Summons: In The Case Of Attorney General V. Church Trustees Part 1 Of 1: How Trustees Actually Contribute To Church Lawsuits 2r5j1i

Copyright © 2013 by Allison A. Robinson, M.D.

Library of Congress Control Number: 2013901638 ISBN: Hardcover 978-1-4797-8645-9 Softcover 978-1-4797-8644-2 eBook 978-1-4797-8646-6

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Scripture quotations are from the King James Version of the Holy Bible, by Thomas Nelson, Inc., published by Regency Publishing House, Nashville, Tennessee (1976), unless otherwise indicated

Rev. date: 02/18/2014

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Table of Contents

Preface

Introduction How Trustees Actually Contribute to Church Scandals

Chapter 1 Are There Any Trustees in the Bible?

Chapter 2 What Is “Fiduciary Duty”?

Chapter 3 Church Law 101

Chapter 4 Church Documents Every Trustee MUST Know

Chapter 5 10 Lawsuits Churches Cannot Win!

Chapter 6 Bylaws: Who Needs Them?

Chapter 7 Article I: The Organization of the Church

Chapter 8 Article II: Doctrine of Faith & Beliefs

Chapter 9 Article III: Foundation, Purpose & Powers

Chapter 10 Article IV: Governance & Authority

Chapter 11 Article V: Covenant hip

Chapter 12 Article VI: Church Meetings

Chapter 13 Church Debt

Chapter 14 Asset Protection

Chapter 15 Church Liability

Chapter 16 Personal Liability of Trustees

Chapter 17 Article X: Financial Matters

APPENDIX: Sample Bylaws: Second Baptist Church

Constitution & Bylaws

Article I Name, Location, and Identity

Article II Doctrine of Faith

Article III Foundation, Purpose & Powers

Article IV Governance & Authority

Article V Covenant hip

Article VI Church Meetings

Article X Financial Matters

Preface

In the field of medicine, we have a common saying among internists:

THINK DIRTY!

For example, when a female patient complains of pelvic pain, there are several possible causes. Here are only three:

1. ovarian cyst, 2. trauma, or 3. intestinal obstruction.

This is called a differential diagnosis, or the many other possibilities for this type of pain. However, if the physician is “thinking dirty,” he first considers VENERAL DISEASE! Most patients would immediately reject such a possibility, but a simple microscopic examination of any discharge would certainly resolve the issue. Such a thought would save a lot of money, time, and suffering. I tried to apply the same “dirty thinking” in my participation of our church Bylaws Committee. I found that most of my committee were not accustom to “thinking dirty,” at least not in public. They always took the high road either because they were truly that naïve or that polite. This was particularly apparent with our discussions of Article X: FINANCIAL MATTERS. Who would ever think that a pastor of all people would dare embezzle or defraud the

church? And if he did, how would the church respond? One of the most common complaints I encountered on the Bylaws Committee was:

“These bylaws are too long and wordy. No one will read them, so let’s keep them brief and to the point.”

Unfortunately, our previous bylaws were all of FOUR pages, and no one read them either! To be truthful, neither had I. I had a copy mixed in with some old church minutes, anniversary bulletins, and other paraphernalia, but like most good church , they were not an interest of mine. In fact, the only time the issue of bylaws came up was during a church business meeting. There was a question as to whether the congregation had the authority to vote a new member into the church or not. Initially, I thought that such a vote made no sense. I dug out my old copy of Bylaws, all FOUR pages, and discovered that it indeed addressed that matter. To my surprise, it stated:

“. . . persons shall be received as of the Church by one of the following methods (baptism, letter, experience, or watchcare), upon recommendation of the Deacon Board, vote of the Church body, and extension of the right hand of fellowship . . .”

When I approached the Pastor regarding the bylaw directive to vote on entrance into hip, his response was:

“We don’t do that!”

Having served on numerous boards and committees at the local hospital and

having been in private medical practice for over 20 years, I knew that this was no way to run a business, or a church. Successful enterprises are policy-driven, and I felt that churches could not be that much different. Was I in for a surprise! I quickly realized that my church was actually a “mini-dictatorship.” All decisions were made by the Pastor, and there were no need for Church Bylaws. All decisions of the church were made at “Official Board” meetings after the Pastor had made his position known. In an attempt to appear non-partial, he dutifully hand-picked for key committees that would “vote” on issues that incidentally coincided with his own interest. Upon closer inspection, it became quite obvious that most were more than comfortable giving the Pastor full authority to say and do anything and everything he pleased. This allowed him to liquidate his retirement fund, access church equipment for personal use, use church volunteers for his “non-profit” business, and spend church funds for personal promotion and advertising, such as through his radio ministry. Most of my church brethren did not really know or care. They saw church as a club, full of autonomous with little authority, and certainly no ability for each other’s conduct and behavior outside the church. They gathered on Sunday, listened to the “God man”, gave a few dollars, shook a few hands, and returned home eager to do it again next week. However, not everyone was happy with all the affairs of our church. They did not want to rock the boat. They did not attend too frequently, did not participate that much, and certainly did not financially give that much. They seemed ive of my efforts to speak up and discuss our many concerns, but they felt safer remaining quiet and staying at home. My efforts to reform our Church Bylaws were met with heavy resistance, particularly from the Pastor and those who were eager to please him. When confronted with the many scriptural inconsistencies, even most church leaders did not understand it or want to hear it.

“You can’t run a church like a business. The Pastor is the leader, and we must submit to his authority

given to him BY GOD!”

Apathy was a tremendous neutralizer! Many “faithful” church , and particularly the church elders, were very dedicated to the Pastor. They were easily swayed by unscriptural doctrine that was formulated and encouraged by the Pastor. For no other reason than love for His church, I became eager to learn more about Church polity. Of course, all of this would lead back to the obvious: THE HOLY BIBLE! I had heard on numerous occasions that the Bible contained all the answers, but I did not know that to be true for myself. However, I would discover that a good church requires faithful AND good bylaws. Good bylaws required scriptural knowledge and faith that the Holy Spirit would lead all hearts. Jesus addresses this issue in Matthew 13:19:

When anyone heareth the word of the kingdom, and understandeth it not, then cometh the wicked one, and catcheth away which was sown in his heart

I concluded that weak and poorly researched Church Bylaws are dangerous. They cause church confusion, chaos, and disunity. But to the point of this book, they also cause LAWSUITS. How? By not addressing the THREE hottest issues of His church:

1. firing the Pastor, 2. thief or mismanagement of church money, and

3. church discipline

Thoughtful and clearly written church bylaws can avoid most lawsuits. Church leaders, particularly Church Trustees, need to be acutely aware of the relationship between their bylaws and lawsuits. They must see the urgent need for monitoring all the activities of the church, including the activities in the pulpit. The sooner they hammer out the details of its many issues, the less likely the church may end up in court. When churches wait until there is a crisis with the Pastor or with the money, it is too late. Chaos and confusion will reign supreme. Accusations will flourish, resulting in the inevitable lawsuits. My experience as a Bylaw Committee member revealed that it takes a special person and a special personality to be useful. Some personalities find it extremely difficult to speak from the heart without becoming angry or outraged. For example, consider the topic of Church Discipline. I found that many of my committee-men were literally unable to discuss Pastoral Discipline. They acted as if ministers were beyond sin or reproach. Others felt amending the bylaws showed disrespect to past Bylaw Committee . They said that there was no need to change the Bylaws because “they had worked fine until now. Why change?” I found these attitudes were MAJOR obstacles to the reform of the bylaws and the proper function of the Trustee Board. Second, most new Bylaw Committee are totally ignorant to the purpose of Church Bylaws. In addition, many did not understand the difference between the Church Constitution and Church Bylaws. They did not realize that:

The Church Bylaws are not divine!

They are purely man-made. They may be subject to error, but not misinterpretation. Errors in bylaws are inevitable due to changes in technology, leadership, and even social conscientiousness. In other words, bylaws are NOT the laws, but they are the procedures to better follow the laws. For example, God’s law requires all believers to fellowship. It does not indicate when, where, or how. Some churches meet on the banks of a river. Other churches offer the

Lord’s Supper at every gathering. All of this is fine if that is how they, the of that church, interpret the Scriptures and affirm this with a church vote. Church resolve their own issues. The Church Bylaws provide an agreed upon procedure to execute certain laws. For example, suppose the Pastor recommends that only tithers should be able to vote on financial matters of the church. What should be done? The Church Bylaws contain directives on Financial Matters. If the Bylaws do not allow such a requirement, then it deserves very little discussion. If the church wishes to amend that bylaw, then it must follow a special procedure for amendments. In other words, there must be a process for resolving church matters. This is the beauty of Church Bylaws. Those that oppose the existence of Church Bylaws act as if bylaws are optional. All state charters for corporations require bylaws. This is to compel groups to clearly define who they are, what they do, and how they wish to go about doing it. Bylaws do not allow 400 to resolve church issues by their own individual methods. They stabilize the church. Lastly, there was a group who feel that it was the duty of the pastor to prepare the bylaws for the church. Being a “God man” meant that he possessed all the gifts of His church. They have no problem with the “One Man Ministry.” Perhaps they are now relieved of their personal responsibilities to His church because the Pastor can take care of it. Perhaps even he believes that as well. I imagine that many of them feel legitimate in their beliefs. However, none of this is the point. Our church has changed, dramatically. The leadership is different. The are different; the community has changed; and local laws have changed. The church needs to respond to those changes. That would require church with special knowledge and skills and being willing to donate them to the church. Unfortunately, I did not find any such in my local church. For the most part, any change in the old bylaws is viewed as an attack on the Pastor and suspicion for the rest of the church leaders. Led by the pastor, they were quick to recite their dearly beloved Bible age:

“. . . all have sinned and come short of the glory of God”

Nevertheless, we endured. Despite the antagonism, resentment, and even a few threats, we were able to piece together a product that was more representative of a “full gospel, new testament” church. It was with great satisfaction that I participated in the revision of my Church Bylaws because it gave me an additional purpose to study the Bible in detail, in extreme detail. It was fulfilling because it required tremendous research, retesting theories, sharing of ideas, and even an occasional testimony. I believe that this work will benefit many church leaders who want to do God’s work. It will also benefit its faithful who love their church and are serious about their faith. I have tried to “keep to the script,” so to speak, and allowed the Scripture take me where it intended. I believe that place is one of comfort, knowledge, and truth.

Introduction

How Trustees Actually Contribute to Church Scandals

How Trustees Actually Contribute to Church Scandals

Most Church Scandals Go Unreported!

Why? Because they are so common, they bring such shame and embarrassment to the church, and because they are always due to negligence of church trustees! A fundamental responsibility of any trustee is to provide “fiduciary care.” When church trustees are asked to properly define their responsibility,

Most cannot do so correctly.

Examples of their lack of basic understanding of “fiduciary care” are quite apparent in the following newspaper headlines:

• Cleveland, Ohio: Deacon Indicted in Molestation A grand jury indicted Michael Davis, 48, of Bedford on 15 counts of gross sexual imposition . . . Davis was a deacon at Cleveland Church of Christ on East 106th . . . Davis began touching the girl in 2001 when she was 7, and continued through 2005 . . .

• New York: Pastor Charles Bates of Morning Star Missionary Church and bookkeeper accused of stealing $494,000 • Cleveland, Ohio: Pastor Led Church into a Financial Hell; Trustees lost houses; congregation lost home

• Rockford, Illinois: Jannine M. McKee sentenced to 18 months in prison for taking $140,000 from the Second Congregational Church where she was a volunteer financial secretary • Chicago, Illinois: Priest Brian Lisowski resigned after being caught with a prostitute and skimming more than $1 million from the parish in his five years as pastor. • Cleveland, Ohio: Church Sold; Didn’t Know 2nd Metropolitan Baptist pastor mum

• Pittsburgh, Penn: Deacon of Allegheny Alliance Church charged with diverting church funds to pay personal bills

These newspaper headlines represent church scandals. When asked about the relationship between them and trustee responsibility, most trustees see NO CONNECTION! Thus is the state of affairs in the religious community in the United States. Every church, denomination, and religion has been touched by scandal in this very year. From rabbis caught on television seeking sex from underage girls to evangelical leaders confessing to drug use and homosexual relations, the church has become as corrupted as any area of society. But what are the safeguards in place to protect the faithful and their vulnerable children from the influence of Satan that has made its way into the pews, even the pulpit?

The Deacon Board?

The Pastor?

The men of the church?

The Church Council?

The Southern Baptist Association?

Hardly! It is the Board of Trustees. These trustees are the only persons of the church who are legally bound to protect the interests of the church . The pastor has no legal obligation to the of the church. Of course most trustees do not know this. They believe that they have paid their dues with time, and they are now honorary elders of the church. None of them believe that sueable for their failures to act on behalf of the church and its . However,

they are seriously misinformed.

Not ONE week es in this country without at lease ONE suit being brought against a trustee, either corporate or church. This was rare as little as 10 years ago, but it is very common now. GuideOneInsurance, which insured over 45,000 churches in the U.S., has paying more than $3 million in claims in each of the past 5 years. This included damages to outsiders and well as embezzlement and thief by church and staff. GuideOne said that most cases of thief and embezzlement go unreported for a variety of reasons, including shame and embarrassment. Thus, crime and corruption is prevalent in the Baptist church. Church officers steal money, its volunteers molest children, and its preachers claim the church as their own personal possession. Why? There are numerous reasons, but the

common denominator, as with all crimes, is opportunity. When church trustees are not vigilant, then they give rise to opportunity, and the church suffers loss. Either they are misinformed about their responsibilities, or they simply do not care. Most churches make huge mistakes when they select their trustees. They use randomization as their method of choice to determine trusteeship. However, most of these candidates do not qualify. They lack the essential of a good trustee. It is of primary importance that a trustee candidate be knowledgeable, trustworthy AND conscientious person. This includes the knowledge of business matters, knowledge of the Scripture, and a basic desire to protect the assets of the Church. Secondly, many churches allow new of the church to serve as trustees. This is a sign of carelessness. These new are in unfamiliar territory in that they do not know the special needs of the church nor how to apply their special gifts and talents to the most pressing problems. As a result they become too reluctant and bashful to take criticize or even ask questions. This is the making of a disaster.

Ephesians 4:15-16 But speaking the truth in love, may grow up into him in all things, which is the head, even Christ: 16 From whom the whole body fitly ed together and compacted by that which every t supplieth, according to the effectual working in the measure of every part, maketh increase of the body unto the edifying of itself in love.

This book is not holy, although the Scriptures are used extensively as a teaching tool. This book is not the Law of God. It is a procedures book. It does not

instruct the church of the Will of God, however it does give the church a procedure to execute His will. It does not command the church to do anything, however it does assist in where and when to do it.

This is a procedures book!

It is written to instruct church trustees on how to lead, but more importantly, how to create Church Bylaws that serve the purpose to the church body and each of its . Church bylaws are the map of the church. Trustees MUST become thoroughly involved in this map. They must read the map, review it, and apply it to every aspect of the assembly. There must be NO deviation from the Scripture or bylaws. To do so not only undermine the purpose and unity of the church, but it also jeopardizes the financial status of the church, which is the ONLY obligation of church trustees.

Thus, the trustees are RISK managers.

All business of the church poses a risk. After a business meeting, the trustees must meet and decide if the decisions of the church body are legal? Are they ethical? Are they moral? Are they representative of the will of the assembly? This MUST be the focus of the Board of Trustees. The welfare of the congregation is its ONLY loyalty, its ONLY source of care or concern. Church trusteeship is NOT a ministry. Indeed each member of the church has a ministry, but the Board is not one of them. The Board of Trustees has legal authority, but it has no clerical or religious power. Thus it has no obligation to show preference to any member of the church, including the pastor. When trustees opt towards favoritism, church assets are threatened. This type of behavior leads to personal attack, and even lawsuits.

Although the bylaws of a church are powerful, they cannot prevent lawsuits. However, thoughtfully written bylaws can save the church thousands of dollars each year. They require work to create or amend, but they are well worth the time and effort that can literally save the church. The research for this book required the review of hundreds of Baptist church bylaws, both nationally and abroad. This book is a compilation of many good bylaws from many well-meaning churches. It is the hope of this book that “lay people” realize that they ARE His church. They have a fundamental role in His church as well as a responsibility to each and every member of the church. The Baptist Church does not belong to the “clergy,” and it is not established to serve any personal need except that of our Savior, Jesus the Christ. It is the wish of the author that this book serves as a guide, not to heaven, but to financial well-being of the church body, which is essential to the church ministry.

Chapter 1

Are There Any Trustees in the Bible?

Are There Any Trustees in the Bible?

NO! There are no trustees in the Bible. A term “trustee” connotes the legal status of someone assigned to oversee assets. There is no such arrangement in the Bible because the Roman Empire did not recognize Jews or Christians as entities. Certainly they were religious groups or movements, but they had no authority as a group. Many ministers attempt to make Stephen the first trustee, but this reflects their poor understanding of the word and status. Stephen is recognized as a moneymanager as he was responsible for the distribution of the funds and managing the assets of the assembly. But Stephen had no legal status, had no legal authority, and thus could not represent anyone or group before the local government. When trustees are considered in a legal context, it is because they possess authority. Deacons have no authority in the assembly. Deacons are “servants” to the people. This critical issue clearly separates trustees from deacons. The word “governor” more closely parallels the idea, intent, and meaning of trustees. Governors are mention at least 50 times in the Bible, but it appears to be an Old Testament term. Its first appearance is in Genesis 42:6 where it calls Joseph the “governor over the land.” In 2 Kings 23:8, Joshua is the “governor of the city.” Nehemiah is called “their governor in the land of Judah” (Neh 5:14). Jeremiah is called the “chief governor in the house” (Jer 20:1). In whatever context the title is used, that position is clearly appointed by the state, namely the Roman emperor. In the New Testament, the word “governor” appears repeatedly in the books of Matthew and Acts. Pontius Pilate is the governor (Mat 27:2), and Jesus stood “before the governor” (Mat 27:11). Luke 3:1 calls Pontius Pilate the “governor of Judaea.”

Luke 20:19 And the chief priests and the scribes the same hour sought to lay hands on him; and they feared the people:

for they perceived that he had spoken this parable against them. 20 And they watched him, and sent forth spies, which should feign themselves just men, that they might take hold of his words, that so they might deliver him unto the power and authority of the governor.

Thus, in the biblical context, the governor, or trustee to the emperor, owns nothing, but is responsible to the emperor for everything.

A TRUSTEE IS AN AGENT OR APPOINTEE OF THE STATE!

In this context, a trustee is NOT a spiritual leader. He has NO spiritual role or spiritual responsibility to the church as do the elders. The position of trustee is a LEGAL position. It was established by the state. The trustee has LEGAL responsibilities and is answerable ONLY to the state. Why? When a church wishes to purchase property or do business, it must interact with the city and state government. However, these governments do not recognize the church as a LEGAL entity. To the state a church is nothing more than a lodge or club house. The church has no official name, no official address, and no official leader. In order to do business in the state, these club must with the state. They must incorporate. They must form a charter with the state, select its board of directors, and agree to follow the rules of incorporation. This is very much a legal matter. Its directors become “overseers” of the corporation. The shareholders own the corporation, but the trustees manage it. They are stewards. They are NOT “overseers” of the congregation, but merely overseers of the corporation. Shepherding and overseeing the congregation is the duty and responsibility of the elders of the church.

Acts 20:17 And from Miletus he sent to Ephesus, and called the elders of the church. 18 And when they were come to him, he said unto them, Ye know, from the first day that I came into Asia, after what manner I have been with you at all seasons . . . 28 Take heed therefore unto yourselves, and to all the flock, over the which the Holy Ghost hath made you overseers, to feed the church of God, which he hath purchased with his own blood.

This is an important distinction for all believers to understand and decide. This decision should be clearly defined in the bylaws of the church. Here is an example:

Incorporation of the Church

Second Baptist Church of Elyria, Ohio shall be incorporated in the state of Ohio and provide its Articles of Incorporation to the Secretary of State of Ohio. This Corporation shall be organized for exclusively religious purposes. (Matt 28:18-20) It shall have no or investors. It shall be governed by its Board of Directors, or Trustees, who have no financial interest in the Corporation. Any actions by this Corporation shall require the approval of a majority of the ACTIVE of Second Baptist Church.

Jesus said that the keys to heaven are given to the of the church, not to

the ministers, pastors, deacons, or trustees. Catholics believe that the keys were first given to Peter and then to his successors, the various Popes.

Matthew 16:18 And I say also unto thee, That thou art Peter, and upon this rock I will build my church; and the gates of hell shall not prevail against it. 19 And I will give unto thee the keys of the kingdom of heaven: and whatsoever thou shalt bind on earth shall be bound in heaven: and whatsoever thou shalt loose on earth shall be loosed in heaven.

Jesus said that he gives TREMENDOUS power to the body of Christ, the church. Being a body of saints, the church congregation shall determine which things will be “bound” and “loose” on earth and these decisions will be respected in heaven. The body of Christ is the decision-maker, not ministers, pastors, deacons, or trustees.

However, the trustees are critical!

Trustees are legally responsible for the corporation, the assets of the church body, and are representatives of the to the state. In fact, the title of the church, the property, the bank s, the investments, and all other assets are in the name of the trustees. This understanding is a critical part of the state charter. It says that the corporation must elect directors, or trustees to “oversee” the assets of the church congregation. The trustees are not shareholders, can have no financial interest in the corporation, can receive no salary, kickback, bonus, stipend, scholarship,

pension, benefit, love-offering, or any other financial incentive from the corporation. They are LEGALLY responsible for the financial health of the corporation. Anything that threatens the order, finances, bank s, or title of church assets is the business of the trustees. This is their ONE & ONLY charge as a trustee board. Trustees are NOT responsible for saving souls, leading the way to Christian fellowship or stewardship. These are personal responsibilities of all of the church, or body of Christ. They are not the “pastor’s trustees,” but the trustees of the corporation, which is a legal entity that is ed with the State Office of the Attorney General. When the Attorney General identifies a problem with the corporation, it s the AGENT for the corporation. He is the “point man.” It should be the CHAIRMAN of the Board of Trustees, however the church may appoint anyone: its attorney, , clerk, or fellow trustee. The pastor is not a good choice for acting as AGENT to the corporation, since he is an employee and not a board member. The corporation is the “boss” of the pastor if the church is incorporated. It is the corporation that meets with the pastor, and all other salaried employees, to discuss performance, benefits, salaries, vacations, and all other employment matters.

When the Board of Trustees is negligent in these matters, then it is irresponsible and should be replaced by the beneficiaries of the trust, which are the of the church.

Irresponsible trustees increase the exposure to lawsuits, both civil and personal, because they act as if they do not care! In other words, they fail at exercising their “fiduciary” responsibility. That is dangerous!

Chapter 2

What Is “Fiduciary Duty”?

What Is “Fiduciary Duty?”

The following article appeared in a local newspaper that illustrates the point. A group of trustees controlled the property of a religious community. They broke all the rules of trusteeship and were accused of failing to protect the trust’s assets and illegally enriching themselves.

Church Ex-trustees Sued for Conspiracy

Salt Lake City Tribune 5/27/06… The legal action accuses all the defendants of wrongful taking and conversion of trust property, unjust enrichment, interference with contractual relations and prospective economic advantages and civil conspiracy. The former trustees also are accused of breach of trust, breach of fiduciary duty and profits arising from istration of the trust.

It is impossible to discuss the duty of trustees without discussing “fiduciary responsibilities.” The relationship between the TRUSTEE and the church body is called a “fiduciary” relationship. Webster’s Dictionary defines it as:

. . . based on or pertaining to faith or trust . . . pertaining to or involving one who holds something in trust for another . . . a person who stands in a special relation of trust, confidence, or responsibility in his obligation to others, such as a company director or agent of a principal . . .

In fact, the fiduciary relation goes much further than its dictionary definition. It is indeed a legal term that is bound by contract. The TRUSTOR is the person who creates the relationship. He/she needs someone who will carry out his/her

wishes in regards to property and/or assets. The TRUSTEE agrees to act in the best interest of the TRUSTOR, and of course, not steal or neglect the property or assets. By law the TRUSTEE must perform with an unusually high standard of ethical and moral character. The BENEFICIARY of the trust is the person or group that stands to benefit from the trust property. The TRUST INSTRUMENT is a document, agreement, will, or statement that expresses intent for the property or assets that the TRUSTEE agrees to carry out. In the case of the incorporated churches, which are most churches, the TRUSTORS, or the SETTLERS of the trust, are usually the founding fathers of the church. Occasionally their intent is not written or documented in a formal sense. However, almost any modest review of the history of a Baptist Church will easily reveal the nature and intent of the founding fathers. Some Baptist Churches were established to help the poor, to educate the children and young adults, or to serve as refuge against the slave bounty hunters. Whatever their reason, they wished to continue that cause, and appointed TRUSTEES in positions of authority to carry out those wishes. When the TRUST is created, the rights of ownership of the property or assets are with the TRUSTEES. Those rights are divided into two groups: LEGAL and EQUITABLE. The BENEFICIARIES, or the active in good standing with the church, are entitled to the EQUITABLE rights of the property or assets. Many church bylaws contain language regarding “active ” and “ in good standing,” but fail to properly define these . As a result, it creates confusion and resentment which can lead to lawsuits. Additionally, many church bylaws do not contain language regarding “church equity.” When a member of a church quits or transfers hip, can he/she take any equity with him? What do the bylaws say?

If the bylaws does not address this issue, then the TRUSTEES have failed in their fiduciary responsibility to “hold and ister” the TRUST.

Neither the pastor nor the deacons have this fiduciary obligation. Certainly there have been cases of clergy misconduct in which pastors have been accused of “breach of fiduciary duty.” However, in each case the Court has been reluctant to render judgment. In order to judge, the Court would require a legal standard of care. It would require that all priests, rabbis, pastors, or lay elders submit to that same standard. By way of the Free Exercise clause of the First Amendment, the Court cannot, under any circumstances, establish a standard of care for religions. The Court cannot evaluate church doctrine and cannot apply secular standards to religious circumstances. It is the obligation of the TRUSTEES to protect the assets, and it is theirs alone! The fiduciary duty of the TRUSTEES is supreme and cannot be diluted, overruled, or over-emphasized. Thus, the of the church hold the equitable rights to the church and the trustees hold the legal rights. The title of all property and assets are in the name of the TRUSTEE. It is the BOARD OF TRUSTEES, led by its chairperson, who holds and isters church property and assets. All actions, agreements, contracts, and decisions that affect the property and assets of the Baptist Church MUST be for the benefits of the BENEFICIARIES, or church , and MUST meet the approval of the TRUSTEES. Therefore, when a motion that affects the property of the church is approved at a church business meeting, it must also be approved by the BOARD OF TRUSTEES. Why? Because the TRUSTEES have the moral, ethical, and LEGAL responsibility to do what they feel is in the best interest of the BENEFICIARIES, or church . In addition, it must also be consistent with the mission of the church, as defined by the founding fathers in its bylaws and state charter.

This is a very important point!

Church do not always do what is in their own best interest. For example, one of the greatest challenges of any Baptist Church arises when it attempts to dismiss the pastor. This is no simple matter, and it cannot be resolved with a simple church vote. It must be done “deceit and in order.” In other words,

it must be done LEGALLY! Church do not always act legally. The law imposes two basis requirements of the TRUSTEE:

1. duty of LOYALTY 2. duty of CARE

DUTY OF LOYALTY

The DUTY OF LOYALTY requires that the trustee takes no part in any action that is a conflict of interest or appears to benefit the trustee in any way. All decisions must be in the interest of the beneficiary, the church hip, ALWAYS WITH NO EXCEPTIONS! When issues of conflict arise, the trustee is required to disclose his/her involvement and remove him/herself from the discussion and vote. This disclosure should be in writing and given to the church secretary for storage. If any future challenge occurs, the trustee is able to quickly and legally prove proper disclosure. The minutes of the meeting should also reflect the disclosure and abstention of vote of the involved trustee. The courts are extremely harsh on trustees who breach their fiduciary duties in attempts to aid someone else or benefit themselves. Supreme Court Justice Cardoza, in the case of Meinhard v. Salmon, 249 N.Y. 458, 464 (1928) made the following statement regarding the integrity of the trustee:

Many forms of conduct permissible in a workday world for those acting at arm’s length, are forbidden by those bound by fiduciary ties. A trustee is held to something stricter than the morals of the marketplace. Not honesty alone, but the punctilio of an honor the most sensitive, is then the standard of behavior . . . Uncompromising rigidity has been the attitude of courts of equity when petitioned to undermine the rule of undivided loyalty . . .

DUTY OF CARE

The second basic duty of the trustee is to fulfill the DUTY OF CARE. The trustee must act in the best interest of the trust and the beneficiary, the church hip. As a result the trustee must show “due diligence.” He/she must act with prudence and common sense. He/she must attend all meetings, show interest in all discussions, and vote in the interest of the trust. If a member is too busy to attend trustee meetings, he/she should resign. Attendance, study, and understanding relevant material are absolutely essential to being an effective trustee. Trustees do not always make the right decision. Some trustees have ended up in court due to bad decisions. However, the trustee is expected to make a reasonable and prudent decision based upon the facts available at the time of vote.

In fact, this is called the “prudent man rule.”

He/she cannot legally be held responsible for facts or data that were no available at the time of the decision. However, a trustee may be required to prove the good faith basis of his actions. This requires regular attendance and accurate minutes of Trustee Board meetings. If a trustee is absent from a meeting in which a vote was taken, that trustee has a duty to review the minutes, vote on the action, and allow the minutes to reflect his vote. If this is not done, it is assumed that the trustee was in favor of the action and can be held equally responsible for that action. The following article appeared in the Cleveland daily news that illustrates the point. Although these trustees are not part of any church, the same rules and responsibilities (and liabilities) apply. Actually, they were trustees of a pension plan. They were sued by the U.S Labor Department for making risky investments. They lent hundreds of thousands of dollars to Capital Investments

LLC, who then lent it to Wilshire Credit Corp., which then filed bankruptcy.

Pension’s Trustees Must Pay $750,000

Cleveland Plain Dealer 5/16/08… The Local 33 pension plan trustees sued were Alan Chermak, Ken Castro, Donald Skala, Jr., Richard Rohaley and Robert Finley . . .

A Labor Department spokesman said that the trustees of the Local 33 pension plan are PERSONALLY LIABLE for the amount to be recovered . . .

The pension plan covered 1,376 participants and had $95.9 million, according to the latest information available.

The trustees did not fulfill their “fiduciary” responsibility, to be loyal and careful with the assets of the pension plan. They acted carelessly, in violation of their own guidelines, and now are being held COLLECTIVELY and PERSONALLY responsible for any and all losses of the plan. Surely these pathetic trustees now wish they had taken their LEGAL responsibilities to oversee the pension plan more seriously. Without a doubt, these trustees had to liquidate their own pensions to pay this debt.

Chapter 3

Church Law 101

Church Law 101

Incorporation

One of the first major decisions the local church must make is that of property ownership. of a church can own the CHURCH, but it cannot own the land where the church is located. In order to own land, the church must form a corporate relationship with its state government. This is important because the state government cannot recognize a “church.” There are many “churches,” and they have different organizations, concepts, and interpretations of the Bible. Which is the proper interpretation? The state government elects NOT to interpret the Bible, and therefore, will not recognize a “church” unless it incorporates. In order for a “church” to purchase property, and pay taxes on that property, it must create a legal entity. This entity is called a TRUST. In other words, the “church” transfers all of its assets into a trust, also known as a CORPORATION. The next major decision for the local church is to determine who will represent the trust, or corporation, when it needs to communicate with the state government. There are two (2) common choices:

1. of the church 2. Trustees

When a church decides to allow the to represent the church in legal matters, it is called a “MEMBER CORPORATION.” When a “corporate” decision must be made, all of the must vote. Majority vote rules, and the church acts upon that vote. Of course, this seems to be a reasonable arrangement until a legal action occurs such as a lawsuit. Since the

govern the corporation, then all the are named in the suit. There are some obvious advantages and disadvantages to MEMBER CORPORATIONS. If the of a church wish to avoid any personal exposure to lawsuits, then they elect to form a TRUSTEE CORPORATION. In this scenario, the elect TRUSTEES to oversee the TRUST, or the entity that contains and controls all the assets of the church and is recognized by the state. So, the establishment of a corporation to represent the church has several advantages:

1. limited liability 2. ability to enter contracts and agreements 3. perpetual duration

Once the corporation is formed, the state confers corporation powers to the leaders of the corporation by the corporation charter and state law. Now the corporation for the “church” becomes a continuous entity for the ownership and management of church property and assets. The leaders of the corporation are empowered to carry out the business of the Baptist Church. The “business” of the Baptist Church includes the following:

1. establish a name and purpose 2. create a charter 3. empower the corporation

The corporation empowers itself to do the following:

1. buy, use, and sell property 2. elect officers 3. create and amend Articles of Incorporation 4. create and amend bylaws 5. dissolve itself

When a church establishes a relationship with the state government via a corporate charter, it must provide a name of a person who will correspond with the Secretary of State. This person is called a “ED AGENT.” He/she is generally a trustee whose name and address is listed on the corporate charter. If he/she ever leaves that position, the state must be informed immediately, and another name and address of the new agent MUST be provided BY LAW! It is important that His Church takes the matters of incorporation seriously. The state government allows the church corporation to make any rules, regulations, and procedures that it wishes as long as they abide by state law. For example, the church bylaws cannot prohibit women from being ministers. That is sexual discrimination, and therefore, illegal. Once procedures are established in the bylaws, they must be followed. Many Baptist Churches are guilty of breaking their own bylaws. For example, most bylaws state that all church meetings are conducted according to Roberts Rules of Order. When a vote is called to dismiss the Pastor and the entire meeting was not according to Roberts Rules, then it has violated the Church Bylaws. The vote and meeting will almost certainly be contested in civil court. The Pastor will win every time.

Church Officers, Directors, and Trustees

State governments do not recognize “churches,” as legal entities. They require

that all business is conducted through individuals or legal entities, not through unincorporated churches. When a church is founded, it usually has no reason to incorporate. It remains an “unincorporated” church. It is not legally capable of conducting any business or holding the title of any property. All business transactions must be done through an individual. This individual is called a “trustee,” meaning that this person knows that the church property is not HIS property, and that the property cannot be used for his personal gain or use. He is trusted to hold the property in his name. If a church wishes to do business in its own name, establish a non-profit aspect, or own property, it must become a legal entity by establishing a charter with the state. This is an act of incorporation. It must appoint a Board of DIRECTORS. Some churches continue to call them “trustees,” however this is a holdover from the un-incorporation phase. The BOARD OF DIRECTORS must:

1. elect officers, 2. establish bylaws, 3. select leaders for spiritual oversight, and 4. select leaders for the temporal (financial) oversight.

The Model Nonprofit Corporation Act of 1987 specifies that a corporation must have a president, vice-president, secretary, treasurer, and any other officer deemed necessary. Traditionally, these officers are elected by the church . If there is no constitution or bylaws of the church, then it is assumed the congregation, not the pastor or deacons, shall have the authority to appoint or elect officers. The Model Nonprofit Corporation Act of 1987 does not allow any director of officer to have financial interest in the corporation. Thus, a salaried pastor cannot serve as president, director, or trustee of the church because this is considered as a financial conflict of interest.

