Leadership Succession Planning for Churches
When a for-profit business owner plans for succession, the business owner usually determines how much the business is worth, and considers arrangements such as cross-purchase agreements and entity-purchase agreements. Succession planning for churches is much, much different. Moreover, as illustrated by recent news stories and court proceedings about a mega-church’s failure to plan for succession before the death of one of its founding pastors, the failure to plan for succession in churches can have enormously negative consequences. The most negative consequences, of course, are the destruction of the church itself and the collateral damage to its members and the community that it serves.
In addition to considering all of the financial issues, churches should ask fundamental questions such as: (1) how can the church transfer the trust that the members and community have in the present leadership?; (2) How can the church transfer the respect that the members and community have in the present leadership; (3) how can the church transfer the goodwill that the church has built up with its members and the community?
The present leadership of the church must be committed to a leadership succession plan. After commitment comes recruitment, development and selection of future leaders. Future leaders must then be allowed to earn the trust, respect and goodwill of the church’s members and the community. Once the leadership succession plan is in place, it must be communicated effectively. And, at some point, future leaders of the church must be allowed to be the present leaders of the church—before it is too late.
Do you have a leadership succession plan for your church?
For more information or for a consultation regarding your legal issues, please contact McCollum & Associates, LLC, at (301) 864-6070 or jmccollum@jmlaw.net.
I read an interesting article earlier this week. It indicated that Google is now interested in stopping discrimination that it has practiced against churches. Google has a program: Google for Nonprofits. When the program was introduced, churches (and some other organizations) were excluded. Now Google is allowing some churches to participate. Among the benefits: free or discounted Google Apps, free advertising in the Google AdWords program, premium branding and increased uploads on YouTube and free licensing for Google Earth, SketchUp and Maps API.
For more information or for a consultation regarding your legal issues, please contact McCollum & Associates, LLC, at (301) 864-6070 or jmccollum@jmlaw.net.
Church Fight, Church Fight
Churches and their denominations sometimes have conflicts. Sometimes they reconcile and stay together. Sometimes they do not. When an individual church decides to leave a denomination, members choose one side or the other, and act accordingly. However, what happens to the building, bank accounts and other assets? Well, unlike other denominations, the Methodist denomination has a law in Maryland that gives the Methodist denomination legal control over the breakaway local church’s properties. In other words, the Methodist denomination has the benefit of a statutory “asset trust clause.”
For more information or for a consultation regarding your legal issues, please contact McCollum & Associates, LLC, at (301) 864-6070 or jmccollum@jmlaw.net.
Banks foreclosing on churches in record numbers
(Reuters) – Banks are foreclosing on America’s churches in record numbers as lenders increasingly lose patience with religious facilities that have defaulted on their mortgages, according to new data.
The surge in church foreclosures represents a new wave of distressed property seizures triggered by the 2008 financial crash, analysts say, with many banks no longer willing to grant struggling religious organizations forbearance. (read more)
–from Reuters.com
Article by Tim Reid, Los Angeles
Friday March 9th, 2012
http://www.reuters.com/article/2012/03/09/us-usa-housing-churches-idUSBRE82803120120309
A case in Connecticut illustrates a trend in litigation involving churches and church organizations.
In that case, an ordained minister filed a lawsuit after he sought employment services through a regional organization of congregations of a certain denomination. Among other items, the regional organizations provided placement services for ordained ministers and provided a clearinghouse whereby congregations seeking ministers could obtain information about available ministers. The organization became concerned about whether the plaintiff minister was fit for service in ministry. Therefore, it decided to flag his profile and decided not to circulate his resume to congregations seeking ministers.
The ordained minister sued, alleging (1) breach of implied contract, (2) defamation, (3) deceit and fraud and (4) negligent infliction of emotional distress. The trial court dismissed the ordained minister’s complaint. On appeal, the trial court’s decision was affirmed. Among other items, the Appellate Court of Connecticut followed a strong trend in the courts that consideration of the ordained minister’s claims would entail improper interference with church practice and procedure in violation of the First Amendment to the Constitution of the United States.
For more information or for a consultation regarding your legal issues, please contact McCollum & Associates, LLC, at (301) 864-6070 or jmccollum@jmlaw.net.
No Housing Allowance or Parsonage Income Exclusion or Allowance for Multiple Houses
In a case involving Phil Driscoll, who is an ordained minister as well as a gifted musician, the United States Court of Appeals for the Eleventh Circuit determined that it would not allow a parsonage allowance (or housing allowance) exclusion for multiple houses. In that case, Mr. Driscoll was paid a parsonage allowance for the acquisition, care and maintenance of both his principal residence and his lake home. Mr. Driscoll, for the tax years in question, had requested that the amounts paid as a parsonage allowance be excluded from his gross income.
In sum, the Court of Appeals effectively concluded that a parsonage allowance or housing allowance could only be used for expenses associated with one home of a minister.
For more information or for a consultation regarding your legal issues, please contact McCollum & Associates, LLC, at (301) 864-6070 or jmccollum@jmlaw.net.
Supreme Court Recognizes Ministerial Exception for the First Time
This is an important, important ruling. The Supreme Court finally and unanimously recognized–for the first time–the ministerial exception to anti-discrimination laws. How does this ruling apply to day-to-day life? It means that “ministerial” employees of a church cannot sue for employment discrimination. And, on the other hand, secular employees of a church can sue, in accordance with our government’s laws, for protection from unlawful discrimination and retaliation.
Next question: how can one distinguish between a “ministerial” employee and a “secular” employee of a church? Well, each case must be decided on a case-by-case basis. Although the Supreme Court decided that the ministerial exception applied in the case before it to a “called” teacher who held herself out as a minister of her church, it took care to note that “[t]he case before us is an employment discrimination suit brought on behalf of a minister, challenging her church’s decision to fire her. Today we hold only that the ministerial exception bars such a suit. We express no view on whether the exception bars other types of suits, including actions by employees alleging breach of contract or tortuous conduct by their religious employers. There will be time enough to address the applicability of the exception to other circumstances if and when they arise.”
For more information or for a consultation regarding your legal issues, please contact McCollum & Associates, LLC, at (301) 864-6070 or jmccollum@jmlaw.net.
