3 Important Questions Every Church Should Ask About Risk and Compliance

Strong church risk management starts with asking the right questions. Evaluate your church’s governance, financial controls, employment practices, and compliance safeguards to identify vulnerabilities before they become costly problems.

Important Question 1:
How can your church reduce risk, strengthen governance, and protect your tax-exempt status? 

There are multiple things that can be done for each of these areas such as performing a risk assessment and providing governance training for your board. Think about each of these areas and consider 1) what you need to improve and have the resources to do so, 2) what you need to improve, but don’t know where to start, and 3) what areas you don’t know if they are a problem or not. Usinh the Annual Church Legal Checklist may be a good place to start.

Important Question 2:
Where are churches most susceptible to fraud and is your church protected? 

Thinking that you trust your staff and not going further than that is a big red flag. You must still have good internal controls in place involving more than one person in each process. The most likely places for problems are donations that never get counted and deposited, inappropriate expense reports, and payroll fraud. Church Law & Tax  has resources available from simple checklists to training for all levels within your church. Check out this resource.


Protect your church with trusted guidance.

From governance and fraud prevention to employment practices and tax compliance, church leaders face decisions that carry real legal and financial consequences. A Church Law & Tax membership gives you practical checklists, expert guidance, training, and in-depth resources to help you identify risks and take action with confidence.

Become a member today and give your church the tools it needs to stay compliant, financially sound, and prepared.


Important Question 3:
What employment practices do you have in place to meet the breadth of requirements that apply to your church? 

Just because it is easier to pay someone as an independent contractor or as a salaried employee instead of an hourly employee, does not mean it will be compliant with state and federal laws. Documentation is also key from performance reviews to employee files. Review Do We Follow Sound Employment Practices checklist to determine areas that may need your attention.


Stay informed. Stay ahead of the risks.

Church laws, tax rules, employment requirements, and financial best practices keep changing. Church Law & Tax’s free newsletters deliver timely, practical guidance to your inbox so you can spot emerging issues and make better-informed decisions for your church.

Sign up for our free newsletters and get trusted church legal, tax, finance, and risk-management insights delivered to you.


Vonna Laue has worked with ministries and churches for more than 20 years. Vonna was a partner with a national CPA firm serving not-for-profit entities through audit, review, tax, and advisory services. Most recently, she held the role of executive vice president for a Christian ministry that works to enhance trust in the church and ministry community.

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.

Ask Richie

👋 Hello! I'm Richie, your AI assistant. How can I help you today?
ajax-loader-largecaret-downcloseHamburger Menuicon_amazonApple PodcastsBio Iconicon_cards_grid_caretChild Abuse Reporting Laws by State IconChurchSalary Iconicon_facebookGoogle Podcastsicon_instagramLegal Library IconLegal Library Iconicon_linkedinLock IconMegaphone IconOnline Learning IconPodcast IconRecent Legal Developments IconRecommended Reading IconRSS IconSubmiticon_select-arrowSpotify IconAlaska State MapAlabama State MapArkansas State MapArizona State MapCalifornia State MapColorado State MapConnecticut State MapWashington DC State MapDelaware State MapFederal MapFlorida State MapGeorgia State MapHawaii State MapIowa State MapIdaho State MapIllinois State MapIndiana State MapKansas State MapKentucky State MapLouisiana State MapMassachusetts State MapMaryland State MapMaine State MapMichigan State MapMinnesota State MapMissouri State MapMississippi State MapMontana State MapMulti State MapNorth Carolina State MapNorth Dakota State MapNebraska State MapNew Hampshire State MapNew Jersey State MapNew Mexico IconNevada State MapNew York State MapOhio State MapOklahoma State MapOregon State MapPennsylvania State MapRhode Island State MapSouth Carolina State MapSouth Dakota State MapTennessee State MapTexas State MapUtah State MapVirginia State MapVermont State MapWashington State MapWisconsin State MapWest Virginia State MapWyoming State IconShopping Cart IconTax Calendar Iconicon_twitteryoutubepauseplay
caret-downclosefacebook-squarehamburgerinstagram-squarelinkedin-squarepauseplaytwitter-square