it is not helping effectively, is this something that can be eliminated?
• Who would be affected adversely if it was eliminated?
• If deemed necessary to continue, how can it be revised to help better accomplish the mission of the church?

This may be a long process and some feelings may get hurt especially from those with a “we’ve always done it this way” perspective.

When the above step has been completed successfully, a list of ministry needs should remain that focuses on the mission of the church. Now is the time to start thinking creatively about what a governance structure would look like to meet those needs. Waldo J. Werning states on page 34:

“Building a functional structure and administration requires less use of Boards and Committees, and more dependence on ministry teams and ad hoc groups which accomplish both short-term and long term tasks. It demands fluidity and pro-active responses to ministry and mission opportunities for the people to do God’s work.”

The organizational chart should literally be drawn before any words describing it are recorded. The organizational chart should display fluidity, strategy, resources, vision/mission, and ministry.

The foundation of the organizational chart should always be the vision and mission. The areas between vision/mission and ministry should describe how the church will be equipping for ministry, the ministry needs, and how the church will multiply leaders for the future.

Once the organizational chart has been buffed, it is now time to name the structure and put words to it to describe how it works. There is no rule that says the governance structure has to be called a Board of Elders, Leadership Team, Steering Committee, etc. Select a name that best fits the needs of the church. Next describe the flow of the structure. Be as detailed as possible at this point. Be creative in the descriptions. Write them in simple language.

The governance structure of the church has now been created to fit the specific mission and needs of the church. It’s time to review and revise. The following guiding questions may help:

·        Is the structure fluid?

·        Is it effective?

·        Does it help us accomplish our mission?

·        Is it easy to follow?

·        Does it set the church up for failure?

·        Has anything fallen through the cracks?

·        Are there any areas that are unclear?

·        Does it allow for the people to be involved in the ministry of the church?

·        Does it empower people to minister?

·        Does it provide resources for people to do ministry?

·        Does it provide avenues for multiplying leaders?

After answering these questions there may be areas that will need revision.

When implementing a new governance structure to a church it is essential during the first two years that periods of evaluation occur frequently. Invariably there will be something that falls through the cracks. By evaluating frequently, corrections can be made.

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Governance, System

The major advantage of a governance system is that ministry can be done without micromanagement of the governing board. The pastor, support staff, and church leaders are empowered to focus on the vision and mission of the church. In other words, they are empowered to do ministry as opposed to being bogged down with administration.

Another advantage of a governance system is that it requires fewer individuals to long term commitments. In today’s society, people’s time is very limited. People can commit to short-term commitments much easier than 2 or 3 year commitments. The governance structure permits for a variety of taskforces or subcommittees as are necessary to accomplish the ministry needs. It provides an avenue through which more individuals can become involved in the ministry of the church.

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Harassment

When preparing an employee handbook, it must contain a section addressing harassment. The church is no different than any other place of work. Harassment of any sort must not be tolerated. The harassment section must detail the church’s policy on harassment, methods for filing harassment claims, investigation procedures, and disciplining actions. The church should check with their state attorney general’s office for any specific state regulations.

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Health and Safety

Churches are not exempt from meeting OSHA regulations. This section not only covers OSHA regulations but also security procedures. This is the place to also instruct employees what to do in the case of emergencies, smoking regulations, and the handling of violence on church property.

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Hiring Practices

The church’s policy and procedure handbook must contain a section that specifies that they are an equal opportunity employer except for the Title VII exemption in regards to religion. The items that should be considered in the hiring process section include:

• How vacant position will be posted.
• What screening agencies will be used. State police, local police, church state or national offices, etc.
• Interviewing process.
• Reference check process.
• How job offer will be presented.
• Job evaluation process.

While determining the hiring process, the church may wish to review the termination or discipline process that was developed in the employee manual and include it in this section.

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Incorporation

See Articles of Incorporation

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Indemnification Clause

An indemnification clause details what the church will or will not provide as far as legal council and expenses should a pastor or church leader be accused of any type of misconduct. The church is not required to provide this statement in their bylaws but it does help protect church leadership and church funds should such a situation arise.

For examples of indemnification clauses see Block A4 – Incorporation and Bylaws.

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Installation of Pastor

The Installation service provides a wonderful opportunity to introduce your new pastor to the community. The service should be well advertised. Personal invitations should be sent to dignitaries of the community (Mayor, Town Council, County Commissioners, etc.). Invitations should also be sent to all pastors in the area. Be sure to inform and invite other Church of God congregations in the area.