State Charter

Once His Church decides to incorporate, it must produce a document for its Secretary of State that defines who and what the church is. This document is called the “Articles of Incorporation.” It must contain the followed:

1. church name 2. address 3. duration of tenure 4. names on the board of directors 5. statement of purpose 6. power of the corporation 7. procedure to establish bylaws 8. definition of quorum for trustees to do business 9. procedure to amend the Articles of Incorporation 10. provisions to dissolve the corporation and distribute assets

Once the state accepts the application for incorporation, fees, and Articles of Incorporation, the His Church may now operate as a state corporation. Its Articles of Incorporation now become known as the “Church Charter.” The Church Charter is the most important legal document recognized by the state. When there are conflicts between the Church Charter and other documents, the Church Charter ALWAYS rules. The state absolutely refuses to interpret the Bible and leaves that task to His Church. As a result, the Bible can NEVER be used as a defining or istrative document.

Articles of Incorporation

Most church directors, or trustees, are not aware of the existence of a Church Charter. Consequently, they do not follow the guidelines set forth by the Church Charter. This is a major problem. The Charter may contain limitations and restrictions that profoundly impact decisions of the trustees. For example, the Charter may restrict the use of church property or its fellowship hall. It may limit the amount or type of debt that the church may incur. It may contain a dissolution clause that specifies what happens to property in the event of church failure or if the church splits. Although the following article is not involving a church, it illustrates the fate of a state-chartered organization that did not follow its charter. The Ohio Department of Insurance revoked the license of bail bondsman Charles C. Brown, Sr. for violating state law and incompetence.

Shaker Heights bail bondsman loses his license

Cleveland Plain Dealer, Cleveland, OH, 6/18/10… Brown and his company . . . “have demonstrated incompetence in the conduct of surety bail bond business in the State of Ohio,” said a hearing officer’s report and recommendation . . . Records show that the secretary of state’s office canceled both companies’ articles of incorporation in 2007 for failing to file necessary tax reports or make timely tax payments . . .

Churches that seek corporate status, usually for tax advantages and non-profit status, must submit its Articles of Incorporation to the state Attorney General. These Articles defines the business, establishes its goals, determines the responsibilities of its leaders, and provides provisions for continuity or dissolution. This bail bondsman did not follow his Articles of Incorporation that he is given the freedom to create to govern himself. In other words, he was going through the motions of a corporation without taking the procedures seriously. As

a penalty, he lost his corporate status. He can no longer do business in his corporate name. Churches run the same risk. If a church violates its own charter, it can be revoked by the state. The results can be devastating. The church could:

1. no longer do business (own property, obtain a loan, etc), 2. no longer operate as a non-profit entity (must pay taxes on its offerings), and 3. no longer protect the assets of the church or trustees by the limited liability provided by the corporation.

The Board of Directors of the corporation, or the Board of Trustees of the church, must take full responsibility for this negligence. They are legally bound to insure that this negligence NEVER happens. The loss of non-profit status is of particular importance to the church. Once the His Church becomes incorporated, it does not automatically gain non-profit status. That is a totally separate process. Nevertheless, it is still under IRS jurisdiction. In fact, the IRS imposes its will on all Church Charters in several areas and these two in particular:

1. political activities 2. payment of reasonable compensation

An incorporated church must know the law and be careful of its activities in the political arena. It is not allowed to endorse political candidates, even if the candidate is a member of the church. It is not allowed to campaign or conduct fund raisers for political issues. A “political action groups” can disguise itself as a “church” and gain all the benefits of a church with no real spiritual or religious intentions. Neither the state nor the IRS will tolerate such acts and some churches have lost their charter as a result.

An incorporated church cannot be a “cash cow” for any individual. Although the church may employ and compensate, it must do so in a reasonable manner. The trustees determine what is reasonable. When the trustees are not involved in this process and conflicts arise, they WILL be held able, both collectively and personally. The Church Charter should contain the length of existence of the corporation. Obviously, the corporation could cease to exist if no one ever reviews the Charter. In the event that the corporation expires, the directors and trustees are exposed to immediate and personal liability.

IRS and Section 501(c)(3)

Many churches seek corporate status within its state of residence and “tax exempt” status with the IRS. This means that the net profits, proceeds over and above its operating expenses, are exempt from federal and/or state income tax. Many churches believe that the only way to achieve “tax-exempt” status is to incorporate and then apply to the IRS for Section 501c3 exemption.

Actually, this is not true!

All churches are exempt from taxation, and they have always been exempt. In addition, all contributions to churches are deductible WITHOUT Section 501(c)3 status, so says the U.S. Constitution AND the IRS statutes. The First Amendment states that the government has no jurisdiction over churches:

“Congress shall make NO LAW respecting an establishment of religion, nor prohibiting the free exercise therof.”

Congress cannot make laws for churches in Mexico for the same reason that they cannot make laws for churches in the U.S. Why? Because it has no jurisdiction. Prior to 1954, no churches paid taxes. In addition, the government could not control the opinion of churches on social matters. At that time the church opposed abortion, capital punishment, and homosexuality. It had the freedom to speak out against these issues. After churches began applying for 501(c)3 taxexemption, it all changed. In order to be granted tax-exempt status by the IRS, an organization must submit Form 1023 and 1024. However, some organizations do not need to apply because they are automatically exempt. Churches fit this category. IRS Publication 557 clearly states that churches are exempt:

Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men’s or women’s organization, religious school, mission society, or youth group. These organizations are exempt automatically if they meet the requirements of section 501(c)3.

According to IRS Code 508(c)(1)(A): Special rules with respect to section 501(c)3 organizations. (a) new organizations must notify secretary that they are applying for recognition of section 501(c)(3) status. (c) Exceptions. (1) Mandatory exceptions. Subsection (a) and (b) shall not apply to: (A) churches, their integrated auxillaries, and conventions or associations of churches.

The IRS rule is that churches fit the “mandatory exception” rule for taxexemption. There is no reason that churches should apply for Section 501(c)(3). To do so creates the existence of a “state-church.” Even the U.S. Supreme Court does not understand why churches seek taxexempt status. Note the opinion of the highest Court in the land on the government’s intended purpose for the 501(c)(3) rule in Bob Jones University v. United States (461 U.S. 574):

The Court asserts that an exempt organization must “demonstrably serve and be in harmony with the public interest,” must have a purpose that comports with “the common community conscience,” and must not act in a manner “affirmatively at odds with (the) declared position of the whole Government.”

Thus, the spirit and soul of tax-exempt organizations are to represent and the Government by promoting governmental policies. Is this the purpose of the church? Is there any separation of the church and state? Then why do most churches seek tax exemption through the IRS Code Section 501(c)(3)?

IGNORANCE!

After 1954, all churches were encouraged to apply for tax exemption and tax deductibility. In so doing, churches had to agree to certain rules of Section 501(c)3. Without reviewing the implication of those rules, church leaders followed the advice of attorneys and As to apply for benefits that already existed. In his book In Caesar’s Grip, Peter Kershaw recalls the words of a senior IRS Revenue Officer:

“I am not the only IRS employee who’s wondered why churches go to the government and seek permission to be exempted from a tax they didn’t owe to begin with, and seek a tax deductible status that they’ve always had anyway . . . churches are in an amazingly unique position, but they don’t seem to know or appreciate the implications of what it would mean to be free of government control.”

When church leaders decide to seek IRS tax exemption, it is imperative that its trustees understand what the U.S. government is actually requiring in return. The Church cannot substantially participate in lobbying for any act, bill, resolution, public referendum, ballot initiative, or constitutional amendment. It cannot substantially lobby to Congress, any state legislature, any local council, or similar governing body. It cannot urge its to local, state, or federal officials for the purpose of influencing any legislation. To do so could jeopardize its tax-exempt status. Church trustees must be vigilant in its church activities. They must be aware of the flurry of political campaigns each November. When a politician speaks before an audience of congregants, it could be viewed as an endorsement by the church. This is a risky act when it does not allow an equal chance for the opposing politician to speak. Many churches have lost their Section 501(c)3 status with the IRS over their handling of controversial issues. For example, some churches have criticized the president of the United States for his position on Roe vs. Wade abortion controversy, the Persian Gulf War, same sex marriage, or capital punishment. Here is an example of a church that did not follow the rules. Instead of conducting a political debate, which is perfectly legal and allowable under 501(c)3 guidelines, the church opted to have a rally of ONE candidate to oppose the president of the U.S. That deserved an investigation by the IRS. The United Church of Christ in Cleveland, Ohio invited the then candidate for president Senator Barack Obama. He spoke on religious matters, but then he pledged to sign a universal health-care bill into law if elected president.

IRS Probes Speech by Obama to UCC Synod

Cleveland Plain Dealer, Feb. 27, 2008 . . . The church announced late Tuesday that the IRS is looking into whether Obama’s speech . . . may have been a political activity that could threaten the denomination’s tax-exempt status . . . Church officials said no laws were violated, and they criticized the “disturbing” implications of the inquiry.

In essence, 501(c)3 churches have waived their rights to freedom of speech. They have also waived their rights to influence legislation and their responsibility to direct their elected officials in social issues. They have conceded their rights to nonbelievers and even to those hostile to the church. There has never been a state-church in any society, in any nation, and at any time in history that was respected by its citizens. By definition, the state-controlled church is a morally weak, spiritually compromised, and socially inept group of sheep without leadership. This is no accident but by design. Now when churches dare to speak out against war, legalized gambling, or governmental corruption, they fear retribution by the IRS.

Chapter 4

Church Documents Every Trustee MUST Know

Church Documents Every Trustee MUST Know

State Law regarding Corporations

Most church trustees do not realize that their positions are created by the state, not by the church. As a result, each trustee must answer to the state when matters of concern occur. Thus, it is highly recommended that trustee understand state law, particularly corporate law, since incorporated church are corporations. Each state has its own corporate laws, but most states have similar laws regarding the conduct of corporations and its directors, or trustees. In Ohio, all corporations are governed by the Ohio Revised Code (ORC), chapter 17. Here are several corporate laws that are of particular importance to church trustees:

1701.13 Authority of Corporation

(a) A corporation may sue and be sued.

This is critically important because it addresses the essence of trusteeship: to protect the assets of the church. Trustees are not called to preach, sing, dance, or sweep the hallways.

They are positioned to MANAGE RISK!

Though no corporation is “bullet-proof,” the financial tithes and offerings are for

the missions of the church, not attorney fees, contingencies, and civil proceedings. The responsibility of the trustees is to keep the church financially solvent and out of civil court. When there is no alternative but to seek civil justice, the rest of 1701.13 Authority of Corporations deals with indemnification. This is the process of the church accepting the legal fees of its trustees and the financial penalties when they, or the church, are found guilty and liable. This prevents the trustee from having to pay out of his own pockets.

1701.38 Annual Report

Every church member not only deserves to know the financial condition of the church, but is mandated by law to be informed.

(A) At the annual meeting . . . every corporation . . . shall lay before the shareholders (church ) financial statement . . . :

• a balance sheet containing a summary of the assets, liabilities, stated capital . . . as of the end of the . . . fiscal year. • a statement of profit and loss and surplus . . . for the period commencing with the end of last period . . .

(B) A financial statement with an opinion signed by (an officer) . . . to the effect the financial statement presents fairly the financial position of the corporation and the results of its operations in conformity with generally accepted ing principles.

Trustees have a responsibility to not only provide an accurate financial

statement, but to also interpret the results of the finances. In other words, it is not enough to assure the church . How do the finances compare with last year or five years ago? Can the church survive a major financial expenditure such as a new furnace or air condition system? How much money went to charity? The trustee report must be honest and straightforward.

1701.39 Annual Meeting

An annual meeting of shareholders (church ) for the election of directors (trustees) and the consideration of reports to be laid before such meeting shall be held on a date designated in the (bylaws).

Trustees are elected or re-elected every year. They are not appointed by the Pastor or deacons. There is no controlling family. The Bylaws should be explicit regarding term-limits and methods of election.

1701.38 Called Meetings

(A) Meetings . . . may be called by any of the following: a. The chairperson of the board . . . (or) the vice-(chairperson) authorized to exercise the authority of the (chairperson) . . . b. Directors (trustees) . . . by majority vote . . . acting at a meeting or without a meeting c. Persons . . . as the articles (bylaws) authorize to call a meeting . . .

(B) Meetings may be held (anywhere) . . . and may be held by means of

communications equipment as authorized by the . . . (directors) . . . In absence of such provisions, all meetings shall be at the principal office of the corporation . . .

Simply put, the trustees have sole authority to call a meeting. The Pastor, Chairman of Deacons, nor anyone else may call an official trustee meeting unless authorized by the bylaws.

1701.58 Removal of Directors and Filling Vacancies

(C) The directors (trustees) may remove any director (trustee) and thereby create a vacancy in the board (by the following means):

(1) if by court order the director (trustee) has been found to be unsound mind, or if the director (trustee) is adjudicated a bankrupt; (2) if within 60 days, or within any other period . . . prescribed by (bylaws), the director (trustee) does not qualify by accepting in writing the (trustee’s) election, or acting at a meeting of the directors (trustees) . . . or . . . ceases to hold the required qualifications.

(D) . . . A director (trustee) may be removed from office, without asg any cause, by vote of . . . the majority of directors (trustees) . . . (E) In case of any removal . . . a new director (trustee) may be elected at the same meeting for the unexpired term . . .

Although church may elect, or re-elect, trustees each year, the Board

may expel anyone for any reason, and it does not have to be justified. The Board may appoint a replacement until the election period by the church .

1701.93 False Statement or Entry

(A) No director (trustee) . . . shall, either alone or with another or others, with intent to deceive:

(1) Make, issue, deliver, publish, or send by mail or by any other means of communication any . . . report, statement, balance sheet, or document . . . respecting the . . . assets, liabilities, business, earnings or s of the corporation, that is false in any material respect, knowing the statement to be false; (2) Having charge of any books, minutes, records, or s . . . make in them any entry that is false . . . knowing the entry is false, or remove, erase, alter, or cancel any entry in them . . .

(B) Whoever violates this section shall be personally liable . . . to any person for any damage actually suffered . . .

A trustee or any officer of the church is required BY LAW to be honest. To not do so may result in civil prosecution, if damage can be established.

1701.59 Authority of Directors—bylaws

(A) . . . all of the authority of a corporation shall be exercised by or under the

direction of its directors (trustees). For their own government, the directors (trustees) may adopt bylaws . . . The selection of a time frame for the achievement of corporate goals shall be the responsibility of the directors (trustees). (B) A director (trustee) shall perform the duties . . . in good faith, in a manner the director (trustee) reasonably believes to be in . . . the best interests of the corporation, and with the care that an ordinarily prudent person in a like position would use under similar circumstances.

This legal code gives the trustees the authority to develop their own bylaws to govern the corporation. The trustees may appoint a committee, or they may wish to develop bylaws on their own, of course, with the best interest of the church in mind. In other words, the BOARD of Trustees has absolute control of bylaws. Here again, the Board of Trustees is NOT an ecclesiastical entity; it is a legal entity. It requires a job description of all employees, including the Pastor, and evaluates every employee annually. In other words, it is an employer. Its responsibility is to act in the best interest of the church and comply with state regulations.

Church Bylaws

Bylaws are church rules. They oversee the internal istration of church affairs. This document contains so many issues of church organization and istration, hip, and board function that the trustee MUST be familiar with it. When the language of the bylaws is vague or ambiguous, it WILL be the source of many disputes. The diligent trustee has a duty to address the wording in the bylaws and even get an opinion from an attorney who has a special interest in Church Law. A popular church in Cleveland, Ohio found itself scrabbling to avoid foreclosure when it defaulted on its mortgage to Geauga Savings Bank. Its pastor, Rev. Artis Caver, mortgaged the church for $200,000 and apparently kept it for himself.

Congregation fights to save church

Cleveland Plain Dealer, Cleveland, Ohio . . . A group of church sued March 15, demanding explanations from Caver. They say Caver did not have the authority to mortgage the church in 2002. “He personally took over the finances of the church and has failed and refused to for the money,” lawyer Clifford Thornton said in court papers . . . (Caver’s) lawyer Donald Williams said Caver abided by the church’s bylaws when he signed the mortgage . . .

All issues concerning the finances of the church, particularly the mortgage, is pure trustee work. Every trustee should have expert knowledge of the church’s mortgage. It is unthinkable that the above scenario could occur if the trustees were on top of their business. In many churches, the pastor is responsible for the spiritual aspect of the church, not the financial aspect. With the enormous task confronting the church community today, one would question why a pastor would wish to burden himself of financially overseeing the church.

ing and Financial Reports

When a priest is able to steal $8.6 million from the parish, there is an obvious bookkeeping problem. When he gets sick and is replaced by another priest who continues the same scheme, it has to be a conspiracy. When they both use the money for gambling trips to Las Vegas and the Bahamas, it is beyond the imagination. Unfortunately, it did not end there.

Priests Stole Millions, Officials Say

Cleveland Plain Dealer, 9/29/06 . . . (The Rev.) Guinan had an “intimate relationship” with a former bookkeeper at St. Patrick Catholic Church, where he previously worked, according to the police report. Denis Hamel, the chief financial officer for the Diocese of Palm Beach, told police Guinan had paid the woman’s American Express bills and her child’s school tuition with money from St. Vincent’s that was not recorded on the church books . . .

Trustees in most churches never see or review its financial records. If a trustee is uncomfortable or disinterested in charts, numbers, and statistics, then it is recommended that he RESIGN! Monitoring the financial health of the church is a fundamental duty of the trustee. He is responsible for ensuring adequate safeguards are in place to prevent intentionally or unintentional errors. All contributions and distributions are properly recorded and presented in financial statements. His Church is responsible for issuing receipts to all donors for their contributions, whether they are in the form of tithes or gifts. The diligent trustee reviews financial statements at every board meeting and asks questions about anything that is unclear.

List of

Since it is the that make the critical decisions of the church, then a list of should be up to date and accurate. The list of active, voting is actually a legal document since the are so empowered. They elect pastors, dismiss pastors, amend bylaws, buy and sell property, and conduct many other vital tasks of the Church. The diligent Trustee Board should require a regular review of the hip list for legal purposes, if it were ever to arise.

Minutes of Meetings

A common error of many churches is a vote to approve the minutes of a church meeting. This action is inappropriate since minutes can only be corrected or accepted to be filed. The Board of Trustees should appoint a special committee review and approve of all minutes of all regular and duly called meetings. The decisions and actions of all Boards and committees must the three critical questions:

1. Is it legal? 2. Is it consistent with the bylaws? 3. Is it consistent with the mission of the church?

It is the duty of the trustees to oversee the church. They must insure that all boards and committees act properly to avoid disputes and potential alienation and/or litigation. The appropriate question and response by the is:

“Have the minutes been reviewed by the and the Trustees Audit Committee? Are there any additions or corrections to the minutes? If not, the minutes will be accepted and filed in the Church office.”

Insurance Policies

Trustees should maintain ALL general liability policies. Copies of all policies should be kept indefinitely. Claims may arise from events that occurred many years ago. When the Board of Trustees cannot locate the carrier or the coverage on the date of loss, the Church may find itself completely liable with NO insurance coverage. This is inexcusable by the trustees.

Tax Records

The Church is responsible for filing several tax related documents. They include payroll tax forms, housing allowances for the pastor, contribution records, and all other forms filed to the state and local governments. The trustees should maintain these records and insure their proper filings. In addition, if the Church has tax exemption from property taxes or state sales tax, it should be readily accessible to the trustees.

Corporate Annual Reports

When His Church is incorporated, it must file an annual report to the Secretary of State office. The form is simple and can be completed in only a few minutes. The failure to submit a corporate annual report could result in corporate dissolution. If then sued, all the trustees could find themselves personally responsible for a liability claim. It is easy to review the status of the Church corporation by checking with the Secretary of State’s website. Under the listing of “Corporations,” find the church corporation and review all business between the state and the church since it was first incorporated.

Employment Records

Churches are not exempt from Employment Law. It is the responsibility of the trustees to maintain well-organized employment records for every employee. Those records should include the following:

1. application for employment 2. reference checks 3. disciplinary actions 4. attendance records 5. annual evaluation reports 6. changes in employment status 7. I-9 immigration form, if applicable

When a church employee resigns, an exit interview should be mandatory. When a church employee is dismissed, it must be approved by the trustees. Although the pastor may have the authority to supervise Church personnel, he/she should not have the authority to hire and fire. There is an appropriate procedure for job termination and most pastors do not know the proper procedure. That must be left to the trustees. In the same vain, most church do not know the proper procedure required to dismiss the pastor. The church may call a special meeting to dismiss the pastor, but their decision must come as a “recommendation” to the trustees, not a demand. The Board must show “due diligence” in this matter which most certainly will end up in court. The bylaws should address the proper way to dismiss the pastor, or any other employee, and this must be followed to the letter. Even then, an attorney should still be consulted.

Property Deed

Most trustees have never seen the deed to the church or any of its property. It rarely becomes an issue until there is an attempt to sell the church and relocate. Many churches have restrictions in their deeds purposely inserted by the founding fathers. For example, one restriction may be that the property may not be used for any purpose other than religious worship. That statement could void a sale. It is advisable for each new trustee to review the deed for complete understanding of the church status. The following article is an example of what can happen when the trustees allow the pastor to handle important documents such as the deed. The Rev. Donald Ray Robinson, pastor of Lane Metropolitan Christian Methodist Episcopal Church, mortgaged the parsonage of the church for $300,000 and used the money as collateral to obtain other loans. Then he brought the church an even greater surprise.

Freed Minister Charged in Thefts

Cleveland Plain Dealer, 1/8/08… he abruptly told church he would be going away for 10 months. What Robinson did not tell them was that he was going to federal prison in Pennsylvania. He served 10 months after being convicted of a real estate scam in Mississippi . . . Law enforcement officials suspect Robinson stole the money from his church and his to repay some of the money he stole in the Mississippi land deal . . .

The above article illustrates several problems. Obviously, the trustees were inattentive to the ownership of church property as well as the past criminal record of their pastor. The pastor was given far too much access to legal documents and bank s. As a result he was able to act with impunity with church deeds, credit cards, grants, and church bank s. His acts were so brazen because he had NO respect for the church trustees and their oversight.

The result was a disaster. This church will suffer in lack of attendance, less freewill giving, and loss of reputation in the community simply because the church trustees truly did not care. Certainly the pastor is guilty of numerous violations, but the church trustees are also to blame. They increased their exposure to lawsuits due to their own negligence. Church trustees MUST be knowledgeable of all church property. They must review the deeds, assess the tax liabilities, and have easy access to them on a moment’s notice. Safeguards must be in place to insure that thief, embezzlement, misrepresentation, and other acts of contempt and greed do not occur.

Chapter 5

10 Lawsuits Churches Cannot Win!

10 Lawsuits Churches Cannot Win!

At one time, suit by a church member was unimaginable. If it had occurred, it was most likely due to EX-COMMUNICATION for a disciplinary matter. Those days are long gone. The perfect example is the Catholic Church. Many of its dioceses have sought bankruptcy protection due to its enormity of number of lawsuits. And when churches are sued, the church leaders, namely the trustees, are named as defendants. Here are some of the most common suits faced by churches today. Although lawsuits are not preventable, most are avoidable. The risk for lawsuit can often be minimized by a few reasonable maneuvers by the church leaders. Today negligence is the leading cause of lawsuits against the church and its leadership. But what is true negligence? According to Deefe v. Strauss, 133 N.Y.S. 530 (1915), the best definition of negligence is:

“the failure to observe for the protection of the interests of another person, that degree of care, precaution and vigilance which the circumstances justly demand, whereby such other person suffers injury.”

In other words, negligence is conduct that creates an unreasonable risk of harm to another person or property that results in an injury or damage. Negligence does NOT have to be intentional. It may be due to a specific act, aptly called “commission,” a failure to act, also called “omission.”

#1. Negligence—general

If the church knows of a hidden danger that is not obvious to the general public, it still has a responsibility to repair it. The victim does not have to be invited or associated with the church. If he/she can show injury or damage by a known hazard that lacked any warnings or special precautions, the church is negligent. The church must warn about scam-artists, even if it may be the pastor. The Church of the Open Door discovered this firsthand.

Church says it is not Responsible for Scam

Elyria Chronicle-Telegram (2006) . . . Church of the Open Door . . . filed a brief in county Common Pleas Court this week in response to the suit filed almost three years ago by James and Dorothy Jevack, two of the investors who say they were scammed by Gary McNaughton, 51, a former pastor of the church . . . Jevack and others who have sued McNaughton and Lech are also suing Church of the Open Door, who they claim allowed McNaughton to use the church as a conduit to spread the word about his investment

The least the church could have done was post a sign that warns of danger. This act alone may lessen danger and lighten the liability load of the church. Any property owner has a responsibility to protect its visitors. When a church fails to do so, it is the trustees who will be held responsible. They will be found negligent because it is their duty to

“hold, maintain, and supervise” church property.

#2. Negligence—parishioners

People slip and fall everyday, as long as it is not at a church sponsored activity. In those cases, someone MUST be held liable, and that someone is always the church. This is because the courts have ruled that churches owe a greater duty to its and visitors. The church must warn people of any dangers and then take every precaution to ensure safety, even during a sporting event. In this case a child was injured at a church sponsored event when the adult supervisor fell on him. The supervisor agreed to pay the youth $100,000 as a settlement agreement.

Injured Youth Sues Church

. . . The church argued that the vicarious liability claim against the church should be dismissed in light of the settlement. The court disagreed and the action was permitted to continue. (Nelson v. Corporation of the Presiding Bishop of the Church of Jesus Christ of the Latter-Day Saints, 935, p.2d 512 (1997).

There is a simple rule in medicine: “If someone dies, someone is going to pay!” Innocence or guilt is a less important issue. The church will lose the following case because of negligence. All stairs need handrails. There can be no water, loose rugs, or structural instability of the stairs. There are no exceptions to this rule. The All Saints Roman Catholic Church in Masontown is about to learn this bitter truth.

Church Sued over Fatal Fall

Pittsburgh Tribune-Review, Jan. 14, 2009… Jeneieve “Jenny” Mocniak, of Greenboro, Greene County, died on March 20, 2006, from injuries related to her fall at All Saints Roman Catholic Church in Masontown . . . According to the suit, Mocniak fell as she was leaving the church . . . The plaintiff claims the steps and landing were worn and slippery and the stairs did not have a handrail, creating a “dangerous and hazardous condition.”

#3. Negligence—nuisances

Property ownership requires responsibility. One major responsibility is the prevention of hazards. Even when a person is tresing on church property, the church has a duty to protect people, especially children, from “inherent danger.” In the following article, the church is obligated to care for its property and correct potential sources of injury.

Church Sued Over School-Ground Injury

AP 2/23/2004 . . . A Sydney woman is suing the Catholic Church after falling into a grass-covered hole and tearing an ankle ligament, saying she can no longer work as a flight attendant . . . Whitney Lee, 34, of Gymea, is claiming $750,000 in damages for injury to her left ankle and shock after she fell into a 10 cm. deep hole when collecting her two children from Our Lady of Fatima primary school . . .

It is not absolutely certain that this woman will win this suit. The church cannot be responsible for conditions that are obvious sources of danger. One court noted that:

“there is almost no condition which an adventurous child cannot turn into an injury-producer: tree swings, slides, stairs, hard-surfaced playgrounds, and soft-surfaced playgrounds can all be a source of harm

to the young.”

But, the prudent church leader will lock gates, remove ladders, and restrict areas that have potential danger, especially to children.

#4. Negligence—hiring, supervision, retention of employees

Churches and other non-profit organizations must abide by the same laws of employment as any other business. Most businessmen and lawmakers agree that these laws are fair. Any employee who is not performing properly has a right to be notified of specific errors or shortcomings. That employee has the right to a probationary period in order to correct the grievance. When church trustees do not establish or follow a policy on employment that is consistent with the law, then they are considered negligent.

Church Sued in Scandal

AP 7/21/07 . . . Negotiations between officials of the Florida United Methodist Conference and a woman . . . has broken down, paving the way for a lawsuit charging two local ministers sexually abused, impregnated, and then fired the woman from her job as the University Carillon United Methodist Church in Oviedo . . .

This is beyond ineptitude. It is unlikely that the ministers of this United Methodist church have the power to hire and fire anyone. However, there is a governing body that does have this authority. Each member on that body is in trouble for failure to respond to a sex-abuse complaint in the workplace. Now the church may be responsible for child payments for the next 18 years.

Church Sued for Negligent Hiring

NationalBackgroundScreening.com 1/14/07 Waterbury, Conn.—Two girls alleging they were sexually abused are suing a former church organist . . . The girls . . . said that Robert Nelson (the church organist) showed them pornographic videos and photos and engaged in sex with them for about 4 years . . . Nelson, 51, pleaded guilty in October to sexual assault . . . Immanuel St. James Episcopal Church also was sued. The lawsuit accuses the church of negligent hiring by failing to discover that Nelson had a “documented history of sex crimes against minors.”

Here is a perfect example of trustee negligence. The church organist, Robert Nelson is going to jail, but that is not the end of the story. The church also played a vital part in this case of sexual assault. Imagine this line of questioning at the jury trial:

Prosecutor: So, when did you discover that the defendant, Robert Nelson had been accused of sexual assault?

Trustee: When he was arrested at the church on Sunday morning.

Prosecutor: Had there been any complaints about Mr. Nelson?

Trustee: Yes, but they were just rumors, you know.

Prosecutor: Rumors? Did you investigate to see if they were valid?

Trustee: No. But we did keep an eye on him, looking for anything suspicious. He seemed OK to us.

Prosecutor: Seeing that you knew Mr. Nelson would be working with children, did you do a background check before hiring him?

Trustee: No. That is not our procedure. He met with our pastor, who thought he was a good man. So we hired him.

Prosecutor: How did you discover that Mr. Nelson had a long criminal history of sexual assault against young girls?

Trustee: From the parents of one of the victims.

Prosecutor: From your understanding, how did they obtain it?

Trustee: From the internet.

Prosecutor: From what you understand, was it expensive?

Trustee: No. They said that it was easy to obtain for $20 or $30.

This trustee sounds like a mumbling idiot. He literally its that he and all of his cronies on the Trustee Board are guilty. They showed a lack of CARE and LOYALTY to the congregation, which are their fundamental responsibilities. Now two girls are mentally and emotionally scared for the rest of their lives due to their negligence. The church will be suited for BIG bucks as well. Why? Because the leaders of the church knew, or should have known, that they had hired a sex-pervert who would assault as many young girls as possible for as long a time as possible. As a result of their collective negligence, Immanual St. James Episcopal Church will ALWAYS have a shameful and pathetic reputation in its community. Some will grunt, and others will groan at the mere mention of Immanuel something-or-the-other Church.

#5. Sexual Harassment

Most employers do not understand the essence of sexual harassment lawsuits. The problem with the employer is NOT the act of sexual harassment, but the RESPONSE to the formal complaint. The act of sexual harassment occur everyday, virtually everywhere, with many, many victims. The victim has a responsibility to report the incident, and the employer has a responsibility to respond appropriately to the report. When the employer is properly notified of an offender and does nothing, the employer is literally asking for trouble.

Catholic Church Sued Over Firing a Pregnant Teacher

New York Times 8/3/08 . . . The New York Civil Liberties Union has filed a federal discrimination complaint against a Catholic school, charging that it unjustly fired an unmarried teacher for being pregnant . . . The 26 year old preschool teacher was fired last month from St. Rose of Lima in Queens, according to published reports. The Diocese of Brooklyn also was named in the Equal Employment Opportunity Commission complaint . . .

When most churches experience complaints of sexual harassment, they make TWO common mistakes. Either they ignore the complaint, or they blame and/or penalize the victim. Just as with embezzlement, the most likely offenders are the most trusted ones. Pastors and volunteers are charged with sexual harassment more so than any other employee or church leader. Independent churches MUST provide instruction to its employees and staff personnel regarding sexual harassment. There must be a policy of how to report an incident, who shall respond and in what manner, and how to protect alleged offender and victim rights of confidentiality and due process.

#6. Defamation

Many pastors are truly intoxicated by their office and power. Their belief in the One Man Ministry only adds to this unscriptural effort. As a result, many talk too much. They casually discuss issues from the pulpit that are private or of personal opinion. The trustees must be careful with this attitude. It may require some form of monitoring. A Communications Committee may be a reasonable method of controlling inflammatory comments or confidential information. A Communications Committee organizes all mass communications within the church. It helps the church maintain a common theme and monitors all information disseminating from the church. This Committee controls the church website and church bulletin. If the Pastor attempted to print any disparaging remarks in the website or bulletin, the Communications Committee would flag this and report it to the trustees. This duty helps the church avoid lawsuits, which are totally avoidable of the trustees would only show care. Trustees have an obligation to protect the church from damaging gossip, hearsay, and other careless remarks from the pulpit, website, and all other means of communications to the local community. Here is an example of “loose lips that sink ships.” The minister at First United Pentacostal Church in Tulsa told the church that its music director was gay. Now the music director is suing who? Yes, the church and all of its trustees!

Tulsa Minister, Church Sued for Slander

(AP) 8/2/07 . . . The suit also accuses the defendant of emotional stress and invasion of privacy . . . The Rev. Ernest G. Bass testified in court that he spoke about it to the congregation to “extinguish the rumors and let the healing process begin” and that he had “the right to rebuke” Morrison (the music director) . . .

Actually it is the Deacon & Deaconess Councils that are responsible for fostering good conduct and meaningful dialogue from the pulpit. Deacons should be fully aware of worship service protocol and agenda. Sunday worship service is neither the time nor place to promote politics or gossip. When church leaders are not diligent in their watch, most times it is the Pastor that violates rules of confidentiality, and even character assassination. This is a “no win” situation, and each worshipper is a witness to a crime. It is very reasonable for the Pastor to meet with of the Deacon Council before each worship service to review the agenda. If the Pastor is not cooperative, then Board of Trustees must intervene.

#7. Apparent Authority

Trustees Breach Fiduciary Duty

(AP) 10/18/08… Plaintiffs claimed that the church hip had approved loans to its pastor without being given sufficient financial data; plaintiffs were denied judgment declaring that defendant deacons and trustees breached their fiduciary duty; under the facts, the church did not have a right to financial information and documents of the Church, nor did they have the right to have the Church’s finances audited by an outside A;

In the above article, it states that the church did not have the right to financial information and documents of the Church.

This is foolish nonsense!

Perhaps the bylaws did not explicitly state such a fact. Perhaps the bylaws did indeed state that the did not have a right to know. That is patently illegal, and the bylaws are in violation of state law. of a corporation must be allowed accurate financial data in order to vote. Trustees MUST have the best interest of the of the church in mind AT ALL TIMES. This is their basis function. All of the church’s financial deals must be totally transparent. Such transactions must be presented to the congregation, and they must be approved by majority vote. When there is a perceived breach of this responsibility, ANY member of the church may bring suit against the trustees. In many states, it is the office of the STATE ATTORNEY GENERAL that will accept the case. In other words, it costs a member NOTHING to sue the trustees. In addition, when the trustees pay the Pastor more than the employment contract allows or lends money to the Pastor, this could violate IRS 501 (c) 3 guidelines for non-profit organizations. In the worst scenario, it could lead to loss of the non-profit status of the church. Although the Trustee Council has the authority to manage the finances of the church, it cannot do so without full disclosure to its .

#8. Wrongful Discharge

Fired Pastor Sues for $15 Million

(AP) 9/12/06… After flat-lining twice on the operating table, Pastor Joe Sabolick figured the worst chapter of his life was over. But when he returned to his office at Calvary Chapel in Laguna Beach a few weeks later, the locks had been changed and his handpicked church board, including his older brother, had fired him amid allegations that he embezzled money and “fixated” on the wife and daughter of an assistant pastor . . .

