The Top Five Lawsuits that Churches and Religious Nonprofits Face

We are often asked, “what are the most common lawsuits that churches and religious nonprofits face?” The list varies a bit from year to year and jurisdiction to jurisdiction. However, the five listed below tend to top that unfortunate list consistently. In many cases, you may face an “administrative action” rather than a lawsuit. These would be actions initiated by a governmental agency like the IRS, FTB or county code enforcement. The reality is that religious nonprofit organizations understandably focus on avoiding the rare but major problems yet live with a host of daily challenges that personalized and carefully crafted organizational documents can often remedy. Do not hesitate to contact the Christian Nonprofit Law Center for any of these needs.

1.   Sexual abuse of a minor.

a.   Do you have written policies regarding contact with minors?

b.   Can your youth leader text a kid on his/her personal phone?

c.    Can your youth leader enter posts on a kid’s social media account?  

2.   Real Property disputes & zoning issues.

a.   Landlord-tenant disputes (church could be in either position)

b.   Church changes name; deed doesn’t reflect the change.

c.    Noise complaints, zoning issues, C.U.P. issues, violations.

3.   Personal injuries.

a.   Kids on youth group activities?

b.   Ski day? Innertube collision?

c.    Elderly saint falls down the stairs.

4.   Insurance coverage disputes.

a.   What is covered and what isn’t?

b.   Are your board members covered if they get named in a lawsuit?

c.    Who is covered if your secretary sues the church board for wrongful termination?

d.   If your youth pastor is sued for molestation?

e.   Pastor is sued for professional negligence in relation to counseling.

5.   Employment issues.

a.   In California, can you pay your childcare workers as independent contractors? Or do you have to W-2 them?

b.   Do you pay minors to provide childcare?

c.    When can you use independent contractors versus employees?

d.   Do you need Work Permits for minors working at your church or religious nonprofit?

e.   What about “interns? Minimum wage controls.

f.     Overtime violations.