The planning of the Installation service is a joint effort between the pastor, the search committee, and the district office. Most state or regional offices have sample worship folders and guidelines for installation. To obtain samples contact your state or regional office. Often the new pastor has a person who is special to him/her, and would like them to participate. The church should underwrite the cost of bringing that person to the installation. The state or regional office likes to have someone there to welcome the new pastor, be sure to speak with someone in that office early on to be sure that a specific date is available.

The installation is a gathering of pastors, churches, and dignitaries. It is important to plan this service at a time that all can attend. Sunday afternoon is the most regularly used time. In planning a time, be sure to give travel time for those who are a significant distance away. Typically, churches will also plan a light snack afterwards, giving the pastor an opportunity to meet many of the guests for the first time.

Installation is often the last duty of the pulpit committee. In some churches the pulpit committee stays together for another year meeting with the pastor on a regular basis to make sure that the transition is smooth, and any difficulties are ironed out. A few churches choose to make the pulpit committee the pastor-parish committee for the tenure of the pastor. In each case, the church’ bylaws and the church’s governing board must be consulted.

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Interim Pastor

The interim pastor is a specialist as differentiated from a supply pastor. The interim is one who comes and picks up a number of the pastoral responsibilities while the pulpit committee proceeds with the search for the permanent pastor.

For more details into the role and responsibilities of an interim pastor see Block B4 – Ministerial Transition Issues.

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Job Descriptions

Every job in the church needs a detailed job description. It doesn’t matter if it’s for a paid position or a volunteer position. It will be easier to fill the position with the right person when that person knows all that is expected of them. Also a detailed job description reduces the risk of misunderstandings of expectations.

For details in developing good job descriptions see Block A6 – Policy and Procedure Manuals.

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Job Performance

The church’s employee handbook must provide a section which details how employees will be reviewed. This section details frequency of reviews, those responsible for conducting reviews, and methods for appealing reviews.

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Leader Responsibilities, Fiduciary

See Duty of Care and Duty of Loyalty

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Leadership Styles

Everyone has their unique styles for leading and communicating with others. Understanding our individual styles, both their strengths and limitations, helps us know our decision-making processes, our reactions to others, what we need to succeed, and how we need to communicate with others of different styles. This knowledge can also help pastors find ministry positions that play to their personal strengths.

Block A1 – Leadership Styles of the ABC’s of Church Management Manual details a variety of leadership styles, their positive and negative impacts, and methods of communication.

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Leave and Time Off

Next to knowing when payday is, new employees want to know how much vacation they are entitled to, what holidays are observed, etc. The church’s employee handbook needs to include a section that details the days employees are permitted off. The following should be detailed in this section:

·        Vacation

·        Holidays

·        Sick leave

·        Paid time off – not usually used by churches

·        Family and Medical Leave – unless the church has 50 employees, this doesn’t apply.

·        Bereavement Leave

·        Military Leave

·        Time Off to Vote

·        Jury Duty

Be sure to include which apply to full-time and part-time employees. If not stated specifically, all employees may interpret that they are entitled to the same privileges.

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Manual, Employee

See Employee Manual

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Manual, Policy & Procedure

See Policy & Procedure Manual

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Marriage Ceremonies

Every state has specific laws governing the authority of clergy to perform marriages. Ministers/Pastors need to contact the Secretary of States office for state specific information. Ministers/Pastors need to also contact the county clerk of the county in which the marriage will occur. The counties may have specific rules also. No minister/pastor should perform a marriage until they know the rules of the state and county where the marriage is occurring. Some states require a special license to perform weddings. Therefore if a wedding takes place without the minister/pastor having the proper license, that minister/pastor could be charged with fraud. So check the rules of authority first!

See the Secretary of State portion of this website for contact information. The ABC’s group also has state regulations on file.

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Ministry Call

When a pastor has finished the candidating process and the church has voted to call the pastor, the next phase of pastoral transitions begins. Usually, a pastor has left the community before the congregational vote takes place. Therefore, the pastor should receive a phone call immediately following the vote to tell him/her the results.

Very often the pastoral candidate will want some time to reflect on the strength of the vote and to pray before giving their response to the call (Only if the vote was to call the candidate). A note here to pastoral candidates … if you know that you will not accept a call from the church, tell the pulpit committee chair before a vote is taken. This procedure will save the congregation from a major let down.

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Mission Statement

The vision statement defines where the church is headed. The mission statement will describe how the church is going to get there. A mission statement is defined as:

“Mission or Purpose is a precise description of what an organization does. It should describe the business the organization is in. It is a definition of “why” the organization exists currently. Each member of an organization should be able to verbally express this mission.”

http://humanresources.about.com/cs/strategicplanning1/a/strategicplan/htm

The mission/purpose statement declares the ministry direction of the church and should help the church accomplish its vision. It is written as a comprehensive, understandable, distinctive, and invariable statement of intention. It serves as a rationale for existence.