It is obvious that Calvary Chapel in Laguna Beach does not have a Grievance Committee, Pastoral Relations Committee, or Bylaws that govern the dismissal of its employees. The leaders at Calvary Chapel are also missing a backbone. Its trustees act too cowardly to offer any due process. They fired him in his hospital bed. This is not an appropriate testimony to the world, and Calvary Chapel in headed for trouble… $15 Million worth! Churches are subject to the same employment laws as any other state recognized organization or business. There are rules that regulate how employees are recruited, hired, and fired. Churches are not exempt from those rules. There are three obvious ways in which a Pastor may leave his/her position. He can die, quit, or get fired. Bylaws help churches for any of these events. If the Pastor dies, who shall assume the responsibilities until a permanent replacement is elected? If the Pastor suddenly quits or retires, what protocol will be followed to find a replacement? Lastly, if there is a move to fire the Pastor, is there an established protocol that lessens the chance for a lawsuit? Do the bylaws offer a legal method or protocol for pastoral termination? Can the Pastor improve his/her performance during a probationary period or is a “second chance” out of the question? These are all important questions that need to be examined BEFORE a period of crisis. When church leaders act impulsively or without legal counsel in this matter, a lawsuit is highly probable.

#9. Breach of Confidentiality

Patient confidentiality is a “hot button” in the medical field and for good reason. For instance, a popular professional athlete is injured and requires surgery. The media has no reservations about reporting and printing the most detailed s of the diagnosis, treatment plan, and prognosis. The fans feel equally justified in knowing EXACTLY what happened and how long the athlete will be sidelined.

All of this information is private!

Congress has recently ed laws that severely limit what information is available to which people. Reporters and church are not exempt. This article offers a harsh reality about the consequence of sharing confidential information.

Church Sued for Sharing Sins

(SMU NewsCenter 5/30/06) A Dallas church that shares the confessions of its is drawing national attention after it was sued over the practice. The lawsuit against Watermark Community Church will try to prove that the church does not have the right to publicly reveal a person’s private sins. The Watermark clergy believes their actions are ed by the scripture and church bylaws,

This suit could have easily been avoided. Many churches require in writing that new agree to Church Discipline or some manner of Conflict Resolution. It is one matter to preach Matthew 18, however it is a mark of total seriousness to include it in the Church Bylaws. Matthew 18 provides a process for confession, forgiveness, and reconciliation. When a member of the church refuses to accept this process, this scripture teaches that the matter should be brought before the church body. If the offending member still refuses to abide by

the decision of the church, then he should be excommunicated. What did the Dallas church bylaws contain regarding Church Discipline or Conflict Resolution? If it failed to provide direction in these areas and failed to inform its new of their obligation to follow the rules, then His Church suffers for it. The money and energy necessary to fulfill the mission of the church will be diverted into legal expenses. This divides His Church. This is not “good stewardship.” Trustees must become more sensitive to matters of confidentiality. It has been a long practice for ministers to announce the medical condition of certain church to the congregation:

“And let us all pray for Brother Williams. I was informed that he was hospitalized last night after having a heart attack. They took him immediately to surgery, and he had emergency by operation. I think it was a triple by. He also suffers from sugar and high blood pressure, and it all runs in his family. The doctors said that it didn’t look good. But we know another doctor, don’t we church? We know a doctor who has never lost a case.”

Although this is material that good sermons are made of, it is private information and is absolutely an invasion of privacy. Many trustees witness these types of announcements from the pulpit and the Pastor in being a “good Shepard.” However, there is a line that the Pastor or any church official cannot cross when it comes to confessions, private conversations, mental and medical conditions, and other matters requiring the utmost of confidentiality. The Pastor and church leaders may need to attend a “continued education” course on this topic.

#10. Breach of Contract

Church Cheats Neighbor

AP 4/5/08… Efford Haynes, a trustee of Christ Community Church in Seneca, South Carolina, was ordered by a court to pay $9,850 to a neighbor of the church who Haynes had cheated of her land and the trees on it. The case involved a forged deed.

One of the advantages of incorporation is the ability to own property. An incorporated church can borrow, own, and sell real estate and personal property such as a van or bus, a piano, or a desk. It enters into a relationship with other institutions such as banks, insurance companies, and various government agencies. It can also establish contracts with other entities in the name of the church with the trustees acting as its agent. When the church enters into a legal contract and then violates the of the contract, this is called a “breach of contract.” The holder of the contract can sue the church for loss and/or damages. Now the assets of the church are at risk of being liquidated in order to settle the suit. Churches, as well as any other person or business, must honor the of any contract that it enters. The trustees are responsible that the church honors its contracts and agreements. When the church fails to do so, the trustees receive a subpoena in which they are named as defendants.

Chapter 6

Bylaws: Who Needs Them?

Bylaws: Who Needs Them?

All incorporated churches have bylaws. It is required by state law to create bylaws. Unfortunately, many Baptist Church bylaws are inadequate and, to add insult to injury, very few church ever take the time to read them. Even worst, many believe that over 90% of all church trustees have NEVER read their church bylaws. Well-written and formulated church bylaws do not create laws. They create procedures. They provide an organized, consistent method to topics such as hip, meetings, officers, and use of church property. In addition, they should provide direction on hot issues such as ’ rights and privileges, confidentiality, conflict resolution, and biblical counseling. These are the particular areas that cause Baptist Churches to stumble. Some church and trustees wonder why bylaws formation has become a heated area of debate. The answer is quite simple: TIMES CHANGE!

There has been a change in the moral and legal climate of America.

In the 1980’s many people had a reasonable framework for values and moral behavior. The belief in honesty, fairness, mutual respect, and self-discipline were important. Since then, their definitions, understandings, and even their borders have been challenged. Signs of the new age include individualism, diminished respect for authority, a shift towards relative morality, and the loss of common values. Most Americans believe that instant wealth is a dream-come-true, but can only come from one of two sources: the lottery or a lawsuit. The notion of marrying into wealth is a distant fantasy.

Because of this new paradigm, the Church can no longer assume that everyone holds the same ethical, moral and humanitarian outlook on life. Common sense, fairness, and justice are not what it used to be. Thus, what one member would consider reasonable, such as giving the Pastor a church credit card, another member would consider it outrageous. The loss of common values and norms within His Church leads to chaos, confusion, and interruption of faithful worship. It also exposes His Church to lawsuits. For example, in 2005 the of the Harvest Missionary Baptist Church in Cleveland, Ohio discovered that their church had been mortgaged, foreclosed, and set for a public auction. The pastor had borrowed $200,000 from the bank and could no longer for it.

Congregation Fights to Save Church (Defaulted loan puts building in jeopardy)

Cleveland Plain Dealer, February 2005 . . . A group of church sued March 15, demanding explanations from (Rev.) Caver. They say Caver did not have the authority to mortgage the church in 2002 . . . . (Attorney) Williams said that (Rev.) Caver abided by the church’s bylaws when he signed the mortgage . . . .

This type of story would have been unheard of 20 years ago. However, the moral climate and legal atmosphere has changed. To some, the church is no longer a mere place of worship; it is a source of money and fame. It can even serve as a springboard for other individual aspirations. In the same manner, people have different ideas for how the church should operate and conduct its affairs. When these dreams are not fulfilled, lawsuits follow. These types of actions hurt His Church, both spiritually and financially. What can be done? Proverbs 22:3 says:

“A prudent man sees danger and takes refuge,

but the simple keep going and suffer for it.”

The useful trustee realizes that the loss of common values and norms threatens the health and vitality of the church. He seeks to develop bylaws to establish common ground for acceptable behavior and standards. Bylaws allow the His Church to function as a body rather than a group of loosely-bound individuals. In particular, bylaws seek to accomplish the following goals:

1. prevent surprises and disappointed expectations of new 2. reduce the likelihood of confusion and conflict within the church 3. prevent the misuse of authority by church leaders by limiting their powers and establishing procedures 4. give the church leaders protection from civil suits in regards to confidential information and good faith judgment 5. reduce the church’s exposure to legal liability

Most church would agree that these are reasonable expectations. However, church bylaws are getting longer and longer and more detailed.

Why so much boring detail?

Because we live in a fallen world. Everyone has his own interpretation of rules, eager to apply his own twist to satisfy his own selfish needs. Detailed bylaws are necessary to lessen confusion and misunderstanding. They are also necessary to declare the position and attitude of His Church. When churches fail to make this declaration, the world feels free to impose its will. As

in the following article, High Point Church volunteered to host a memorial service for Cecil Howard Sinclair, a fallen Navy veteran. However, when the obituary revealed that Cecil was gay, the service was cancelled.

Mega church Cancels Gay Vet’s Memorial Service

(AP) Arlington, Texas 8/11/07 . . . The church’s pastor, the Rev. Gary Simons, said no one knew Sinclair, who was not a church member, was gay until the day before the Thursday service, when staff putting together his video tribute saw pictures of men “engaging in clear affection, kissing, and embracing.” Simons said the church believes homosexuality is a sin, and it would have appeared to endorse that lifestyle if the service had been held there . . .

The events of High Point Church are troubling for several reasons. Apparently it offers funeral services for anyone who wishes to use the facility. The problem is that “anyone” is a very big word. It includes heathens, murderers, childmolesters, thieves, druggies, extortionists, hate-mongers, pimps, prostitutes, but apparently it does not include gays. Perhaps this is their unwritten policy. The pastor mentioned that the church would pay for the family to have the service at another site. Does this mean that the church will spend its tithes and free-will offerings on all non- who happen to be gay veterans? Is this official church policy or is the pastor literally shooting from the hip? This could lead to mega-confusion in this mega church. It is this lack of policy that causes a lack of direction. This harms the image of His Church. The Holy Scripture is quite detailed in regards to God’s commandments. Instead of providing just the Great Commission (love God and love thy neighbor), God gives TEN more commandments. It does not stop there. In Exodus, Leviticus, and Deuteronomy there are dozens more rules and regulations. Still not done, Jesus offered even more detailed rules in Matthew, chapters 5-7. Despite all of these rules, there is still a need for more rules. The Scripture does not provide an agenda for church meetings, how many votes are necessary for

quorum, or how many can serve on a committee. Bylaws are designed to provide these kinds of directions. When bylaws are responsible, consistent, and respectful, His Church can devote itself to the work of the ministry, of which EVERY MEMBER must participate. Although it may seem backwards, the first step in either writing new bylaws or amending current bylaws is properly establishing a BYLAWS COMMITTEE. This committee should be a STANDING COMMITTEE, meaning it is created by the church bylaws and therefore must exist and cannot be eliminated. In addition, it must meet regularly and have guidelines. The reason for this is quite simple. The of the BYLAWS COMMITTEE need to know their function and to whom they are able. If this is not well-defined, then they may become puppets for the pastor or other church leaders.

ALL CHURCH PROCEDURES START WITH THE BYLAWS!

If a conclusion, recommendation, action, motion, procedure, or rule is made, it must be consistent with the bylaws, regardless of who made it. No one is more powerful than the laws, bylaws, and guidelines that govern the church. It is the “fiduciary” responsibility of the trustees to absolutely guarantee this concept. Church trustees play a critical role in the formation and execution of the bylaws. When there is a need for clarity in expectations, responsibilities, and evaluation of duties, the trustees must step forward and offer concise direction in order to avoid confusion (and lawsuits). There will be deacons, officers, and even pastors who want matters their way. However, it is the beloved church who are the priorities. The beneficiaries of the trust, the church , expect this of their trustees. Trustees are bound by the law to act responsibly out of care and loyalty to the church .

Bylaws Committee

Authority (1Cor 14:33)

The BYLAWS COMMITTEE shall have the authority to review and recommend revisions or amendments to the Church Bylaws. The BYLAWS COMMITTEE shall be the only committee with the authority to recommend revisions and amendments to the at a regularly scheduled Church meeting or a properly called business meeting.

ability

The BYLAWS COMMITTEE shall report to the CHURCH COUNCIL and BOARD OF TRUSTEES.

Officers

The BYLAWS COMMITTEE shall be chaired by a representative of the Deacon Council, Deaconess Council, or Board of Trustees. Selection of the chairperson shall be according to the procedures of the NOMINATIONS COMMITTEE.



The BYLAWS COMMITTEE shall consist of at least 4 or more who are mature, experienced, and demonstrate some ability to understand legal documents.

Duty & Responsibilities (Titus 1:5)

The BYLAWS COMMITTEE shall:

1. meet annually to review the Church bylaws 2. consider all approved motions for changes in bylaws 3. make recommendations for revisions or amendments 4. review and revise all minutes of Church meetings for conformity to Church bylaws 5. recommend that all reviewed and revised minutes of the Church be accepted as official documents

Chapter 7

Article I: The Organization of the Church

Article 1: The Name, Location, & Identity of the Church

Name Location Identity

Appropriate bylaws of a church always start by identifying the Church. This is a legal matter. If the leaders of the Church decide to rename, expand, or move the church, then it must be named a different church. It could not legally associate itself with the past leaders, , or accomplishments of the “old” church. In fact, the “new” church could not accept or benefit from the “old” church because of the restrictions of the bylaws. The assets of the “old” church are fixed in place by the “trustors,” the founding of the church. It is their wish that all of the property and assets of their church benefit the of the “old” church, not the “new” church. This issue becomes critical when the church splits, and certain leave to found their own church, which is actually ANOTHER church. They cannot carry the name of the “old” church. They cannot assume any property, real or personal, of the “old” church. It is the NAME of the church that protects the wishes of its founders from the aspirations of dissident .

Section 1: Name

The name of this Corporation shall be Second Baptist Church, Inc.

Section 2: Location

The real property of Second Baptist Church, Inc. consists of one-half block located in Elyria, Ohio, on 16th Street between West Avenue and Black River. Buildings include the church edifice and fellowship hall. The church shall maintain its parsonage at 568 Georgetown Avenue, Elyria, Ohio.

The name of the Church shall remain associated with the property located at 527 Chapman Lane (16th Street), Elyria, Ohio 44035 as long as this Corporation exists.

The CORPORATE STATUS of the Church is a simple statement defining its relationship with the state, its purpose, and how it does business.

Section 1.30: Identity

Second Baptist Church of Elyria, Ohio shall be incorporated in the state of Ohio and provide its Articles of Incorporation to the Secretary of State of Ohio. This Corporation shall be organized for exclusively religious purposes. (Matt 28:18-20) It shall have no or investors. It shall be governed by its Board of Directors, or Trustees, who have no financial interest in the Corporation. Any actions by this Corporation shall require the approval of a majority of the ACTIVE of Second Baptist Church. These are the Bylaws of the Corporation, and it shall henceforth be recognized as “the church.”

Chapter 8

Article II: Doctrine of Faith & Beliefs

Doctrine of Faith

The formulation of the DOCTRINE OF FAITH is perhaps the biggest reason that church dislike bylaws and resist working on its committee. They believe that doctrinal statements are too boring, tedious, and idealistic. Perhaps they are! However, they are absolutely essential to the proper functioning of the church. It is said that DOCTRINE is one of the three marks of a true church. The other two are PURITY and DISCIPLINE. Church DOCTRINE is its com. It sets the direction of the Church. It establishes a focus by which all ministries, missions, and committees aspire. Therefore the DOCTRINE must be clear, concise, and biblically based. Without DOCTRINE there can be no purity or unity of the Church because there is no focus. When the Church commits doctrinal error or wavers from its biblical standards, it is off-course. It is now confused and compromised. It is fertile for misinformation, misdirection, and even heresy. The Scripture warns of the nature of false doctrine:

2 John 1:9 Whosoever transgresseth, and abideth not in the doctrine of Christ, hath not God. He that abideth in the doctrine of Christ, he hath both the Father and the Son. 10 ¶If there come any unto you, and bring not this doctrine, receive him not into your house, neither bid him God speed: 11 For he that biddeth him God speed is partaker of his evil deeds.

Galatians 1:8 But though we, or an angel from heaven, preach any other gospel unto you than that which we have preached unto you,

let him be accursed. 9 As we said before, so say I now again, If any man preach any other gospel unto you than that ye have received, let him be accursed. 8 ¶For do I now persuade men, or God? 9 or do I seek to please men? 10 for if I yet pleased men, I should not be the servant of Christ.

The New Testament describes two separate streams of faith that will operate during the church age. The first shall be sound apostolic churches which can withstand the powers of hell. They will be hated, threatened, and abused, but they will maintain the New Testament faith until Christ returns.

Matt 28:20 Lo, I am with you always, even to the end of the world.

The second stream of Christianity will be the apostate churches, those that disregard biblical instruction. They will be the most popular and will grow in number. Paul addresses this issue in Acts 20:29-30:

For I know this, that after my departing shall grievous wolves enter in among you, not sparing the flock.

Also of your own selves shall men arise, speaking perverse things, to draw away disciples after them.

2 Peter further addresses this issue.

But there were false prophets also among the people, even as there shall be false teachers among you, who privily shall bring in damnable heresies, even denying the Lord that bought them, and bring upon themselves swift destruction. And many shall follow their pernicious ways; by reason of whom the truth shall be evil spoken of. And through covetousness shall they with feigned words make merchandise of you . . .

Matthew 13 describes the “church age” and the progression of apostasy. The parable of the woman putting leaven in three measures of meal, “till the whole was leavened,” describes the error that will be introduced into the church. Eventually, the entire religious system will become “leavened.” In his writings to Timothy, Paul instructed him to be very careful with his teachings. He warned of absolutely NO deviation from apostolic doctrine.

1 Tim 1:3 As I besought thee to abide still at Ephesus, when I went into Macedonia, that thou mightest charge some that they teach no other doctrine . . .

2 Tim 2:2 And the things that thou has heard of me among many witnesses, the same commit thou to faithful men, who shall be able to teach others also . . .

Despite these warnings, most Baptist Church bylaws do not address Baptist Doctrine.

This is totally unacceptable.

The DOCTRINE OF FAITH is the rudder of the church ministry. When the Doctrine is unclear or ill-defined, churches find themselves involved in saving the whales, fighting against global warming, and bringing their dogs to church for fellowship. They can easily lose their focus of purpose and mission. The presence of a DOCTRINE OF FAITH in the bylaws sends a tremendous statement to the new member. In order to be in fellowship with God, one must be in fellowship with the church in of intention, speech, and action. This is a condition of hip into the local and universal Church of God. Thus, it has legal consequence. For example, personal discipline is a vital element of Christian life. Not only is it implied and expected from all of the Church, but it is part of the Church Bylaws as well. When an offender of the church loses his church

privileges, particularly his voting rights, he may wish to sue the church. This is a foolish move because of his condition of hip, namely, his agreement, in writing, to follow the DOCTRINE OF FAITH and bylaws. There may be no more important statement in the bylaws than the DOCTRINE OF FAITH. The DOCTRINE OF FAITH is different from the Church Covenant. Many churches confuse the two. The Doctrine is what is taught by the church, by the faith, or by the denomination. Not all denominations believe in BAPTIST DOCTRINE. For example, an essential part of Baptist Doctrine is “autonomy of the local church.” In other words, the local Baptist church can establish its own bylaws. Its constitution is the same as any other Bible-based church, but its bylaws may be different. Other churches, such as the Methodists, believe in a more hierarchal structure. They abide by a group of elders who make discussions from a central location. This is neither right nor wrong; it is how Methodists wish to govern themselves. Great! The CHURCH COVENANT is not doctrinal. A covenant is an agreement or a contract. Usually it is a decision by the church that more clearly defines the relationship between two parties of the church, whether they are individual or clergy and . In some church bylaws, the CHURCH COVENANT may appear in place of the DOCTRINE OF FAITH. This is an error and should be corrected immediately.

DOCTRINE OF FAITH

Second Baptist Church of Elyria, Ohio believes in the Christian concepts of one God, virgin birth, sinless life, miracles, vicarious atoning death, burial and bodily resurrection of Christ, the Trinity (the divinity of Jesus and the Holy Spirit together with God the Father), the need for salvation (through the understanding of means for achieving it may differ at times), grace, the church, the Kingdom of God, last things (Jesus Christ will return personally and visibly in glory to the earth, the dead will be raised; and Christ will judge everyone in righteousness), evangelism and missions.

On all of these issues, we Baptists do not claim to be faultless, nor beyond the possibility of mistake and error. However, we appeal to the Bible, to history, to philosophy, in the justification of our views and in of our position.

BAPTIST BELIEFS

Baptists are denominational, meaning that their position, relationship, and response to the world are according to their own interpretation of God’s Word. For example, does the church have a responsibility to the federal government? The Catholic Church says yes. It should involve itself in the government and protect it from the influence of Satan. The Baptist Church says no. It believes that its should not involve themselves in political elections, wars, and other governmental efforts. The Amish and Menenites are the best examples of true Baptists, or ana-Baptists, as they call themselves. Indeed, Baptists are sectarian in nature and are usually quite serious about their beliefs. But, Amish member Monroe Beachy, 77 does not feel as serious or committed. He is faced federal charges for defrauding thousands of investors out of nearly $17 million.

“Amish Bernie Madoff” seeks no-contest plea

The Plain Dealer, Cleveland, OH, 10/26/11… Monroe Beachy, 77, intends to reject his lawyer’s legal advice and plead no contest at an arraignment in Youngstown . . . The Beachy case has brought consternation and embarrassment to of Sugarcreek’s Amish community, who would prefer to settle issues among themselves and without the involvement of the U.S. court system . . . . Beachy had set up a Ponzi scheme, seeking new investors to make up for $16.8 million that he lost in speculative investments . . .

It appears as though Mr. Beachy believes in his faith only when it is to his advantage. He allegedly victimized hundreds of Amish families of their hard-

earned money. This was his private image. Then he pleaded no-contest to his charges in order to be consistent with his faith. This was his public image. Such hypocrisy creates monumental embarrassment to the Amish community, which still wished to deal with him on a biblical or scriptural level. Unfortunately, this same character will seek the protection of the U.S. bankruptcy to shield him from his collectors. One can only guess how they intend to “settle issues among themselves” with this pathetic sociopath.

Baptist Beliefs

As of the fellowship at Second Baptist Church of Elyria, Ohio, we subscribe to the Principles and Practices for Baptist Churches. As such, we also believe that:

1. The Bible is a Divine Revelation given from God to men, and is a complete and infallible guide and standard of authority in all matters of religion and morals; whatever it teaches is to be believed, and whatever it commands is to be obeyed; whatever it commends is to be accepted as both right and useful; whatever it condemns is to be avoided as both wrong and hurtful; but what it neither commands nor teaches is not be imposed on the conscience as a religious obligation. 2. The New Testament is the constitution of Christianity. It is the charter of the Christian Church is the only authoritative code of ecclesiastical law, and the warrant and justification of all Christian institutions. In it alone, life and immortality is brought to light, the way of escape from wrath revealed, and all things necessary to salvation made plain, while its messages are a gospel of peace on earth and of hope to a lost world. 3. Every man by nature possesses the right of private judgment in the interpretation of the Scripture, and in all religious concerns. It is his privilege to read and explain the Bible for himself, without dictation from, or dependence on, any one, being responsible to God alone for his use of the sacred truth.

4. Every man has the right to hold such religious opinions as he believes the Bible teaches, without harm or hindrance from any one on that , so long as he does not intrude upon, or interfere with, the rights of others by so doing. 5. All men have the right, not only to believe, but also to profess and openly declare whatever religious opinions they may entertain, providing they be not contrary to common morality, and do no injustice to others. 6. All men possess the common right to worship God according to the teachings of the Scriptures, as they understand them, without hindrance or molestation, so long as they do not injure or interfere with the rights of others by so doing. 7. Civil governments, rulers and magistrates are to be respected, and in all temporal matters, not contrary to conscience and the word of God, to be obeyed; but they have no jurisdiction in spiritual concerns, and have no right of dictation to, or control over, or of interference with, matters of religion; but are bound to protect all good citizens in the peaceable enjoyment of their religious rights and privileges. 8. No organic union of Church and State should be tolerated, but entire separation maintained: the Church should neither ask for, nor accept, from civil authority, since to do so would imply the right of civil dictation and control. The of religion belongs to those who profess it. 9. Christian men are to be good and law-abiding citizens, sustaining and defending the government under which they live, in all things not contrary to conscience and the word of God; while such government is bound to protect them in the full enjoyment of all their rights and privileges, both civil and religious. 10. Religion is to be free and voluntary, both as to faith, worship, and service; neither conformity to, nor of, religion in any form, should be compulsory. Christian faith and practice are matters of conscience and personal choice, and not subject to official dictation; and for the either civil or ecclesiastical authority to enforce conformity, punish dissent, or compel the of any form of worship, is a crime against the rights of man, an assumption of divine prerogatives, and treason against Christ, the Lord of the conscience and sovereign of the soul. 11. None but regenerated persons ought to be, or properly can be, of a

Christian Church, which is a spiritual body separate from the world and distinct from the state, and is composed of spiritual only. 12. Pastors are not to be imposed on churches nor taken from them without their consent; but are to be chosen by them, each for itself, at its own option, as by free men in Christ, who have a right to the choice and election of their religious teachers. 13. Christ is the only Head over, and Lawgiver to, His churches. Consequently the churches cannot make laws, but only execute those which He has given. Nor can any man, or body of men legislate for the churches. The New Testament alone is their statute book, by which, without change, the body of Christ is to govern itself.

Chapter 9

Article III: Foundation, Purpose & Powers

Article III: Foundation, Purpose & Power

Foundation Purpose of the Church. Powers of the Church Powers of these Bylaws Governance Authority

Foundation of the Church

The foundation of His Church is Jesus Christ. Although the One-Man-Ministry, the Pastor, may appear to head the church, it is indeed not the case. When Jesus left this physical world, He did not leave Peter or any other disciple in charge. The scripture teaches that He left the Holy Spirit in charge.

John 16:13-15 Howbeit when he, the Spirit of truth, is come, he will guide you into all truth . . . He shall glorify me; for he shall receive of mine, and shall shew it unto you . . . All things that the Father hath are mine; therefore said I, that he shall take of mine, and shall shew it unto you . . .

This is not to speak against leadership of the church since the scripture teaches that spiritual men should lead the church. They are referred to as elders or overseers. But there is no single position of authority in the church. The Pastor is NOT the head of the church.

When one pursues such a course, it is to be rejected IMMEDIATELY for this is an absolute sign of a cult.

When pastors remind the congregation that there are only TWO offices in the church, the Office of the Pastor and the Office of the Deacon, it may be a crafty way to assume power in the church. It suggests that the office, or the position, means rank or status. Many Pastors suggest that they are closer to the Lord because of their position or status. This is blasphemy since it encourages the anti-Christian concept of clergy-laity division. The notion greatly disturbed Jesus.

Matthew 23:8 But be not ye called Rabbi; for one is your Master, even Christ, and all ye are brethren. 9 And call no man your father upon the earth for one is your Father which is in heaven. 10 Neither be ye call masters; for one is your Master, even Christ. 11 But he that is greatest among you shall be your servant. 12 And whosoever shall exalt himself shall be abased; and he that shall humble himself shall be exalted.

All men of the faith are brethren. There are no big men and little men. All are equal before the Lord. Some are more mature in the Word than others, and they are worthy to be listened to, submitted to, and learned from. They are called elders, spiritually mature men. Modern day pastors make a huge mistake by referring to themselves as clergy. They preside over church meetings, receive tithes that go towards their salaries, and act as literal “intermediaries” between men and God.

This is a clear sign of a CARNAL church!

The modern day pastors do not follow any model in the New Testament. There is no one person in the New Testament that received a salary to preach. There is no one person who controlled the spirit of the church. There was no monopoly of the pulpit. In addition, there were no priests or intermediaries in the New Testament. The scripture teaches that every man is his OWN priesthood.

1Peter 2:5,9 Ye also, as lively stones, are built up a spiritual house, an holy priesthood, to offer up spiritual sacrifices, acceptable to God by Jesus Christ . . . 9 But ye (are) a chosen generation, a royal priesthood, an holy nation, a peculiar people, that ye should shew forth the praises of him who hath called you out of darkness into his marvelous light.

The church must be clear as to its foundation. There must be NO confusion on this matter. The church is NOT your church, my church, our church, or their

church. The church is HIS church, Christ’s body, and it should only be referred to as HIS church. He so loved the church that He gave His life for it. This is the heart of the gospel, and it must be unmistakable and clearly identifiable in the Bylaws.

Foundation

The foundation of this Church is the Lord Jesus Christ (1Cor 3:11) and the Word of God shall be its code of guidance in all its affairs as best understood by its leaders. This Church does hereby affirm its faith that the Holy Scriptures of the Old and New Testaments are the Word of Almighty God (Mark 13:31)

Purpose of the Church

It is commonly accepted that Acts 2:42 is the “purpose statement” of the church.

They devoted themselves to the apostles’ teaching and to the fellowship, to the breaking of bread and to prayer.

In other words, the role and purpose of the church is:

(1) teaching biblical doctrine,

(2) providing a place of fellowship for believers, (3) observing the Lord’s supper, and (4) praying

Acts 1:8 adds another “commission” to the purpose of the church:

To proclaim the Gospel of salvation through Jesus Christ.

The church has a responsibility to share the Gospel through word and deed. The Bible teaches that the church should be a “lighthouse” in the community, directing souls to the Lord and Savior Jesus Christ. 1 Peter 3: 15 teaches that the church should not only promote the Gospel but to prepare its believers to proclaim it.

• proclaim the Gospel through word and deed • prepare its believers to proclaim the Gospel

Lastly, James 1:27 is the application of teaching biblical doctrine:

Religion that God our Father accepts as pure and faultless is this: to look after orphans and widows in their distress and to keep oneself from being polluted by the world.

The church is called to care for the needy. This includes not only caring for the spiritual needs, but also providing the physical needs such as food, clothing, and shelter. The church must then equip its believers with the tools to rebuke sin and not suffer from its pollutants, such as hatred, immorality, greed, envy, addictions, and negativisms. Here is an article about a church that became distracted from its mission. The Westboro Baptist Church picketed a military funeral and lost $2.9 million in a lawsuit for doing so. It believed that the nation had become too accepting of homosexuality.

Grieving Father Wins $2.9 Million from Church that Cheers War Deaths

The Cleveland Plain Dealer, Nov. 1, 2007… Church routinely picket funerals of military personnel killed in Iraq and Afghanistan, carrying signs such as “Thank God for dead soldiers” and “God hates fags.” . . . The church and three of its leaders—the Rev. Fred Phelps and his two daughters . . . were found liable for invasion of privacy and intent to inflict emotional distress . . .

Despite the ion and commitment of these church , they have a few problems. Firstly, they expect the world to subscribe to their ideas and morality OR suffer their wrath. Do these “called out” of their church realize that the world shall exist whether they like it or not. Although a believer has the responsibility to spread the Gospel of Jesus Christ, he does not have an obligation to shove it down anyone’s throat. Secondly, the leaders or elders of this church have allowed the pastor to totally undermine the purpose of the church. They selectively chose to harass gays but ignore the liars, cheats, thieves, fornicators, adulterers, child molesters, and gamblers that line the pews of their own church. Lastly, when the trustees of the church allow such foolish theatrics, they shall pay dearly. The $2.9 million that they now owe a family for “invasion of privacy and intent to inflict emotional distress,” could have been used for a number of worthy causes that could have glorified the Savior. It is unlikely that this church has a “Purpose & Power” clause in its bylaws.

Here is a prime example as to what happens when church leaders do not properly define their “Purpose & Powers.” Harvest Missionary Baptist Church is now in foreclosure. Its pastor, The Rev. Artis Caver, borrowed $200,000 and used the Church as collateral. He defaulted on the loan. In addition to lose his home in Twinsburg, Ohio, two other trustees lost their homes as well.

Pastor Led Church into a Financial Hell

Cleveland Plain Dealer, April 5, 2007… Attorneys and witnesses with knowledge of the case say investigators are looking at a wide range of issues involving Caver’s spending of the church’s money, his taxes and several wiretransfer transactions . . . Caver declined several requests for an interview. His lawyer, Robert Smith III, said he hopes the prosecutors clear the minister of all wrongdoing . . . “I hope they realize that the church’s former trustees bear the same responsibilities as he does. It was their job to make sure the money was being spent responsibly.”

When churches lack a well-defined mission and purpose, then they are likely to lose focus and find their church ing illicit issues and irrelevant business ventures. In the case of Harvest Missionary Baptist Church in Cleveland, they will find their trustees spending church money for their own selfish interest.

. . . The congregation at Harvest Missionary called him “Bishop,” but Caver had higher aspirations. He testified he had the same power and authority as the pope, and that only God was more powerful than he.

What a shameful statement! That a church would allow a band of thieves called “trustees” to manage its financial affairs is unconscientiable. For a con-artist, disguised as a “pastor,” to manage its financial AND spiritual affairs is indeed a poor testimony to the world. To those that criticize the New Testament Baptist

church, this certainly s their argument.

Purpose & Powers

The purpose of this congregation is to give visible form to the faith and fellowship to which God has called His people. We shall acknowledge ourselves to be a local manifestation of the universal church through which Jesus Christ continues to minister to the world by His Holy Spirit. In the name of Jesus Christ, this Church shall seek to fulfill this calling by:

1. teaching biblical doctrine (Acts 2:32), 2. providing a place of fellowship for believers (Acts 2:42), 3. providing a place to observe the Lord’s Supper (Acts 2:42), 4. providing a place to pray (Acts 2:42), 5. proclaiming the Gospel of salvation through word and deed (Matt 28:18-20, Acts 1:8), 6. providing a place to edify one another (Eph 4:12, 1Peter 4:10-11, Rom 15:2), 7. helping the needy (Romans 12:13, James 1:27) and, 8. equipping the saints to resist sin (Matt 28:18-20)

Powers of this Church

The church is indeed a spiritual entity, but it is not a legal entity. The U.S.

government does not recognize a “church,” and this is a reasonable position for it to take. For what is a church? Is it a one person leading many? Is it a board of some sort leading people? Is it a group of people who lead themselves? Because churches are all different, the government chooses not to recognize any of them. If they want to be recognized in order to transact business, buy property, and seek loans, then they must incorporate under a state charter. Now they are recognized. They now have a legal name and location, purpose, set of rules (bylaws), and most of all, a leader or board of leaders. That board of leaders is necessary in order for the government to have someone to complain to or do business with. Thus, the of the church must turn all of its assets over to the corporation. All responsibility lies in the hands of the Board of Directors of the corporation. The Board now acts in the best interest of the church . It must respond to the needs of church . Of its many duties, it must carry on the business of the church, hire a minister, define his duties, evaluate his performance, and dismiss him when necessary. The Bylaws must clearly state the role of the Corporation.

Powers of This Church

All the powers authorized and permitted by the of the church shall be given to the church corporation, Second Baptist Church, Inc. The powers of this Corporation, granted by the and by the State of Ohio, shall be amended from time to time.

Powers of these Bylaws

Churches are governed by its Constitution & Bylaws. Whenever there is legal contention, the courts always look to the bylaws. Were the bylaws followed as written? Was the meeting properly called as directed by the bylaws? Was the money appropriated and spend according to the bylaws? When prospective wish to the church, they should be given a copy

of the church bylaws. They should have the opportunity to meet with a trustee or a representative of the Bylaws Committee who is willing to discuss any relevant question. Indeed there should be a provision in the bylaws that categorically empowers the bylaws.

