Archive for category Legal Issues

Digital Real Estate

Have you heard the term “digital real estate”?

It refers to your ministry’s name relative to internet sites and domain names.

For instance – do you control your camp’s domain name?
        www.YOURNAMEcamp.org wwww.YOURNAMEcamp.com?

How about your Facebook group name
        www.facebookname.com/YOURNAMEcamp

Or your Twitter Address
        @YOURNAMEcamp

Maybe you would like to use these communication avenues someday – reserve them now or you will end up with www.YOURNAMEcampisgonesoyouhavetocomeupwithalongerhardertoremembernamethatnoonewillremember.com

Maybe you will never want to use these to communicate your message. Consider that anyone can claim these at any time, post what they want and some will be confused thinking it is your ministry.

From an early name we are taught to protect the good name we have been given. You have labored to create a ministry with a name worthy of the Lord, remember to protect that name in cyberspace!

If you have questions on how to do this, contact me and I will be glad to help walk you through the process.

Jim Schroeder
www.jimschroederlaw.com
Facebook – www.facebook.com/revesq
Twitter – @jimschroederlaw

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Recruiting Board Members

Every camp rises and falls on the strength of its volunteer base. The core of that base is often the members of board. Does your camp have a plan for identifying, recruiting, educating and appreciating your board?

One of the projects I have been working on recently was to put together a board members manual for a ministry organization near and dear to my heart. I have been working through the question:

What should every board member have readily available to them?

Remember that every member of your board has a fiduciary duty (ensure the resources of the organization are properly utilized), a duty of loyalty (to put the good of the organization above any other need in their role as a board member) and a duty of obedience (to follow the bylaws and controlling documents of the organization as well as the law). In order to fulfill these duties each board member must understand the workings of the organization and have access to information.

I would encourage you to consider putting together a board member packet and maybe an abbreviated packet for each prospective board member. I would consider these items for the packet:

  • Board Member Job Description – outlining what are the responsibilities and expectations of service
  • Dates of Upcoming Meetings – schedule as far in advance as you can to ensure maximum participation
  • Doctrinal Statement – if you care about your doctrinal heritage, each board member needs to be informed about it
  • Most Recent Financial Statement and Budget
  • Description of Programs or Ministries of the Camp Ministry
  • A Brief History of the Camp
  • List of Current Board Members
  • List of Key Volunteers and Any Paid Staff along with their duties/responsibilities

This is information the President of the Camp should have readily available.

You might consider scanning these documents and emailing the packet to your new board members if you want to save paper and postage. If the board member wants to print it out they can do so at their leisure.

One of the biggest issues we have as camp leaders is the feeling we must do it all ourselves. With an informed, effective board you will find the load is often more evenly distributed. Rather than one more thing to do at camp, look at your board packet as a way to magnify and multiply your efforts in the ministry by enlisting and empowering other volunteers.

Are there other items you think should be included in the packet? Comment below.

Let me know if there is anything I can do to assist you with this or any issue you have as you lead your camp meeting.
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Jim Schroeder jim@campmeetingleader.com

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Financial Accountability – What About Doing the Books Online?

Things are changing fast in the technological age which allows for some collaboration and accountability in ministry which we have never seen before.

One of the big issues for a camp is finding committed volunteers to do the books and furthermore, to get timely reports so that the members of the board and leadership can fulfill their fiduciary duties (Board members and elected officers have a responsibility under the law to protect the financial interest of the organization – to be informed and aware of the financial dealings of the organization).

While some of our volunteers are very comfortable with a ledger book and paper to keep a record of the camp’s dealings, as these duties are passed to a younger generation the bookwork will likely be done on computer, either in an excel or other spreadsheet or in an accounting software program.

I welcome any recommendations regarding good accounting software. My favorite for my law practice and for several ministries I am involved with is Intuit’s Quickbooks. While they have several editions and their website recommends the Intuit QuickBooks Premier Industry Edition 2009 which costs $400 for one user, I have had success with the Quickbook Pro Edition with is only $200 for new users. I tried Quickbooks for Mac and was thoroughly disappointed before returning it and moving back to QB Premier.

Now a new option has emerged which might make more sense for a camp ministry, Quickbooks Online. QB Online is part of a new wave of options known as SaaS or Software as a Service. Rather than purchase a CD-ROM with the software, installing it on your machine and running it, the user gets a id name and password and logs onto the companies website to use the software.

There are several benefits to this type of application. First your data is protected and backed up off site. If your treasurer’s five year old PC crashes and he or she has not done sufficient backups you are in trouble. However if you are using a SaaS one only need to log on from a different computer and access the financial information. Second with SaaS there is no cost to upgrade or update the software on the computer. Many of these programs come out with new versions every couple of years and all but require you to upgrade at the cost of $100-$200. With SaaS the company is responsible for keeping the software updated, fixing all glitches in the program and correcting any known security issues.

The cost of Quickbooks Online Plus is $35 per month which I recommend rather than the Basic version at $10 per month. The Plus version gives your volunteers over the phone customer support with their questions, allows for three persons (maybe this would be a treasurer, financial secretary and the President or Chair of the Financial Committee) to log on and access data or print reports. In all versions of Quickbooks Online the organization can designate an accountant who has complete access, can go online and print or download any information they need for annual returns or to do a full audit.

There are a lot of benefits to using SaaS if your ministry has volunteers ready to use this type of technology. The cost of $35 per month may be prohibitive but is not significantly higher than using the software on CD and has significant advantages.