Questions that can be used in developing a mission/purpose statement include:

·        Why do we exist?

·        What makes us distinct in this community?

·        What adjectives best describe our church? Be honest with your responses. Use words that actually describe the church as it is, not what you desire it to be.

·        What kind of individuals does our church attract?

·        How does this statement describe our intention for witness and ministry?

·        Is the statement brief, direct, and to the point? Is it understandable?

·        How are we different from other churches in this community?

·        Does the statement reveal the policy, practice, and teaching of Scripture?

As with the vision statement, there is no set length for a mission statement. It should be long enough to express the detailed mission of the church but concise enough for all to be able to express it easy.

For examples of mission statements see Block A3 – Directional Statements.

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Objectives

Objectives are viewed as the larger picture of the desired outcomes. As broad considerations, they are general, focused, and collective. Objectives identify the desired possibilities for change and improvement. They offer a specified end which can be established for an indefinite length of time through which purposes can be achieved and translated into goals and actions.

Objectives share the broad considerations in contrast to goals which are more

specific intentions. Objectives state the general purposes of an organization.

What changes do we desire to implement?

Objectives focus the resources on the change efforts. What elements in the organization are needed for change to be accomplished?

Objectives cluster groups of information and needs into categories that will be

found within the scope of the organization. What are the collective factors and

constituents that need to be changed?

For examples of objectives see Block A3 – Directional Statements.

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Operations of the Church

The church’s policy and procedures manual needs to include a section that describes all the operations of the church. This section will probably take the longest to develop of all the sections. It needs to detail (and I can’t over emphasize the word detail) all aspects of the church operations. It should include but not be limited to:

• Handling of finances
• Handling of facilities
• Wedding and funeral policies
• Kitchen policies
• Vehicle polices

For examples of this section of a policy and procedures manual see Block A6 – Policy & Procedures Manuals.

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OSHA

See Health and Safety

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Pastor, Call

See Ministry Call

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Pastor, Calling Agreement

See Calling Agreement

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Pastor, Installation

See Installation of Pastor

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Pastor, Interim

See Interim Pastor

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Pastor, Leader

The pastor is the primary leader of the church. They are the visionary. They seek to determine the resources that are needed to empower other staff and church leaders to accomplish the mission and vision of the church. The pastor is accountable to the governing board not only for him/her self but also for any support staff and church leaders. They either receive the praise or are in the hot seat for successes or failures by themselves or those under them.

The pastor oversees all support staff and church leaders. They have the responsibility to interpret the guiding principles and train the support staff and church leaders on these interpretations. Once they have trained the support staff and church leaders on these interpretations, they then have the responsibility to hold those positions accountable to follow them. The pastor is the liaison between the governing board and the support staff.

The pastor has the responsibility to empower the support staff and church leaders to perform the ministries they oversee. The pastor is not only the manager of the support staff but also their cheerleader.

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Pastor, Removal

See Clergy Removal

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Pastor, Retirement

See Retirement

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Pastor, Sabbatical

See Sabbatical

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Pastoral, Authority

Many ministers/pastors assume that because they are the leader of the church they have the authority to do anything they wish. This is a false assumption that could lead ministers/pastors down a dark path. Ministers/pastors and their church boards need to definite the extent of the ministers/pastors authority especially in the matters of committing the church to financial obligations.

For more detailed information in regards to pastoral authority see Block C1 – Clergy and the Law.

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Pastoral, Compensation

See Compensation Pastoral

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Pastoral, Evaluations

See Evaluations, Pastoral

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Policy & Procedure Manual

Policy and procedures manuals should contain the detailed information of the duties, responsibilities, job descriptions, and activities that each pastor, board member, committee member, or church leadership needs to function successfully in their role.

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Primary Leader, Pastor

See Pastor, Leader

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Privilege, Clergy-Penitent

See Clergy-Penitent Privilege

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Retirement

Rev. Leonard Snyder has prepared the following insights regarding retirement for the pastor.

Some years ago I heard Dr. Elton Trueblood say, “Life is lived in chapters and it is a wonderful thing to know what chapter you are in.” He went on to say that everyone should hurry up and retire so one could do the things he/she wanted to do without having to worry about earning a living.

As a minister looks back over the chapters of his/her life the book may be divided into many chapters. Some of those chapters might be entitled, Childhood, The Teen Years, When I Became a Christian, My Call to and Preparation for Ministry, My First Assignment, My Best Experience, The Parenting Chapter, or The Grandparenting Chapter. Perhaps in the pages, yet to be written in the book of your life is a chapter called RETIREMENT. The time immediately preceding that chapter could be called THE TRANSITION CHAPTER. What happens in the Retirement Chapter is going to be greatly affected by what happens in this chapter.