Purpose & Powers of these Bylaws

The purpose of these Bylaws shall be to:

1. provide organization to the Church with a governing structure, definitions of roles of leaders and , and requirements for hip. (1Cor14:40) 2. provide direction by articulating its mission and methodology 3. preserve unity and maintain its testimony by agreeing on certain issues of Christian living and separation. 4. protect the Church from liability by providing policies, guidelines, screening, and directives.

Many believe that the role of the church is to provide a place to worship, and the role of the church is to the ministries of the church. These two facts are true, however there is more to it, and it should be clearly defined. Certainly the church is a place to pray and worship, but it not the only place. Unfortunately, there are some believers who leave their worship and prayer for a certain day, a certain time, and a certain place.

Chapter 10

Article IV: Governance & Authority

Governance

The foundation of the Protestant Movement is the Anglican Church, which splintered from the Roman Catholic Church. The split from the Anglican Church is based upon one singular issue: INDEPENDENCE. The modern Protestant Church governs itself. Papal decrees and most civil laws have NO effect on the Protestant Church. The irony is that despite the legal and religious independence of the Church, it is usually the Church that is first to beg civil authorities for help to resolve its own internal disputes. Due to poor leadership, and subsequently weak bylaws, most Protestant churches cannot or do not rule themselves effectively. It is truly amazing how often such churches seek outside direction in order to make its own decisions. Although the following article is not a Protestant church, it is a good example of how thoroughly confused a church can be about its own independence. St. Clement of Ohrid Macedonian Orthodox Church is ripped in half by a bitter feud over $1.3 million bingo profits. When one of its sought to review the financial records, she was excommunicated. Some of the of the church sought direction from the American Canadian Diocese of the Macedonian Orthodox Church. The others looked to the archbishop of the worldwide church in Skopje, Macedonia.

Avon Church’s Bingo Bonanza Goes to Court

Elyria Chronicle Telegram, 6/2/07… But things began to change in 1995 (when) 25 dissident of the church (sued) . . . the church leadership . . . The new leadership . . . launched a campaign of intimidation . . . changing locks, barring the from church activities . . . The church leadership pushed (for) the remaining of the congregation to excommunicate (all) the dissident . . . the archbishop . . . planned a visit to St. Clement to try to hold a prayer service and work toward ending the feud. But when he arrived, he was locked out of St. Clement by the defendants, who had changed the locks . . .

Incredible! This church is apparently ruled by one of two difference organizations, the American-Canadian Diocese of the Macedonian Orthodox Church OR the worldwide church in Skopje, Macedonia. They do not know which and that is a problem. So, the church turned to the civil courts to make a decision that it had the right and authority to make for itself. Church leaders must anticipate such events and have a process available to resolve these types of disputes without suing one another. Having functional bylaws might help. The following bylaw helps point the church in that direction. The GOVERNANCE of the Church narrowly defines who and what has influence on the Church. It clearly states which organizations have executive powers, if any. Lastly, it defines the authority of outside affiliations and cooperatives. Although Baptist churches obviously claim to follow Baptist principles, they appear to have nothing else in common. Unlike many other denominations, the Baptists have no central governing agency. Thus, any Baptist Church is free to do whatever, believe whatever, and rule however it wishes. There is no authority greater than the vote of the congregation. There are various conferences, conventions, and associations, such as the Southern Baptist Conference or the American Baptist Association, they have no authority in individual, independent Baptist Churches. Many pastors convince the that they must follow conference or association rules or recommendations, this is really not true. Also, the authority of pastors is no greater than what the allow. Pastors are employees of the church. They are hired by the congregation, and they are fired by the congregation, represented by the Board of Directors, or Trustees. But, because most congregations do not understand the role of trustees, they feel defenseless against the wishes of their pastors. Most Baptist Churches share orthodox Christian beliefs such as one God, the virgin birth, the Trinity, grace, the Kingdom of God, forgiveness, salvation, and all. It is the major issue of governance that separates the Baptist from other denominations. When the independent Baptist Church seeks non-profit status, it must break its own rule of “separation between church and state.” Actually, it must now

become a partner with the state. To become a non-profit organization and enjoy all its benefits, it must apply to the IRS. Once accepted, it must agree to IRS rules. So much for INDEPENDENCE! Consider the following article.

Southern Baptist Pastor Investigated by IRS for Political Endorsements

CrossvilleForums 2/24/2008 On August 11, (2007) Dr. Wiley S. Drake, pastor of the First Southern Baptist Church of Buena Park, issued a press release on church letterhead endorsing Huckabee. Drake reinterated that endorsement on his church-d radio show . . . . Americans United filed a complaint with the IRS noting that Drake’s actions appear to clearly violate federal tax law prohibitions on electioneering by non-profit groups.

Although churches are protected by the First Amendment that separates Church and State, ironically it is the church that accepts government intervention in its affairs once it incorporates AND becomes tax-exempt. The 501(C)3 tax-exemption imposes restrictions for churches. It is the duty of the church trustees, not the pastor or deacons, to be fully aware of ALL those restrictions. To ignore these restrictions may jeopardize the freedom of taxation by the church. Without the 501(c)3 tax-exemption, churches would be required to pay taxes on all tithes and free-will offerings.

Governance

The government of this Church is vested in its who compose it, and, as such, it is subject to the control of no other ecclesiastical organization. Also, none of its Boards or Committees can usurp its executive governmental or policy-making powers when they are lawful.

Limitations in Governance

Second Baptist Church shall retain authority over all and ministers until that person comes under the authority of another church body. Authority over shall cease upon their expulsion. Authority over ministers shall cease upon their deposition.

Affiliations

This Church shall maintain affiliation and cooperation with the American Baptist Churches in the U.S.A., the National Baptist Convention, U.S.A., and its s. However, no local, state, national, or international body shall have any authority in the governing of this Church.

Authority

The Protestant Church is an autonomous entity. Other than IRS restrictions and state laws on incorporation, the Church body has authority to make whatever rules and regulations it wishes. These rules do not necessarily require common sense, practicality, or forethought. They only require is a majority vote of its hip. There are some church who reject the church bylaws. They insist on giving the courts the final say. Most interesting though, the civil courts have an opinion regarding their participating in church business as indicated in the following ruling of Fowler v. Bailey, 1992 OK 160:

of a church brought suit in the District Court of Tulsa County against the church pastor, deacons, and trustees in order to examine the financial records of the church. The church then expelled the plaintiffs from hip. The Honorable Daniel Boudreau, District Judge, held a hearing on the plaintiff’s standing to bring suit, sustained the defendants’ demurrer to the evidence, and dismissed the case. The Court of Appeals affirmed.

The plaintiffs were of the St. Andrew Baptist Church in Tulsa who became concerned over the way their pastor was conducting the business of the church. They filed an action in the District Court against the pastor, the deacons, and the trustees, requesting among other things, an injunction against excommunication, access to the financial records of the church and an ing. They were immediately expelled from the church by unanimous vote of the congregation at a hastily called business meeting following a Wednesday night prayer service. After a hearing the trial court dismissed the suit because neither civil or property rights of the plaintiffs were affected.

The Courts will not interfere with the internal affairs of a religious organization except for the protection of civil or property rights. There can, however, be no doubt but that the civil courts do have authority to resolve property disputes between rival factions of a church. For this reason . . . we can afford the plaintiffs no relief.

Thus, the Courts are not interested in church business. They the separation of “church and state” with more enthusiasm than many churches. It shall be the responsibility of the church to make its own rules and then adhere to them. Any candidate for hip of a church should be aware of all the rules and regulations and agree to abide by them. If they cannot do so in good conscience, they should quite simply another church.

The Authority of the Congregation

All churches are organized under one of two categories:

1.) hierarchical 2.) congregational

The Catholic Church is the best example of a “hierarchical” church. Each church is governed from a central source such as the parish, the archdiocese, and ultimately, the Vatican. of catholic churches do not make decisions on church istration or business. The priest has absolute power and answers to the diocese, bishops, cardinals, and the Pope. The congregational church is self-governed. Traditionally, it is independent of any and all councils, conventions, and societies. It establishes its own bylaws, calls its own ministers, and votes on all matters of the church. The Baptist church is a “congregational” church in that it makes its own decisions about everything. As a result, it authorizes itself to do anything that it wishes. This matter should be reflected in its bylaws.

Where is the church covenant?

Some Protestant churches include the church covenant in its bylaws. This is a procedural error and should be avoided. Bylaws are not meant to tell the believer WHAT to do. That is the purpose of the Bible, to point man in a godly direction. However, bylaws are meant to provide a PROCEDURE for church to follow. For example, the Bible teaches not to sin. The bylaws provide a procedure to address the sin when it occurs. It may make provisions for a person or a committee to address repentance and atonement. Or, the Bible addresses Holy Communion, but it does not say where, when, how, or who can offer it. The bylaws are helpful in providing guidelines.

There is nothing wrong with a church developing a Church Handbook. Every church should have one. However, no church leader should ever suggest that Church Handbook is scriptural, spiritual, or superior to the Bylaws. The Bible has all the scripture direction that the church needs. When church leaders attempt to use some sort of church covenant, handbook, or procedures manual as the Word of God, it is blasphemy and should be quickly condemned. In Rubin Ervin v. Lilydale Progressive Baptist Church in 2003, the Circuit Court of Cook County ruled on this matter. This case involved the firing of its pastor, Rev. Rubin Ervin. There were confirmed reports of the pastor attending church functions under the influence of alcohol. The Board of Trustees met with witnesses and determined that Rev. Ervin had violated the church covenant and church employee handbook. The Board dismissed the pastor without the vote of the congregation. Of course, the pastor sued the church for unlawful termination. He made two strong arguments:

1. his dismissal was in violation of church bylaws since there was no legal church vote, and 2. the church covenant and handbook were not bylaws.

The court ruled in his favor. It stated that the Board of Trustees did not follow its own bylaws, which stated that a church vote was necessary to hire the pastor AND to fire him. All Protestant churches are congregational. In other words, unlike the Catholic Church or the Presbyterians that are ruled by a hierarchy or diocese, the Protestant church is completely independent of outside influences. The of an individual church make all its decisions. They are the ultimate authority. The Board of Trustees does not rule the church, but it oversees its operations and represents it. It is legally bound to always act in the best interest of the church. When it acts, it must do so with the approval of the of the church. This is called a “fiduciary” relationship. The Board of Trustees violated that relationship. It used the church covenant to find fault with the pastor. The courts do not recognize church covenants and handbooks. Those are ecclesiastical documents, meaning that they only pertain to that religion. Courts refuse to interpret religious materials and dictums. It only recognizes the

actions of corporate directors (trustees), and whether they are consistent with its corporate (church) bylaws, which is incidentally part of the corporate (church) Articles of Incorporation.

Authority

The Church shall look to these Bylaws, the Articles of Incorporation, and the laws of the state of Ohio with reference to non-profit religious corporations, and Section 501(c)(3) of the Internal Revenue Code (as amended from time to time) for guidance in the operation of its affairs.

Second Baptist Church, governed by its with total and complete executive and policy-making power, shall have authority over all of its individual , including non-communing , over its pastor, ministers, deacons and deaconesses, all staff , salaried and volunteers, all property, real and imaginary, and assets.

Authority of

This Church shall retain authority over all and ministers until that person comes under the authority of another church.

Limitations of Authority

a. The Bylaws, guidelines, rules and regulations of this Church shall be a based upon the scripture of the New Testament, as best understood and

interpreted by the CHURCH COUNCIL. b. Voting upon scripturally based bylaws shall be a vote of unanimous understanding, not agreement. Voting upon non-scripturally based Bylaws shall be subject to majority rule (Rom 15:6, Phil 2:2), and c. Authority over of this Church shall cease upon any dismissal from its fellowship. d. Authority over ministers of this Church shall cease upon their deposition.

Inability to Decide

In cases where the church are unable or unwilling to exercise authority, the Chairman of Trustees shall assume authority upon demonstration of sufficient cause to the Board of Trustees.

Loss of Authority

Authority over shall cease upon their expulsion. Authority over ministers shall cease upon their deposition.

Chapter 11

Article V: Covenant hip

Article V: Covenant hip

Types of hip Purpose Eligibility Rights of hip Rolls Reception of New Transfer of New Discipline of Duties of Dedication of Children

Most churches judge their influence and success in the community by the size of their congregations. This assumption is purely conjecture. Allegedly, when the congregation grows, then the message is getting to the masses. This brings more buildings, more programs, and definitely more money. Unfortunately, this particular notion is the foundation for disaster in many Baptist churches. Such a grandiose plot to quickly expand the hip of the church leads to a careless willingness to accept ANYONE into union and communion. Not only is this unscriptural, but the lack of requirements for hip can lead to a host of problems, especially legal problems.

All organizations in the secular world demand certain requirements of its

, and so should the church.

The Scriptures teaches that no one is fit to be a member of a gospel church unless his life is different from his sinful past. Thus he must be “regenerated.”

Matthew 18:3 And said, Verily I say unto you, Except ye be converted, and become as little children, ye shall not enter into the kingdom of heaven. 4 Whosoever therefore shall humble himself as this little child, the same is greatest in the kingdom of heaven.

John 3:5 Jesus answered, Verily, verily, I say unto thee, Except a man be born of water and of the Spirit, he cannot enter into the kingdom of God. 6 That which is born of the flesh is flesh; and that which is born of the Spirit is spirit. 7 Marvel not that I said unto thee, Ye must be born again.

The unsaved man is dead in treses and sin. This is his nature, as was Adam after the fall. There is no role for an unsaved man in the millennial Kingdom of God. 1 Peter describes this new, regenerated man as “living stones.”

1 Peter 2:5 Ye also, as lively stones, are built up a spiritual house, an holy priesthood, to offer up spiritual sacrifices, acceptable to God by Jesus Christ.

All of the early Christian churches were composed of saved men. of the Church of Rome were “called out of darkness into the Lord’s marvelous light (Rom 1:6). of the Church of Corinth were “called to be saints” (1Cor1:2). of the Church at Colosse were “faithful brethren in Christ” (Col 1:2). By definition, a gospel church is a congregation of faithful men in which the pure word of God is preached and the sacraments duly istered. Thus, an unsaved man does not know the Lord. He has no witness for Christ. He cannot even participate in the sacraments without suffering harm. How can he be a member?

1 Corinthians 11:29 For he that eateth and drinketh unworthily, eateth and drinketh damnation to himself, not discerning the Lord’s body. 30 For this cause many are weak and sickly among you, and many sleep.

Acts 2:47 teaches that “the Lord added to the church daily… as those that were saved.” There is nothing more elementary to being a member of a church than being saved. And, of course, just as each member must be saved, so must each leader of the church. Church leaders must maintain a professional standard for its ministers. They must not be afraid to do background checks on all of them. If the leaders of St. John United Methodist Church would have more diligent, they would not have brought such shame and embarrassment upon its as it did in the following article.

Pastor Arrested in Prostitution Ring

3/6/10 ExChristian.net The Mobile Police Narcotics & Vice unit has arrested 22 people in connection with an Escort Service Operation in west Mobile. One of those arrested is a local pastor . . . William Curtin was one of the suspects booked into the Metro Jail Tuesday on a charge of Patronizing a Prostitute. Curtin is a pastor at the St. John United Methodist Church in Semmes, Ala . . . He also spent time at two other local churches . . .

When the church leaders, or elders, become complacent and careless with scriptural requirements for fellowship, they undermine the Will of God. Rather than being a holy temple of God in Christ, the church becomes a “synagogue of Satan” where non-believers, the unsaved, angry, bitter, selfish, and those lacking of God’s grace are received into fellowship. They are then given the legal right as equal brethren to rebel against God, create chaos and confusion, and even sue the church at will. Thus is the condition of many churches today. The second scriptural requirement for reception into the fellowship is for each candidate to show some basic understanding of the faith. There should be sufficient knowledge of:

1. God—His nature, perfections, and works 2. Jesus Christ—his deity, his reincarnation, justification by his righteousness, pardon by His blood, satisfaction by His sacrifice, His intercession. 3. His Holy Spirit—His person, offices, and operations 4. the important truths of the gospel and doctrines of grace

The church is the pillar and ground of truth. Therefore it is the responsibility of the church to provide basic knowledge and understanding of God to all who wish to receive it. It is impossible to please God without faith (Hebrew 11:6). Faith comes with knowledge of His divine ways. It is the responsibility of

church leaders to provide for the teaching of divine and spiritual ways. Many churches are weak on training and education. Most youth of the church are baptized without knowing its true meaning. The youth are often encouraged to be steadfast in their faith without being taught the essentials of faith. They never choose their vocation in life because they are not taught its necessity. There is a major difference in one’s walk when he/she chooses being single, married, in the brother/sisterhood, or in the ministry. Each has its own special requirements and commitment. The elementary decisions of life are not held precious by most Baptist youth because they are not taught this. Thus, when the youth falters in life, there is always the assumption that he knew better. Why should they? Was that instruction provided by their Christian Education Committee? The third scriptural requirement for the acceptance into fellowship is living an upright, moral, and just life. The Scriptures teach that the conversation of a believer “becometh the gospel of Christ” (Phil 1:27). The psalm of David asks:

Psalms 15:1 ¶ LORD, who shall abide in thy tabernacle? who shall dwell in thy holy hill? 2 He that walketh uprightly, and worketh righteousness, and speaketh the truth in his heart.

Who is not worthy of Christian fellowship? The Scripture teaches that when one’s walk or practice in life contradicts one’s profession (or vocation), then that one should not be itted into the fellowship of saints. The fellowship of the Spirit is commanded to be of ONE MIND:

Philippians 2:1 If there be therefore any consolation in Christ, if any comfort of love, if any fellowship of the Spirit, if any bowels and mercies,

2 Fulfil ye my joy, that ye be likeminded, having the same love, being of one accord, of one mind. 3 Let nothing be done through strife or vainglory; but in lowliness of mind let each esteem other better than themselves. 4 Look not every man on his own things, but every man also on the things of others.

A non-believer cannot have fellowship with a believer because he does not know God. How can he bare anyone’s burden other than his own? How can he be of lowliness of mind? How can he disregard his own vanity? That is impossible because he lacks salvation and deliverance. He does not know that he is the old lump of leavened bread that spoils the batch (1Cor 5:7-8). However, it is the faithful, competent, and committed brethren of the church who teach those eager to learn that Holiness becomes the Lord’s house forever! (Psalm 93:5) Indeed baptism is necessary for church fellowship, but this is AFTER profession of faith. Except for perhaps Cornelius, there is no example in the early Christian church of anyone receiving communion without prior baptism. In Acts 8:36-38, the penitents were baptized, and then added to the church AFTER they had “gladly received” the Word. That was the process then, and it should be the process now. But what about this business of voting people into the church? Is that practice reasonable? Can vote people into His Church? Who has the authority to guard the doors of the church? In 3 John, did not Diatrephas block Apostle Paul from entering “his” church?

This is the perfect reason that each church needs BYLAWS!

Bylaws are not the Constitution of a church, but the procedures of the church. They provide a course of action that is consistent with the Word of God. An applicant for reception into the fellowship of the church must be accepted by his brethren. The MUST be satisfied that the applicant has met the qualifications for fellowship. He may be the lump of leaven that spoils the batch. Does he believe? Is he willing to profess his belief? What is his testimony? Is he converted and is now living a life consistent with the faith? Will anyone vouch for him? Is there evidence that he has basic understanding of the faith? Can the elders of the church, being led by the Spirit, discern his conviction and love? All these issues must be examined. If the candidate does not qualify, BY VOTE OF THE SAINTS, then he is set aside until his profession becomes more satisfactory.

1 Timothy 6:12 Fight the good fight of faith, lay hold on eternal life, whereunto thou art also called, and hast professed a good profession before many witnesses.

Of course there is a church vote, in fact a unanimous church vote! The community of Christ must be of ONE mind, ONE spirit, ONE God. This is the testimony of His church in His name. It is not in the name of First Baptist, Second Baptist, or Third Baptist Church, but in His name and with His authority. Honor, glory and power be unto Him, our blessed Savior. Amen!

Eligibility for the Fellowship

This Church shall receive into fellowship any person who:

1. Is born again through the faith of Jesus Christ (Matt 18:3, 1Pet 2:5, Acts 8:37, 1Cor 11:29) 2. Will profess Jesus Christ before the world (Acts 5:27-29, Rom 1:6-7) 3. has a testimony (Luke 21:12-15, Acts 14:2-3) 4. Is of mature age 5. has a good reputation as to life and character (2Thess 3:14-15) 6. Will accept the Articles of Incorporation, By-laws, and rules & regulations of this Church.

Purpose of Church hip

Surprisingly, most churches are not careful to outline their purpose for existence or the purpose of being a member. When this occurs, many make serious assumptions regarding their roles and expectations in the church. For example, a new member may assume that he has the right to attend any committee meeting or offer an opinion even if he is not a member of that committee. Church tradition may not allow for such privilege, and the bylaws may not address this issue. This may become a source of contention within the church. This occurs when churches accept new into fellowship, but never explain what the church is, what it does, and why it does it. Many churches require a signed and witnessed INFORMED CONSENT form, just as doctor would before surgery. This is the purpose of bylaws. When churches do not offer comprehensive NEW MEMBER CLASSES, they are asking for trouble due to this failure to inform. There are legal cases in which the church is held liable for this tremendous oversight.

Purpose of the Fellowship (Acts 5:42)

The purpose of becoming a Member of the Church shall be:

1. To learn the word of God as presented in the Holy Scriptures 2. To develop emotionally, improve intellectually, and grow spiritually 3. To serve in the missions of the Church 4. To the missions of the Church

Duties of Church

Believers in the faith have TWO basic obligations as of the body, or the church:

1. recognize the AUTHORITY of God, and 2. SUBMISSION to His will.

Acts 5:27 And when they had brought them, they set them before the council: and the high priest asked them, 28 Saying, Did not we straitly command you that ye should not teach in this name?

and, behold, ye have filled Jerusalem with your doctrine, and intend to bring this man’s blood upon us. Then Peter and the other apostles answered and said, 29 We ought to obey God rather than men.

Thus, the responsibility of every believer is to recognize God’s Will and submit to it. This is pure Christian doctrine and should be part of every meeting, every sermon, and every prayer. Anyone unwilling to submit to the Will of the Father is not part of the family. He is not an heir to the promise of God. He is in rebellion and certainly is in defiance of His Word. Christian Doctrine does not discount the rights and expectations of believers. However, the rights of church are commonly omitted from most church bylaws. Most bylaws provide a sketchy outline of the various types of hips, how to become a member, and how to terminate hip. But little is ever mentioned in regards the rights of . Upon review of most bylaws, one would wonder why anyone would agree to a covenant that offered NO rights and privileges. It should go without saying that the first requirement of an ACTIVE MEMBER of a church is the right (and responsibility) to attend fellowship service. However, there are some immature Christians who believe that it is acceptable to stay home and follow a TV ministry. This concept is NOT consistent with Biblical teaching. The Word of God teaches that believers must attend church for fellowship and edification, which is the building up of other believers. What brother or sister would not want to communicate with the other of the family? What family member would want isolation from his brother? There is something contemptuous and evil in such a concept.

Acts 2:42 ¶And they continued stedfastly in the apostles’ doctrine and fellowship, and in breaking of bread, and in prayers.

Hebrews 10:25 Not forsaking the assembling of ourselves together, as the manner of some is; but exhorting one another: and so much the more, as ye see the day approaching.

Church is not the only place where Christians can show brotherly love, but it is good place to start. It is a good place to encourage one another, serve one another, instruct one another, honor one another, and to show kindness and comion for one another.

Hebrews3:13 But exhort one another daily, while it is called To day; Lest any of you be hardened through the deceitfulness of sin.

Ephesians 4:32 And be ye kind one to another, tenderhearted, forgiving one another, even as God for Christ’s sake hath forgiven you.

One might argue that being in “good standing” as a church member does not require weekly church attendance. However, those who trust Jesus as the Christ should have a desire to praise God, learn His Word, and fellowship with other believers. Indeed, Christian fellowship is the church; it is the body of Christ. The scripture teaches that the church requires all of its to fellowship in order to be one body, the body of Christ.

1 Corinthians 12:12 ¶For as the body is one, and hath many , and all the of that one body, being many, are one body: so also is Christ.

Actually, there is no such thing as “ing a church.” There is no such model in the Bible. Once a person is reborn, he is an immediate member of the body of Christ. Now he must be recognized as such and received by the Body. He s the local “Body of Christ” and asks that he be received as a brother. The Bible teaches that the first churches were determined by their locality, not their individual cause. The Church of Corinth, the Church Colosse, the Church of Rome, and the Church of Galatia were based upon their region, not on their philosophy. Today, many churches exist in the same region and are based on a difference in philosophy. That philosophy might be based upon a ritual, such as the Seventh Day Adventist. It may be a form of government, such as the Episcopalians. It may be based upon a person’s name, such as the Lutherans or the Wesleyans. Or it may be based upon a certain movement, such as the Pentacostals. However, none of these are based upon the Word of God. Unless the gathering in fellowship is indeed the body of Christ, a union of saved brethren, all acting as one body and one spirit, then it does not have His Promise or His inheritance. The scripture teaches that the Holy Spirit supplies each church with a gift of talented , not doctrine, to address the needs of His church.

1 Corinthians 12:28 And God hath set some in the church, first apostles, secondarily prophets, thirdly teachers, after that miracles, then gifts of healings, helps, governments, diversities of tongues.

Thus the concepts of granting rights, privileges, AND responsibilities to new are inclusive. His Church should seek the full participation of all of its

in its various avenues of praise, fellowship, and service. The granting of rights & privileges offers the first sign of belonging to a family.

Responsibility to Church Leaders

The Church shall establish a policy regarding the responsibility of to Church leaders.

Responsibility to Deacons & Deaconesses

The Church shall establish a policy regarding the responsibilities of to Deacons and Deaconesses.

Responsibility to other

The Church shall establish a policy regarding member responsibility to other .

Rights of Church

This topic provokes the ire of many ministers. Secretly they believe that they have dominion over the faith of its , and that the rights and privileges that they afford are indeed granted by the minister or pastor. Many pastors teach that church should obey pastors even if they are abusive. This is a sign of respect, and if there is an error, then God shall deal with him. In fact, there

can be nothing farther from the truth. The Reformation Age occurred precisely for that reason:

CLERGY ABUSE

The subsequent Protestant Movement was based upon church elders acting more as servants than as rulers. The difference between clergy and laity was dissolved. As Matthew 20:25-27 so clearly teaches:

You know that the rulers of the Gentiles lord it over them, and their great men exercise authority over them. It is not so among you, but whoever wishes to be great among you shall be your servant, and whoever wishes to be first among you shall be your slave.

Often many pastors say that they will have to for their work before God. This is true. However, pastors have no monopoly on ability. The scripture says that EVERY believer is of the holy priesthood. EVERY believer must give an to God for the service and watch he/she keeps over the souls of others. Jesus described the “goats” as those who expected others to do the work of the ministry. The “sheep” were all faithful ones.

Matthew 25:31-33 When the Son of man shall come into his glory, and all the holy angels with him, then shall he sit upon the throne of his glory;

And before him shall be gathered all nations: and he shall separate them one from another, as a shepherd divideth his sheep from the goats:

Notice that there was no distinction between clergy and laity. SERVICE was the distinguishing factor. And what service was judged?

Matthew 25:34-35 Then shall the King say unto them on his right hand, Come, ye blessed of my Father, inherit the kingdom prepared for you from the foundation of the world: For I was an hungred, and ye gave me meat: I was thirsty, and ye have me drink: I was a stranger, and ye took me in: Naked, and ye clothed me: I was sick, and ye visited me: I was in prison, and ye came unto me.

So, the church is not the dominion of the pastor, but the dominion of Christ. The pastor does not own the church and does not grant Rights & Privileges. The sovereignty of each Church is within its . Each church determines its own rules and regulations that are consistent with the Scripture as best understood by its . It is church that determine the Rights & Privileges that they will grant to THEMSELVES.

Ephesians 2:19 Now therefore ye are no more strangers and foreigners, but fellowcitizens with the saints, and of the household of God; 20 And are built upon the foundation of the apostles and prophets, Jesus Christ himself being the chief corner stone;

Rights of (Eph 2:19)

1. entitled to attend any meeting, barring any confidentiality issues, participate in any committee, discuss any issue, and ask any questions on any topic, 2. entitled to suggest, in writing to the , the addition of any item for discussion to the agenda of a regular church meeting. 3. eligible as candidates for elective offices after at least one year of active hip, 4. entitled to inspect church records, and 5. eligible to vote, unless absent from church activities for more than 6 consecutive months.

Property Rights of

The church is not a personal savings . Therefore no one can seek a refund of their tithes & offerings. The church has a responsibility to inform all of this obvious fact, and new have a right to know. Whenever a member comes upon hard financial times, decides to change hip, or is dismissed, he/she cannot claim rights to any assets, gifts, donations, or contributions to the church.

This should be clearly stated in the Bylaws because it has legal significance. There are cases where donate money and other assets to the church and later filed bankruptcy. Some courts have pursued those assets, even into the churches bank s. Secondly, some , particularly pastors, expect “interest-free loans” based upon their past offerings and gifts. Lastly, some disgruntled seek to take back “their” property and go home, such as the church’s website. Some have threatened lawsuits in order to recover their tithes and other gifts. Upon condition of hip they must agree, in writing, to surrender all claims to ownership to any property given by themselves, their children, or from the estate of their deceased parents or other relatives.

Property Rights of

No member, officer, staff, or minister of this Church shall have any property rights in the assets of this Church. Upon termination of hip by any means, the person(s) shall be entitled to no interest in the assets or property of the church, whether they be real, liquid, or imaginary. Upon dissolution of the Church, all assets and property of the Church shall be donated to another like church or charity.

Inspection of hip Records

A special meeting was called to dismiss the pastor. Over 400 people attended the meeting to vote. The problem was that approximately 100 people regularly participated in church activities and worship service. The pastor protested the vote because most of the voters were not “in good standing” with the church, thus constituting an illegal vote. This scenario is very common in many churches. More people are interested in dismissing a pastor than working to create a successful church. When there is a

call to do mission work such as feeding the hungry or clothing the naked, few will answer. When there is exciting mischief such as dismissing the pastor, inactive turn out in groves to reclaim their active roles. The pastor has a legitimate gripe. Only the ACTIVE should participate in the vote, IF the bylaws have defined who may attend properly called meetings and IF the bylaws have properly defined ACTIVE HIP. Any ACTIVE member of the church should have a right to inspect the hip roll of the church at any time. This right should be clearly stated in the Bylaws.

Inspection of hip Records

Records of the ’ names, addresses, and voting rights shall be available for inspection by any member, officer, or trustee for a purpose reasonably related to church business, as determined by the Chairman of the Trustee Council.

Inspection of Corporate Records

This is a very sensitive topic and may have some major legal consequences. Consulting the church’s attorney on this matter may be necessary. That said, the beneficiary of the corporate is the church . The trustees are responsible to the state and to the church AT ALL TIMES, not the pastor, deacons, or any outside organization. What non-confidential business is conducted in Trustee meetings and recorded in its minutes should be available to any member for a church related reason.

Inspection of Corporate Records

Subject to the provisions of the Ohio Nonprofit Religious Corporation Law, the minutes of Trustee Council proceedings shall be open to inspect by any church member or officer at a reasonable time for a purpose reasonably related to church business, as determined by the Chairman of the Trustee Council.

Inspection of Articles and Bylaws

The Clerk shall maintain a copy of the Articles of Incorporation and Bylaws in the church at all times. They shall be available for inspection and distribution to any church member at all reasonable times during office hours.

Inspection of Documents and Contracts

Again, the Trustees are responsible to each and every church member. Any business conducted by the Trustees is done on behalf of the church hip. This is why church Trustees cannot be paid for their service. Personal gain can NEVER be the basis for a decision. No contract or any other agreement may be entered on behalf of the church unless approved by the church, at a properly called meeting. This matter should be clearly and emphatically noted in the Bylaws.

Inspection of Documents and Contracts

No note, evidence of indebtedness, contract, conveyance, pledge of credit or other instrument in writing or assignment between the church and any other

person or institution shall be valid unless approved by the church hip, at a properly called meeting, and signed by the Chairman of the Trustee Council. Such legal documents shall be available for inspection by any ACTIVE member at all reasonable times during office hours, as determined by the Chairman of the Trustee Council. These records available for inspection shall not include documents related to legal issues, personal issues such as related to the PASTORAL RELATIONS or RECONCILIATION & RESTORATION COMMITTEES, or executive minutes of the TRUSTEE COUNCIL.

ACTIVE MEMBER

Not every person who attends worship service is a candidate for church hip. This is due to, or should be due to eligibility requirements for church hip. For example, a candidate may not agree to follow all the rules and regulations of the church. Or a candidate may be a member of another local church. These rules disqualify candidates from hip in most churches. In addition, there may be different levels of hip. Age can play a significant factor in the voting process. For example the Baptists are quite clear about various circumstances surrounding baptism and hip. A candidate MUST be awake, conscious, understanding, and willing to accept his/her new life after baptism. Those that do not meet these criteria are not candidates. These principles should be reflected in the bylaws.

Approval for Fellowship (Matt 13:19, John 6:26)

This Church shall receive into fellowship any person who:

1. has successfully completed New Class 2. has successfully completed the hip interview 3. has provided a Declaration of hip 4. has signed a written commitment for hip 5. has been baptized in the Jesus Christ 6. has received laying on of hands by the elders 7. has been unanimously approved by the congregation

Recommendation

Can a candidate recommend himself for hip? It is important to have an established procedure for hip because the day will come when someone will oppose the hip of a candidate. Is that legal? What do the bylaws say?

Recommendation

Persons shall apply for hip of the Church by recommendation of a member and/or the Deacon Board.

New Class

An essential part of the hip process is orientation and basic education. It

is not wise to assume that new candidates know their faith, understand their rights, and agree to their new responsibilities to the Church. New Class must be an absolute requirement. This matter is not negotiable as it has tremendous legal consequences. When the church fails to provide basic faith understanding, a member may attempt to sue the church based upon an incorrect assumption. This can and must be avoided.

New Class

Applicants for fellowship shall complete New Member Classes with satisfaction and agree in writing to obey all the rules and regulations of the church in order to confirm eligibility.

hip Interview

This interview occurs AFTER the completion of the NEW CLASS for it is actually part of a screening process. As a responsibility of the leaders of the church, they must interview, and even counsel, an applicant to assess his/her seriousness.

hip interview

Applicants for fellowship shall submit an application and complete an official interview with the Minister and/or member of the Deacon Council for recommendation for fellowship to the church body.

Declaration of Fellowship

When an applicant for fellowship is regenerated and accepts Christ as his/her personal savior, he is already a member of the body of Christ. Now he needs to make this fact known to other believers. This is done in the form of a testimony to the church. Every Christian as a testimony as to what grace has done in his life. The Word of God is quite clear of this fact:

Matthew 10:33 But whosoever shall deny me before men, him will I also deny before my Father which is in heaven.

Declaration of Fellowship

Applicants for fellowship shall provide an oral declaration of fellowship to the church body such as a testimony and public acknowledgement and acceptance of the rules and regulations of HIS church.

Written Commitment

This is a legal document, pure and simple. The “laying on of hands” is the Christian way of acknowledging the Head and submitting to the authority of the church. However, in the legal area, “laying on of hands” may not be acceptable as a contract. As a matter of risk management, the leaders of the church should require every member to commit IN WRITING.

