Thursday, July 23, 2009

Church Business Administration Training Day 3

Legal and Tax Issues

Day 3 brought part 2 of Legal and Tax --- all things judicial!! Wow...huge responsibilities to avoid litigation. It's interesting that 70% of the world's lawyers are in the USA!!! Isn't that stunning! Actually, if we were to adopt the UK's system, we would see a dramatic drop in suits. In the UK if you bring suit, and you lose, you must pay both party's legal bills! Our current 'sue happy' society confirms that we are on the wrong track and too consumed with litigation. Scripture warns us against it. We need to be smart so that we are not exposed. If a church were charged with 'gross negligence', your insurance will not cover the litigation. I thought that was alarming. What are some procedures to put into place so that we're less exposed to lawsuits? One item that our instructor, Rick Veit, Esq., said would be important to adopt is an 'Arbitration Clause'. This document forces parties to 'sit down and talk about the issues' rather than civil lawsuits that divide. Imagine that, the Biblical principle of sitting down with your brother when there is a problem---sounds like a good plan!!! Churches should be incorporated for protection. We need to be proactive when using volunteers. We should be screening ALL volunteers. Especially those that are working with our children. An eye opener was the fact that the majority of those who molest children are under the age of 18! So we should be screening everyone, no matter who they are to protect our children. We were given a vehicle operator questionnaire. This should be completed and then investigated to be sure that those that are going to be driving for the church are safe drivers. We are responsible if we have not done our homework on those we trust with driving responsibilities and some tragedy happens! A mindset of being proactive is crucial. Employee handbooks should be up to date and consistently given to all employees (even if you only have one employee!). In the front of the handbook it should state that this is not a contract and that all employees are 'at will'. Employment files should contain: tax forms, contracts, job offer letter, resume, and reviews. Consistent reviews should be performed. They should be conducted honestly, being careful to represent the actual performance of the employee. I-9's (immigration forms) are to be kept in a separate file. When needing to dismiss an employee, your termination checklist should include: why the employee is being terminated, was it for a violation of their contract or by-laws/constitution, do you have supporting evidence, has the church violated any anti-discrimination laws, has the employee received advance warning, did you give the employee the opportunity to reform their behavior, is the reason for dismissal consistent with the performance evaluation. In regard to activities at the church, are you exercising reasonable care in the supervision of church activities? Keep in mind who decides 'reasonable'---a jury! You don't want that. Therefore, have preventative measures in place. Some examples are: adequate numbers of QUALIFIED adults at church sponsored activities, have a 'two adult' rule when in immediate contact with children, institute a 6-month rule (they must be a member for 6 months before deciding their involvement), parental consent forms, written policies, adequate security (especially when dealing with children). We discussed who is responsible for reporting any suspicion of child abuse. You should have a policy in place for reporting child abuse. You should have a 'Church Computer' policy. As we move closer and closer to Jesus' return, these issues will become more and more difficult. It is our duty to proceed in a manor that honors God when contemplating the issues of law and how they affect the Church!

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