This Week's LessonWeek of November 10
Our lesson this week examines the topic of church incorporation. The Executive Summary provides a concise review of the key points. Before we get started, test your knowledge by completing the following quiz.
A church was established in 1930. It has never been incorporated. A child is sexually molested by a church member during a church activity. The victim's family sues the church. The church's insurance company declines any coverage because of an exclusion in the policy for sexual misconduct. Some of the members are concerned that they may face personal liability for the victim's injuries. Should they be concerned?
Instructions Click on the correct answer for each of the following questions.
In many states, churches can incorporate either under the Model Nonprofit Corporation Act or under an alternative statute that was adopted prior to the enactment of the Act. Some alternative statutes involve the filing of a petition with a local court. Often, these alternative statutes contain far less detail than the model Act. Some states have enacted statutes that regulate the incorporation of specific religious organizations. This week's lesson addresses church incorporation.