Written commitment

Applicants for fellowship shall provide a signed agreement for the submission to the authority of His church and Church Covenant.

Baptized in Jesus Christ

Baptism is the act of forsaking the world. Some applicants for fellowship are baptized, but not in the name of Jesus Christ. As a result, their post-baptism lives are no different from their pre-baptism lives. This is a common occurrence in many churches. The same thing happened with the Samaritans. They believed in the Lord and were baptized through the work of Phillip. But they had not received the Holy Spirit. Why? Because they had not been baptized in Christ or experienced the “laying on of hands.”

Acts 8:14 ¶Now when the apostles which were at Jerusalem heard that Samaria had received the word of God, they sent unto them Peter and John: 15 Who, when they were come down, prayed for them, that they might receive the Holy Ghost: 16 (For as yet he was fallen upon none of them: only they were baptized in the name of the Lord Jesus.) 17 Then laid they their hands on them, and they received the Holy Ghost.

There are “Samaritans” throughout the Christian world. They go through all the formalities of church, but they never forsake the world. Jesus asks believers to

forsake the world, bare their own cross, and follow Him. When they receive the Holy Spirit, they are able to bare the cross, which is the true test of the Christian faith. But, even with the sacrament of Baptism, His Church must be diligent and cautious. Even ministers can act outside the Will of God. Here is an example. Cornerstone Baptist Church sent out flyers in the local community advertising a “carnival” for children. However, the minister had other plans. He baptized all the children without their parents knowledge or approval.

Church Sued Over Forced Baptism

Rocky Mountain News, August 24, 1993 The parents of five Colorado Springs children are suing a local church . . . “We are charging them with outrageous conduct, battery, false imprisonment and negligence,” attorney Ed Farry Jr. told the Rocky Mountain News. Farry filed the lawsuit against CORNERSTONE BAPTIST CHURCH AND ITS PASTOR, Dean Miller.

This is an example of ordinance abuse. In his zeal to increase church hip, this pastor literally broke the law. The prosecutor stated that dunking the children was offensive, touching them was battery, enticing them with a “carnival” and making them go to a small room before being baptized was false imprisonment. Not only will this church have to pay for pain and suffering, mental anguish, inducing panic, post-traumatic stress syndrome, nightmares, and transient situational disturbance, and chronic anxiety, but it will be an embarrassment to the community. As a result, many churches have developed guidelines in their bylaws to guard against such abuse.

What some churches consider “decent and in order,” society may consider it unlawful and in violation of parental rights. For example, neighborhood children are invited to the local church to participate in an event similar to the Cub Scouts. They are given stickers and other prizes for memorizing a popular

saying:

. . . and God so loved the world, he gave His only begotten son . . .

When asked what this saying meant, they did not know. However, they said that they did what was asked of them so that they could win more prizes and receive praise. To many Christians, this is acceptable. To others this is dangerous propaganda, the early stage of a cult, and an example of

Preachers Gone Wild!

When the trustees are lax in their duty to monitor church leaders, even in matters of church ordinances, they put the church, and its financial contributions, at risk. Should there be an age requirement to the church? Does a youth need parental consent? Suppose the parent opposes church baptisms? How should the church handle extenuating circumstances that make baptisms difficult such as handicaps, mental illness, or extreme obesity? These matters should be addressed in the bylaws.

Lying on of Hands by the Elders

Hebrew 6 teaches the principles of Christ:

1. repentance

2. faith 3. baptism 4. laying on of hands 5. resurrection 6. eternal judgment

Hebrews 6:1 ¶Therefore leaving the principles of the doctrine of Christ, let us go on unto perfection; not laying again the foundation of repentance from dead works, and of faith toward God, 2 Of the doctrine of baptisms, and of laying on of hands, and of resurrection of the dead, and of eternal judgment.

Despite this Biblical teaching, many churches do not practice the sacred act of “laying on of hands.” They error in not teaching its its significance. In Leviticus, the believer laid his hand on the head of the sacrificed as an act of substitution for himself. This is an act of identification and substitution for one’s self. In Genesis, both Abraham and Jacob laid hands on the sons, Ephraim and Manasseh (Gen 48:8-20), as an act of ing on a blessing. In the New Testament, God anoints Jesus with His own spirit as the Head of the body. The oil of anointment flows from the head down to the body. Thus there is no individual anointing. The body is never directly anointed. It is a consequence of the Head being anointed. In the same manner, the “laying on of hands” is performed by the saints of the church. It is significant in that it brings a member under the AUTHORITY of the body. No member is now independent. He is forever subject to the authority of the church. Thus, if he ever leaves the church or is out of fellowship, he is weak, insignificant, and totally useless. When one

receives the “laying on of hands,” he is under subjection and in position to receive the oil anointment that flows to the body.

Unanimous Approval of the Congregation

His church has a tremendous responsibility in receiving a brother or sister into fellowship. Having been led by the Holy Spirit, the body must discern that the applicant is qualified to be part of the brethren. He must show evidence: understand of the faith, confession, repentance, testimony, baptism into Christ, laying on of hands, submission and subjection to the authority of the church. When His church is satisfied, they vote. It must be an unanimous approval because it is truly that important of a decision.

Obey the Rules

Rarely will a member of the church come before the Reconciliation & Restoration Committee or the Deacons for disciplinary action. However, it will happen, and His Church should be prepared to defend its concerns and subsequent actions. His Church does not want the member to plead ignorance. The bylaws should guide His Church leadership in this area.

Obedience (1John 2:5-6)

Applicants for hip shall agree in writing to the authority of the church over all of its . They acknowledge, accept, and all the rules and regulations that govern the Church.

Conflict Mediation

Most Church bylaws fail to include CONFLICT RESOLUTION guidelines. This is surprising for TWO reasons. First, His Church should actually lead the community in resolving issues. His Church should be an example of fairness and justice. Secondly, His Church has the right to formulate any rule it wishes for new . Either they accept the rules or remain a visitor. His Church is under no obligation to allow one of its to sue the Church. All conflicts will be handled fairly and justly within His Church.

Conflict Mediation

Applicants for hip shall agree to Conflict Mediation and Binding Arbitration to all areas of dispute and disagreement with fellow and organizations.

hip Committee

His Church should require that all candidates follow the same procedure for hip. If they do not satisfactorily complete New Class, then they cannot be recommended for hip.

hip Committee

Applicants for hip to the Church shall be recommended by the HIP COMMITTEE and approved by the Deacon Council.

Not Approved

Many church leaders recite a common phrase regarding church hip:

“COME AS YOU ARE”

It always gets many “amens” from the congregation, but it is usually misapplied to non-believers. In 2 Thessalonians chapter 3, Paul is addressing of the church when he says:

11 For we hear that there are some which walk among you disorderly, working not all all . . . 14 And if any man obey not our word by this epistle, note that man, and have no company with him, that he may be ashamed.

Not everyone applying for His Church hip is eligible to commune and fellowship with the saints. Church bylaws must address this problem.

Applicants not approved

Applicants not approved for hip shall be notified by the New Committee and shall be regarded as visitors.

approved

Again, what are the criteria for church hip and how does a candidate actually enter hip? After a candidate has accepted the faith, and has shown evidence of that, and has repented of his/her sins, Baptism is essential for Baptist Church hip. However, some candidates have already been baptized. The bylaws may allow for hip without being baptized again. Church have a right to decide their own rules. When a candidate seeks hip through “Christian Experience,” the church is really obligated to ask why. If the candidate transfers from another “like church,” he/she should be able to bring a letter of character reference. In other words, the former church needs to “vouch” for this transferring member. The underlying issue is whether the candidate is transferring hip in “good standing” with the former church. Responsible leadership requires that all of the church are in “good standing.” Why would a church accept a new member who is leaving his/her former church with unresolved, outstanding issues and concerns? Some churches refuse to accept ANY candidate for hip if that candidate cannot produce a letter of character from the former church. They base their opinion on Romans 16:17;

Now I beseech you, brethren, mark them which cause divisions and offenses contrary to the doctrine which ye learned; and avoid them . . .

Punitive discipline is serious. It is not to be taken lightly because it brings reproach upon the church and dishonor to the blood of Christ. The Holy Scripture is quite clear in how to proceed. 2Thessalonians 3:6 says;

Now we command you brethren, in the name of our Lord Jesus Christ, that ye withdraw yourselves from every brother that walketh disorderly, and not after the tradition which he received of us . . .

Hence, the ultimate goal of church discipline is to teach, improve, strengthen, and restore. Therefore, after excommunicating a member, the church should offer a plan to restore that soul to the grace of God. The Church has an obligation to save the lost and restore all former to “good standing,” even when the offense is horrific. Obviously, the leaders need to show great care in re-introducing serious offenders back into the congregation. 1 Timothy 5:22 says;

Lay hands suddenly on no man, neither be partakers of other men’s sins: keep thyself pure.

This is a difficult task for church leaders and should be done with caution. Many churches provide a process to restore wayward to Christian lifestyles. Unfortunately, most of these wayward do not seek reission to the same church and will merely “church hop.” Because they usually reject church discipline, they never fully understand Matthew 18:18 that teaches;

Verily I say unto you, Whatsoever ye shall bind on earth shall be bound in heaven:

And whatsoever ye shall loose on earth shall be loosed in heaven.

In other words, church discipline exercised on earth is binding in Heaven. The offender cannot reject the earthly church but yet claim a heavenly church. The Holy Scripture teaches that if a sinner cannot get along with the of the earthly church, then he cannot get along with God in Heaven.

Approved

approved for ission shall be extended the right hand of fellowship:

• by CONFESSION & BAPTISM: A person who confesses Jesus Christ as Lord and Savior and adopts substantially the views of faith and principles of this Church and is baptized by immersion may be received into the fellowship of the Church. (Matt 3:5, 10:32, Rom 10:9-10) • any by LETTER: A person who is in substantial accord with the views of faith and principles of this Church may be received by letter from other like church. • By STATEMENT: When a letter is impossible or impractical to secure, as determined by the Deacon Council, a personal statement shall document confession, repentance, and baptism. • by RESTORATION: A person who has lost hip may be restored to hip upon recommendation of the Church hip Committee and the vote of the Church. (Gal 6:1)

Watchcare

Church leaders must be careful not to suggest the wrong intent with Watchful Care. A student or temporary worker is welcome to worship & praise at the church. However, that person of like faith is still a VISITOR. He may be extended many courtesies of the church, but it should be clear that he cannot vote on any issue. Quite the contrary, he should be encouraged to maintain regular with his home church and continue to financially it. Indeed, the same should be expected from any local member who is visiting a distant community.

Acts 9:26 And when Saul was come to Jerusalem, he assayed to himself to the disciples: but they were all afraid of him, and believed not that he was a disciple. 19 But Barnabas took him, and brought him to the apostles, and declared unto them how he had seen the Lord in the way, and that he had spoken to him, and how he had preached boldly at Damascus in the name of Jesus.

WATCHCARE (Acts 9:26-28)

Any member of this Church who travels and temporarily resides in another community for a brief period of time (6-12 months) shall have the right to fellowship in a like church. Such a member shall maintain regular with this Church and financially this ministry. Such a member shall retain of rights, privileges, and courtesies, however, no absentee ballots or

votes shall be permitted.

Likewise, any member of another like Church, or seeks hip, shall be permitted to fellowship at Second Baptist Church for a brief period of time (612 months). Such a person shall be considered a visitor and shall be offered NO voting privileges.

Reception of NEW

Being received in a new church should be a very memorable occasion. Every new member should anticipate being received as well as the process of belonging. Churches are encouraged to make the event significant, not another run-of-the-mill induction. Treat new special. Call them by name, discuss their ideas, plans, and ambitions with their new church family. The relationship with Jesus Christ is a personal one, so make that relationship with the church also personal. The CONFESSION OF FAITH is a very personal as well as emotional event. Receiving the right hand of FELLOWSHIP is an experience that every Christian should . It is his/her first step of belonging to a Christian family, which, by definition is a unit of that are eternally bound together. Some churches oppose the idea of “unanimous vote” of church . Often these churches have low or NO requirements or expectations of its . They do not place a high on their church hip and status. However, one should keep in mind that being a Christian does NOT guarantee hip to any church. Conversely, being a member of a church does NOT necessarily validate one as being a Christian. They are two separate entities. Not all churches are for all Christians. Churches offer different ministries to fulfill different missions. Some devote most of their time to foreign missions. Others are more involved in the local community or in the assistance of widows, orphans, and single parents. Candidates for hip should be quite aware of their future responsibilities as ACTIVE . The church must be a good fit for every member in order for the “whole body” to work effectively. Lastly, each Baptist Church is autonomous and has a right to determine who can

and cannot . If ONE member objects to the enrollment of a candidate, this matter should be discussed and resolved in a Christian manner. It is the church body, not the pastor or the deacons, that has the final say in hip.

Reception of New

The Church shall establish procedures for the Reception of New .

Voting of ACTIVE and ASSOCIATE

This section is important because it provides clarity to the voting status of the ASSOCIATE . There are several factors that prohibit voting by ASSOCIATE :

1. age 2. disciplinary action 3. non-attendance 4. non- financially 5. non-service

Attendance

Both ACTIVE and ASSOCIATE of the Church shall be entitled to

attend, discuss, and ask questions at any meeting of the Church that does not violate any rules of confidentiality or conflict of interest as determined by the or committee chairman.

Voting (1Cor 1:10)

Only those ACTIVE of the Church are entitled to vote at Church meetings.

Baptist Training & Confirmation

The rite of Baptism is the initiation into Christian life. It is the re-birth from the “old man” into the “new man.” It is a covenant between the new Christian and God that he/she will do the Will of God and thus be saved. Baptist Training, or Confirmation is a rite by which a baptized person publicly affirms, or agree to, the faith. It is a personal decision to accept the full responsibilities of hip in the church. Thus it is a time that the congregation celebrates and acknowledges this decision. Baptist Training and Confirmation is a process that takes 2 years to complete. Generally it is undertaken by a young person either in middle school or early high school. It includes:

1. participating in weekend retreats and youth conferences, 2. attending church school and vacation bible school, 3. ing the Youth Ministry, 4. praying with the family,

5. meeting with a sponsor, and 6. volunteering 15 hours to family(5), church(5), community(5).

Upon completion, there is a ceremony to celebrate God’s grace mediated through the covenant community and confirmed by the Holy Spirit. It is a rite marking the covenant relationship with God with the member’s decision to belong to the church.

Baptist Training & Confirmation

The BOARD OF CHRISTIAN EDUCATION shall establish a CONFIRMATION program and guidelines for NEW baptized youth. Upon completion, each year shall be acknowledged, celebrated, and granted full rights and privileges of an ACTIVE MEMBER of this Church.

Small Church Community

Christian worship is NOT a Sunday event, but a daily lifestyle. The church community should encourage this for it is the “walk” of a Christian that serves as a lighthouse or beacon to the rest of the world. The scripture teaches that it is the gathering of those of those faithful ones that allows for Jesus to be amongst them.

Matthew 18:20 For where two or three are gathered together in my name, there am I in midst of them.

Hebrews 10:25 Not forsaking the assembling of ourselves together, as the manner of some is; but exhorting one another: and so much the more, as ye see the day approaching.

The Small Church Community allows for such to occur. In this process, 4 or 5 couples or singles meet twice monthly at each other’s home, perhaps on a Wednesday evening from 7 to 8:30PM. They have scriptural reading, discussion, witnessing, fellowship, and of course, something to eat. They are drawn together in His name by the Spirit, and the Spirit is present, ON WEDNESDAY! This is a SMALL CHURCH COMMUNITY.

Small Church Community

Upon successful completion of all requirements for hip and fellowship in His Church, the NEW COMMITTEE shall appoint the new member to a SMALL CHURCH COMMUNITY. This group of baptized believers shall meet at each others’ home on a regular basis for Christian education and fellowship.

Termination of hip

We live in a highly mobile society. Most people live hundreds of miles from where they were raised or where their parents reside. As a result, Church-goers change church hip all the time. And there should be a process in which a faithful church member may do so. However, some church change church hip in the same town. Church leaders should always examine

WHY a person is leaving another church. Could it be that they are unwilling to work out problems in their old church? The Scripture teaches that forgiveness, love, and UNITY are hallmarks of a believer, not bitterness and division.

Ephesians 4: 31 Let all bitterness, and wrath, and anger, and clamour, and evil speaking, be put away from you with all malice 32 And be ye kind to one another, tenderhearted, forgiving one another . . .

For all candidates for hip who cannot provide a letter of reference from the last church, faithful church leaders should not hesitate to that church. It is a serious indictment against THAT church and its ministry that allows a member to not be “in good standing.” How can a person leave a church in disgrace? The church builds up, not pawn them off to other congregations. The Baptist Church MUST be in the restoration business because repentance ALWAYS precedes grace. In addition, this will be the member’s testimony to a non-believer. Thus, anger, hatred, and bitterness is NOT reasons to leave a church, but of course, they are common. However, the Scripture teaches that one should not leave a church causing division and unnecessary controversy.

1 Corinthians 1:10 Now I beseech you, brethren, by the name of our Lord Jesus Christ, that ye all speak the same thing, and that there be no divisions among you;

but ye be perfectly ed together in the same mind and in the same judgment.

However, suppose a member wishes to leave a church because of a lack of Biblical teaching? Every believer has a personal responsibility to seek spiritual growth, thus the decision to leave may be quite necessary. But, here is a word of caution. Many dissatisfied church leave because they are not involved in the ministries of the church. They expect only “to receive” from the church and rarely “to give.” This is a huge mistake! The faithful are spiritually “fed” when they take an active part in “feeding” others in the church. Christian fellowship is a two-way street. It requires giving and taking. The act of giving is part of the personal testimony and an act of charity or love. Church leaders should know why a person is changing hip. They may identify a very correctible area of weakness that will continue in that candidate for hip regardless of which church he/she attends. Well-written bylaws should stipulate the acceptable reasons for hip termination. Anger and bitterness are not acceptable reasons to quit a church. It is a poor testimony for the church. Any change of hip should be “in good standing” and with good references. Church leaders have a duty to require that all are in good standing and are true participators in the church ministries. When bylaws do not stipulate acceptable for hip termination, then it can be assumed that there are none. This is legal minefield. A member will do something incredibly offensive, the church leadership will move to dismiss the member, and it will be unable to because the bylaws do not provide for such a maneuver. The member will sue for civil damages due to “mental anguish, humiliation, and embarrassment” and he/she will WIN!

Termination of

hip shall be terminated in the following ways:

a. by death b. by transfer Any member in good standing who wishes to with another church will be granted a Letter of Recommendation upon request by the church with which he/she desires to associate. The Letter will be forwarded upon recommendation of the hip Committee and approval of the Board of Trustees. c. by request Any member who requests termination of hip for whatever reason will be granted that request. If there are unresolved problems between the requesting member and the Church, efforts will be made by the Board of Trustees to resolve any points at issue prior to granting the request. d. by disciplinary action Should any member of the Church be found to be flagrantly negligent in living the Christian life, including failure to submit to the authority of the RECONCILIATION & RESTORATION COMMITTEE, the Church leadership reserves the right to ister Church discipline through the Deacon Council and/or RECONCILIATION & RESTORATION COMMITTEE. Should faithful efforts by the Deacon Council and RECONCILIATION & RESTORATION render no promise of reform or repentance on the part of the member in question, hip shall be terminated upon unanimous recommendation of the DEACON COUNCIL or ¾ vote of the present at a properly called meeting. A member removed from fellowship by disciplinary action may be reinstated only by means of the normal ission procedure. e. by inactivity (Hebrews 10:25, 1John 2:19) If a member has not participated in any worship or praise services, bible study, Sunday school, committee, auxiliary, or any ministry for a period of 6 months, and the inactivity is not due to health or other acceptable reasons, the member shall be reported to the DEACON COUNCIL. A deacon shall visit the inactive

member on two separate occasions to encourage that member to participate. If the member still refuses, that member shall be referred to the RECONCILIATION & RESTORATION COMMITTEE for possible termination.

Church bylaws should be clear about the causes for dismissal. Every member should read and sign a statement to show that he/she understands this condition of hip. It should be placed in his/her permanent files. When disputes occur and the church leaders have legitimate reason to dismiss a member, according to the bylaws, then any court will uphold the decision of the church.

Surrender of Privilege

Effective bylaws should contain a specific statement regarding the “surrender of privilege.” When left unsaid, it can be disastrous. A member may be dismissed and request that his/her tithes be returned. He/she may request that the church website be closed because it was his creation. Perhaps the church symbol should be returned to the dismissed member because it was from her ideas. Do people make such requests? Will they sue the Church if they are not satisfied? Does the church have any ground to stand on? If it is not in the bylaws, then perhaps it does not.

Surrender of Privilege

Any member whose hip has been terminated for any reason thereby surrenders all hip privileges and all rights to any interest in the real estate, personal, or imaginary property of this congregation.

Chapter 12

Article VI: Church Meetings

Article VI: Church Meetings

Worship Services Ordinance of the Lord’s Supper Regular Business Meetings Special Business Meetings Voting Quorum Procedure

Many legal disputes occur because of the vagueness or lack of language regarding the location, voting process, and manner of conduct in meetings. Church bylaws must be quite clear as to who can call a meeting, where it may occur, what can be voted upon, how the votes are tallied, and who shall conduct the meeting. Any deviation from this standard operating procedure is illegal, and in legal proceedings, it will be quite significant to the courts that the Church cannot follow its own rules.

Why Should Christians Meet?

The most common reason that most Christians go to church is to hear “the message,” to fellowship, and to praise and worship. Although all of these ideas are reasonable, they are not the primary reason for church service.

1Corithians 14:26-27 How is it brethren? Whenever you come together, each of you has a psalm, has a teaching, has a tongue, has a revelation, has an interpretation. Let all things be done for edification.

“WHENEVER YOU COME TOGETHER… LET ALL THINGS BE DONE FOR EDIFICATION.” The Scripture clearly states that church meetings are for the building up or strengthening one another. Although praise & worship can and should occur, it is not the primary purpose. In fact, a Christian grounded in sound doctrine, will worship on the way to church, during church, after church, and every opportunity during the week as well. The scripture says to “pray unceasingly.” In other words, the praise & worship of God is a LIFESTYLE, not a one day a week event that is over by 1:00 PM. The Scripture calls for all believers of the Way to meet together. This is not optional, and TV ministry cannot substitute for fellowship. Hebrew 10:25 says:

Nor forsaking the assembling of ourselves, as the manner of some is; but exhorting one another; and so much the more,

as ye see the day approaching . . .

In addition, all Christians should participate in the meetings. However, there is no instruction regarding where this meeting should occur. Can believers meet at someone’s home, at a coffee shop, or even a convention center? Absolutely! The mission is to meet and edify, not to build glorious cathedrals and collect hundreds of thousands of dollars. Buildings and budgets do not bring the weak and needy to Christ.

It is the faithful and the testimony of saving grace.

Each member should come to share. Assemblies of God are open to all. If someone has a song to sing, then sing it. If there is a prayer, then pray it. If there is a lesson to be taught or an experience to be shared, then teach it. This is called the “priesthood of the believer.” Each New Testament believer is considered a priest unto God. Many falsely believe that the Pastor is the anointed, the called one, and the mouthpiece of God. However, all believers are anointed, and are called. Unfortunately, the Scripture teaches that only a few shall answer the call (Matt 7:14).

1 Peter 2:5 Ye also, as lively stones, are built up a spiritual house, an holy priesthood, to offer up spiritual sacrifices, acceptable to God by Jesus Christ.

1 Peter 2:9 But ye are a chosen generation, a royal priesthood, an holy nation, a peculiar people, that ye shall shew forth the praises of him who hath called you out of darkness into his marvelous light.

Pitifully, this is not what is occurring in many churches. Their idea of worship service on Sunday is nothing more than a “spectator sport.” The self-appointed, spiritually elite are indeed in control. The choir sings, the ushers usher, and the preacher preaches. And it’s a wrap. This attitude of the “professional church” contributes to apathy, indifference, and the loss of commitment to the assembly of God. When a member lacks “the calling,” an advanced divinity degree, or ordination, he is disqualified from the spiritually elite. His position is less than a priest, pastor or minister. Therefore he is considered unworthy to participate in Sunday church. Most churches have a title for such people:

laymen

The liturgy of Sunday service is a far cry from the early, New Testament church. The scripture did not provide for a sermon or even a designated preacher. Those that were spiritually blessed with a song, doctrine, or revelation were allowed to contribute (1Cor 14:26). If God had revealed a message to two or three persons, they were allowed to speak. Their message was meant to be uplifting. Everyone had a responsibility to judge whether it was or not.

1 Corinthians 14:26 ¶How is it then, brethren? when ye come together, every one of you hath a psalm, hath a doctrine, hath a tongue, hath a revelation, hath an interpretation. Let all things be done unto edifying. 27 If any man speak in an unknown tongue, let it be by two, or at the most by three, and that by course; and let one interpret. 28 But if there be no interpreter, let him keep silence in the church; and let him speak to himself, and to God. 29 Let the prophets speak two or three, and let the other judge. 30 If any thing be revealed to another that sitteth by, let the first hold his peace. 31 For ye may all prophesy one by one, that all may learn, and all may be comforted. 32 And the spirits of the prophets are subject to the prophets. 33 For God is not the author of confusion, but of peace, as in all churches of the saints.

The Scripture calls on everyone to use his spiritual gifts towards worship AND edification.

1 Corinthians 12:28 And God hath set some in the church, first apostles, secondarily prophets, thirdly teachers, after that miracles, then gifts of healing, helps, governments, diversities of tongues.

Purpose of Church Meetings

The purpose of a Church meeting is for mutual edification, which is to push and guide each member towards spiritual maturity of Christ. (1Cor14:16) This shall lead to praise & worship of God as a way of life rather than a ceremony or ritual. The Scripture commands every member to:

1. come together (Heb. 10:25) 2. meet simply and conveniently as possible (1Cor 3:9, Eph 2:21-22, Rom15:2) 3. participate in the meetings (1Cor12:20-27, 1Peter 2:9). 4. use spiritual gifts for service (Rom 12:6-8, 1Cor 12:4,28)

Worship Services

Although the time, place, and purpose of the Sunday worship experience are obvious to many, it may cause consternation for others. For example, suppose the church decides to keep a roll of all who attend worship service. In addition, it keeps a roll for bible study classes, business meetings, and committee meetings. Which attendance roll applies to the requirements of “good standing” with the church? Could someone contend that attending bible study classes is as good as Sunday worship? Is it? Some may contend that Sunday is not a biblically designated day of worship, and that the church is not a biblically designated site of worship. What does the Bible say about religious observances? Do the bylaws reflect those instructions?

Galatians 4:8 ¶Howbeit then, when ye knew not God, ye did service unto them which by nature are no gods. 27 But now, after that ye have known God, or rather are known of God, how turn ye again to the weak and beggarly elements, whereunto ye desire again to be in bondage? 10 Ye observe days, and months, and times, and years. 11 I am afraid of you, lest I have bestowed upon you labour in vain.

In addition, some pastors ask the congregation to vote on church issues at the end of worship service. This is blatantly inappropriate and cannot be tolerated under any circumstances. All matters of business are reserved for business meetings. If special consideration and immediate decisions are necessary, His Church must allow the Trustees to step in and protect the interest of His Church until a duly called meeting is organized. This rule is absolutely essential to protect the integrity of the Church Bylaws.

Public Worship

Public worship shall be held on the Lord’s Day and on such days as the Church shall designate, and at such hours and subject to such changes as shall be determined by the Official Council.

Church Business

No official Church business shall be transacted during worship service.

Ordinance of the Lord’s Supper

The Breaking of Bread, or Communion, is fundamental to His Church. It is only for the regenerated souls. It allows the saved individual to re-affirm his/her commitment to the Covenant of Baptism, commune with the Holy Spirit, and fellowship with the brethren. It should be clearly stated in the bylaws such that church leaders and individual understand their responsibilities and rights. Many churches believe that their own Pastor should be present for ALL communion services, not visiting or associate pastors. Although this concept is an example of synthetic religion and has no biblical basis, if this is what a church wants, then it should be clearly indicated in the bylaws.

Ordinance of the Lord’s Supper

COMMUNION shall be observed on a regular basis as determined and officiated by the ministers and deacons. It shall be observed at such other

times as the Church Council shall direct.

Business

What, when, how, and where BUSINESS MEETINGS are held is an important matter and is determined by the hip. The meetings should outline the ORDER OF BUSINESS. Any discussions that are not consistent with this ORDER or not presented according to Roberts Rules of Order are illegal. This is one of the dangers of allowing the Pastor to serve as of business meetings. Often they discuss issues that are not part of the agenda, therefore has NO legal basis. Any discussion that occurs on a non-agenda item is invalid. Any action taken on non-agenda, invalid items can lead to lawsuits. Invalid discussions should not be accepted in the official minutes. The BYLAWS COMMITTEE must have the authority to review all minutes to show consistency with the bylaws. When inconsistencies are noted by the BYLAWS COMMITTEE, they should be reported at the next business meeting and removed from its record of official business. When a SPECIAL MEETING is called, the same protocol should be followed. The SPECIAL MEETING should address the specifically called item. The meeting should be called to order by the . This special meeting should be narrow and limited to one issue. Any other discussion or action is invalid. The BYLAWS should be clear in this matter because the courts will always look to the church bylaws for direction.

Order of Business

a. Annual Meeting. The Annual Meeting of the Church shall be held in January for the purpose of hearing annual reports, electing officers, adopting the budget, and transacting any and all business that shall properly come before the Meeting.

b. Order of Business. Annual Meeting. The Annual Meeting of the Church shall be held in January for the purpose of hearing annual reports, electing officers, adopting the budget, and transacting any and all business that shall properly come before the Meeting.

i. Order of Business. The Church shall establish a policy regarding the Order of business.

c. Special Meetings Special meetings shall be called by the Clerk at the request of the Official Board or upon request in writing of 25 specifying the purpose of the meeting. In the event of vacancy in the Office of Clerk, the shall call Special Meetings. d. Notice Each Annual or Special Meeting shall be called stating the purpose of the meeting. The notice shall be printed in the weekly calendar, bulletin, and electronic media site of the Church for the 3 Sundays next proceeding the day of the meeting. Background materials associated with each agenda item, including matters to be raised as new business, shall be included with the meeting notice. e. Voting Only active of the Church of legal age shall have the power to vote at its business meetings. When quorum exists, action on a matter shall be approved when the votes cast by present at the meeting favoring the action exceed the votes cast opposing the action. There are no provisions to vote by proxy or by absentee ballot. f. Quorum Forty (40) shall constitute a quorum at any business meeting of the Church, but a smaller number shall be allowed to adjourn.

g. Parliamentary Procedure The rules in Robert’s Rules of Order, when applicable and at the discretion of the , shall govern the conduct of business meetings in all cases.

Place of Meeting

It is of legal necessity that there is an established meeting place. This is to prevent any “wildcat” meetings which are intended to disenfranchise certain church . It is also to prevent certain church from making decisions on their own without the input and agreement of church leaders. Obviously, such matters must be well-defined or they can lead to lawsuits.

Location of Meetings

All special meetings shall be held at the principal office of the Church except by unanimous consent of the Trustees.



Most churches assume that the Pastor will moderate all Congregational or Business meetings. This is a huge assumption laden with several major problems. First, church may appoint whomever they wish to moderate its meetings. Second, if the church decides to follow the Roberts Rules of Order, then that appointed person must be familiar with those rules. That could be a problem. Roberts Rules state that the must be neutral in all motions or discussions. The cannot voice an opinion about any subject while occupying the Chair. Roberts Rules says that he must relinquish the Chair, sit in

the audience, ask for the floor like any other member, and then wait his turn. Once he has voiced the opinion, he must sit, listen to other opinions, and then vote. He cannot return to the Chair until after the vote. Once the Chair is restored, there cannot be any further discussion on the motion or vote. The must proceed to the next item on the agenda. The point is that the MUST be neutral on all issues. His responsibility is to properly conduct the meeting with all neutrality. When pastors moderate church meetings, they routinely violate Roberts Rules of Order, voice their own opinions from the Chair, and act authoritatively to suppress the minority opinions. Certainly, church cannot agree upon EVERY thing ALL the time. There must be opportunity for open discussion. But just as with the church at Pentecost, after all is said and done, the church must come to “one accord” (Acts 2:1) and act as a body in love and respect.

The

The Church shall elect a or appoint a Trustee to act as vice at all Business Meetings of the Corporation and Church. In his/her absence, another Trustee shall function in that capacity.

Entitled to Vote

There may be requirements for any member to vote. It may attendance, tithes & offerings, participation on committees and boards, or other service to the church. In other words, he/she must be an ACTIVE MEMBER, as so defined in the hip section. It is important that the church recognizes that there is an eligibility to vote. It must be in writing, and there should be a ledger of all ACTIVE at any officially called meeting. When this requirement is violated, the disgruntled member may challenge any vote on legal grounds. That person will usually win! Why? It is because many churches refuse to follow their own rules. They create the rules, but refuse to review and revise them regularly.

They follow them only when it is convenient. This is the classical violation of the church that leads to lawsuits, of which the church loses every time.

Voting Eligibility

The record date for determining the entitled to vote at any meeting shall be the Sunday prior to the meeting.

List of Entitled to Vote

Maintaining a HIP ROLL is not only a necessary and reasonable idea, but it is also of legal necessity. It qualifies who is eligible to vote. When ineligible vote on church matters, such as dismissing the Pastor, the courts will ALWAYS invalidate the vote. Certainly the violations of the Pastor may be worthy of dismissal, however the procedure of calling a meeting and voting may be wrong. The judge and pastor’s attorney will obligate the church to follow the church bylaws. When the church fails in this obligation, the courts will side with the pastor EVERY time!

hip Roll

At any meeting of the , the Clerk shall make the current church roll available for inspection by the . This right shall be in lieu of any other statutory right to inspect any list of the roll of . If any person’s right to vote is challenged, the shall rely on the current church roll as evidence of the right of the person challenged to vote at the meeting.

Transaction of Business

This section provides clarification in regards to conduct of business. Can the Pastor determine who spends what and why? Can the DEACON COUNCIL? The bylaws dictate this procedure. There should also be provisions as to who CANNOT vote, and who has the authority to demand a recount.

Transaction of Business

The transaction of any business at any Business Meeting of the Corporation and Church shall require a majority vote of present. Votes shall be cast only by who are present at a Business Meeting. No votes shall be cast in absentia. The Board of Trustees shall always have the authority to request the reconsideration of any vote.

Minutes

Minutes are legal documents. When church business advance to legal proceedings, the first documents subpoenaed are minutes to meetings. Those minutes should reflect a properly called meeting, adequate discussion, and legal voting. In addition, all minutes should be approved by the TRUSTEES, or their appointed committee, who have a legal responsibility to ensure fairness, accuracy, and legality. Many Trustee Boards appoint the BYLAWS COMMITTEE to review the minutes, since it may be the only organization in the church that has actually read the bylaws.

Minutes

The Official minutes of all Business Meetings shall be hand recorded at the time of the meeting. All minutes shall be signed by the CLERK. Minutes from the previous Business Meeting shall be reviewed by the BYLAWS COMMITTEE for infractions and corrections, presented and accepted by the hip at each meeting.

