I'm going to go out on a limb and guess that a very high percentage of churches that own property don't have the right level of insurance, if any at all. Is this a bold, ridiculous guess? Or, do I know something you don't.

First, I know from my experience that many church leaders have a hard time accepting the idea that they should pay for insurance to protect buildings and property. Honestly, some church leaders even have a problem with insurance coverage for defense costs in the event of a lawsuit.

Second, I read a lot of what's out there. How often have we read or heard about a church that was destroyed, either by arson, a hurricane, tornadoes, or other unfortunate event or catastrophe… only to learn that they will never rebuild because the church was under-insured, or not insured at all? If they decide to rebuild, it's usually on the financial backs of their members, who would much rather have footed an insurance bill than a rebuilding fund raising campaign.

Insuring the church and its property against foreseeable and unforseeable events should be one of the pillars of every church start up. Unfortunately, when many church leaders are busy starting a church, they mostly think about the ministry and outreach aspect. The idea of insurance may not realistically emerge to the forefront for months, or perhaps even years. In the meantime, they fail to recognize the enormous risk they face.

We know from recent events that disaster can and will strike anytime and anywhere. Even when we believe our earthly structures are… indestructible. If and when disaster strikes, whether in the form of a natural disaster, an atrocious act, or even a legal complaint against the church, will your insurance be enough to protect your church? Or will you be forced to close your doors… forever?

Here's one case where a devastating event has left an entire body of Believers unsure of what the future holds for them. No doubt they will wholeheartedly explore the idea of rebuilding. That's the natural response to such an event. But the uncertainty is simply too great when there was no insurance policy to foot the bill. Read it now at: www.msnbc.msn.com/id/16949257/

We're not really sure what will happen to the church in this story. But it doesn't sound too promising. What we didn't hear the spokesman say was, "We had the foresight to insure our property. We're already planning the rebuilding process."

Instead, I sense a sadness coupled with a feeble attempt to be brave. I understand the sense of loss and grief one can experience at a time like this. But my hunch is that the sadness comes from thinking of what it will take for church members to come up with the money to rebuild. Not an easy task.

It will certainly not as simple as it would have been to make monthly, quarterly or annual payments on an adequate insurance policy. Am I simply promoting insurance here? Not at all. It's a matter of being the kind of stewards that Jesus would have us be. It's a matter of being shrewd while innocent.

Adequate insurance coverage is not the only risk-management issue that churches face. And it certainly cannot replace an effective risk-management scheme of policies and procedures to help reduce risk and complexity. But should disaster ever come knocking on your church doors, be prepared so you find yourself piling tragedy upon tragedy.

Text Of Email Sent To U.S. Senator Kay Bailey Hutchinson on February 19, 2007:

Dear Senator Hutchinson,

I am writing to express my shock and extreme displeasure at the recent news about the physical conditions and atrocious treatment faced on a daily basis by our wounded war heroes at Walter Reed Army Hospital in Washington D.C. I am sickened by the news of severely wounded soldiers having to trudge across a busy road in extremely cold weather to line up for morning formation, after having to sleep with rats and roaches. Not only is it apparent that this military-discipline experiment on very ill human beings is absurd and useless, it's even more appalling that no intelligent, caring personnel seem to be in a position to do anything about it.

I am so incensed, I can hardly put into words the magnitude of my outrage that this is all happening just down the road from Congress and the White House, with no apparent show of concern from those in a position to change it right away. As a native San Antonian from a proud and patriotic American military family, whose own father died at Brooke Army Medical Center 16 months ago and two oldest brothers fought bravely in Persian Gulf War I (the oldest is now buried at Fort Sam Houston National Cemetery), I know that we can do better. Why should our Irag-war heroes deserve any less than any member of Congress would receive should he or she fall ill at any moment?

I would be interested in hearing from the honorable Senator about her specific plans to do everything within her power to make sure the conditions and treatment of our military heroes change IMMEDIATELY at Walter Reed and any other such facilities where military heroes must suffer through such undignified treatment. At this very moment, as I write these words and contemplate the facts as they have been reported, assuming them to be generally true, I am ashamed of how we as a nation have failed and insulted those who have given everything up for our safety and freedom.

I cannot imagine that it would not be worth your time to not only work diligently to change things for the sake of our heroes and their families, but also for your own sake and your ability to sleep well at night. I know this is not your fault specifically. But, as a member of the United States Senate and from the great state of Texas, no less, you have the power to influence this situation for dramatic change very quickly. This is the kind of situation where our elected representatives prove themselves worthy (or not) of the trust the people have placed upon them. I will pray for your wisdom and fortitude as you move forward on this matter.

