Church Finance #5 - Are Churches Required to Follow Their Bylaws?

I've often heard the comment that "a church is not a business." I strongly disagree for several reasons. In the Bible we find: 1) The Early Church had a definite structure; 2) The Bible outlines positions in the Church and requirements for those serving in those positions; and 3) 1 Cor. 14:40 states, "Let everything be done decently and in order." When a Church organizes and incorporates, it is required to register with the State and provide a Constitution and Bylaws. The Church must meet Federal Labor Laws, comply with health codes, meet IRS expectations, etc. The Church may operate independently, but it also must operate lawfully.

Consider that just as churches have a "Statement of Faith" outlining the doctrine that they adhere to, an organized Church is required to have a "Constitution or Bylaws" defining how the church is structured, organized, and "conducts business." The Bylaws help the church function efficiently, define the mission, and outline the methodology. The Bylaws maintain unity and help the church avoid liability. Bylaws are NOT suggestions and cannot by selectively adhered to, ignored, or unilaterally changed by the pastor or deacons.

When a pastor or deacon(s) knowingly chooses to ignore or violate the Church Bylaws, they are putting the church in legal danger. All one has to do is a quick Google search and you can find lawsuit after lawsuit caused by a violation to the church bylaws. One such instance is discussed by Raul Rivera in an article on "Start Church" entitled, "When Churches Violate Their Bylaws:" "On any given day, within the 50 states, thousands of churches are in court because of disputes between members and leaders. These disputes usually begin with personality differences, but often times end up with both parties having to look at the details of the church's bylaws. Such was the case with a church in Ohio whose pastor chose to change the time of the church's annual business meeting. When some disgruntled members disagreed with his decision and noticed it was inconsistent with their bylaws, they sued the pastor. The court, in keeping with the church's bylaws, invalidated the meeting because the pastor did not follow the procedures stated therein.

Is your church following its Bylaws?
Are policies for selecting committee members being implicitly followed? Is proper notification being given prior to conducting meetings? Do all of your deacons meet the qualifications outlined in your Bylaws? Is the protocol for resolving conflict being followed? Is all church money being properly accounted for? If you could answer "no" to any of these questions, or you see any other areas of your church Bylaws that are not being followed... then your church is at risk for a lawsuit! Nobody likes to use the words "church" and "lawsuit" in the same sentence, but pastors, deacons, associates, and members often do NOT realize the seriousness of the situation and the risk they bring to the church.