If you are the one facing retirement, interest in this subject may be prompted by the clock of life that keeps ticking. That clock seems to either trigger changes of which we and others may be aware. Perhaps at this point in your life you may be noticing changes that are not always so welcomed. It may be that you don’t hit the golf ball as far as you need to, or working all day and attending meetings all evening leaves you a little more “done in” than before. An all-day shopping trip now calls for a little bounce back time. Having the kids home for Thanksgiving is still wonderful, but you notice that it is a lot more work than you remembered it being.

On the flip side, the chapters in the life of a church may be related to topics such as: When We Started, Our First Pastor, Our First Building Program, and many other chapters. Sometimes people think of the chapters in the life of a local congregation in terms of the pastors who were there. These chapters may be noted by a display of pictures hanging in some prominent place. For whatever reason, it is not likely that any of those people whose pictures appear in this gallery of photographs are in the local congregation except the present pastor.

Whether it is a principle or a fact of life, it is generally true that laypersons come to stay and pastors come to go. In most cases you hope pastors come to stay for a lifetime, unless God-inspired vocational or educational pursuits or a call to ministry leads them elsewhere. However, one cannot imagine or wish for a situation where all former pastors were still present and active in a local congregation.

Change is inevitable. Congregations that have maintained warm and cordial working relationships with their ministers are to be commended. Likewise, those who come to the time of retirement and are still faithfully involved in ministry are to be commended.

A Baptist survey that I heard about recently stated that only one out of every twenty who begin ministry will finish it. Another statistic showed that of every 10 who begin ministry, five will be out within five years. Only two of those will re-enter ministry.

Cleaning out some files, I came across a couple of letters from old friends of mine. One was a boyhood friend, who was with me the night I became a Christian. He was one of the gifted young men in the Movement who had almost completed his studies for a PhD when family problems entered the scene. Finally there was a separation, a divorce, and then his defrocking. It is still one of my life’s losses. I re-read the letter of his hurt and frustration and realized again that basically he had no one to blame but himself.

The other letter was from a friend in college. He, too, was gifted and became a recognized pastor, but a moral failure led to his giving up the ministry.

My point is not to suggest that there are many failures, but to call for a commendation of those who have been faithful. Hopefully the local congregation that has a pastor and spouse coming to the Retirement Chapter will find some appropriate way to honor ones who have been faithful. The question is not one of calculating so-called successes, nor whether they received 1, 3, or 5 talents from the Lord, but only that they have been faithful to use what God entrusted to them.

An interesting Old Testament Scripture recognizes the need for a chapter call Retirement.

(Num 8:24-26 NIV) “This applies to the Levites: Men twenty-five years old or more shall come to take part in the work at the Tent of Meeting, but at the age of fifty, they must retire from their regular service and work no longer. They may assist their brothers in performing their duties at the Tent of Meeting but they themselves must not do the work. This, then, is how you are to assign the responsibilities of the Levites.”

While our situations are far removed from those described for the Levites, it does point out that even centuries ago, people recognized the need for a transition in the aging process of life.

For additional information see Block B4 – Ministerial Transition Issues.

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Reviews, Pastoral

See Evaluations, Pastoral

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Sabbaticals

Churches should have policies in place that allow for pastoral sabbaticals. Richard Shockey has written the following document to help churches prepare for such events.

When a minister serves a congregation for six years or longer, it is time for a sabbatical. An extended time away for the purpose of study, enrichment, vision casting, travel, rest, prayer and/or visiting different cultures provides the needed respite that is pivotal in helping assure continued healthy leadership. Congregations may be strengthened by offering a pastor or an associate a sabbatical – time to briefly step away from the cyclical, unending demands of daily parish life.

A sabbatical is not a vacation. Rather it is a time for intentional exploration and reflection, for drinking anew from God’s life-giving waters, and for regaining the enthusiasm and creativity for ministry.

Genesis and Leviticus speak of “Sabbath time” in terms of days, years, and land usage. Since the Sabbath is recognized as a distinctive time in creation – as a gift of rest for both renewal and hope – Scripture infers that regular, periodic rejuvenation is vital in all areas of life. The Old Testament writers directed a time period for the soil to remain untilled so that it could replenish itself. Just like the soil, humans need a season to lie fallow for revitalization of the body, mind, and soul. Dave Ellingson declared, “We require a time to receive rather than give, to get input rather than give output, to carefully nurture and cultivate our lives so that the soul of our spirits might be rid of weeds and have an opportunity to receive nourishment (Ellingson, page 2).”