Chapter 13

Church Debt

Church Debt

Of the many areas in which church trustees play a critical role, none is more important than the financial health of the congregation. Each trustee is legally bound to oversee church finance and act responsibly where and when it is spent. Indeed this is more easily said than done. The American culture does not think twice about going into debt. Most believers buy everything on credit: their home, car, clothing, and most every other commodity. Many charge their burgers and fries to a credit card. These same believers bring those same attitudes to church. When the church needs a new air-condition unit, charge it. When the church needs new carpeting, charge it. When the church needs an extension for Sunday school, get a longterm loan and pay it off in 5 years. This is the American way. When the church leaders need the congregation to a building project, the pastor may present it this way:

“Beloved, God has blessed this church in so many ways, and He is still in the blessing business. In His Great Commission, He said to go out and preach the gospel that every man, woman, and child might hear the Good News. Well, we have been obedient and are now bursting at the seams. We need more space. How can we be the beacon to the world if we cannot provide enough space to sit comfortably and praise the Lord? We do not like owing anyone, but if we have to go in debt to do the Lord’s work, then we should do it. Can we get an Amen?”

This is a convincing argument. for a building project is economical. As the church grows, so does the tithes and offerings. Thus, it pays for itself. This has to be the Will of God. To vote against expansion is evil, antiquated, and nonprogressive. How can the Kingdom of God grow in a church that has outgrown itself?

The motives to build a new church or add an extension are good. However, are good intentions always justifiable? Is it acceptable to do the wrong thing for the right reason? The Bible has several examples of this:

2 Samuel 6:6-7 And when they came to the threshing floor of Nacon, Uzzah put out his hand to the ark of God and took hold of it, for the oxen stumbled. And the anger of the Lord was kindled against Uzzah; And God smote him there because he put forth his hand to the ark; And he died there beside the ark of God.

Uzzah had good intentions. He thought that he was doing a good thing by attempting to catch the falling ark. However, he was doing the wrong thing. He was not a Levite and consequently was not permitted to touch the ark under any circumstances. He paid with his life for that mistake. There is a lesson to be learned here:

Know God’s Will and follow it!

Uzzah was out of his league and the church leaders at the United Pentacostal Church were out of their. They lost their church because they did not know what they were doing.

Taft Church Foreclosed On

Bakersfield.com 6/12/08—A foreclosure slamming the United Pentecostal Church of Taft has taught church leaders a painful lesson, said longtime pastor Rev. Leo J. Fisher . . . “Every pastor should have someone professional”—a real estate attorney, for example—handle loans and real estate deals, he said Wednesday. “We did not,” said Fisher . . . The church building . . . was foreclosed on May 30, county records recorded last week show . . .

In all probability, the United Pentecostal Church of Taft had good intentions. It even had someone in its congregation who “handled loans and real estate deals.” However, its longtime pastor thought that debt was a better option. He was wrong because the church could not afford a $500,000 loan, and because he did not have faith in the following infallible words of God:

2 Cor 9:8 And God (is) able to make all grace abound toward you; That ye, always having all sufficiency in all (things), May abound to every good work.

God promises to give His children “all sufficiency in all things,” that they may do “every good work.” In other words, God does not leave His children out in the cold to scrape, scuffle, and beg for 30 pieces of silver from non-believers. What kind of testimony is that to the world? Were the trustees of the United Pentacostal Church of Taft ignorant of the Philippian promise:

Phil 4:19-20 By my God shall supply all your need according to His riches in glory by Christ Jesus. Now unto God and our Father (be) glory for ever and ever. Amen.

To seek a loan in order to fulfill God’s Will is a poor example of faithfulness. It denies God of His glory to supply “all your need.” To non-believers, church debt implies a weak Father, unable to provide for His children. It is a pitiful testimony of the omnipotence and omnipresence of this Almighty God. Where is His glory?

Church debt does not glorify God; It shames God!

Church Foreclosed Upon

The Herald Bulletin.com, 4/11/08—Anderson—People are wondering where Bishop Robert Scott is. The Anderson Community Schools board member owes hundreds of thousands of dollars to various individuals and banks, and his church. The Resurrection Temple, will go on the auction block next month after its mortgage was foreclosed . . . Five other civil lawsuits have ordered Scott to pay more than $250,000 . . .

How can Resurrection Temple reach out to the people of the community with a “FORECLOSURE” sign on its front door? Resurrection Temple does not have a message of salvation, a testimony of love, and an image of God. Resurrection Temple is nothing more than a social club. It provides an emotional outlet for people in the same way as a high school cheerleading squad. This “church” lacks of discipline, loyal trustees, and Bible study. When churches are not pursuing bank loans, they are developing unholy alliances with secular organizations that do not accept the gospel and demand control over how their money is spent during church affairs. How can this be acceptable in any case, shape, or form? The Protestant Church is autonomous. It

must fund its own projects and command complete authority over them. When they solicit outside agencies for funding, they compromise their own ability to remain autonomy. The perfect example is the events surrounding Kettering Health Network, which was d with the Seventh-Day Adventist Church of Dayton, Ohio. A woman wanted the Kettering Reproductive Medicine department to help her get pregnant but was not married. It refused her request, however, it was discovered that the clinic received federal funds for various projects and studies.

Woman Says Clinic Turned Her Away

Chronicle Telegram, Elyria, Ohio, Nov.10, 2009 . . . . Kettering Health Network, which is d with the Seventh-Day Adventist Church, has released a statement saying it’s now reviewing its policies . . . O’Reilly said when she called the clinic to make an appointment for in vitro fertilization, she was asked about her husband, and when she said she didn’t have one she was told Kettering couldn’t treat her.

The ability of the church to act autonomously and consistent with its religious principles are seriously compromised when it accepts public funds. When the government provides the capital, then it also provides the doctrine. That doctrine may same sex marriage, abortion, euthanasia, or legalization of marijuana. It does not matter. When the church receives funding from the government, or any secular agency, it is now dependent. It must submit to foreign values and principles for the “love of money.” The theme of the New Testament is love. Jesus said to love thy God with all thy might and to love your neighbor as yourself. In order to love, one must GIVE. Jesus commands His followers to GIVE, not to take, steal, or borrow. The Scripture is clear on this matter:

Romans 13:8 Owe no man any thing, but to love one another:

for he that loveth another hath fulfilled the law.

The ultimate expression of love is giving. John 3:16 says “God so loved the world, that He gave His only begotten son.” The church should give, not take. As a result, it should have no debt. The household of each believer should be debt-free, and the church should be debt-free. Long-term debt is not a sign of loving, sharing, or giving.

The Scripture calls it “wicked.”

Psalms 37:21 ¶The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth. 22 For such as be blessed of him shall inherit the earth; and they that be cursed of him shall be cut off. 23 The steps of a good man are ordered by the LORD: and he delighteth in his way. 24 Though he fall, he shall not be utterly cast down: for the LORD upholdeth him with his hand. 25 I have been young, and now am old; yet have I not seen the righteous forsaken, nor his seed begging bread. 26 He is ever merciful, and lendeth; and his seed is blessed. 27 Depart from evil, and do good; and dwell for evermore. 28 For the LORD loveth judgment, and forsaketh not his saints;

they are preserved for ever: but the seed of the wicked shall be cut off.

This Scripture is absolutely awesome! It teaches that God “delights” in a good man who is obedient. Though he may slip and fall, he will not be abandoned and forgotten. The hand of God lifts him up! It teaches that the righteous shall NEVER be forsaken or have to beg for anything. For the LORD shall fulfill ALL his needs. His love is sufficient. This is the faith of the believer. Christ, the Good Shepherd, the Morning Star, the Lily of the field, did not fund His ministry with a loan from the Sadducees and Pharisees. In fact, He said to “seek nothing from non-believers.” The Kingdom will not be built upon money but upon faith. Preach the Word; fight the good battle. “. . . abideth faith, hope, charity (love), these three; but the greatest of these is charity (love).” Most churches wish to be big and strong, with a mighty voice in the community. They feel that this is only possible with expansion and growth. However, the funds may not be available. Then it may not be God’s time or God’s plan for expansion. But there is still much work to do. The church may need to pursue other projects that are worthy of His Name.

“The wicked borroweth and payeth not again . . .”

This is an intriguing verse and so characteristic of many churches. When the church decides to build, the congregants may be asked to vote for a loan. Many think that this is a reasonable request. But it is not.

It is shameful and irresponsible!

How can one member of the church vote on a loan for someone else to pay? This is exactly what happens when the church enters debt. No one is personally

responsible, but the collective church is responsible. If the voters never return to church again, the debt is still there. If the voters never contribute another dollar to the church, the debt is still there. When the bank loan is for 30 years, then future will have to pay for 30 years. How can a person vote to obligate others? The Scripture calls them “wicked.” Church leaders must understand what Jesus meant in Matthew 5:13-14 when He said:

You are the salt of the earth . . . You are the light of the world.

The world looks to the church for direction. Even non-believers look to the church for its reaction to any world event. They may be filled with sarcasm and contempt, but they are nevertheless curious about the response of the church. Immediately after the 9/11 tragedy, every citizen of the United States looked to see what the church would say and do. Nearly every American, believer or atheist, went to church or, at least, prayed for the firemen, policemen, civil servants, and ordinary people who perished while trying to help. The world looks to the church for guidance and direction. When the church becomes overburdened by debt, the world takes notice of that as well. The American economy is based upon debt. Most of its citizens live from paycheck to paycheck. They are over-extended financially, and are one hospitalization, one car accident, one stroke, one heart attack from declaring bankruptcy. The church must be the “beacon in the dark” and “the light of the world.” It must teach its followers to act more responsibly. Transferring debt to the next generation is obscene and ridiculous. Borrowing and spending beyond one’s own means is irresponsible and unscriptural. Mortgaging the church to non-believers is not only contrary to God’s plan, but it is of little faith. The upright Christian does not need the assistance of a non-believer. The foundation of His Church is built upon the Word, not from the usury of liars, cheaters, gamblers, fornicators, idolaters, and blasphemers. When non-believers control the destiny of His

Church, then the following story becomes commonplace. The Upper Room Pentacostal Church in Hayward, California was foreclosed.

Say a Little Prayer

TheDeal Newsweekly, 8/8/08—“No one wants to foreclose on God,” San Francisco Bay area realtor Charles Williams told a local paper late last year. But it happens . . . (At Christmas time), Williams hung a “for sale” sign outside the Upper Room Pentecostal Church in suburban Hayward, Calif., after the church failed to make several months’ worth of mortgage payments . . . A surprising number of churches face foreclosure.

The ministry of The Upper Room Pentecostal Church is a regrettable failure. This is not because of the lack of money, but due to the lack of faith. Jesus said that FAITH is the only requirement to be saved, not expansionism and megachurches, not fund-raising, not adjustable rate mortgages, not 501(C)3, not federal grants, but FAITH! To beg a non-believer for money, land, favors, or anything else to expand God’s Kingdom is an attack on the sovereignty and divinity of God! The assembly before God is built on the holiness of its saints.

3John 1:7 Because that for his name’s sake they went forth, taking nothing of the Gentiles. 12 We therefore ought to receive such, that we might be fellowhelpers to the truth.

This holiness cannot be faked, compromised, or mortgaged. There is no layaway plan for the integrity of His name. With the advent of the incipient church,

the spread of God’s Word was not the responsibility of the Roman Empire then, and it is not the responsibility of First National Bank today. The Scripture is clear that God is the Good Shepherd and He “giveth life for His sheep.” (John 10:11) This is His plan. He did not mortgage His sheep and obligate His future, unborn flock to debt. In fact, the Old Testament teaches that debt is an enslaver.

Proverb 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.

It is said that the most powerful conqueror on earth is DEBT, not warfare. When a nation overpowers another with bombs, poisonous gas, and famine, it must continue its evil ways because the oppressed people will one day rise up against them. However, when a country borrows and defaults on that loan, there is no fighting. There is no bloodshed. The borrower understands the situation fully. It submits to the lender. As a term of the loan, the lender has the authority to repossess anything, anywhere, and at any time. The lender can repossess the diamond mines, oil reserves, copper deposits, uranium stores, and even the labor of the people. There will be no resistance from the borrower. Why? Because the defaulting borrower is now a SERVANT and he knows it!

Proverbs 22;26-27 Be not thou one of them that strike hands, or of them that are sureties for debts. for thou hast nothing to pay, why should he take away thy bed from under thee?

Debt is contrary to the Scripture because the faithful is taught to serve ONE master. With debt, there are two masters. As with The Upper Room Pentecostal Church of Haywood, California,

its first and foremost obligation was to serve the bank, not Christ.

When the monthly note came due, the church had to “service” that loan. This requires the following:

1. the payment in U.S. dollars, 2. the payment sent BEFORE the due date, 3. the payment include principal AND interest, 4. the payment made regardless of other debts and circumstances, 5. all fees, taxes, and other expenses paid by the borrower, 6. proof of insurance, 7. indemnification of the lender, 8. “hold harmless” rule for the lender, 9. release of any future liability of the lender.

This church was not able to service this loan. As a result, The Upper Room Pentecostal Church became entangled in a “yoke of bondage” (Galatians 5:1). Making matters worse, the church agreed in writing to be the slave that the Scripture prohibited. This is another reason that the Board of Trustees needs with backgrounds in finance, banking, or property management. To service a loan is expensive.

The profit on a 30-year loan With an annual 10% interest is 300%!

This means that when a church borrows $1 million to add an extension, it will pay $3 MILLION over the life of the loan. The first ten years of payments are 98% interest and 2% principal. In other words, 98% goes to service the loan and 2% to repay the money borrowed. This is a perfect example of how Christians “service” the bank, not Christ. The extra $2 million did not fall out of the sky. It came from the pockets of believers, who gave, or intended to give, cheerfully to promote the Gospel. The $2 million that could have fed the hungry, clothed the naked, healed the sick, educated the ignorant, and housed the homeless, instead went to the bank. Because church leaders, namely church trustees, ignore God’s Word, most of these dollars are wasted. Their tithes and free-will offerings end up in institutions of usury and bondage for those who think they have greater wisdom than the Scripture. This is a serious matter because it poses major consequences for the church. Church leaders know that it takes who are willing to give portions of their hard earned money to keep the lights on, the water running, and the church clean. But will it compromise the sanctity of the church in order to pay utilities? When the church is in need of money, will it compromise its rules for hip? Will it suspend church discipline? Will it hide church scandals in order to protect the flow of tithes and free-will offerings?

Church debt can seriously DIVIDE a church because it divides the LOYALTY of the church!

It causes a compromise in the three marks of the church: doctrine, purity and discipline. Before The Upper Room Pentecostal Church defaulted on its loan, it experienced a period of desperation. It attempted dishonorable methods to raise

money, accepted “filthy lucre” from unsavory sources, and was not transparent in its financial dealings and circumstances. In so doing, it compromised the ministry of Jesus Christ. At that point, it ceased being a church, a colony of heaven. It became a social club. As with most social clubs, they eventually perish due to disinterest and mismanagement. Apostle Paul warned to “owe no man anything, but love…” When worldliness creeps into the church, there is the domino effect. First, there is a loss of God’s law, or doctrine. Then there is the loss of unity because there is an offense. Lastly, there is the loss of church discipline. Now the fellowship of believers is compromised. There is that wrinkle, that spot, and that blemish.

Debt is a sign of that blemish!

Chapter 14

Asset Protection

Asset Protection

One of the fundamental duties of church TRUSTEES is to “hold and ister” the assets of the church. Although all church expect decency and honor from its leadership, that has become a challenge in recent years. Trustees often forget that church tithes and offerings are not merely gifts, but they are hard earned money from sincere and trusting with limited resources. Many of these are retired or on fixed incomes. They do not have money to literally give away. Although they do not expect a financial return on their donations, they do expect it to aid the sick, hurt, lost, and abandoned. Jannine McKee, the financial secretary of a Rockford church, did not care about that. She figured out a way to by the trustees from August 2000 to July 2003. She defraud the church of $140,000 with the church’s credit card for her own personal pleasure.

Church Financial Secretary Pleads Guilty to Fraud

U.S. Dept. of Justice 5/26/04 Rockford, Illinois… McKee itted that . . . she used the church’s American Express business credit card to make unauthorized personal purchases of clothing, food, vacation lodging, entertainment, gifts, pet supplies, and gas for her personal vehicles. McKee itted that she concealed these expenditures by making false entries in the church’s computer-based ing records that incorrectly indicated the purchases were made by other church employees or were for legitimate church expenses . . .

These types of shenanigans can destroy a church. But it is the church TRUSTEES that are ultimately responsible.

Here is another example of faulty trustee work. It is a lawsuit involving the Roman Catholic Church. In 2008, it paid out $436 MILLION for sex-abuse cases involving clergy.

Sex-Abuse Cases Cost Catholic Church $436 million in ‘08

The Plain Dealer, Cleveland, Ohio, 3/14/09… The bulk of the money—more than $374 million—was paid out in settlements to victims, according to the report that tracks how well the church is implementing a charter to protect children. The sums paid out in settlement fell 29% compared with the record $526 million paid in 2007, the report showed . . . . About $22 million went to therapy for victims or for accused offenders last year, the report, commissioned by the U.S. Conference of Catholic Bishops, showed.

Church trustees are responsible for lawsuits.

When the church is sued, all of the church are sued collectively. All assets that they have contributed to the church are subject to liquidation. Instead of the tithes and offerings benefiting the poor, sick, and homeless, to whom they were intended, they are diverted to victims of the lawsuit AND ATTORNEY FEES! Thus, churches loose money to lawsuits and by the lack of caring by the trustees. This “lack of caring” allows shoddy bookkeeping, carelessness, or dishonesty. Any of these reasons are TOTALLY UNACCEPTABLE! The trustees are held completely responsible for these misdeeds. Again, this is their “fiduciary” responsibility. And the fallout for this gross negligence is not only financial loss. There is also a loss of respect from the local community. It is a poor testimony of the Body of Christ when it cannot be trusted with a few pieces of silver. The trustees must guard and protect this relationship by preventing such losses. The trustees must show “duty of care” by initiating four (4) means of control:

1. internal controls 2. Treasurer’s Report to Church 3. Audits 4. Bonding of Staff and Volunteers

Internal Controls

Proper bookkeeping and acceptable ing procedures are not only desirable in the church, but is demanded by the IRS. This allows responsible parties to handle receipts (checks and cash) and disbursements (payments) in a clearly defined manner. In this way, it lowers the possibility of misuse of funds and theft. “Internal control” is a plan of control. It will detect error and fraud as well as protect and safeguard church assets. It also checks the accuracy of church financial reports, encourage efficiency and adherence to the rules, regulations, and policies of the church as are defined its bylaws. There are 15 steps to applying proper “internal controls” to the financial records of the church.

Step #1: Use different people for different tasks when it comes to counting offerings, writing checks, recording contributions, and reconciling back statements.

Step #2: At least TWO unrelated people must be in custody of the offerings at ALL times until it has been deposited. The Treasurer should not receive or count any church income. Access to money

is too easy, and the temptation is too great. Most cases of church embezzlement are committed by the most trusted .

Step #3: Properly deposit ALL money, checks and cash on the day received. Compare deposit slips with bank statements EVERY month. All deposits should be done in sealed bank security bags to insure no tampering between the church and bank.

Step #4: All church payments MUST be by check. There should be NO cash payments of any church expense.

Step #5: All checks require TWO signatures. The Financial Secretary CANNOT be a check signer under any circumstances.

Step #6: Assign one person to receive and a different person to reconcile bank statements.

Step #7: Follow the church budget efficiently. A budget report should be part of every church business meeting.

Step #8: Keep securities, notes, and cash in a safe place. The Treasurer may process the records at home, but all permanent records should be kept at church. Private statements of contributions should be freely available to everyone who has given to the church.

Step #9: all pledge in the financial records and make them available to all at business meetings. Pledges are not on the radar until they are acknowledged. As a result, they are easy to embezzle. Churches should have a policy regarding pledges. All pledges should be recorded and the giver should expect a receipt. A listing should be available at each annual meeting.

Step #10: Never “write off” an unpaid pledge. This is the easiest way to embezzle ongoing pledges. Simply write them off, but continue to collect the payments. When pledges are unpaid, an inquiry should be conducted. the pledger for an explanation. for every pledge.

Step #11: Keep an inventory of assets. Things have a way of disappearing when no one is watching. Trustees should create a list of all assets and review it annually. Do not forget the furnishings and appliances at the parish or other rental property.

Step #12: Conduct annual audits. An annual financial review insures that all church funds are being spent according to the budget. This can be performed by the Audit Committee. If the Committee discovers any problem, then an outside auditor should be called. When there is evidence of embezzlement, the police should be called. Stealing from the church is a criminal offense. Step #13: All cash handlers MUST have a fidelity bond.

Step #14: Full disclosure of all church spending and receipts, including love offerings, should be reported annually to the congregation. Transparency is absolutely essential in the reporting of church finances. In fact, the IRS requires proper record-keeping. Love offerings are NOT illegal until they go unreported. A love offering is income and should be treated as such. The church should not tolerate any gimmicks to by proper ing procedures.

Step #15: Follow patterns of giving over time. Record dollars, coins, as well as checks. Regularly record the givings as a bar graph. Any significant variations will be easily apparent when done so monthly or quarterly.

Treasurer’s Report to Church

The TREASURER has the responsibility to provide three (3) critical reports to the Baptist Church:

1. monthly financial statements to the Trustees 2. annual financial report to the Church congregation 3. assets and liabilities of the Church (cash, investments, debts)

The monthly and annual reports should show the actual income and expenses along side the budgeted amounts. These reports also allow church leaders and its to adequately understand the financial position of the church before making decisions on spending.

Audits

The financial reports of His Church should be audited by a Certified Public ant (A) once every three (3) years. This is the average term of church officers. Many church leaders are reluctant to audit its books so regularly due to the expense. However, theft and embezzlement are generally much higher than A charges. In addition, the trustees have a “fiduciary” responsibility to check its books. It shows CARE and LOYALTY, the two basic responsibilities of the trustees to its beneficiaries. Just as trustees MUST provide insurance for its property, it must also provide proper inspection of its books on a regular basis. His Church should provide internal audits of church records annually. Many churches have an AUDIT COMMITTEE as a standing committee in its bylaws. Such a provision in the bylaws is HIGHLY recommended. of this Audit Committee should not have any role in the financial operations of the church.

Bonding of Staff and Volunteers

A FIDELITY BOND is an insurance policy to protect the church against the loss of money due to theft or embezzlement. Many churches provide fidelity bonds for all church who have the responsibility of handling church money. However, not all churches purchase fidelity bonds, and it is not always due to the lack of CARE and LOYALTY. Most fidelity bonds are only good if the church will prosecute the offender. This poses a problem for His Church. Should it prosecute its own church leaders or church ? If the church provides a DISCIPLINE COMMITTEE or MEDIATION with BINDING ARBITRATION as part of its bylaws, then there may be no need to prosecute. If a church is unwilling to prosecute, then

purchasing fidelity bonds are a waste of money. The trustees must make that decision since they might otherwise serve as the litigants in these criminal and civil suits.

Board of Trustees Annual Report

After the Board of Trustees has shown “duty of care,” it must submit a written report to the church hip at its annual Congregational meeting. This report is a statement to its that the Board is capable of fulfilling its legal and moral responsibility to properly ister the business of the church. Although this report is extensive, it really should not change that much from year to year. All changes should be properly recorded. This report contains the following:

1. The legal description and reasonable value of all real estate owned by the church 2. The specific name of the grantee of any deed to the church 3. inventory and reasonable value of all personal property owned by the church, including the parish, 4. The amount of income received by any income-producing property and any expenditure related to that property. 5. itemized statements for any building, rebuilding, remodeling, or improving real estate 6. A list of all outstanding debts 7. A list of all contracts 8. A list of all insurances and co-insurances carried on all real estate

9. The name of the custodian of all legal papers of the church and where they are kept. 10. A list of all trusts in which the church is the beneficiary, where and how the funds are invested, and a statement clarifying the manner in which these investments are performing and contributing to the mission of the church.

Proper recordkeeping is an essential task of the Board of Trustees. These records should be well-organized, complete, and current. In the event of legal action involving His Church, records must be immediately available to prevent delay in transactions. They should also be protected in a fireproof container such as a safety deposit box.

Chapter 15

Church Liability

Loss Prevention

Loss prevention is a key responsibility of trustees. To be effective, trustees must take 3 important steps:

1. develop loss prevention policies 2. identify probable risks 3. reduce or eliminate risks

When His Church begins a new activity, when a new employee is hired, or when stairwell railings become loose, the trustees must act to prevent injury or damage. Each new trustee must be trained to the various means of protecting people and property. Developing loss prevention policies involve:

1. fire prevention 2. safety and security 3. proper food care and storage 4. employment practices 5. screening of staff and volunteers 6. supervision of children 7. sexual misconduct

8. child abuse prevention 9. pastoral counseling guidelines and boundaries 10. church transportation vehicles

Trustees should develop a checklist to identify probable risks and areas of the church that need updating. It is impossible to eliminate ALL risks in the church. However, the frequency of injury and the severity of the damage can be curtained. For example, the trustees cannot prevent slip and falls by church . However, they can require that no boxes, chairs, or extension cords are allowed in the hallways. Trustees cannot prevent thief of church computers and office equipment, but they can better regulate how many keys are floating around among the employees and staff .

Girl Assaulted by Intruder at Church

A 17 year old girl told police she was assaulted by a man who broke into . . . the church while she was getting ready to leave . . . The girl told police that she was working alone in the church’s front office and started to leave before realizing she had forgotten her keys. The girl got to the door and turned around to go back to the office, but saw a man standing in the hallway . . . Initially the girl thought it was someone who had been working with a construction crew at the church . . . but he suddenly charged at her, grabbing her by the throat and slamming her into the wall, choking her.

Trustees cannot prevent breaking and entering, but they can try! They do have a responsibility to protect its employees either with a security system or with guards. No employer can escape providing proper and adequate protection for its employees, guests, customers, and clients. It is the price of doing business.

The trustees truly benefit from annual “walk-arounds,” both inside and on the grounds to identify potential areas of damage or loss. This could also serve to introduce the newer trustees to one of their most basic responsibilities:

LOSS PREVENTION!!!

When the diligent trustee has done all he can, there still can be injury or loss. Now the trustees must learn how to “share” the risk. This is best done with the purchase of insurance. Obtaining an insurance policy allows the church to absorb the losses in of s and deductibles. However, paying s is a very safe way to avoid catastrophic losses such as fire damage, flooding, or liability.

Insurance

Part of the fiduciary duty of the trustee to “hold and manage” church property is protecting against financial loss by means of insurance, or risk financing. This is a vital function because financial loss can impair the mission of the Baptist Church. Insurance can cover most areas of potential liability and can be done so in an inexpensive manner. The Annual Budget of the church should reflect insurance provisions as a regular line item. Adequate insurance coverage includes:

1. property insurance 2. liability insurance 3. crime insurance

“All risk” property insurance limit provides the church with security. It guarantees the necessary funds to the church in the event of a fire, flood, tornado, and other natural disasters. Property insurance may include the following:

1. Building and Church Personal Property 2. Boilers & Electrical Breakdown 3. Earthquake 4. Flood 5. Subsidence (cave-ins, sink holes) 6. Rain (Special Event) Insurance 7. Builders Risk 8. Construction Contract Bonds

When the Baptist Church elects to purchase Crime insurance, it is necessary for the church to treat volunteers as if they were employees. Crime insurance may include the following:

1. Fidelity Blanket Bond 2. Money & Securities losses, inside the premises 3. Money & Securities losses, outside the premises 4. Depository Forgery

5. Computer Fraud

Liability insurance is equally important to the continuity of the church in case of a liability judgment. Settlements are getting higher and more frequent, and church are less reluctant to sue their own church. But liability insurance serves another purpose. It pays for the increasingly expensive legal costs incurred by the church for acts of employees, board , and volunteers. In addition, it some liability provide medical payment limits when medical costs are incurred. Liability insurance includes the following:

1. Commercial General Liability Insurance 2. Pastoral Professional Liability 3. Employee Benefit Plans Liability 4. Directors and Officers Liability 5. Employment Practices Liability 6. Fiduciary Liability 7. Automobile and Bus Insurance 8. Worker’s Compensation and Employer’s Liability Insurance 9. Foreign Mission & Outreach Liability Insurance 10. Umbrella Excess Liability Insurance

Church insurers generally provide coverage on a “package” basis. Such an arrangement includes property, boiler, and crime coverages as well as General Liability, Pastoral Professional and Employee Benefit Plans Liability. An “umbrella” package may include auto and bus coverage.

Trustees must annually review its insurance needs, placing high priority on :

1. risks facing the church 2. replacement costs 3. need for specialized insurance coverage 4. needs for expanding ministries of the church

Providing adequate insurance in the Baptist Church should be policy driven. Therefore the Board of Trustees truly needs a Policies & Procedures Manual. It should include the following mandates:

1. An annual review of the church’s insurance program 2. An annual safety inspection of the buildings with fire officials to identify hazards that may cause personal injury, fire, or other loss of property. 3. A detailed inventory of all furniture and equipment, kept current with additions and disposals of items. A photographic inventory of all furniture, equipment, and rooms of the church is an excellent inventory record. Video tapes have been used effectively by some churches. All inventory reports should be kept off the church property in a bank safe-deposit box or similar secure location. 4. A periodic appraisal to update the valuation of all property, as least every three years. 5. At least two quotations, when purchasing insurance coverage. 6. A determination of actual annual costs for budget development.

These reviews and periodic appraisals are important due to changing laws and rising replacement costs. New safety ordinances and the addition of sprinkler systems profoundly affect insurance s. Moreover, inflation and the change in legal attitudes affect the size of liability claims. In addition, the expanding ministries of a church require continuous review for the adequacy of insurance. New ministers need added coverage. Day camps, childcare facilities, and after-school tutorial programs add to insurance s. Lastly, the legal climate for churches has changed dramatically in the last ten years. New kinds of charges require new kinds of coverages.

Medical Liability

Accidents happen! And when they occur within the church or on a churchsponsored trip, the church shares some degree of responsibility.

What can be done?

Use Medical Consent Forms

When events are planned away from the Church, its leaders should show that they care. ANTICIPATE DISASTER! Have every child to fill out a current and signed medical consent form before leaving the church. This form should include emergency information such as:

1. name and address 2. emergency telephone number

3. list of allergies 4. current medical problems 5. signed and dated by the parent/guardian

Prosecutor: Sir, what are your responsibilities as church trustee? Church Trustee: I hold and protect the interests of the church.

Prosecutor: Are the children of your church considered a “vital interest?” Church Trustee: Yes, indeed, they are!

Prosecutor: Would you say that assuming the care of a child who is away on a church-sponsored event is also part of your responsibility? Church Trustee: Well . . . yes . . . maybe . . . I don’t know . . . I never was asked that before.

Prosecutor: Who do you think should be responsible for the welfare of children when they are away on a church-sponsored event? Church Trustee: Their parents. We always invite them to chaperone the kids. But probably the Pastor is ultimately responsible. That is the way I think it should be.

Prosecutor: Sir, would it surprise you to know that by state law the trustees are held responsible for the welfare of each individual member of the church? Church Trustee: Well . . . duh . . . mmm . . . gosh . . . I didn’t know that! The

Pastor never told me that. He said that he was the overseer of the church.

A church trustee is the designated person to be called to answer a subpoena in a civil matter involving the Church. The prosecutor wants to prove negligence on the part of the church. He/she also wants YOU, the trustee, to it it. Without clear-cut policies that include a MEDICAL CONSENT FORM, the church trustee may find it difficult to appear responsible and caring.

Use Consent & Release from Liability Forms

This form does not release the Church from complete responsibility, but it shows that the Church is trying to do the best job that it can. It contains the following:

1. mode of transportation 2. inherent dangers of the activity 3. transfer of risk of participating to the participant

The trustees do not want the parents/guardians to say that if they had only known that their child was horseback riding, they would have never permitted the child to attend. Or if they had known that the child would be roller-skating, they would have never allowed the child to participate. Consent & Release Forms are important to eliminate confusion. If the child, or adult, participates in a church-sponsored softball game, and the child sprains an ankle while running the bases, who pays for injury? This issue should be resolved BEFORE the child participates. This is good RISK MANAGEMENT!

Develop a Medical Liability Policy

When cases of negligence go before the courts, it is important that the Church demonstrates an awareness of potential disasters. This shows that the Church is a responsible and conscientious party and does not take safety lightly. However, the Church must demonstrate this by developing a written policy and ENFORCING it. It should include few precautions:

1. one person certified in first aid and R. If a person is NOT certified and causes additional injury or complications, the Church may be held liable. 2. basic first aid kit. Provisions to treat 10 people shows responsibility. Bandaids and alcohol pads are not enough. 3. church vehicle driver qualified. License should be current, evidence of driving record checked, and driver should be thoroughly familiar with the operations of the vehicle. When the Church shows “Negligent Selection,” or, “I don’t care who drives, just get somebody,” then the Church may be responsible for all damages of the injured. That might include all medical bills, pain and suffering, loss of wages, and property damage. Ouch! 4. proper instruction to the church chaperone. In the event of an accident, the church worker has a natural inclination to it guilt in order to comfort the accident victim. This is not a good idea. The worker should treat the victim and refrain from incriminating statements. Although most church goers do not want to sue the Church, insurance companies can be very aggressive at shifting the blame. 5. $1 Million Liability Insurance.

Sex Abuse

Austin Street Church of Christ Custodian Indicted for Molesting 3-year old Boy

The Dallas Morning News, January 4, 1997: A 36-year-old custodian of a church in Garland, Texas, was arrested in December for molesting a three-yearold boy. The custodian had a prior conviction for public lewdness in 1993 . . . Church leaders acknowledge that had they done a criminal background check and found the prior conviction, they would not have hired the custodian.

A lawsuit due to Child Abuse is one of the most common grounds for litigation against the church. This is for several reasons. First, most people expect the church to be the safest place one could visit. Secondly, child sex abuse is particularly objectionable when occurring at the church. Interestingly though, the lawsuits generally claim:

1. Negligence in Hiring 2. Negligence in Supervision 3. Retention of a ed or accused child molester

Baptist Churches are at particular risk with its felon population. Child molesters feel as though they have “paid their debt” and should be forgiven and given another chance. Many churches refuse to acknowledge this situation and do nothing. They are eager to accept volunteers to work with the youth, and that is their first mistake. Most churches lack adequate screening procedures with volunteers, and as a result, churches and Boy Scout troops have become easy targets for child molesters. Insurance companies are reporting claims for Child Abuse at a rate of one or two per month. They received NO CLAIMS ten years ago.

It only takes ONE accusation of child molestation to destroy the reputation of a church. There is tremendous emotion trauma to the victim and the family of the victim. Lastly, churches rarely win such cases. It can be a tremendous drain of resources for a church to settle out of court. It can cost even more for a jury to find the church GUILTY of negligence. A church cannot eliminate the possibility of Child Abuse. However, it can reduce the risk. Indeed jurors are very interested in what the Church is doing to show concern. Here is a four-step plan that addresses that concern:

1. screen volunteers and staff 2. supervise volunteers and staff 3. report all incidents 4. deal with allegations

Screen

Simply put: if a church fails to screen its volunteers and staff, then it is negligent. Church leaders do not want to be cross-examined by a prosecutor who knows that the church lacks a screening process. It might be quite embarrassing.

Supervision

A minimum of two adults should always accompany children during church events. This reduces the risk and charges of molestation. In cases where a single adult supervision is unavoidable, then there should be a signed permission slip from the parent or guardian.

