What do we need to be careful of legally while we grow?

Introduction: The Good and Bad Things About Growing a Ministry

Adding new campuses, ministries, or outreach initiatives to your ministry is a great opportunity to make a bigger difference and achieve your goals. But growth also brings with it a complicated set of legal duties and risks that need to be handled with care.

Churches with between 2,500 and 10,000 members, like those supported by Church Law and Strategy's PASTOR SUPPORT PLAN, need to know about the law in order to safeguard their ministry, stay in compliance, and make sure their development is sustainable.

This article talks about the most important legal issues to keep an eye on when your ministry grows and how the appropriate legal partner can protect it.

Registering a Nonprofit and Following the Rules in More Than One State

Understanding What You Need to Do to Register in Another Country

Many states need registration as a "foreign nonprofit" if your ministry works in more than one state:

• This makes sure that your group follows the laws of the states where you do business or ask for donations.
• Not registering might lead to fines or losing the right to raise money.

Church Law and Strategy's church legal counsel services help ministries navigate these complicated rules.

Laws About Asking for Donations

If you raise money in a state, you have to follow its own regulations about charitable solicitation, which say you have to register and report every year.

Keeping a Good Reputation

• Filing annual reports, renewing registrations, and keeping company information up to date are all parts of ongoing compliance.

Problems with Governance and Operations

Changing Governance for Growth

Your ministry's governance needs to grow as it does:

• Changing the bylaws to make the duties of leaders at many sites clearer.
• Adding more members to your board of directors and making it more diverse.
• Setting up clear rules for making decisions and being responsible.

Church Law and Strategy's church governance attorney services help establish governance systems that can grow.

Standardizing Operational Policies

Make sure that all locations have the same regulations for:

• Managing and onboarding staff and volunteers.
• Reporting and controlling finances.
• Child safety and releases of responsibility.

Our ministry's strategic operations consultancy helps with formulating and carrying out policies.

Legal Issues to Think About When Hiring or Volunteering

Hiring Across States

Follow federal and state labor regulations, which include:

• Rules on pay and hours.
• Classifying workers as employees or contractors.
• Laws about safety at work and not discriminating.

Managing Volunteers

Volunteers have legal protections, such as:

• Background checks that are done well.
• Waivers of liability.
• Supervision and training.

Church Law and Strategy's service for church HR and employment law compliance makes sure that your personnel is managed in a way that follows the law.

Liability Protections and Risk Management

Insurance Coverage

Check and change your insurance coverage to cover:

• Risks to property and people.
• General liability.
• Liability for professionals.
• Coverage for sexual misconduct.

Liability Waivers and Safety Rules

Use waivers and safety procedures to lower the dangers that come with ministry activity.

Tax-Exempt Status and Following the Rules for Money

Keeping Up with 501(c)(3) Rules

To grow, you need to be careful to:

• Make sure that actions stay within the exempt purposes.
• Report income and expenses correctly.
• Stay away from too much unrelated business income.

Our solution for church legal audits and compliance reports helps keep track of compliance.

Reporting on Finances and Being Open

Regular and accurate financial reporting fosters trust and meets the requirements of the law.

How the PASTOR SUPPORT PLAN Helps the Law to Grow

The PASTOR SUPPORT PLAN gives you:

• Full legal audits and checks on compliance.
• Executive strategy sessions that focus on problems with growth.
• Access to legal counsel is a top priority.
• Reviews of insurance and finances.
• Programs for pastoral support.

It gives ministries the tools they need to deal with legal issues with confidence.

Legal Safe Expansion: Steps You Can Take

1. Do a check of your legal and operational readiness.
2. If you move to a new state, you may need to register as a foreign nonprofit.
3. Change the rules and regulations for overseeing many sites.
4. Make sure that all locations follow the same operational and HR policies.
5. Check your insurance policy and make sure it is enough.
6. Teach volunteers and staff how to follow the rules and stay safe.
7. Keep up strict audits of your finances and the law.
8. Be open and honest with stakeholders during growth.

Legal vigilance is very important for the growth and success of the ministry. Working with Church Law and Strategy's PASTOR SUPPORT PLAN makes ensuring that your ministry flourishes in a safe legal environment, which lowers risks and raises impact.

Warning

This blog article is simply meant to give you information and is not legal advice. You do not become a customer of Church Law and Strategy or its agents by reading this article. If you need legal counsel that is specific to your church or organization, please talk to a professional lawyer.

Links Inside

• Church Legal Counsel Services
• Church Governance Attorney
• Church Risk Management and Liability Waivers

Links to Other Sites

• IRS Nonprofit Compliance Guide: https://www.irs.gov/charities-non-profits
• National Council of Nonprofits: https://www.councilofnonprofits.org/
• State Charity Registration Information: https://www.naag.org/charities/