Pastors, associates, and ministry leaders are called to the work of ministry as servants of the church. Because of the spiritual dimension of leadership and the emotional energy required by the task, ministers often get into a “give and give and give, but never receive” treadmill. When there is little relief from the constant pressure of Sunday morning deadlines, committee meetings, counseling sessions, visitation schedules, community commitments, and a host of other day-to-day encounters, a leader might scream, “Stop the world. I want to get off!” Greg Asimakoupoulos discovered in his weariness, “Much of my depression was actually my body’s muffled cry for rest (Asimakoupoulos, page 102).”

A sabbatical allows the minister to get off the treadmill in exchange for a battery recharge of vision and hope. It creates an opportunity for the minister to:

·        recapture a sense of vision,

·        be nurtured in faith and skills,

·        become introspective,

·        rekindle spiritual passion,

·        refocus priorities,

·        review the ministerial journey, and

·        reflect on the call of God for life and ministry.

A sabbatical feeds the body, mind, and soul resulting in renewed, refreshed, and revitalized energy to function as a shepherd and servant leader. Several clergy persons have expressed “ah-ha” moments as a result of the sabbatical journey. Often, the sabbatical extends the pastor’s tenure with a congregation. When the minister returns with a renewed vision, the congregation often opens a new, exciting chapter in congregational ministry.

A congregation would be well advised to establish a sabbatical policy that determines at what point in the minister’s tenure a sabbatical may occur, the length of time that may be taken, and a process for evaluating the experience. For example, one church established a policy providing for a three-month sabbatical after the minister had completed six years of service to the congregation (associates were included in the same sabbatical policy). Following the sabbatical, the minister was asked to report on the experience. In addition, a questionnaire was developed for congregational evaluation of church life while the pastor or associate was gone. The survey helped the leadership prepare for the next sabbatical leave.

Issues centering on finances often surface when the subject of ministerial sabbaticals is raised. In many cases, congregations may declare, “We can’t afford it.” This kind of reaction is more likely if the church is experiencing a budget crisis at the time of a sabbatical leave request or has failed to make adequate preparations for the funding of sabbaticals.

Careful planning, however, can assure a sabbatical’s fiscal feasibility. Assuming a sabbatical policy of two to three months is granted after six years of ministry, a simple formula may be written into the yearly church budget enabling an amount, equal to one to four weeks of a minister’s salary package, to be set aside for sabbatical reserve. After six years, the accumulated amount would be available from the reserve fund. The same formula would continue during the sabbatical year, providing for ministerial continuing education expenses and travel costs, as well as monies to pay interim expenses. If invested, the reserve funds could collect interest and further enhance an excellent resource pool for sabbatical expenses.

A sabbatical allows the minister to be away from the congregation for an extended time period. In all cases, there needs to be a backup plan for crises moments. An interim pastor or a minister-on-call should be available to provide pastoral care and leadership during emergency experiences. The lay leaders and/or pastoral staff need to clarify lines of authority, logistical issues, visitation patterns, newcomer follow-up, and a host of other issues during the minister’s absence.

It is best to establish a single, key contact person who is designated to interact with the minister during the sabbatical. This contact person may call the minister on an “as necessary” basis. To site a specific example of such a necessity, one pastor was contacted when the church was struck by lightning and burned to the ground. Except in dire emergencies, however, the minister should be free to experience the sabbatical unhindered by the routine of congregational life. When a plan is established, congregational life generally runs smoothly and efficiently during the sabbatical.

A minister should design a sabbatical that is unique to his/her personal requirements. When Jesus retreated, he went to a mountain or out on a boat. He designed his time away based on the inner needs in his life. Ministers should do the same.

Sabbaticals should be planned with the church’s leadership. A written sabbatical plan gives objective focus and a common, agreed-upon understanding of the purpose and goals for the time away. Elements of the sabbatical should be strategically planned to give balanced time for personal relaxation and other components such as education, travel, etc. Ingredients of a sabbatical proposal include:

·        What the minister desires to accomplish during the sabbatical.

·        A description of the sabbatical plan, with timelines, and activities.

·        Detailed congregational leadership assignments during the minister’s absence.

·        A specific declaration of expected budget expenses.

·        The preparation of an evaluation form to assess church life during the sabbatical.

Preparation for a sabbatical requires time. It could take as long as one year to contemplate and finalize the plan and to position leadership for the absence of a minister. Intentional planning is absolutely necessary. The time investment is well worth it, however.

Vibrant, healthy congregations are led by vigorous, effective ministers. To retain the spark of dynamic leadership, a minister needs to step away from the intensity of daily ministry for breathing space. During a respite from leadership, pasturing, administrating, counseling, comforting, and fundraising, the minister may learn, grow, and renew his/her personal wellsprings of faith and commitment. Following a sabbatical, a minister often resumes congregational leadership with a fresh spirit and a renewed passion.