Humbly and respectfully,
Abe Hernandez, Esq.

I get no pleasure from writing this post, as it deals with many of the issues I warn church leaders and faithful Christians against on a regular basis. My hope is that it will serve as a warning to church members, their ministry leaders and their boards, about what can and will happen when oversight is lax and a church board is nothing more than a rubber stamp for a forceful, if charismatic, pastor.

I won't try to break down, in this post, all the legal issues that are presented in this scenario. Not that I wasn't tempted to, as it reads like a veritable law school testing hypothetical. But it would be boring legal chatter and miss the whole point. Suffice it to say that this man did many bad things and no one seemed to be keeping an eye out… not just on him, but also on the church itself.

To me, it seems that in literally stealing ALL the church property out from under the unsuspecting congregation in tiny Ripon, CA, "Pastor" Randall Radic always intended to hurt people. Why else would he parade down main street to flaunt his "spoils"–the shiny new BMW he bought with the dirty money? Why would he do it in the first place?

It didn't seem that he was in a tight financial spot. He got to live in a parsonage (church-owned home that is provided to a pastor to live in), for which he was able to deduct the fair-market rental value from his ordinary income. Thus, if he was paid, for example, $75,000 annually as pastor of "Unsuspecting Church," and the fair-market rental value of the parsonage was $2,000 per month, his reported ordinary income would be no more than $51,000. Of course, when you take into consideration the numerous other deductions allowed under the IRS rules, such as maintenance expenses, utilities, furniture, etc,… the deductions from ordinary income could have brought his taxable income down to $30,000 or less, each year. Have you calculated lately the taxes on $30,000?

Now, I don't really know… but I wonder if anyone has even attempted an audit to see what kind of other money may have been embezzled along the way. I wouldn't doubt that it happened regularly, or that the congregation would rather keep it quiet.

It also seems that he did not have the stresses of family, like many good pastors do. There's no indication here that he was married or had children. In fact, his entire behavior is that of a man who doesn't have to look into the eyes of a young boy or girl and say, "Let me teach you to be honorable." Or perhaps, "Follow me as I follow Christ." Perhaps not all pastors with families with do that either, but when a family is involved, it's less likely that your pastor will sell the house out from under them as well.

Also, unlike another situation that most Americans are by now familiar with, there's no indication he was a closet homosexual, or drug addict, or both. But if he were, it would not have been known by a group of people who didn't seem to see anything wrong with hiring a younger single man to be pastor over a congregation of senior citizens.  Or was he hired? Is it possible that the church had never really established any structure of legal and/or religious authority? There is a suggestion that the church board was duped in this situation. But we don't really know if he was not perhaps, an all-powerful pastor with a rubber stamp board and no spiritual group to whom he was accountable.

Let me also address the church culture where members tend to claim their ministers as "favorite sons." That's part of what leads disciples to care little about setting up oversight procedures. That's part of what allows them to have unquestioned, if misplaced, trust. A minister is not someone who should be coddled and winked at by a bunch of older ladies, and looked upon by senior men to remind them of their younger days. The ministry is much more than a "job," or "profession." It's the role that God has ordained, through which He intends the flock to be cared for. Treating pastors like our grandchildren, or "that handsome young buck that preaches to us on Sundays," does the ministry a great disservice.

There are so many others things one can say about the shameful displays of selfishness and heartlessness by Radic, not just in selling the parsonage and church building, but also in how he rubbed it in the collective face of the congregation after the fact. The point is that churches all over this nation should take this as a warning. The enemy is not only lurking in the outskirts, he's also lurking within. The enemy is not merely a red, horned monster. Unfortunately, sometimes, the enemy is "us."

Because of this truth, the time is now to do everything within your power to protect your church, not just for yourselves, or the generation that follows, but for the good name of Christ. You mark my words, this evil man's exploits will one day soon be made into a Hollywood story. Are you not yet aware of how Hollywood likes to distort the image of Christianity and defame the name of Christ?

Don't give them the opportunity. Don't give the evil one a foothold. Stop the foolishness of slobbering all over charismatic single pastors and hold them, as well as all ministry personnel, the the standard of the bible. What other standard are you faithful to? Let someone help you learn how to protect your church. That's what I always preach.

