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Community Survey Prayer Spring Branch Church Plant PNC Information
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1. Overview and Purpose 1.1. Overview: The purpose of this toolbox is to prepare the Pastor and the leadership team with the tools needed to organize and manage the new church on solid legal and risk management grounds. Moreover, the toolbox should provide specific direction on how to insulate both the new church and the sponsoring church from unnecessary liability. 1.2. Why is this important to the new church? It is critical that the new church be established on sound legal and risk management footing so that the Pastor and the leadership team can focus singularly on the spiritual aspects of getting started, adding new members, and missional activities.
1.3. What activities are involved? Specifically, the new church will need the following:
1.4. What are the expected results? The expected result is that the new church will have in place the legal and risk management foundation to insure its proper legal functioning and adequate exposure to risk factors. 1.5. What is the scope of this topic, i.e., what is included and what is not? The scope includes incorporation instruments, legal instruments, internal procedures and guidelines, and necessary insurance coverages. 1.6. What is the timing for implementing this topic? It is critical that most of this activity and expected results occur as the church is being formed and during the first year. 2. How to start 2.1. How does the new church get this area started well? Most of the important activity in the legal and insurance areas should take place as the new church is being formed and during the first year. Then, after the first year, as the church grows and evolves as a thriving entity, the legal and insurance areas and coverages will need to be annually reviewed and updated, as required. 2.2. Who should be in charge of this – staff, lay leader, outside resource? The primary responsibility for organizing the legal and insurance matters will be the new Pastor; but, he/she should be actively assited by the sponsoring church team that facillitated formation of the new church and by pro bono legal and insurance professionals. 3. First year 3.1. What are the goals? Establish the church as an entity on solid legal grounds. Establish appropriate insurance coverages to insure all risks are appropriately protected and mitigated. 3.2. What activities should take place to accomplish the goals? See section 1.3, just above. All of these activities should be completed. 3.3. What are the expected results? The expected results are twofold: a church that is properly established from both legal and tax exempt standpoints; and, a church that has appropriate insurance coverages to protect and mitigate risks of operation. 4. Second year 4.1. What are the goals? Assess legal issues and risk management/mitigation factors that impact the church's operation 4.2. What activities should take place to accomplish the goals? In year 2, and in each subsequent year, complete and annual review of all areas delineated in section 1.3, above, and update as necessary. 4.3. What are the expected results? Maintaining a church that is on sound legal footing and is properly insured against risks of operation. 5. Best Practices 5.1. What has worked in new churches? Insuring that the new church is established on strong legal and tax exempt grounds and insuring that adequate insurance coverages are in place prior to the onset of operation. Reviewing the legal and insurance areas on an annual basis to update as necessary. 6. Environmental Factors 6.1. What outside factors may hurt or help? To the extent that the new church does not begin with its own facility, the Pastor and his team will have to insure that all legal and insurance issues related to meeting in rented or donated facilities are adequately addressed. 6.2. What assumptions have been made or should be made? It is assumed that the new church will not have its own facility for the first year - maybe two. 7. Issues 7.1. What key issues or stumbling blocks with the new church face? Starting from "scratch" - insuring that all legal and insurance requirements are met prior to getting underway. 7.2. Answer the ‘what if . . .’ questions. The primary "what if" question is whether the new church will operate in its own facility or in rented or donated facilities. Since the assumption is that the new church will not be in its own facility for the first 1-2 years, legal instruments and insurance coverages will reflect that status. If/when the new church obtains its own facility, the legal and insurance check list in section 1.3, above, will have to be reviewed and updated to reflect the new status. 8. Resources 8.1. What things will you need – money, equipment, people, time, etc. It is recommended that the new church obtain the following: consultative assistance from the sponsoring church; pro bono assistance from an attorney for all legal matters; and, pro bono assistance from a qualified insurance advisor in assessing and acquiring appropriate coverages. 9. Templates and samples 9.1. What should the organization look like for this topic? The organization and committee for this area should include the Pastor, a knowledgeable member of the Pastor's organizing team, a representative from the sponsoring church, a pro bono attorney, and a pro bono insurance advisor. 9.2. How to build a budget and/or a sample budget The budget for this area will include: legal fees, if any, for establishing the church, obtaining tax exempt status, drawing up appropriate documents, etc.; and, a budget for premiums for required insurance coverages. 9.3. What are some sample programs that could be used? (Not Applicable) 9.4. What is the two-year plan? Establish the legal foundation and insurance coverages in year one; review and update in year two and each subsequent year. 10. References 10.1. What web links are available? www.newchurches.com; www.churchproductsandservices.com; www.fellowshipconnection.com; www.creativepastors.com (see By Laws and Legal Tools); www.churchplantingresources.com; www.kybaptist.org (see Legal Issues in Church Planting); www.christianitytoday.com (many links); www.hispeace.org; www.biblicalrecorder.org (see Journal of the Baptist State Convention of North Carolina. 10.2. What paper references are available? (see web links, just above) 10.3. Who are the key people the new church should talk with? Knowledgeable members and staff from the sponsoring church and the denomination (e.g. for PCUSA - the area Presbytery). Pro bono counsel and pro bono insurance advisor. Return to Legal and Insurance main page Last Modified 3/12/05 11:09 AM | Hide Tools |