Jump directly to the content

Pastor, Church & Law

written by Richard R. Hammar, J.D., LL.M., CPA

Violation of Trust Terms

Volume 2 . Chapter 6 . § 6-07.5
Key point 6-07.05. Church board members may be personally liable for diverting designated funds or trust funds to some other purpose.

1. In General

Church officers and directors may be legally accountable for violating the terms or restrictions of properties and funds held in trust by the church. To illustrate, the trustees of one church were sued by church members when they attempted to sell church assets contrary to the restrictions specified in the church charter.269 The original charter of the church stated that it was formed "for the purpose of religious worship … at the corner of Fifth Street and E Street, Southeast, in the City of Washington."

In 1982, after the safety of the historic church building became an issue, the pastor and ...

Article Preview

This article is currently available to ChurchLawAndTax.com subscribers only. To continue reading:

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."

Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.


ChurchSalary

ChurchSalary

Experience a whole new way to set compensation. Eliminate the guesswork – get access to detailed compensation reports in just minutes.

Setting Wages and Benefits for Church Staff

Setting Wages and Benefits for Church Staff Subscriber access only

This training download addresses key aspects of compensation planning for church employees.
Essential Guide to Church Budgeting

Essential Guide to Church Budgeting Subscriber access only

Good budgeting will help your church stay financially healthy.