Reporting

Open Door School Faces Sex Lawsuit

Elyria Chronicle Telegram, 3/28/07 A former Open Door Christian School junior high student is suing the school, the (church), and her former math teacher because the teacher sexually abused her . . . The girl . . . claims that even though the abuse was reported to church officials as far back as 2001, nothing was done until the teacher was fired in May 2002. Travis Mulanax . . . was convicted in March 2003 of sexual imposition and contributing to the delinquency of a minor . . . The lawsuit accuses the church and school of failing to protect the girl and of trying to cover up the abuse, and asks for more than $50,000 in damages . . .

It is against the law to fail to report an incidence of Child Abuse. State laws are adamant about WHAT constitutes Child Abuse, WHO must report it, and HOW SOON it must be reported. Church leaders can suffer tremendous personal loss by committing this extreme act of negligence. Failure to report Child Abuse will anger most jurors, so expect the penalty to be harsh.

Responding to Allegations

The wrong response to an allegation of Child Abuse may complicate matters AND increase the liability of the church. It is advisable to take EVERY allegation seriously. Treat each case as confidential and with respect. Cooperate fully with the police and other civil agencies. Lastly, show concern and care to the victim as well as to the alleged offender.

Transportation Safety

Vans provide much needed transportation of many of the Baptist Church. And because of their extended use, the safety and regulatory policies MUST be established. When the van is involved in an accident, the victims do not care that the van belongs to a church. In addition, the church has a responsibility to the injured persons inside the van as well. There have been numerous accidents with church vehicles being struck by trains, colliding with telephone poles, and running off sides of steep hills and mountains. In each case, the church is responsible for injuries to its occupants. Therefore the trustees MUST establish written policies for church vehicles that address the following issues:

1. who can drive the vehicle and is the drivers license valid for the class of vehicle driven 2. safety equipment 3. seatbelts 4. maximum number of engers 5. liability insurance for volunteer driver 6. special state and federal regulations for vans 7. release forms and medical authorization forms 8. transportation policy for church

Most churches are very appreciative of the volunteers who offer their time to transport children, youth groups, and the senior citizens to various events and

activities. However, church leaders must also appreciate the severe consequences of an accident due to an unsafe vehicle, overcrowdedness, or an unqualified driver. The financial loss and damage to the church reputation can potentially haunt the church for many years.

Van Safety Concerns

The most important factor involving church transportation is safety. Most churches purchase vans because of their affordability, however, this may not be a wise decision. From the standpoint of safety, a bus is a much safer vehicle. In fact, vans are less safe than enger cars. Numerous government studies have shown that vans are more likely to tip over, be involved in an accident, and hurt more of their occupants. Churches should consider alternative means of transportation for its youth . Some transportation companies to school districts will discount services to churches on weekends and holidays. Others are available for rental on certain days for certain hours. Such possibilities allow the church to spend its money more wisely. Such churches are able to avoid large, initial investments, maintenance costs, and screening potential drivers.

Federal Bus Regulations

A bus is a superior vehicle for safety, however there are other concerns. If a bus or large van crosses state lines, the Department of Transportation (DOT) may have special rules for this

“non-business private motor carrier of engers.”

Those rules include:

1. the driver must have a commercial driver’s license (CDL), 2. the vehicle must be properly marked and ed, 3. special requirements for the driver (age, language, valid license, medical certificate, no recent motor violations), 4. vehicle must comply with certain safety requirements, 5. vehicle must be properly equipped 6. 10 hour maximum driving followed by 8 consecutive hours off duty, 7. vehicle must be properly inspected and serviced with proper maintenance record book.

The federal government is quite serious about vehicular safety. If a church vehicle is involved in an accident and its engers are seriously injury, the church would be held liable. The auto insurance policy may cover some of the damages, but the church might be held responsible for the rest, which might be substantial. Churches are exempt from these regulations if the vehicle does not cross state lines or not used to transport more than 15 engers.

Chapter 16

Personal Liability of Trustees

Personal Liability of Trustees

At one time church volunteered their services to various boards and councils with little regards to liability issues, particularly personal liability. Being named as a trustee to the church was more of an honor and privilege.

Those days are long gone!

Church board are finding themselves being sued collectively AND personally. What has changed? What are some of the theories to TRUSTEE LIABILITY?

Tort Liability

The term “tort” means injury. When an employee OR volunteer of the church intentionally, or accidentally, physically hurts someone else, the church is held responsible for damages. If the injury appears to be related to the church’s negligence or carelessness, then leaders of the church may be held responsible. Personal injury suits do not have to involve bodily harm, but there must be some sort of loss, even to reputation or to income. Church leaders are named personally liable to claims of defamation, fraud, copyright violations, breach of confidentiality, and even wrongful termination of employment. Church trustees are responsible that the church acts and moves properly, careful of the rights and property of others. Church leaders and trustees MUST be involved in church business. They must ask questions, expect reasonable answers, and demand that right prevails of pettiness, anger, revenge, and church politics ALL THE TIME. When the church moves on an issue, it is assumed that

ALL the trustees agreed upon the matter. An absent trustee cannot plead ignorance. Every trustee is personally and dutifully responsible for any act of the church. The courts look to the trustees for proper leadership and responsibility, NOT to the deacons or the pastor.

Contract Liability

Church trustees are NOT bosses. They are stewards. What is the difference? A steward is like a manager to an apartment building. The manager does not own the building, but is left in charge of all the business aspects of the building. If there is a crack in the plumbing, it is the manager that arranges its repair, not the tenants. When someone applies to rent an apartment, it is the manager that must “qualify” the new prospect. Can the new occupant afford the rent? Does the new occupant have good credit? When will the apartment be available? Are there children and pets? It is the work of a good apartment manager to ask these important questions to avoid any misunderstanding or conflict in the future. A good manager, or steward, oversees the operation of a facility or organization. The same is true of the good trustee. Church trustees run into trouble by one of two means. They may sign a contract without authority from the congregation. This is foolish, illegal, and abuse of the position. It is the congregation that must pay for the contract, therefore it is their right to know and agree to its . Trustees are sued when they sign contracts without authorization. Church trustees also sign contracts in their name. Again, this is foolish, illegal, and abuse of the position. Trustees can only act in “representational capacity.” All contracts agreed to by the church must be signed in the name of the church with the trustee as agent, director, or officer. The reason for this is obvious. Without this rule, a trustee could sign a contract for anything of personal use and tell the bank or lending institution to send the payment book over to the church. Let them pay it. This is corruption on the highest level and cannot be tolerated. Trustees are sued when they sign contracts in their own name.

Breach of Fiduciary Duty of Care

Once a person becomes a trustee of a church or any other organization, he/she becomes a different animal. Now he becomes the so-called “prudent person” and must conform to the PRUDENT PERSON RULE. This means that the trustee must now act on behalf of the church

“in good faith, in a manner they reasonably believe to be in the best interest of the church, and with such care as an ordinarily prudent person in a like position would use under similar circumstances.”

Church trustees breach their fiduciary duty when they are guilty of 6 common errors:

1. chronic absenteeism 2. neglect of financial statements 3. fail to ask questions about irregularities and improprieties 4. fail to read and understand the church bylaws and corporate charter 5. fail to insist that any disagreement with board actions are recorded in the minutes 6. fail to resign from the board when they are unable to fulfill these duties

The bottom line is that the trustee must be diligent. The congregation needs honorable and dependable people to guard the “chick coup.” Of course it would

be wonderful if the pastor, deacons, ushers, and choir director assumed this responsibility. Not all do, so the courts look upon the church trustees to do so and have that expectation legally binding. When he/she is unable to fulfill that responsibility, he should do himself and the church a huge favor and QUIT!

Breach of Fiduciary Duty of Loyalty

Church trustees must be loyal to the Congregation. They cannot participate in schemes and transactions that take advantage of the church. Duty of loyalty requires that any personal business of a trustee is fully disclosed, approved by the Board without conflict of interest, and that the business is fair and reasonable to the church. For example, suppose the church needs a good painting. One of the trustees has a painting business. It is legal for that trustee to paint the church and be paid for it. However, certain criteria must be met. His relationship with the church must be fully disclosed. Next the Board must approve of it without his vote. Lastly, his fee must be reasonable. In other words, the trustees must show loyalty to the Congregation, not to its fellow Board member. Trustees are subject to severe penalty when they disregard the best interest of the church .

Violation of Trust

A church member can sue its trustees individually for violating the of a trust. For example, suppose the church establishes a fund to purchase property. Money is contributed to that fund each Sunday by faithful and cheerful givers. After several years the trustees decide to abandon the idea of the property purchase. Instead, they transfer the money to be used for another purpose. This is an unethical and illegal act that is punishable under the law.

When church establish a fund for a designated purpose, then that money is held in a trust. The donors have the option to revoke the trust if there is a change in plans. They are also entitled to a full refund. Church leaders MUST understand that option or they will violate their legal duty to use “trust funds.” Many churches violate this law. They transfer “trust funds” to other line items in order to balance the budget or for emergency purposes. Any change in the budget is approved by the trustees. Therefore, the trustees are ultimately responsible that all business of the church is done in a decent manner.

Wrongful Discharge of an Employee

There was a time when an employer could fire an employee “at will.” There did not have to be a justifiable reason for termination.

Those days are over!

Employers are expected to be more comionate and responsible. Firing an employee is serious business because most workers are only 2 or 3 paychecks away from bankruptcy. The inability to make mortgage payments, feed the family, and afford gas for the car can lead to drama in the household AND workplace. In addition, wrongful firings occur. For example, the employee is ordered to perform a task which is patently illegal, such as dumping toxic wastes in the nearby river. The employee reports it to the EPA, Environmental Protection Agency. The employer fires the employee. That firing is violates the Horn blowers Act which bans firing when an employee reports a wrongful act for its managers. Suppose the employer fires the worker merely as a power-play or to intentionally induce emotional distress. This is morally wrong and illegal. Or suppose the employer fires a worker because the employer is no longer willing to abide by the of an employment contract. The employer is asking for trouble and

will not have a leg to stand on in court. Churches are employers and therefore subject to the state Employment Law. Church trustees MUST establish legal and ethical employment policies AND oversee that they are being followed. The church, and particularly the pastor, cannot hire or fire anyone without the final approval of the trustees. Why? Just as with the apartment building manager, it is the trustees that have the authority to approve of the final decisions of employment.

Willful Failure to Withhold Taxes

Any employer that pays salaries and submits W-2 forms to employees has a responsibility to withhold payroll taxes. This also applies to churches. Surely most church trustees understand their obligation for the day-to-day financial affairs of the church. However, many do not realize that it includes monitoring withhold taxes of all church employees. If a state or federal audit reveals that withhold taxes were willfully unpaid, then each trustee could be ordered to PERSONALLY satisfy the church’s payroll tax obligations. The trustees at Mount Sinai Baptist Church in Cleveland, Ohio wished they would have been more attentive to the finances of their church. Senior pastor, The Rev. Charles J. Matthews was charged with not paying more than $90,000 in employee income taxes.

Rev. C.J. Matthews Faces Federal Charges

CallandPost.com, Cleveland, Ohio, 12/15/11… The Rev. Charles J. Matthews, of Solon . . . was in charge of two financial s at the church—one for the church and one for his own use, dubbed the pastor’s . . . . while Mt. Sinai deducted and collected the required income tax and FICA withholdings from the total taxable wages of its employees, Matthews “willfully failed to report and pay over to the IRS those withheld taxes.”

This type of criminal activity is most disturbing for several reasons. First, C. J. Matthews is in charge of TWO s of the church. But he is an employee. Why do the trustees of Mt. Sinai allow a non-trustee manage financial s?

This is a recipe for disaster!

Second, the pastor has access to the payroll s of the church. Allegedly he stole the withholding taxes of the church employees so that he could spend it. Now each employee must pay his/her federal, state, and local taxes AGAIN! C.J. Matthews acted illegally and immorally. Lastly, the pastor apparently was not making enough money to pay his bills. Why did he not ask for a raise? Did Mt. Sinai have a Pastoral Relations Committee to address the needs and concerns of the pastor and other employees? It appears that the trustees of Mt. Sinai Baptist Church are inept and even fearful of the pastor. Due to his love of money, the pastor will have his day in court. Due to trustee negligence, several of them may have a future court date as well. Although trustees are volunteers for the church, they do not benefit from any immunity status when they display “willful and wanton” conduct or “gross negligence.” Civil courts lack comion and understanding for uncaring trustees and are quite punitive in their sentencing.

Loans to Directors

Because church trustees control the cash flow, it is particularly important that they are of the highest of character. This insures that they do not embezzle or “loan” each other the free offerings of the church. In fact, in most states it is illegal for churches and other non-profit organizations to provide loans to its directors and officers. When trustees break this law, they can be held personally responsible for the loan. This may also apply to loans to ministers as well.

Chapter 17

Article X: Financial Matters

Article 10: Financial Matters

Financial policies & goals s Offerings Church budget

The most common reason for financial failure of most churches, and small businesses, is the lack of a business plan. As a result, many churches are very wasteful. They make purchases of property, equipment, and vehicles that are not consistent with any long-term plan. Money donated for the needy is often an after-thought rather than part of an overall plan for giving. Although most churches have financial projections or budgets, they generally are not philosophically based. They are not created to get the church from point A to point B in a defined length of time. As a result, there is wasteful spending, poor investments, and room of theft and embezzlement. Various colleges now offer courses in the management of church finances to stem the tide of corruption, as illustrated in this article.

College Courses Seek to Protect Churches from Embezzlers

(AP) Feb. 12, 2008 The globe-trotting priest from Connecticut drove a Jaguar, shopped at Bergdorf Goodman and bought jewelry from Cartier, all of it with money stolen from his church’s coffers. By the time the parish finance council caught on, he had embezzled $1.3 million . . . . Many U.S. churches have been victims of embezzlement over the years, reflecting not just moral weakness on the part of the wrongdoers, but lax financial controls.

His Church has been known to be somewhat aggressive in regards to tithing and free will offerings. However, it frequently overlooks its responsibility to the “cheerful giver” by spending wisely. Church leaders are very negligent in this area, but many church pay close attention. When trustees step forward with an aggressive plan and a defined policy regarding spending, church are more apt to give and financially the church. churches to act as a group to help those in need. When His Church pays its debts on time, brings its spending habits under control, develop fund-raising strategies rather than weekly fleecing the congregation, it encourages “cheerful givers.” A financial plan and goals should dictate all church spending practices, and the Board of Trustees should be held able to the hip for compliance.

FINANCIAL POLICIES & GOALS

Indeed all organizations need financial goals if they require money to operate. Insolvency is a death pill, and financial failure is a direct reflection of the ministry of the church. Most churches have no financial policy or guidelines for spending. As a result, when such churches lack properly financial policies, they always lead to financial mismanagement. Obviously Southern Baptist Church in Baltimore has no financial policy. It has led to a total breakdown in the fellowship of the brethren. It is the same old story: the pastor has access to the money and the trustees know nothing about it.

of East Baltimore Church Claim Pastor Used $1 Million

Baltimore Daily Record, May 18, 2006… last week’s request for an injunction filed in Baltimore’s City Circuit Court would prevent Pastor Donte L. Hickman Sr., of the 2000-member Southern Baptist Church . . . from entering church

property, and stop the clergyman, the trustees and the deacons of the church from controlling the church property . . . It also accuses Hickman of appointing friendly trustees in a manner not authorized by church bylaws . . .

There are problems in Baltimore, but its ultimate problem is insufficient bylaws. This church lacks any reasonable procedures in electing, and then training trustees. In addition, the congregation has no say. They have given all of its responsibility to the pastor. As a result, the pastor has ALL financial power in this church. This is a disaster waiting to happen because the pastor has his personal interests in mind AND because the church leaders do not love His Church enough to “show care,” the fundamental responsibility of each trustee. Since most disputes of His Church involve money, it is incumbent on the leadership of the church to develop strict guidelines for budgeting, s & receivables, internal controls, and fund raising. These tasks should not depend on common sense or political correctness. They should be formulated by knowledgeable of the church, and hopefully by professionals who do this for a living. Anyone unwilling or unable to conform to ethical and acceptable principles of ed should be asked to resign. Some churches are serious about their financial contributions. They establish clear-cut guidelines and leave no question in regards to their financial position and plan. They monitor ALL contributions and gifts to His Church and are conscientious with its spending. The following article is an example of church leaders who do not have proper checks and balances in place. As a result, hard earned money is easy to steal. In this case, a high ranking officer of the Cleveland Catholic Diocese made a $60,000 loan to his secretary. The loan was “off the books.”

Church Official its to Off-the-Books Loan

Cleveland Plain Dealer 8/29/07… Under cross-examination, Wright testified that the loan to his secretary had an 8 percent interest rate . . . When Wright and his secretary moved from the finance and legal office to the Church agency that runs

17 cemeteries, the loan was transferred . . . to the books of the Catholic Cemeteries Association, Wright testified. Asked . . . whether the loan was recorded in diocesan financial records . . . Wright responded, “I don’s know that.”

His Church is not a loan institution. If it decides to function in that capacity, then ALL its should be able to obtain loans, not just a privileged few. In other words, His Church should benefit the followers as much as it does its leaders.

Financial Policies & Goals

This Church shall handle itself in the financial area as a reflection of its integrity in every area. Therefore the Church shall establish the financial policies and goals to guide it in proper stewardship of God’s monetary riches.

Financial Standard of Conduct

1. The Church and Ministry Belongs to God It is neither a monument to anyone’s ego nor a legacy to anyone’s memory. The ministry does not bear anyone’s name. The building is not dedicated to anyone, but Jesus Christ. The pastor, trustees, deacons and deaconesses, and other are merely stewards and fellow-servants in the work of the Kingdom.

2. The Lord Must Approve of This Ministry

Nevertheless, He gives and sometimes takes away. The church of God shall always exist and so shall His people. This ministry may perish. If He ever closes the doors to this work, we will accept His will and yield the outcome to Him. Until then, we will devote every ounce of energy to His work here.

3. Finances As Gifts from God Jesus Christ is our possessor and our dispossessor. He ordained and blessed this Church. It belongs entirely to Him. Therefore, we shall cradle it lovingly in our hands, attempting not to crush it through self-centeredness, ignorance, or church politics.

Honorable Fund Raising

Financial helps discern God’s will for this ministry. Therefore, during lean times this Church shall make its obligations known, but it shall not beg for contributions. The Church shall never resort to disrespectful and dishonorable schemes to increase tithes and offerings, even when the need is serious. Nor shall the Church attempt to motivate giving from a false sense of guilt or compulsion. This technique robs God’s people of the opportunity to give cheerfully.

Conservative Spending

Each contribution is a sacrificial gift from Christians who love God. Our obligation, therefore, is to spend that money conservatively and wisely. Every penny will be stretched as far as possible to serve the needs of the ministry and the extension of Christ’s Kingdom.

Church Goal for Spending

God wishes to use our Church as a financial channel to help the needy and other evangelical ministries. Therefore, we will not spend money on nonessential church personnel, programs, equipment, and facilities. Instead we will strive toward the goal of giving 50% of our income to ministries and individuals outside of the Church’s overhead (i.e. Sunday school program, salaries, utilities, building projects, etc.)

Debt-Free Goal

This Church shall strive to be debt free. In order that this Church might be free to act, minister, and give as it is led by the Lord, it shall be the goal to remain financially free from debt, as much as possible. If debt is incurred, this Church shall work to repay the obligation as soon as possible.

Paying Debts

The Church shall pay its bills within 30 days. When the Church makes a purchase, it shall pay it promptly. Overdue bills are a sorry testimony to the world. The Church does not intend to use the vendor’s money.

Fund Raising Committee (Romans 14:7, 1Cor3:21)

The Church shall establish and regulate a FUND RAISING COMMITTEE. The ISTRATIVE MINISTER shall not be a fund raiser.

Acceptable ing Procedures

Elect and confirm leadership free from the love of money. We shall conform to acceptable ing procedures to assure ethical monetary practices.

s

All church spending must be within the guidelines of the Annual Budget. There are NO EXCEPTIONS to this rule. The TRUSTEES formulate the budget, with the assistance of the Church staff, its various Boards, committees, and missionary groups. It MUST be approved by the hip, with ample opportunity to discuss any portion of the budget, regardless of how small it may be. Then the budget must be maintained by the church TREASURER. The Pastor, deacons, trustees, or church staff have NO rights to authorize ANY funds outside of the approved budget. Many churches establish a “miscellaneous fund” for events and emergency activities that are not planned and therefore not included in the budget.

s

The financial s shall be established through the Budget annually by the Board of Trustees, approved by the hip, maintained by the Treasurer. s shall be established for non-budgeted funds collected for church approved activities and events.

Offerings

All offerings to a non-profit church corporation are tax deductible. His Church is responsible for recording all offerings and giving the contributor an annual statement summarizing all contributions. Any offerings given to the Minister, meaning checks written in the name of the Minister, are NOT tax-deductible for the contributor. For example, on Pastor’s Anniversary Day, one of the deacons asks to write check contributions in his name, instead of in the name of the church. This practice is actually unfair to the contributor because the contributor is donating to an individual, not a non-profit church corporation. Therefore it is not tax-deductible to the contributor. If the contributor donates to His Church, and it is ear-marked for the Pastor, then it is considered taxable income to the Pastor, and a payroll tax is required. Some pastors try to be cleaver and establish their own non-profit organization in order to avoid taxation on either side. They request that His Church hires and pays his non-profit ministry for services rather than himself. This is a highly suspicious maneuver and should be categorically rejected by the Board of Trustees. Again, there should be a written procedure regarding contributions and offerings. The Bylaws should be clearly defined such that the church understand the process that will allow them to “give cheerfully.”

Regular Offerings

Regular Offerings shall be taken at Sunday services and other special meetings as determined by the Board of Trustees. Undesignated offerings shall be applied to the Annual Budget.

Tithes

Most Christians are taught that tithing is their eternal obligation, and that there are indeed major advantages in doing so. Some churches require regular tithes

from all its leaders and most of its . Many pastors feel that they are scripturally justified in promoting this notion. The only agreeable fact is that there is disagreement regarding the role of tithing. This is for several reasons. First, there is a universal assumption of what constitutes a tithe. Pastors teach that tithing is a blanket 10% of all sources of income.

Actually, that is not scriptural!

Re-examination of Leviticus 27:30, Deuteronomy 12:17, 14:22, 23:2, 2Chonicles 31:5, 6; Nehemiah 10:37, 12:44, 13:5, 12 teaches something quite differently. It says that tithing was to come from the land. It was to be divided from the fields, vineyards, trees, flocks, herds, and honey from beehives. It was intended to the priests and other religious leaders at that time. Second, followers think that they can pick and choose which laws of the Old Testament they should follow. This is faulty thinking and a sign of a weak church. The New Testament is quite clear in this matter for those who put themselves under the Law of Moses.

James 2:10 For whosoever shall keep the whole law, And yet offend in one point, He is guilty of all.

Galatians 5:3 For I testify again to every man that is circumcised, That he is a debtor to do the whole law.

The most commonly quoted scripture for tithing is Malachi 3:10,

Bring ye all the tithes into the storehouse . . .

And Leviticus 27:30,

The tithe is the Lord’s . . .

These scriptures are used by many pastors to compel church to tithe by reason of guilt, greed, disobedience, or shame. However, these scriptures are used out of context. Actually a tithe is not a gift to the church or to God. It is more of a tax because it is a pre-set amount and it is not given freely out of love. Leviticus 22:29 says:

And when ye will offer a sacrifice of thanksgiving unto the LORD, Offer it at your own will.

The point is that all commandments, instructions, blessings, and curses during the Law were for people under the Law. These people did not know Jesus, God had not yet given His only begotten son, and they had not been reborn in Christ. After the birth, death and resurrection of Jesus the Christ, the free gift of salvation through grace changed everything. The paradigm shifted. Christians are no longer under the old Law, Old Covenant and Old Testament. With the death of Jesus, there was also the death of the old, sinful nature of man. With the resurrection of Jesus, there was a resurrection of a new nature of man, reborn in

Christ. This was pleasing to God. Tithing had nothing to do with it. Churches rarely discuss the history of tithing because most pastors either do not know the history or do not want to confront tradition. They provide only ONE argument:

As a good steward, you are obligated to give 10% every Sunday

It should clearly state that there is nothing wrong with tithing. If a church wishes to require 100% of its to tithe, it has a right to do so. Indeed tithing could pay an important role in the church. However, it has no impact on godliness or salvation. Church leaders must be careful in this area of the Scripture and not be deceptive about tithing. There are many myths and concerns about tithing that need to be discussed and clearly understood by well-meaning Christians. For example, many church get overly emotional when non-tithers wish to vote on financial matters. This is a cause of great consternation. The argument is interesting. Why should a member have an equal right to vote on how money is spent in the church, yet do not give as others do? Suppose a member does not give AT ALL. Should he be allowed to vote on financial matters? This issue is highly controversial! For many churches, the solution is universal tithing. If there is no tithing, then there is no voting. Although this is not a biblical concept and has no biblical model, it may work to satisfy many. Matthew 6 speaks of the three greatest acts of righteousness:

1. alms-giving, 2. prayer, and 3. fasting.

There is no instruction to tithe. The Church Bylaws should reflect the holy and righteous idea of giving. Church may wish to require tithing. This is not unusual and is certainly not unethical, until the leaders say that God demands it. That is clearly misleading, misunderstanding, and misapplying the Word.

Tithes (Leviticus 22:29, James 2:10, Galatians 3:24-25)

Tithes and other mandatory offerings shall not be a requirement for hip in this church.

Special Offerings

Special Offerings shall be specifically identified as to their purpose and shall either be taken separate from regular offerings or provision made for the separating of special offerings from regular offerings by means of an identification procedure.

Designated Offerings

At the discretion of the individual, offerings or portions thereof may be designated, but only to specific budget categories in the church budget or Christian causes approved by the Church Council.

a. The TREASURER shall maintain an of donors to a designated fund

b. The amount in each designated fund shall be made public at each ANNUAL BUSINESS MEETING. c. When the church budget is insufficient to meet all budget commitments, the TREASURER shall NOT shift designated funds towards the general fund without the permission of the Board of Trustees AND the written permission of the designated giver.

Special Donations, Gifts & Bequests

It is reasonable to assume that most giving to His Church includes money, by church , and usually on Sunday. However, there are other people, namely non-, who wish to contribute to the church, who wish to give property, and who wish to give on Monday thru Friday. All of these are acceptable, but they can easily get lost in the ing process accidentally or on purpose. For example, a member wishes to donate some real estate, perhaps an apartment building, to the church. Or someone wishes to give a valuable antique desk to the church. Or an anonymous person informs the pastor that his recently deceased family member has bequeathed $50,000 to the church. He wishes to give it to the pastor, believing that he (the pastor) will insure that it will be forwarded to the proper hands. This could be a major problem for certain pastors, or trustees. With appropriate guidelines in place, these matters may be dealt with in a smooth and predictable manner. “Love offerings” are not part of any sound financial policy. The Rev. Gregory Clark is going to discover this the hard way. The trustees at New Hope Baptist Church in Birmingham, Alabama must accept TOTAL responsibility for his 21 months prison sentence for filing false income tax returns.

Pastor Sentenced for Tax Fraud

Baptist Press 1/10/2008… Prosecutors said Clarke underreported $110,000 in

earned income during 2000, 2001, and 2002 and devised an intricate system of deceiving the government, funneling earned income into s . . . Jurors found Clarke guilty on three counts of tax fraud . . . Officials at the African American church approved giving Clarke $60,000 of the money in question (untaxed) . . . Prosecutors said Clarke deserved prison . . .

According to the IRS, a “love offering” is income, whether it is to the pastor or any other minister, preacher or presenter. Regardless of the good intentions of the givers, any money given to the pastor is for services. The pastor does not have the ability, duty, responsibility, or the authority to collect an offering for himself. Trustees are responsible for all money collected in His Church. All money should be credited towards an official . Failure to do so is an indictment against the Board of Trustees and its obligation to the congregation and to the state. Without guidelines, there could be trouble on the horizon. Here are some rules that work for many churches.

Special Donations, Gifts & Bequests

All special donations & gifts to this Church shall be received only by the CHAIRMAN of the Board of Trustees or a designate.

a. Upon reception, a receipt shall be provided to the donor or its representative, listing the particulars of the gift (ie. Date received, condition, value, , etc.) b. A copy of the receipt shall be stored and maintained by the TREASURER. c. The gift shall be listed and reported in the annual TREASURER’s report. d. Any change in the status of any gift, donation, or bequest to this Church shall require approval of the BOARD of TRUSTEES.

Limitations on Offerings, Donations & other Gifts

An incorporated church, meaning a church that is ed as a state charter and/or is ed as a non-profit organization, is indeed a business and must function as such. It also means that when it hires employees, it must pay at or above state-regulated minimal wages, withhold taxes, and report those withholdings to the IRS. It is illegal to give money and other gifts to employees, particularly the pastor, without crediting them towards his income. Pastors and church boards get into serious trouble when they are negligent in this area. In particular, “love offerings” are not part of any sound financial policy. The Rev. Gregory Clark is going to discover this the hard way. The trustees at New Hope Baptist Church in Birmingham, Alabama must accept TOTAL responsibility for his 21 months prison sentence for filing false income tax returns.

Limitations on Offerings, Donations & other Gifts

All donations and offerings shall be to the Church, and the Church shall become the immediate owner of the asset.

a. All rights to the gift, donation, offering, or bequest shall be immediately transferred to the name of the Church. b. The Church shall not receive any donation or gift to any individual, whether he/she is an employee or volunteer. c. The Church shall not participate in any financial incentives, bonuses, loveofferings, appreciation, anniversary or birthday gifts.

ing of Offerings

The amount of funds received in regular offerings shall be communicated to the Congregation by means of regular financial statements. Funds received in special offerings shall be communicated to the Congregation on the Sunday morning of the offering. Offerings shall be counted in the presence of two or more persons appointed by the Treasurer.

Financial Statements

Not all churches will open its financial records to its . This is strange particularly when church are never asked to vote on such a policy. The TREASURER is responsible for all financial statements, and this function should be contained in the church bylaws. In addition, all financial records should be immediately transferred to the custody of new treasurer upon election.

Financial Statement

Financial Statements shall be prepared by the Treasurer. Financial statements shall conform to business standards and be comprehensive in nature including the identification of receipts and disbursement by for the period covered and comparisons made to the budget figure for those same s and period. Financial statements shall be made available to the hip and are immediately transferred to the new treasurer upon election.

Church Budget

The financial success of His Church depends upon its discipline and adherence to its budget. Thus, a document of this magnitude deserves its own directives in the bylaws. This area establishes who creates the budget, how it is gathered, what is included, and how and when it is presented to the church hip. The BUDGET OVERSIGHT COMMITTEE is absolutely essential to the operations of the Board of Trustees. It should meet regularly during the year to insure that His Church is on course to a successful financial year. The church TREASURER should be part of this committee.

Church Budget

a. Preparation The Church Budget shall be prepared by the Board of Trustees or a committee appointed by it as necessary. The Board of Trustees or the committee will be assisted by the Treasurer. The Church Budget shall be based on God-given challenges, the previous receipt and disbursement record, growth experienced during the previous year/period and anticipated in the coming year/period, and other factors which affect the expenditures of the Church. Input should be obtained from the various Boards, Committees, Officers, ministry groups, or individuals relative to their particular areas of ministry. b. Submittal and Approval A copy of this budget as prepared shall be available to the hip at least one week prior to the Budget approval meeting. Upon approval of the final Budget at this Business Meeting, copies shall be made available to the hip.

c. Use and Implementation The Annual Church Budget shall serve as a guide for the expenditure funds in all areas of the Church’s ministry. Expenditures in excess of the budget by Boards, Committees, Officers, ministry groups, or individuals require the prior approval of the Board of Trustees and the hip. The expenditures of funds budgeted items which exceed the Budget amount may be approved by the Board of Trustees as long as these expenditures are consistent with the needs of the Church, the recent financial position of the Church, and the extent of funds on hand. Items not addressed or identified in the Budget are not subject to approval, regardless of amount.

d. Budget Oversight Committee The Church finances shall be reviewed quarterly by a committee of at least three (3) persons, one of whom shall be a Trustee. This committee shall be selected by the Board of Trustees on an annual basis. This committee shall review all financial records and ensure that the books are balanced, make any recommendations to the Board of Trustees and make available to the Congregation thru the church bulletin. The Treasurer shall provide all pertinent documents required by the committee.

Annual Financial Report

The Board of Trustees shall submit an ANNUAL REPORT to the congregation. The ANNUAL REPORT shall include:

1. the legal description and the reasonable valuation of each parcel of real estate owned by the church, 2. the specific name of the grantee of each deed of conveyance of real estate to the church

3. an inventory and reasonable valuation of all personal property owned by the church, 4. the amount of income received from any income-producing property and a detailed list of expenditures in connection therewith, 5. the amount received during the year for building, rebuilding, remodeling, and improving real estate, and an itemized statement of expenditures, 6. outstanding capital debts and how contracted, 7. a detailed statement of the insurance carried on each parcel of real estate, indicating whether restricted by co-insurance or other limiting conditions and whether adequate insurance is carried, 8. the name of the custodian of all legal papers of the church, and where they are kept, 9. a detailed list of all trusts in which the church is the beneficiary, where and how the funds are invested, 10. an evaluation of all church properties including chancel areas, to insure accessibility to persons with disabilities.

Review of Financial Records

Financial records shall be available for review to all ACTIVE and their legal counsel during regular working hours under the direction and supervision of the BOARD OF TRUSTEES or its appointee.

APPENDIX:

Sample Bylaws: Second Baptist Church

The Constitution and Bylaws of Second Baptist Church

What saith the Scriptures? Romans 4:3

Amended: December 31, 2007

Constitution & Bylaws

Article I

Name, Location, and Identity

Section 1.100: Name

The name of this Corporation shall be Second Baptist Church, Inc. The name of the Church shall remain associated with the property located at 527 Chapman Lane (16th Street), Elyria, Ohio as long as this Church exists.

Section 1.200: Location

The real property of Second Baptist Church, Inc. consists of one-half block located in Elyria, Ohio, on 16th Street between West Avenue and Black River. Buildings include the church edifice and fellowship hall. Its parsonage is located at 568 Georgetown Avenue, Elyria, Ohio.

Section 1.300: Identity

Second Baptist Church of Elyria, Ohio shall be incorporated in the state of Ohio and provide its Articles of Incorporation to the Secretary of State of Ohio. It shall have no or investors. It shall be governed by its Board of Directors, or Trustees, who have no financial interest in the Corporation. Any actions by this Corporation shall require the approval of a majority of the

ACTIVE of Second Baptist Church. These are the Bylaws, and Second Baptist Church shall henceforth be recognized as “the Church.”

Article II

Doctrine of Faith

Section 2:10 Christian Doctrine

As of the body of Christ, this Church believes in the Christian concepts of the Word of God, the Trinity (God the Father, Jesus Christ the Son, the Holy Spirit), and Humanity. This Church also believes in Salvation through election, regeneration, justification, sanctification, perseverance of the Saints and preservation of the Savior. This Church also believes in grace, the Kingdom of God, Christian conduct, the Ordinances, religious liberty, and the last things (Jesus Christ will return personally and visibly in glory to the earth, the dead will be raised; and Christ will judge everyone in righteousness), evangelism and missions.