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Secretary of State

 

Alabama

Secretary of State

PO Box 5616

Montgomery, AL 36103-5616

(334)242-5324

www.sos.state.al.us

 

Alaska

Corporation Section

PO Box 110808

Juneau, AK 99811-0808

(907)465-2530

http://www.state.ak.us

 

Arizona

Arizona Corporation Commission

Corporations Division

1300 West Washington

Phoenix, AZ 85007-2929

(602)542-3135

www.azsos.gov

 

Arkansas

Arkansas Secretary of State

Business and Commercial Services

1401 West Capitol Avenue, Ste. 250

Victory Building

Little Rock, AR 72201

(888)233-0325

http://sos.state.ar.us

 

California

Business Programs Division

1500 11^th Street

Sacramento, CA 95814

ATTN: Document Filing Support Unit

(916)657-5448

www.sos.ca.gov

 

Colorado

Colorado Secretary of State

Business Division

1700 Broadway, Suite 200

Denver, CO 80290-5169

(303)894-2200

www.sos.state.co.us

 

Connecticut

Office of the Secretary of State

30 Trinity Street

PO Box 150470

Hartford, CT 06115-0470

(860)509-6001

www.sots.state.ct.us

 

Delaware

Department of State

Division of Corporations

PO Box 898

Dover, DE 19903

(302)739-3073 Ext. 2

www.delaware.gov

 

District of Columbia

Department of Consumer and Regulatory Affairs

941 North Capitol Street, NE

Washington, DC 20002

(202)442-4432

www.brc.dc.gov

 

Florida

Department of State

Division of Corporations

PO Box 6327

Tallahassee, FL 32314

(850)245-6052

www.sunbiz.org

 

Georgia

Office of the Secretary of State

Corporations Division

315 West Tower

#2 Martin Luther King, Jr. Drive

Atlanta, GA 30334-1530

(404)656-2817

http://sos.georgia.gov

 

Hawaii

Hawaii Dept. of Commerce of Consumer Affairs, Business Registration Division

1010 Richards St.

PO Box 40

Honolulu, HI 96810

(808)586-2744

(808)586-2727

http://www.ehawaii.gov/ltgov

 

Idaho

Office of the Secretary of State

700 West Jefferson

Boise, ID 83720-0080

(208)334-2301

www.sos.idaho.gov

 

Illinois

Secretary of State

Department of Business Services

Corporations Division

350 Howlett Building

Springfield, IL 62756

(217)782-6961

www.sos.state.il.us

 

Indiana

Secretary of State

Corporations Division

302 W. Washington St., RM E018

Indianapolis, IN 46204

(317)232-6576

www.in.gov/sos

 

Iowa

Secretary of State

Business Services

First Floor, Lucas Building

321 E. 12^th St.

Des Moines, IA 50316

(515)281-5204

www.sos.state.ia.us

 

Kansas

Kansas Secretary of State

Memorial Hall, 1^st Floor

120 SW 10^th Ave.

Topeka, KS 66612-1594

(785)296-4564

www.kssos.org

 

Kentucky

Secretary of State

PO Box 718

Frankfort, KY 40602-0718

(502)564-2848

http://sos.ky.gov/business

 

Louisiana

Commercial Division

PO Box 94125

Baton Rouge, LA 70804-9125

(225)925-4704

www.sos.louisiana.gov

 

Maryland

State Department of Assessment and Taxation

Corporate Charter Division

301 W. Preston St., Room 801

Baltimore, MD 21201

(410)767-1340

www.dat.state.md.us

 

Massachusetts

Secretary of State

Corporations Division

Commonwealth of Massachusetts

One Ashburton Place, 17^th Floor

Boston, MA 02108

(617)727-2850

www.sec.state.ma.us

 

Michigan

State Department of Labor of Economic Growth

Bureau of Commercial Services Corporations Division

7150 Harris Drive

PO Box 30054

Lansing, MI 48909

(517)373-1820

www.michigan.gov/cis

 

Minnesota

Secretary of State

Business Service Division

180 State Office Building

100 Rev. Dr. Martin Luther King, Jr. Blvd

St. Paul, MN 55155-1299

(651)296-2803

www.sos.state.mn.us/home/index.asp

 

Mississippi

Mississippi Secretary of State

PO Box 136

Jackson, MS 39205-0136

(601)359-1333

https://secure.sos.state.ms.us

 

Missouri

Secretary of State

Corporation Division

PO Box 778

Jefferson City, MO 65102

(573)751-4153

www.sos.mo.gov

 

Montana

Secretary of State

PO Box 202802

Helena, MT 59620-2802

(406)444-3665

http://sos.mt.gov

 