You can find the article this post relates to at: www.msnbc.msn.com/id/17120210/

I have found that church administration is not the most popular topic to write about. If I were solely concerned with popular church topics, I would be doing churches a disservice. But, my vast experience in serving churches tells me that church administration articles are among the most important for any new ministry, even if they don't want to hear it.

Understanding the numerous areas of risk involved in a church ministry is one of the best ways to protect it. As with most other things, to inform is to empower. What every church, not just a new church, should know is that risk can be managed.

But before you can manage risk, you must first identify and understand it. Identifying risk is not always easy. At times, it may seem like common sense. At others, it's counter-intuitive. Understanding risk is also not easy. Too many people are blinded by too many things, such as life experience, bias, and deep-rooted desires. I have found that helping churches identify and understand risk is a slippery slope that must be negotiated, no matter how seemingly insurmountable the minds and egos on the receiving end may be.

Of course, identifying and understanding risk cannot be accomplished in one, or even a few articles. It must be a two-way conversation because it begins with taking a deep look at who you are and what you do as a church ministry. This exercise can be as hard and painful as looking at who you are and what you do as a person.

In the same way that people are complex, ministries are complex because they reflect who we are as people. We've all done things we thought better of in hind sight. So it is with churches. In attempting a bit of foresight, I will begin this conversation with just a short list of the issues that potentially face any church, and therefore, of the inherent and created risk.

In going through this list, and considering the real life manifestation of each issue, we have to keep in mind the common thread; churches are all about people. Churches are nothing without the close, everyday, intimate and complex interaction among hundreds, sometimes thousands of unique individuals. Jesus does not operate in a vacuum. Therefore, when you have imperfect people involved in each others' lives in ways that are among the most intimate and profound in all of society, things are bound to happen.

And it's not simply an issue of church members, there are any number of constituents who are similarly affected, not the least of which is the community in which the church operates. The interactions, relationships, events, activities, discussions, messages, and opposing forces all add up to a mixture that is ripe for dispute, controversy, and even causes and effects for which a church may be hauled into court. Sometimes it's worse. Real human lives are involved. Even children can be tragically impacted.

Indeed, risk and complexity are a normal part of any church, as with any other microcosm of society and the world at large. Churches will never fully rid themselves of risk and complexity, and it may not even be desirable to do so. That is not to say that it can be ignored. On the contrary, ignoring even a small part of the risk and complexity that accompanies a typical ministry has resulted in a literal explosion of litigation against churches in the last decade. Where suing a church was once unheard of, today it is commonplace.

These lawsuits are often triggered by power struggles, the sharing of confidential information, questionable counseling practices, sexual misconduct, membership issues and the like. But there is no limit to the ways that risk may present itself within a church or ministry. The conflicts and risk elements are often converted into the following types of legal claims:

• Breach of Contract
• Negligence - Premises liability or risky church activity
• Negligent hiring, supervision or retention of employees or volunteers
• Clergy malpractice
• Defamation
• Negligent or Intentional Infliction of Emotional Distress
• Breach of Fiduciary Responsibility
• Violation of Corporate Bylaws
• Invasion of Privacy, or Breach of Confidentiality, and
  
• Abuse in the Teen or Children's Ministry… to name a few.
  

We'd like to think that ministers and other church leaders are much more adept at thinking these things through when contemplating the start up, or maturing process, of a church or ministry. But, the truth is that you'll be hard-pressed to find that course in divinity school. Besides, ministry and outreach is what is foremost on most church leaders' minds. Which leaves risk management to administrators.

Yes, this is really for the church administrators who often see their roles as simply collecting and depositing the weekly contribution, and accounting for it to church leadership. A church administrator who doesn't fully embrace the more important role I lay out here, doesn't really understand his or her calling. Church administration is a biblical role. The ad-ministry is an important ministry alongside all others. I know, I've been there and done that.

In no particular order, the following are major elements of risk that must be managed to some extent in every church or ministry, no matter how large or small, and those that all church leaders should carefully think about and plan for. We will revisit each, one at a time, in future posts:

• The church's legal and corporate existence (hint: do an audit before you really have to)
  
• Financial health (hint: establish an effective policies and procedure infrastructure)
• Church's contract(s) with its ministry personnel (hint: decide if this is right for you)
  
• Church-specific Constitution/Bylaw (hint: think long and hard about what you will include)
  
• Summer Camps (hint: what precautions are needed and are you insured?)
• Youth Ministries (hint: are you doing background checks on youth workers?)
  