Section 2.20 Baptist Beliefs

As of the fellowship at Second Baptist Church of Elyria, Ohio, we subscribe to the Principles and Practices for Baptist Churches. As such, we also believe that:

1. The Bible is a Divine Revelation given from God to men, and is a complete and infallible guide and standard of authority in all matters of religion and morals; whatever it teaches is to be believed, and whatever it commands is to be obeyed; whatever it commends is to be accepted as both right and useful;

whatever it condemns is to be avoided as both wrong and hurtful; but what it neither commands nor teaches is not be imposed on the conscience as a religious obligation. 2. The New Testament is the constitution of Christianity. It is the charter of the Christian Church is the only authoritative code of ecclesiastical law, and the warrant and justification of all Christian institutions. In it alone, life and immortality is brought to light, the way of escape from wrath revealed, and all things necessary to salvation made plain, while its messages are a gospel of peace on earth and of hope to a lost world. 3. Every man by nature possesses the right of private judgment in the interpretation of the Scripture, and in all religious concerns. It is his privilege to read and explain the Bible for himself, without dictation from, or dependence on, any one, being responsible to God alone for his use of the sacred truth. 4. Every man has the right to hold such religious opinions as he believes the Bible teaches, without harm or hindrance from any one on that , so long as he does not intrude upon, or interfere with, the rights of others by so doing. 5. All men have the right, not only to believe, but also to profess and openly declare whatever religious opinions they may entertain, providing they be not contrary to common morality, and do no injustice to others. 6. All men possess the common right to worship God according to the teachings of the Scriptures, as they understand them, without hindrance or molestation, so long as they do not injure or interfere with the rights of others by so doing. 7. Civil governments, rulers and magistrates are to be respected, and in all temporal matters, not contrary to conscience and the word of God, to be obeyed; but they have no jurisdiction in spiritual concerns, and have no right of dictation to, or control over, or of interference with, matters of religion; but are bound to protect all good citizens in the peaceable enjoyment of their religious rights and privileges. 8. No organic union of Church and State should be tolerated, but entire separation maintained: the Church should neither ask for, nor accept, from civil authority, since to do so would imply the right of civil dictation and control. The of religion belongs to those who profess it.

9. Christian men are to be good and law-abiding citizens, sustaining and defending the government under which they live, in all things not contrary to conscience and the word of God; while such government is bound to protect them in the full enjoyment of all their rights and privileges, both civil and religious. 10. Religion is to be free and voluntary, both as to faith, worship, and service; neither conformity to, nor of, religion in any form, should be compulsory. Christian faith and practice are matters of conscience and personal choice, and not subject to official dictation; and for the either civil or ecclesiastical authority to enforce conformity, punish dissent, or compel the of any form of worship, is a crime against the rights of man, an assumption of divine prerogatives, and treason against Christ, the Lord of the conscience and sovereign of the soul. 11. None but regenerated persons ought to be, or properly can be, of a Christian Church, which is a spiritual body separate from the world and distinct from the state, and is composed of spiritual only. 12. Pastors are not to be imposed on churches nor taken from them without their consent; but are to be chosen by them, each for itself, at its own option, as by free men in Christ, who have a right to the choice and election of their religious teachers. 13. Christ is the only Head over, and Lawgiver to, His churches. Consequently the churches cannot make laws, but only execute those which He has given. Nor can any man, or body of men legislate for the churches. The New Testament alone is their statute book, by which, without change, the body of Christ is to govern itself.

Article III

Foundation, Purpose & Powers

Section 3.100: Foundation

The foundation of this church is the Lord Jesus Christ (1Cor 3:11), and its code of guidance in all its affairs, the Word of God, and this church does hereby affirm its faith that the Holy Scriptures of the Old and New Testaments are the Word of Almighty God (Mark 13:31)

Section 3.200: Purpose

The purpose of this Church shall be to give visible form to the faith and fellowship to which God has called His people. This Church acknowledges itself as a local manifestation of the universal church through which Jesus Christ continues to minister to the world through His Holy Spirit. This Church seeks to fulfill this calling through corporate worship services, through a program of Christian nurture by which our may be built up in their faith and love, through proclamation of the Gospel by word and deed, and through ministering to human need in the name of Christ.

Section 3.300 Priorities of Ministry

The priorities of ministry of this church flow from the vision of God’s glory revealed in Jesus Christ. We savor this vision in worship (John 4:23), strengthen the vision in nurture and education (1 Cor 14:26, 2Peter 3:18), and spread the vision in evangelism, missions, and loving deeds (1 Peter 2:9, 3:15, Matthew 28:18-20, 5:16).

Section 3.400: Powers

All the powers authorized and permitted by the of the church shall be given to the church corporation, Second Baptist Church, Inc. The powers of this Corporation, granted by the and by the state of Ohio, shall be amended from time to time.

Article IV

Governance & Authority

Section 4.100: Governance

The government of this Church is vested in its who compose it, and, as such, it is subject to the control of no other ecclesiastical organization. Also, none of its Boards or Committees can usurp its executive governmental or policy-making powers when they are lawful.

Section 4.200: Legal Guidance

The Church shall look to these Bylaws, the Articles of Incorporation, and the laws of the state of Ohio with reference to non-profit religious corporations, and Section 501(c)(3) of the Internal Revenue Code (as amended from time to time) for guidance in the operation of its affairs.

Section 4.300: Authority and Jurisdiction

Second Baptist Church, governed by its with total and complete executive and policy-making power, shall have authority over all of its individual , including non-communing , over its pastor, ministers, deacons and deaconesses, all staff , salaried and

volunteers, all property, real and imaginary, and assets.

Section 4.301: Inability to Decide

In cases where the church are unable or unwilling to exercise authority, the Chairman of Trustees shall assume authority upon demonstration of sufficient cause to the Board of Trustees.

Section 4.400: Limitations in Authority

Second Baptist Church shall retain authority over all and ministers until that person comes under the authority of another church body.

a. Authority over shall cease upon their expulsion. b. Authority over ministers shall cease upon their deposition.

Section 4.500: Affiliations

This Church shall maintain affiliation and cooperation with the American Baptist Churches in the U.S.A., the National Baptist Convention, U.S.A., and its s. However, no local, state, national, or international body shall have any authority in the governing of this Church.

Article V

Covenant hip

Section 5.1: of the Corporation

The Corporation shall have no investors or shareholders, which are also known as . Any action which would otherwise require approval by the majority of all church shall require approval of the BOARD of DIRECTORS, henceforth known as “trustees.”

Section 5.2: of the Fellowship (1 Cor 12:27, Epi 5:30)

The Church shall have . Any reference to “” shall henceforth indicate those of the Church and not of the Corporation. hip to the Church shall refer to any person who has met the qualifications of hip as set forth by these Bylaws.

Section 5.3: Purpose of Fellowship (1John 1:3, Rom 15:7, 1Peter 4:10)

The congregation of Christian believers who have applied for hip and have been duly accepted shall constitute a spiritual body, united to fulfill the spiritual purposes of this Church as set forth in Article III: Section 3.20 of these Bylaws.

Section 5.10: Authority of the Fellowship

The of Second Baptist Church shall have supreme power to ister and manage all the property, business, external and internal affairs through its trustees of the Corporation. The establishment and conduct of all organizations, missions, and groups within the Church shall at all times be subject to the approval and supervision of its voting . Authority of this fellowship shall include, but not be limited to:

a. Calling of the Minister(s)—the right to call, choose, and accept a minister, teacher, or any other worker shall be vested in the voting through its trustees. The decision shall be determined by a two-thirds (2/3) majority vote of the present at a legally called meeting, b. Call to Discipline—In all cases of grievances between , the persons involved shall follow the principles set forth by these bylaws in Article XII: RECONCILIATION & RESTORATION. If this procedure does not lead to reconciliation, the matter shall be brought before the CHURCH COUNCIL for appropriate action. c. Remove from Office—The voting shall have the authority, through the trustees, to remove any officer, teacher, or worker from office for the reasons defined in Article XII: RECONCILIATION & RESTORATION.

Section 5.11 Limitations in Authority

Property of the Corporation is dedicated to the religious and charitable purposes as outlined in the ARTICLES OF INCORPORATION. Therefore, of the fellowship shall have:

1. NO authority to vote at meetings of the BOARD of TRUSTEES, 2. NO authority to resolutions binding upon the Corporation, 3. NO equity in the real or imaginary property of the Corporation, 4. NO rights to vote on the disposal of the Corporation.

Section 5.20 Status of hip

All of this Church shall assume one of the following classifications:

1. Active Member 2. Associate Member 3. Inactive Member

Section 5.21 Definition of ACTIVE MEMBER

Any person being received into hip of this church shall receive ACTIVE member status. Such shall receive all the rights, privileges, and courtesies of this Church. An ACTIVE MEMBER shall be current in the following areas, as determined by the CLERK:

a. ATTENDANCE (Mark 6:39-40, Luke 15:1, Acts 1:15)

b. SERVICE (Luke 9:62, Luke 12:34-35, Romans 15:7, 2Cor 9:12, Rev 2:19) c. GIVING (2 Cor 8:23, Philemon 1:17)

Section 5.25 Definition of ASSOCIATE MEMBER

Any person being received into hip of this Church but is NOT of legal age shall be designated ASSOCIATE MEMBER. This person shall be expected to attend, serve, and give, however he/she shall NOT have voting privileges or maintain a position of leadership.

Section 5.30 Definition of INACTIVE MEMBER

Any person being received into hip of this Church but has failed to attend, serve, or give, as determined by the CLERK, shall be considered INACTIVE. He/she shall not have the privilege of voting or serving in any leadership role. When an INACTIVE member remains INACTIVE for three (3) consecutive years, the CLERK shall recommend to the congregation removal of such person(s) from the hip roll.

Section 5.35 hip Rolls

This Church shall maintain a roll of all persons who have been received as of the Church. The roll shall help to distinguish between “active” and “inactive” .

Section 5.40: Rights of

The fellowship of all ACTIVE, as defined by the HIP COMMITTEE, church are:

a. entitled to attend any meeting, barring any confidentiality issues, participate in any committee, discuss any issue, and ask any questions on any topic, b. entitled to suggest, in writing to the , the addition of any item for discussion to the agenda of a regular church meeting. c. eligible as candidates for elective offices after at least one year of active hip, d. entitled to inspect church records, and e. eligible to vote, unless from church activities for more than 6 consecutive months.

Section 5.50 Duties & Responsibilities (Romans 12:4-21)

It shall be the responsibility of each and every church member to:

1. Respect the leadership of the church (Phil 2:29, 2Cor 5:20, 1Thess 5:13)

a. financially the ministry (Gal 6:6, 1Tim 3:2, Gal 2:10, 1Cor 9:7-14) b. Obey and submit to them (Eph 6:18-20) c. Assist and encourage them in difficult times (2Tim 4:16, Job 6:14)

d. Avoid any accusations against the elders without full proof (1Tim 5:19) e. Avoid criticism of them (Acts 23:5, 3John 10) f. Follow their example, as they follow Christ (2Thess 3:7, 1Cor 11:1)

2. Respect the DEACONS / DEACONESSES of the church:

a. As employees of the Lord to serve the household of faith (1Tim 3:13, Matt 25:21) b. Submit to their godly and friendly onitions (1Cor 16:16) c. Encourage them in their work (2Cor 9:6,7)

3. Respect each and every other member:

a. Love all men, especially those of the household of faith (Gal 6:10) b. Seek peace (Rom 14:19, 1Cor 13:7, James 4:11, 3:18, 2Cor 12:20) c. Seek edification and growth in grace (1Thess 5:11, 2Pet 3:18) d. Pray for one another (James 1:27) e. Visit the sick and afflicted with Godly conversation (Acts 15:36, James 1:27, Mal 3:16) f. Avoid lawsuits (1Cor 6:1-7) g. Make every attempt to marry other believers (2Cor 6:14) h. Resolve conflicts within the Church (Matt 5:23, 24)

4. Respect themselves by:

a. Praying for peace and prosperity (Psalm 122:6-9) b. Attending all church meetings, worship or business (Heb 10:25, Ps 84:4, 10) c. Submitting to the order and discipline of the church, so far as it is consistent with the Word of God (Deut 5:1, Heb 13:17) d. Volunteering talents and services to the Church (Rom 12:6-8, Prov 3:9) e. Avoiding quarrels, contentions, and gossip in the Church (1Cor 10:32, Rom 2:8) f. Maintaining confidentiality of the Church (Song of Solomon 4:12)

Section 5.60 Inspection of Records

1. hip Records Records of the ’ names, addresses, and voting rights shall be available for inspection by any member, officer, or trustee for a purpose reasonably related church business, as determined by the Chairman of the TRUSTEE BOARD.

2. Articles of Incorporation and Bylaws The CLERK shall maintain a copy of the Articles of Incorporation and Bylaws in the church at all times. They shall be available for inspection and distribution to any church member at all reasonable times during office hours.

3. Documents and Contracts No note, evidence of indebtedness, contract, conveyance, pledge of credit or other instrument in writing or assignment between the Church and any other person or institution shall be valid unless approved by the Church hip, at a properly called meeting, and signed by the Chairman of the TRUSTEE BOARD. Such legal documents shall be available for inspection by any ACTIVE member at all reasonable times during office hours, as determined by the Chairman of the Trustee Council. These records available for inspection shall not include:

a. documents related to legal issues, b. MINISTERIAL RELATIONS COMMITTEE, c. RECONCILATION & RESTORATION COMMITTEE, or d. executive minutes of the TRUSTEE BOARD.

Section 5.70 Eligibility for hip to the Fellowship

This Church shall receive into hip any person who:

1. Is born again through the faith of Jesus Christ 2. Will profess Jesus Christ before the world 3. Is of mature age 4. has a good reputation as to life and character

5. will accept the Articles of Incorporation, By-laws, and rules & regulations of this Church.

Section 5.71 Procedure for hip

1. Application Candidates shall apply for hip of the Church by recommendation of a member, officer, or board or council of this Church.

2. New Class Applicants for hip shall complete New Member Classes with satisfaction and agree in writing to obey all the rules and regulations of the Church.

3. Recommendation Applicants for hip to the Church shall be recommended by the NEW COMMITTEE and approved by the DEACON or DEACONESS COUNCILS.

Section 5.75 Denial of hip (2Cor 6:14, Matt 18:20)

When a prospective member does not meet the qualifications for hip, as determined by the NEW COMMITTEE, DEACON & DEACONNESS COUNCILS, the application shall be rejected. The decision shall be final, and there shall be no appeal to any court for that decision. The criteria for rejection shall be:

1. refusal to confess Jesus Christ as his/her Lord and Savior, 2. lack of evidence of a godly lifestyle, 3. failure to successfully complete NEW CLASS, or 4. refusal to agree in writing to the Bylaws, rules, and regulations of the Church.

Section 5.80 Acceptance (Rom 1:16, 1 John 1:3, Epi 5:30)

All candidates accepted for hip shall be extended the right hand of fellowship:

• by BAPTISM: A person who confesses Jesus Christ as Lord and Savior and adopts substantially the views of faith and principles of this Church and is baptized by immersion may be received into the fellowship of the Church. • by LETTER: A person who is in substantial accord with the views of faith and principles of this Church may be received by letter from any other like church. • By STATEMENT: When a letter is impossible or impractical to secure, as determined by the Deacon Council, a personal statement shall document confession, repentance, and baptism. • by RESTORATION: A person who has lost hip may be restored to hip upon recommendation of the Church hip Committee and the vote of the Church.

Section 5.85 Reception of NEW

ission to hip in this Church shall take place by the following procedure:

1. proposal by the Minister, 2. recommendation by the Deacon Council in consultation with the NEW COMMITTEE. 3. participation in a public worship service of this Church during which the NEW MEMBER shall accept baptism or by Christian experience, profess or reaffirm his/her faith, and agree to the Covenant of Second Baptist Church. 4. When a NEW MEMBER cannot attend worship service, then the profession or reaffirmation of faith and reception into this Church shall take place elsewhere at the discretion of the Minister and Deacon Council.

Section 5.87 Baptist Training & Confirmation

The BOARD OF CHRISTIAN EDUCATION shall establish a CONFIRMATION program and guidelines for NEW baptized youth. Upon completion, each year shall be acknowledged, celebrated, and granted full rights and privileges of an ACTIVE MEMBER of this Church.

Section 5.88 Small Church Community

Upon successful completion of all requirements for hip and fellowship in His Church, the BOARD OF CHRISTIAN EDUCATION shall organize and develop a curriculum for the SMALL CHURCH COMMUNITY.

New shall be expected to a SMALL CHURCH COMMUNITY preferable close to their home. This group of baptized believers shall meet at each others’ home on a regular basis for Christian education and fellowship.

Section 5.90 Mediation & Arbitration

Applicants for hip shall agree to Conflict Mediation and Binding Arbitration to all areas of dispute and disagreement with fellow .

Section 5.100 Good Standing & Voting

Only those ACTIVE in good standing shall be entitled to vote at a meeting of the Church. There shall be no provisions to vote by proxy or by absentee ballot. An ACTIVE member in good standing shall be defined as:

a. ATTENDING worship service regularly (more than 50% annually), b. PARTICIPATING in a ministry or church organization, c. NO PENDING disciplinary actions, attending regularly, and d. GIVING cheerfully.

Section 5.110 Loss of hip

A member shall be dismissed and all privileges forfeited for the following reasons:

1. ing another church—Whenever a Member s another church in the local vicinity, his/her hip at this Church automatically terminates. 2. Letter of transfer, 3. death, 4. Inactivity (Hebrews 10:25)

a. Attends less than 50% of the weekly worship services in one year and/or fails to participate in any mission or on any committee. b. Under discipline with no evidence of repentance, reconciliation, or atonement within 6 months of the initiation of the discipline.

5. Breach of faith—no longer observes the Bylaws, the Covenant, or the Mission of this Church, as defined by the COMMITTEE, or 6. Breakdown in Integrity, as defined by the COMMITTEE (2Cor 6:14)

Section 5.120 Surrender of Privilege

Any member whose hip has been terminated for any reason thereby surrenders all hip privileges and all rights to any real, personal, liquid, or imaginary property of this Church.

Article VI

Church Meetings

Section 6.01 Worship Services (1Cor 16:1-2)

Public worship shall be considered a Church meeting. It shall be held on the Lord’s Day and on such days as the Church shall designate, and at such hours and subject to such changes as shall be determined by the CHURCH COUNCIL. No church business or discussion of church business shall be conducted at public worship service.

Section 6.02 Ordinance of the Lord’s Supper (Acts 2:42, 20:7)

Communion shall be observed on the first Sunday of each month at both early and regular services. It shall be observed at such other times as the MINISTERS, DEACON & DEACONESS BOARDS shall direct.

Section 6.10 Business Meetings—General

The Annual Meeting shall be held at the principal office of the Church in January of each year. The shall consider reports of the affairs of the Corporation including but not limited to annual reports, electing officers, adopting the budget, and transacting any and all business that shall properly

come before the Meeting.

Section 6.15 Business Meetings—Agenda & Order of Business

The agenda and the order of business at the Church meetings shall be the responsibility of the .

Section 6.20 Business Meetings—Special Meetings

Special meetings shall be called by the CLERK at the request of the Trustees, Church Council, or upon request in writing of 25 specifying the purpose of the meeting. In the event of vacancy in the Office of Clerk, the shall call Special Meetings.

Section 6.21 Business Meetings—Notice

Each Annual or Special Meeting shall be called stating the purpose of the meeting. The notice shall be announced during Worship Service and printed in the Church calendar, bulletin, and electronic media site of the Church for the two (2) Sundays next preceding the day of the meeting. Background materials associated with each agenda item, including matters to be raised as new business, shall be included with the meeting notice.

Section 6.30 Business Meetings—Voting

All ACTIVE , as determined by the CLERK, and such in good standing, as determined by the Chairman of the TRUSTEE COUNCIL, shall have the power to vote at its business meetings. When quorum exists, action on a matter shall be approved by majority vote.

Section 6.31 Business Meetings—Limitations in Voting

a. Method of voting shall be determined by the : b. Votes shall be counted by the CLERK and confirmed by the Chairman of the Board of Trustees. c. There shall be no absentee votes, votes in abstentia, or voting by proxy. All voters that abstain shall NOT be considered in the total vote count.

Section 6.35 Business Meetings—Quorum

Forty (40) shall constitute a quorum at any business meeting of the Church, but a smaller number shall be allowed to adjourn.

Section 6.40 Business Meetings—Parliamentary Procedure

The rules in Robert’s Rules of Order shall govern the conduct of business meetings unless altered at the discretion of the .

Section 6.45 Business Meetings—Place of Meeting

The Annual Meeting and all called meetings shall be held at the principal office of the Church except by unanimous consent of the Trustees.

Section 6.50 Business Meetings—

The church shall lead all business meetings of the Corporation and Church. In his/her absence, the Chairman of the Board of Trustees shall act as the or appoint another Trustee to in that capacity.

Section 6.60 Entitled to Vote

The CLERK shall determine those eligible to vote. The record date for determining voter eligibility shall be the Sunday prior to the meeting.

Section 6.65 List of Entitled to Vote

At any meeting of the , the CLERK shall provide the current church roll available for inspection by the . This right to inspect the roll shall be available to all ACTIVE and INACTIVE . If any person’s right to vote is challenged, the shall rely on the current church roll as evidence of the right of the person challenged to vote at the meeting.

Section 6.70 Transaction of Business

The transaction of any business at any Business Meeting of the Corporation and Church shall require a majority vote of present. Votes shall be cast only by who are present at a Business Meeting. No votes shall be cast in absentia. The Board of Trustees shall always have the authority to request the reconsideration of any vote.

Section 6.75 Minutes

The Official minutes of all Business Meetings shall be hand recorded at the time of the meeting. There shall be NO voice or video recorded minutes. Such minutes shall be immediately available to any member in attendance or made available by the CLERK on any day during regular business hours prior to the next business meeting. Minutes from the previous Business Meeting shall be reviewed by the BYLAWS COMMITTEE and read and accepted by in attendance at each meeting.

Section 6.90 Adjournment

In the event of a meeting (annual, business, or specially called) requires adjournment to another time or place:

1. the shall be the only person with the authority to adjourn, 2. no quorum shall be necessary to adjourn, 3. a notice shall be necessary when the adjourned meeting is more than fortyeight (48) hours, 4. said notice shall be given by the to the CHAIRMAN of BOARD OF TRUSTEES prior to the meeting.

Article X

Financial Matters

Section 10.01 Financial Policies & Goals (Roman 13:8)

This Church shall handle its financial matters as a reflection of its integrity. Therefore the Church shall establish and follow these financial policies and goals to guide it in proper stewardship of God’s monetary resources.

Section 10.02 The Church as the Body of Christ

The Church and its ministry belong to God. They are neither a monument to anyone’s ego nor a legacy to anyone’s memory. The ministry does not bear anyone’s name. The building is not dedicated to anyone, but Jesus Christ. The pastor, trustees, deacons, and other are merely stewards and fellowservants in the work of the Kingdom.

Section 10.03 Financial Responsibility of Church

The financial success of this Church shall be the exclusive responsibility of its , not government grants or bank loans. Every member shall personally and financially make a commitment for this Church to succeed.

Section 10.04 Fund Raising

Fund-raising shall be a major source of financial for this Church and ministry. During prosperity and lean times, the Church shall always make its financial status known to its . In addition:

a. It shall will never beg, misrepresent, or resort to disrespectful and dishonorable methods of raising funds, even when the need is serious. b. Nor shall the Church attempt to motivate giving from a false sense of guilt or compulsion, since this robs God’s people of the opportunity to give cheerfully. c. The MINISTER(s) and their wives shall be prohibited from participating in any fund-raising activity (i.e. love offerings, seed money, birthday and anniversary gifts, etc.)

Section 10.05 Conservative Spending Policies

Each contribution is a sacrificial gift from a member who loves the Church and its ministry. Therefore, church leaders shall spend that money conservatively and wisely. Financial resources shall be stretched as far as possible to serve the needs of the ministry and the extension of Christ’s Kingdom.

Section 10.06 Commitment to Missions

The Church shall spiritually and financially its missionary work and

its ministries. That shall specifically include helping the sick, the hungry, widows and orphans (single parent households). Therefore, the Church shall avoid spending money on nonessential church personnel, programs, equipment, and facilities. Instead the Church shall seek a goal of giving 50% of its income beyond its operating expenses (i.e. Sunday school program, salaries, utilities, building projects, etc.) to our ministries and missions.

Section 10.07 Prompt Settlement of Obligations

This Church shall pay its bills within 30 days. It shall not willfully collect interest on vendor’s money. Overdue bills are a sorry testimony to the world.

Section 10.08 Deficit Spending

This Church shall not spend more money than it receives. This Church shall carefully budget and monitor its resources in order to afford necessary programs and services. Deficit spending is not God’s will for the Church.

Section 10.09 Debt Free

This Church shall be free to act, minister, and give as it is led by the Lord. Therefore it shall be our goal to remain financially free from debt, as much as possible. When debt is incurred, this Church shall work to repay the obligation as soon as possible.

Section 10.100 ing Procedures

This Church shall elect and confirm leadership free from the love of money. It shall conform to acceptable ing procedures to assure ethical monetary practices.

Section 10.200 s

The financial s shall be established through the Budget annually by the Board of Trustees, approved by the hip, maintained by the Treasurer. s shall be established for non-budgeted funds collected for church approved activities and events.

Section 10.300 General Offerings

Free-will, monetary offerings to the Church shall be received by the DEACONS and DEACONESSES and transferred to the TRUSTEES at each worship service and all other meetings as determined by the Board of Trustees.

Section 10.310 Tithes (Leviticus 22:29, James 2:10, Galatians 3:24-25)

Tithes and other mandatory offerings shall not be a requirement for hip or standing in this church.

Section 10.320 Special Offerings

All special offerings, whether they are monetary, real, or virtual, shall be received by the DEACONS and DEACONESSES and transferred to the TRUSTEES at all meetings, events, and other gatherings. These funds shall be specifically identified as to their purpose by the TRUSTEES and ed by the TREASURER.

Section 10.330 Designated Offerings

At the discretion of the individual, offerings or portions thereof may be designated, but only to specific budget categories in the church budget or Christian causes approved by the Church Council.

a. The TREASURER shall maintain an of donors to a designated fund b. The amount in each designated fund shall be made public at each ANNUAL BUSINESS MEETING. c. When the church budget is insufficient to meet all budget commitments, the TREASURER shall NOT shift designated funds towards the general fund without the permission of the Board of Trustees AND the written permission of the designated giver.

Section 10.340 Special Donations, Gifts & Bequests

All special donations & gifts to this Church shall be received only by the CHAIRMAN of the Board of Trustees or a designate.

a. Upon reception, a receipt shall be provided to the donor or its representative, listing the particulars of the gift (ie. Date received, condition, value, , etc.) b. A copy of the receipt shall be stored and maintained by the TREASURER. c. The gift shall be listed and reported in the annual TREASURER’s report. d. Any change in the status of any gift, donation, or bequest to this Church shall require approval of the BOARD of TRUSTEES.

Section 10.400 Limitations on Offerings, Donations & other Gifts

All donations and offerings shall be to the Church, and the Church shall become the immediate owner of the asset.

a. All rights to the gift, donation, offering, or bequest shall be immediately transferred to the name of the Church. b. The Church shall not receive any donation or gift to any individual, whether he/she is an employee or volunteer. c. The Church shall not participate in any financial incentives, bonuses, loveofferings, appreciation, anniversary or birthday gifts.

Section 10.500 ing of Offerings

The amount of funds received in regular offerings shall be communicated to the Congregation by means of regular financial statements, prepared by the BOARD of TRUSTEES. Funds received in special offerings shall be communicated to the Congregation on the Sunday morning of the offering.

Offerings shall be counted in the presence of two or more persons appointed by the Treasurer.

Section 10.600 Financial Statement

Financial Statements shall be prepared by the Treasurer. Financial statements shall conform to business standards and be comprehensive in nature including the identification of receipts and disbursement by for the period covered and comparisons made to the budget figure for those same s and period. Financial statements shall be made available to the hip and are immediately transferred to the new treasurer upon election.

Section 10.650 Church Budget—Preparation

The Church Budget shall be prepared by the Board of Trustees or a committee appointed by it as necessary. The Board of Trustees or the committee will be assisted by the Treasurer. The Church Budget shall be based on God-given challenges, the previous receipt and disbursement record, growth experienced during the previous year/period and anticipated in the coming year/period, and other factors which affect the expenditures of the Church. Input should be obtained from the various Boards, Committees, Officers, ministry groups, or individuals relative to their particular areas of ministry.

Section 10.660 Church Budget—Submittal and Approval

A copy of this budget as prepared shall be available to the hip at least one week prior to the Budget approval meeting. Upon approval of the final Budget at this Business Meeting, copies shall be made available to the

hip.

Section 10.670 Church Budget—Use and Implementation

The Annual Church Budget shall serve as a guide for the expenditure funds in all areas of the Church’s ministry. Expenditures in excess of the budget by Boards, Committees, Officers, ministry groups, or individuals require the prior approval of the Board of Trustees and the hip. The expenditures of funds budgeted items which exceed the Budget amount may be approved by the Board of Trustees as long as these expenditures are consistent with the needs of the Church, the recent financial position of the Church, and the extent of funds on hand. Items not addressed or identified in the Budget are not subject to approval, regardless of amount.

Section 10.680 Church Budget—BUDGET OVERSIGHT COMMITTEE

The Church finances shall be reviewed quarterly by a committee of at least three (3) persons, one of whom shall be a Trustee. This committee shall be selected by the Board of Trustees on an annual basis. This committee shall review all financial records and ensure that the books are balanced, make any recommendations to the Board of Trustees and make available to the Congregation thru the church media. The Treasurer shall provide all pertinent documents required by the committee.

Section 10.700 Annual Financial Report

The Board of Trustees shall submit an ANNUAL REPORT to the congregation. The ANNUAL REPORT shall include:

1. the legal description and the reasonable valuation of each parcel of real estate owned by the church, 2. the specific name of the grantee of each deed of conveyance of real estate to the church 3. an inventory and reasonable valuation of all personal property owned by the church, 4. the amount of income received from any income-producing property and a detailed list of expenditures in connection therewith, 5. the amount received during the year for building, rebuilding, remodeling, and improving real estate, and an itemized statement of expenditures, 6. outstanding capital debts and how contracted, 7. a detailed statement of the insurance carried on each parcel of real estate, indicating whether restricted by co-insurance or other limiting conditions and whether adequate insurance is carried, 8. the name of the custodian of all legal papers of the church, and where they are kept, 9. a detailed list of all trusts in which the church is the beneficiary, where and how the funds are invested, 10. an evaluation of all church properties including chancel areas, to insure accessibility to persons with disabilities.

Section 10.800 Accessibility of Financial Records

Financial records shall be available for review to all ACTIVE and their legal counsel during regular working hours under the direction and

supervision of the RECONCILIATION & RESTORATION COMMITTEE.

Section 10.900 The Benevolence Fund (2Peter 1:5-7)

The Church shall create and maintain a BENEVOLENT FUND.

1. General Purpose: The purpose of this FUND shall be to provide financial assistance to those in extreme need. 2. Duration: This FUND shall continue in existence and be used as intended as long as Second Baptist Church shall exist. In the even that Second Baptist Church should cease to exist, the assets of the FUND shall become property of a like church or non-profit organization, as determined by the BOARD of TRUSTEES. 3. istration: The DEACON & DEACONESS COUNCILS shall be responsible for the FUND.

a. The TREASURER of the Church shall

i. be responsible for receipts by and disbursements from the FUND ii. maintain complete and accurate books of , and iii. provide a written financial report at the annual Church Meeting reflecting the status of the FUND and corpus s and listing all changes in the previous year.

b. The Minister shall serve as advisor to the DEACON & DEACONESS

COUNCILS, when requested. c. Access to the FUND shall be immediate to the CHAIRPERSONS upon majority vote of the BOARDS. d. The DEACON & DEACONESS COUNCILS shall inform all church of the purpose of the FUND and promote donations to the FUND.

4. Donation Guidelines: Donations to the FUND shall be part of any opportunity to give to Tithes & Offerings.

a. Disbursements from the FUND shall be to any needy person without prejudice, church member or visitor. b. Disbursements shall be from the FUND only and not from the operating expenses of the CHURCH c. Needy person shall show evidence of need, as determined by the DEACON & DEACONESS COUNCILS d. As an act of sincerity, the needy person shall volunteer a service to the CHURCH that is comparable to the debt, as determined by the DEACON & DEACONESS COUNCILS. This service shall begin immediately. e. This voluntary service shall be managed by the DEACON & DEACONESS COUNCILS and reported at the annual Church Meeting.

Section 10.950 The Second Baptist Endowment Fund (2Peter 1:5-7)

The Church shall create and maintain an ENDOWMENT FUND.

a. General Purpose (unrestricted): The purpose of this fund shall be to receive gifts and bequests and to use them for the mission and ministry of Second Baptist. The income from unrestricted gifts and bequests to the FUND shall be used for the purposes, projects, and programs recommended by the Church Council. The list of approved purposes, projects, and programs shall be approved by the CHURCH COUNCIL.

None of the income or principal from the unrestricted gifts shall be distributed to the operating budget, unless some extreme emergency, fire, or natural disaster should occur, as determined by the BOARD of TRUSTEES.

b. General Purpose (restricted): Gifts and bequests that are made on special or conditions shall meet the mission and ministry of the CHURCH, as determined by the BOARD of TRUSTEES, or else returned to the giver or guardian. c. Duration: This FUND shall continue in existence and be used as intended as long as the CHURCH shall exist. In the event that the CHURCH should cease to exist, the assets of the FUND shall become property of a like church or non-profit organization, as determined by the BOARD of TRUSTEES. Efforts shall be made to insure that any and all properties held by the FUND with special conditions, restrictions, or limitations shall continue under those upon transfer. d. istration: The CHURCH COUNCIL shall be responsible for the FUND. The TREASURER of the Church shall

a. be responsible for receipts by and disbursements from the FUND b. maintain complete and accurate books of , and c. provide a written financial report at the annual Church Meeting reflecting

the status of the FUND and corpus s and listing all changes in the previous year. d. The BOARD of TRUSTEES shall serve as advisors to the CHURCH COUNCIL on investing funds, use of funds, and promotion. e. The CHURCH COUNCIL shall inform all church of the purpose of the FUND and arrange meetings with the church and professional counselors in the areas of charitable giving, wills, bequests, and insurance.

e. Donation Guidelines: The value of all donations to the CHURCH shall be a confidential matter. The BOARD OF TRUSTEES shall send a letter of gratitude to the giver or guardian and shall list as specifically as possible what was donated.

a. It shall be the policy of the CHURCH to convert the donated items into cash as soon as possible, unless circumstances or direction from the donor indicates otherwise. b. When a large donation (over $25,000) is given to the CHURCH without specific instructions, the following shall be a guide, as approved by the CHURCH COUNCIL, for the distribution of the fund in this order:

i. 10% shall be given to CHURCH missions, ii. 10% shall be given for current ministry needs (not including operating expenses), iii. unlimited amount shall be given to pay off short term notes for building repairs or land purchases, if any exist, iv. unlimited amount shall be given to pay down the mortgage, and

v. remaining funds shall be deposited or invested for income.

Section 10.800 Conflict of Interest

The CHURCH shall make no loan, gift, payment, or any other contribution to any minister, officer, staff person or employee from any FUND. No church employee or official shall receive any fee for service without full disclosure in writing to the BOARD OF TRUSTEE. No TRUSTEE shall vote on any motion that directly or indirectly enhances his/her financial status.

Section 10.999 Fiscal Year

The fiscal year of the Church shall end in the month of December.