Nebraska

Secretary of State

Room 1305 State Capitol

PO Box 94608

Lincoln, NE 68509

(402)471-4079

www.sos.state.ne.us/dyindex.html

 

Nevada

Secretary of State

New Filing Division

206 N. Carson St.

Carson City, NV 89701-4299

(775)684-5708

http://sos.state.nv.us

 

New Hampshire

Secretary of State

Corporations Division

State House

107 North Main Street

Concord, NH 03301-4989

www.sos.nh.gov

 

New Jersey

New Jersey Dept. of the Treasury

Division of Revenue/Corporate

Filing Unit

PO Box 308

Trenton, NJ 08625-0308

(609)292-9292

www.state.nj.us

 

New Mexico

Public Regulations Commission

Corporations Bureau

PO Box 1269

Sante Fe, NM 87504-1269

(505)827-4511

www.nmprc.state.nm.us

 

New York

Department of State

Division of Corporations

41 State Street

Albany, NY 12231

(518)473-2492

www.dos.state.ny.us

 

North Carolina

Department of the Secretary of State

Corporations Division

PO Box 29622

Raleigh, NC 27626-0622

(919)807-2225

www.sosnc.com

 

North Dakota

Business Division

Secretary of State, State of North Dakota

600 E. Boulevard Ave., Dept. 108

Bismarck, ND 58505-0500

(800)352-0867

www.nd.gov/sos

 

Ohio

Ohio Secretary of State

PO Box 670

Columbus, OH 43216

(614)466-3910

www.sos.state.oh.us

 

Oklahoma

Secretary of State

2300 N. Lincoln Blvd.

PO Box 778

Room 101

State Capitol Building

Oklahoma City, OK 73105-4897

(405)521-3912

www.sos.state.ok.us

 

Oregon

Secretary of State

Corporations Division

255 Capitol St. NE

Suite 151

Salem, OR 97310-1327

(503)986-2200

www.sos.state.or.us

 

Pennsylvania

Department of State

Corporations Bureau

PO Box 8722

Harrisburg, PA 17105-8722

(717)787-1057

www.dos.state.pa.us/dos/site/default.asp

 

Rhode Island

Office of the Secretary of State

Corporations Division

100 North Main Street

Providence, RI 02903-1335

www.ri.gov

 

South Carolina

Secretary of State

PO Box 11350

Columbia, SC 29211

(803)734-1790

www.scsos.com

 

South Dakota

Secretary of State

State Capitol

500 E. Capitol

Pierre, SD 57501

(605)773-4845

www.sdsos.gov

 

Tennessee

Tennessee Department of State

Corporate Filings

312 Eighth Avenue North

6^th Floor, William R. Snodgrass Tower

Nashville, TN 37243

(615)741-2286

www.state.tn.us/sos

 

Texas

Secretary of State

PO Box 13697

Austin, TX 78711-3697

(512)463-5555

www.sos.state.tx.us

 

Utah

Utah Department of Commerce

Division of Corporations

PO Box 146705

Salt Lake City, UT 87114-6705

(801)530-4849

www.commerce.utah.gov

 

Vermont

Corporations Division

Office of the Secretary of State

81 River St.

Drawer 09

Montpelier, VT 05609

(802)828-2386

www.sec.state.vt.us

 

Virginia

Clerk of the State Corporation

Commission

PO Box 1197

Richmond, VA 23218-1197

(804)371-9733

www.commonwealth.virginia.gov

 

Washington

Secretary of State

Corporations Division

801 Capitol Way South

PO Box 40234

Olympia, WA 98504-0234

www.secstate.wa.gov

 

West Virginia

Secretary of State

Corporations Division

1900 Kanawha Blvd. E

Charleston, WV 25305

(304)558-8000

www.sos.wv.gov/Pages/default.aspx

 

Wisconsin

Department of Financial Institutions

PO Box 7846

Madison, WI 53707-7846

(608)261-7577

www.wdfi.org

 

Wyoming

Wyoming Secretary of State

The Capitol Building, Room 110

200 W. 24^th St.

Cheyenne, WY 82002-0020

(307)777-7311/7312

http://soswy.state.wy.us

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Staff, Support

The support staff or church leaders are the managers of the congregation. They are accountable to the pastor or senior pastor. They draw people around them to implement their ministry assignments. By having the freedom to draw people around them, they are able to help individuals find their niche in ministry. They can draw people for a short time or an extended time.

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Strategic Planning/Action Plans

Strategic planning/action plans describe the strategy to be employed in accomplishing the goals. They proclaim the methods, resources, activities, and training necessary for moving toward the desired change in an organization. They serve as a road map for the journey.

