Conflict of Interest Policy

Church Formation & GovernanceBoard of Directors, Conflict of Interest, Fiduciary Duty, Nonprofit Governance, Policy

A conflict of interest refers to a situation where an individual or entity has competing interests or obligations that could potentially compromise their impartiality, objectivity, or ability to make decisions in the best interest of another party. It occurs when personal, financial, professional, or other interests conflict with the duties, responsibilities, or obligations the person or entity holds. Types of Conflicts: Conflicts of interest can undermine trust, transparency, and fairness in decision-making processes. Organizations and individuals often establish conflict of interest policies and procedures to identify, disclose, and manage conflicts […]

Church Officer and Director Liability

Church Formation & Governancebylaws, Conflict of Interest, Corporation, Director, Duty of Care, Duty of Loyalty, Fiduciary Duty, Liability, Nonprofit Corporation, Officer, Tax Exemption

Church board members are often surprised to learn they can be personally liable despite the corporate shield. Here’s what fiduciary duty, duty of care, and duty of loyalty actually require.

Endowments

Church Formation & GovernanceChurch Financing, Donation, Endowment, Fiduciary Duty, Nonprofit Funds

Per Investopedia, “an endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose. An endowment can also refer to the total of a nonprofit institution’s investable assets, also known as its “principal” or “corpus,” which is meant to be used for operations or programs that are consistent with the wishes of the donor(s). Most endowments are designed to keep the principal amount intact while using the investment income for charitable efforts. Taxation:When the donated endowment accrues dividends, capital […]

Conflicts of Interest in Church Governance

Church Formation & GovernanceBoard of Directors, Church Governance, Conflict of Interest, Fiduciary Duty, Nonprofit

Understand what conflicts of interest look like in church leadership, and how a clear disclosure policy protects both the board and the congregation.

Restricted Donations

Church Formation & GovernanceAttorney General, Church Real Estate, Deduction, Donation, Fiduciary Duty, Internal Revenue Service, Restricted Donation, Tax Exempt

Churches, like all nonprofit organizations, rely upon monetary donations in order to carry out their basic functions. In particular, it is these donations that enable the church to literally keep its lights on. Similar to the article about members taking deductions for the donations they contribute; this article focuses on what the church may do with the funds it receives. Please note that this article does not address fundraising through Bingo or Raffles. Unrestricted Funds: In most instances, a member simply donates funds to be used towards the general operations […]

Tag Archives: Fiduciary Duty

Conflict of Interest Policy

Church Officer and Director Liability

Endowments

Conflicts of Interest in Church Governance

Restricted Donations