Pages

Friday, July 2, 2010

RELIGIOUS NON-PROFIT ORGANIZATIONS

When the church membership becomes divided on a topic, tempers flare and lawsuits are filed. The role of courts is limited by the ecclesiastical abstention doctrine. This doctrine states that the courts will not adjudicate "religious" issues.

Many church organizations, however, elect to become "non-profit" corporations. As a non-profit corporation, a church possesses a statutory obligation to provide certain documents to its members "upon written request."

For accounting records, the membership list and other corporate records, the law states that the member must make the request "in good faith and for a proper purpose." Pre-lawsuit discovery is not a proper purpose. And, according to this case, "determining your rights in the Church's building and funds" is not a proper purpose. Why, because the church property and other assets is owned by the corporation, and not its members.

The moral of this story is that church members should always act with a proper purpose.

Two Rivers Baptist Church v. Jerry Sutton

No comments:

Post a Comment