A systematic path needs to be established for the journey toward change. What procedures will be used to fashion a completed plan?

Financial, physical, and human resources are available. Action plans should capitalize on the skills and interests of individuals in the organization. What will be utilized in the change process?

Various steps are created to lead from the beginning point to the final destination. What activities will be designed to guide the excursion? 

Provisions to train individuals for implementing the plan are necessary. What training events will be conducted to equip leaders?

For examples see Block A3 – Directional Statements

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Structures, Governance

See Governance Structures

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Support Staff

See Staff, Support

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Surveys, Congregational

See Congregational Surveys

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Styles, Leadership

See Leadership Styles

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Training, Board Members

See Board Member Training

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Undue Influence

Frequently churches and even pastors receive gifts that are willed to them. These gifts can be brought into question by the person who willed the gift or by the person’s family. The question that is usually raised concerning these gifts is undue influence by the pastor or members of the church. Undue influence occurs when an individual uses the power of their position to take advantage of another.

For more details see Block C1 – Clergy and the Law.

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Uniform Unincorporated Nonprofit Association Act

During the annual conference meeting of the National Conference of Commissioners on Uniform State Laws held in San Antonio, TX in 1996, the Uniform Unincorporated Nonprofit Association Act was drafted. The purpose of this act was to “encourage involvement in small community groups and other organizations that aim to benefit the public but don’t want to establish a formal corporate structure.” (“Starting & Building a Nonprofit” by Peri H. Pakroo, p. 1/9)

This act provides unincorporated nonprofits with legal status of being a separate entity for purpose of liability. Under this act, directors, officers, and staff would be protected from liability the same as their equals in an incorporated nonprofit.

The act provides unincorporated nonprofits with five benefits:

1. It gives the associations the legal capacity to receive, hold, and transfer real and personal property.

2. It provides limited liability for members and functionaries of the groups for personal injury and contract claims.

3. It gives groups the right to sue and be sued as associations.

4. It creates a procedure for disposing of the property of inactive associations.

5. It allows an agent of the association (such as the activities coordinator, the president, or just a simple member) to be designated for service of process – the designated person then has the authority to receive legal papers on the group’s behalf.

(ibid.: 1/9)

To date only 11 states have adopted the act. These states include:

Alabama

Arkansas

Colorado

Delaware

District of Columbia

Hawaii

Idaho

Texas

West Virginia

Wisconsin

Wyoming

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Use of Church Property

Many people have the miss conception that because they either work for the church or are members of the church that they can use any equipment for their personal use as they need to. The policy and procedure manual needs a section that spells out specifically the use of the church’s equipment, vehicles, and phones. This section should include policies for computers as well as borrowing and returning property.

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Vision Statement

There is much confusion between a vision statement and a mission statement. For many they seem to be one-in-the-same. Each statement has its own unique purpose and value in setting the direction for the church.

A vision statement is defined as:

“A vision statement is a vivid idealized description of a desired outcome that inspires, energizes and helps you create a mental picture of your target.”

http://www.timethoughts.com/goalsetting/vision-statements.htm

 “A vision is a statement about what your organization wants to become. It should resonate with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves. A vision should stretch the organization’s capabilities and image of itself. It gives shape and direction to the organization’s future.”

http://humanresources.about.com/cs/strategicplanning1/a/strategicplan.htm

A vision statement should not only reflect the present situation but be forward-thinking to the next 5 to 10 years. It should be a statement that arouses emotion and passion. Questions that can be used in the process of developing a vision statement include:

·        What ministry(ies) do we provide that is unique to our community?

·        What ministry(ies) do we do well?

·        What do you think God is calling this specific church to do for the community?

·        What are we, as a church in this community, going to do to reach it for Christ?

·        Do we understand where the vision is leading us? Are individuals empowered to share in the vision?

·        Has the vision caught the imagination and energy of all participants?

There is not specific word length for a vision statement. It should be long enough to define the vision and express the emotion inspiring the vision but short enough that all involved can embrace, express, and fulfill it.

For examples of vision statements see Block A3 – Directional Statements.

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Workplace Behavior

When dealing with adults and the church, one would think the employee would already know how they should dress for work and what behaviors are expected or not tolerated. This can not be assumed. We’re not all perfect Christian yet! The church’s employee manual needs a section on workplace behavior that should include:

·        Professional Conduct

·        Punctuality and Attendance

·        Dress, Grooming, and Personal Hygiene

·        Practical Jokes

·        Threatening, Abusive, or Vulgar Language

·        Horseplay

·        Fighting

·        Sleeping on the Job

·        Insubordination

·        Progressive Discipline

In the progressive discipline, the church must spell out the steps of discipline which can include verbal or written warnings, suspension, and termination.

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