• Children's Ministry Guidelines (hint: this is one of the biggest areas of risk)
• Child Abuse Reporting Guidelines (hint: you must know exactly what to do, or face consequences)
• Christian Conciliation and Alternative Dispute Resolution (hint: decide to require this from all staff and employees to avoid future litigation)
• Appropriate Insurance Coverage (hint: failure to properly insure may be grounds for imposing personal liability on leaders)
• Board and Staff Training (hint: another large area of risk because it's ripe for abuse)
• Volunteerism, Screening, Training and Supervision (hint: huge area of risk because poor training and lack of control spell potential trouble)
• Policies on Avoiding Defamation (hint: know what to say or not say, when, how and to whom)
  
• New Church Start-ups (hint: to most critical time to consider all these issues)
• Church Polity (Denominational Structures) (hint: best to think it through from the outset and not when you're on the courthouse steps)
• Formation of Conventions and Associations of Churches (hint: how will you protect all these relationships and what they stand for?)
• Formation of Integrated Auxiliaries and Support Organizations (hint: how will they function and be overseen, and how will they benefit the church?)
• Association & Affiliation Agreements (hint: if you have one, was it drafted by a competent professional?)
• Legal and/or Religious Authority in the Church (hint: if you don't establish it now, it may be decided for you later)
• Ecclesiastical Tribunals (hint: will their authority extend beyond spiritual/religious?)
• Missions Societies (hint: how will funds be handled, distributed and accounted for?)
• Church-Owned & Leased Property (hint: are there other tax issues involved? What about insurance?)
• Ordination & Parsonages (hint: can you current practice subject ministers to possible audits?)
• Clergy & Social Security (hint: do you know what you need to know?)
• Special IRS Tax Benefits for Clergy (hint: are you maximizing them or losing out?)
• Pastoral Counseling (hint: when are you going beyond where the law protects you?)
• Clergy-Penitent Privilege (hint: what should you know about his?)
• Clergy in Church Administration (hint: how do you go from pastoral ministry to administration, and what does it practically mean?)
• Benevolence Funds (hint: you can get in trouble with lousy practices)
• The Church Audit Procedures Act (hint: how to use it to your advantage)
• Religious Publishing & the Commerciality Doctrine Music Licensing (hint: what should you know about this area?)
  
• IRS Section 501(c)(3) Tax Exemption (hint: if this is right for you, you do you get it and keep it?)
  
• State Tax Exemptions (income, franchise, sales, use personal and real property taxes) (hint: learn how to take advantage of these)
  
• Board Governance and Fiduciary Duties (hint: are for-profit corporate standards being applied to nonprofits and churches?)
  
• Board Committees (hint: know what they do and what their protocol should be)
  
• Corporate and Organizational Structures (hint: think it through now before it becomes unwieldy)
  
• Subsidiaries and Affiliates (hint: how can you use them to advance your purposes?)
  
• Financial Accountability and Executive Compensation (hint: how do you avoid running afoul of reasonable compensation and independent decision-making rules?)
  
• Title VII and Discrimination (hint: how does it apply to churches and can it benefit you?)
  
• Private Inurement & Private Benefit (hint: perhaps the largest area of concern, if not the most costly. It's a matter of integrity before the Lord)
  
• Excess Benefit Transactions & Intermediate Sanctions (hint: what are the costs?)
  
• Employee and Volunteer Expense Reimbursements (hint: learn to do it right and not over do it)
  
• Disqualified Persons & Conflict of Interests (hint: O.K., are you getting the message?)
  
• Employee Hiring, Evaluation, Discipline and Terminations
• Employee Manuals
• Employee vs. Independent Contractor Rules
• Employment and Severance Agreements
• Background Investigations
• ADA, COBRA and Employee Benefits
• FMLA, FLSA and OSHA
• Gifts to Employees and Taxation
• Sexual Harassment Policy
• Workplace Substance Abuse Prevention
• Unrelated Business Income Tax
• State & Federal Taxation
• Fundraising & Charitable Solicitation
• Gifts & Contributions
• Scholarship & Research Gift Programs
• Trademark, Copyright & the Fair Use Doctrine
• Records Retention Guidelines
• Nonprofit Lobbying and Political Activity
• Nonprofit Disclosure Rules Protecting, Exploiting, and Licensing an Intellectual Property Portfolio

Stay with me as we examine these issues in future posts.