Board Member

Continuing education for ministry leaders
Board Member
Weekly Lessons, created and written by Richard R. Hammar, J.D., LL.M., CPA, give you a basic legal overview of essential topics based on staff or volunteer positions within a church.

This Week's LessonWeek of July 7

Personal Liability of Board Members - Part 3

Introduction

This lesson focuses on the issue of Personal Liability of Board Members - Loans to Officers. You can review the Executive Summary to obtain the key points or read the Weekly Lesson for a more thorough presentation of this topic. Start by completing the following interactive quiz to test your knowledge.

A church board agrees to loan $20,000 to its senior pastor to enable him to make a down payment on a new loan. The loan is without interest and is payable upon demand. Does this kind of loan raise any legal issues?

Weekly Quiz

Instructions Click on the correct answer for each of the following questions.

Executive Summary

Church board members may be personally liable, under state nonprofit corporation law, for loans they authorize for any officer or director of the church. This week's lesson addresses loans to officers and directors.

Weekly Lesson

Church boards make loans to pastors for different reasons. The following examples illustrate some common scenarios.

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