We're growing quickly. Are we following the rules?

The time of church expansion is exciting because it brings more chances, bigger ministries, and more effect on the community. But if you don't keep an eye on things, rapid development can also lead to complicated legal and compliance problems that could hurt your ministry's reputation and stability. This complete book will help you figure out the most important compliance areas, typical mistakes, and smart ways to protect your church if it is growing quickly and you are thinking, "Are we compliant?" We'll also look at how the Tier 2 and Tier 3 subscription options from Church Law and Strategy offer personalized help during times of development.

The Problems with Compliance When Churches Grow Quickly

1. More scrutiny from regulators: The IRS and state agencies keep a closer eye on bigger churches. It is more important than ever to follow the rules for 501(c)(3) tax-exempt status. The rules for soliciting money and reporting to donors get stricter.
2. Difficult governance needs: As the board grows, its structure and duties must change. Policies and rules need to be changed to keep up with growth.
3. Expanded employment and volunteer law: Having paid employees and managing volunteers makes you more legally vulnerable. Wage, labor, and background check compliance are now top issues.
4. Compliance with property and facility: New or more than one location must follow zoning, safety, and ADA rules. Leases and contracts get harder to understand.

Important Areas of Compliance for Growing Churches

1. Rules and regulations: Make sure that the bylaws include structures that have more than one campus or ministry. Set clear roles for the board and the leadership teams.
2. Reporting and financial controls: Set up internal procedures and make sure donor money is open. Make sure you meet all of the IRS and state reporting obligations.
3. Policies for hiring and volunteering: Make rules in writing for hiring, firing, and managing volunteers. Do background checks that follow state and federal regulations.
4. Rules for keeping kids safe: Make and implement strict rules for protecting children. Teach staff and volunteers how to stay safe and how to report problems.
5. Insurance coverage: Look at your general liability, property, workers' compensation, and directors and officers insurance. Change the amount of coverage you have to meet your growth and risk.

Common Mistakes in Compliance During Growth

• Not updating bylaws or other rules for running the business.
• Not paying attention to new rules for volunteers or workers.
• Not having enough financial controls might lead to misuse or poor management.
• Not enough safety precautions for kids, which makes the ministry liable.
• Not getting the right amount of insurance coverage.

How Church Law and Strategy Can Help Churches Grow

Church Law and Strategy's THE FOUNDATION PLUS PLAN (Tier 2) helps churches with 900 to 2,500 members by giving them legal audits, compliance reports, trademark protection, and access to a top-notch professional network. For churches with 2,500 to 10,000 members, THE PASTOR SUPPORT PLAN (Tier 3) includes more services, such as quarterly executive strategy meetings, priority legal support, assessments of overhead and insurance, and pastoral support programs to help with executive pay and personal safety.

Things to Do to Make Sure You Stay Compliant as You Grow

1. Do a full legal audit that focuses on safety, governance, finances, and employment.
2. Get legal help to update policies and bylaws.
3. Put in place or improve financial controls and clear reporting.
4. Teach staff and volunteers about their compliance duties.
5. Check your insurance and risk management coverage on a regular basis.
6. Talk to a lawyer who knows about church law and the problems that come with growth.

Updated Rules for How Things Are Run and Clear Roles for Leaders

• Strong financial controls and clear reporting
• Full procedures for hiring and volunteering
• Tough safety rules for kids
• Enough insurance coverage
• Regular legal checks and advice before you need it

In Conclusion

During a time of rapid church growth, there are many blessings and chances, but you also need to pay close attention to the law. Churches that take the initiative to deal with issues related to governance, money, employment, and safety can develop with confidence while safeguarding their mission and reputation. Church Law and Strategy is here to help churches expand by providing them with Tier 2 and Tier 3 legal and operational support that is suited to their needs. This will make sure that your ministry does well all year round.

Links Inside

• Find out more about compliance and legal audit reports for churches.
• Look at the legal technique for pastoral recompense.
• Learn about advising for church tax strategy.

Links to Other Sites

• IRS Charitable Organizations Compliance Guide: https://www.irs.gov/charities-non-profits/charitable-organizations
• ECFA Ministry Compliance Resources: https://www.ecfa.org/Content/FinancialPlanning
• Child Safety Policies for Churches: https://www.safechurches.com/child-safety-policies

This blog is for information only and is not legal advice. For personalized advice on how to follow the law, talk to a competent lawyer.