There are other options for SaaS accounting but Quickbooks is the company I am most familiar using. If you have had success with another application for financial accounting I would love for you to comment with the information. Also I am curious as to what are your biggest frustrations when it comes to keeping good organization financial records? What have you discovered helps make accounting more effective or protective of the integrity of the ministry? Let’s help each other!

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Conflict of Interest Policy

Many camps hold their annual meeting during their camp season. Now is a good time to examine your bylaws to reacquaint yourself with what they state about your organization.

Your Constitution and Bylaws are the controlling document of your organization and a valuable tool in operating the ministry. Sadly many leaders are hard pressed to find the time to review and revise them. You are not alone (the first church I served had last reviewed their membership list 6 months before my birth) so don’t be discouraged. A little investment of time will help you lead.

One of the areas where your document likely needs some fine tuning is to add a conflict of interest policy.

From the IRS, “The purpose of the conflict of interest policy is to protect this tax-exempt organization’s (Organization) interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director of the Organization or might result in a possible excess benefit transaction. This policy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations.” IRS Website

Simply put, if your organization has any business dealings with a director, trustee, officer or other recognized leader of your organization there needs to be a procedure in place to make sure the transaction passes the “sniff test”.

EXAMPLE:
John Smith is a Trustee of Asbury Camp Meeting and also owns Smith Roofing. John has offered to re-roof two of the dormitories. The camp will purchase the materials and John’s crew will do the job for $1,000. The camp board has a duty to ensure there is no conflict of interest in John’s action, for the camp’s and for John’s reputation and integrity.

A simple process might look like this:

DISCLOSE – John or any “interested person” has a duty to disclose when the organization is contemplating doing business with an entity in which they have an ownership or significant affiliation.

DETERMINE – The camp board must determine by an established criteria if a conflict exists.

ADDRESS – The camp board must address the conflict in an appropriate manner. In our example above the camp could do so by having another roofing company give a bid or having a contractor appraise the value of the work.

REPORT – If the camp files an IRS 990 report it needs to report this transaction. Also it is a good idea to report the transaction at the next annual meeting and ensure the transaction and board action are recorded in the camp business minutes. Often this is a great time to congratulate one of your valued volunteers, “John Smith and his crew did a beautiful job repairing the dorm roofs – the job was valued at $8,000 and John’s company would only accept $1,000 for the work.”

Having a plan for dealing with potential conflicts keeps your organization current and compliant with federal guidelines, shows your donors and family you are serious about organizational leadership and integrity and can also save you hard feelings and false accusations.

Link to the IRS Website with a sample Conflict of Interest Policy

Note – The IRS policy is very comprehensive and broad-based. If you are interested in the topic or any issues regarding your bylaws, email me at jim@therisongroup.com.

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Child Abuse and Reporting Issues

One of the most crucial and stressful moments any clergy person or camp director experiences is when someone confesses to or alleges child abuse.

The scenario often takes place after a counselor sees marks on a student or a student alleges they have been abused. Occasionally and if it is possible to be even more tragically the abuse occurs on camp. In several instances the abuser came to an altar of prayer and confessed the abuse, in one case did so in a public testimony after rising from the mourners bench.

When considering issues of child abuse and reporting there are three questions you need to ask. The answer depends on your state’s statutes. Let me be clear that this is not a moral argument for or against reporting alleged child abuse but rather a question of what you should consider under the law.

First – What is your state’s definition of “reportable” child abuse?
Second – Who is, by law, legally obligated to report in these situations?
Third – How do I report child abuse?

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What is “reportable” child abuse?
The definition depends on your state. You can go onto your state’s website or contact your state’s department of child welfare. Generally the person must be or have been under the age of eighteen unless they have a mental disability in which case the age is irrelevant. The abuse may be physical, sexual, mental, emotional or neglectful behavior in the case of a parent or caregiver.

Who is legally obligated to report?
Clergy are often required to report and in some states the obligation pierces the clergy-pentinent privilege, especially in circumstances where a person confesses abuse and still has access to the abused.

School personnel, doctors, dentists, child care workers and other persons are also required to report. In Ohio camp counselors are specifically named in the statute requiring reporting of child abuse.

For example if you have a Medical Doctor who is counseling a young person at the altar and abuse is alleged they may be required to report. In some instances, by definition a camp counselor is required to report. I suggest camps prepare a manual for their youth staff which includes procedure when facing these situations.

How do I report child abuse?
Again, this differs from state to state but generally there are two acceptable ways to report. The first is to contact the state division of child welfare, division of youth and family services or other similar state agency. The second is to contact the county sheriff’s office.

Do not call and leave an anonymous tip or report if that opportunity is available. You will need a record of your compliance with the state laws. If you report via phone or give a statement to an agent of the state it is also a good idea to follow up with a letter documenting that on (x) date you made report to (x) office regarding allegations of child abuse and giving your contact information for follow up. Do not name the parties nor detail the evidence in this letter, the letter is simply to prove at a later date that you have complied with your duty to report.

Failure to Report – Potential Civil Penalties
In the states of Georgia, Iowa, Kansas, Maine, Mississippi, Missouri, New Hampshire, Pennsylvania, Texas, Utah, Washington and Wisconsin those who are required to report and fail to do so may be sued civilly for damages related to their inaction.

A Final Word
Over the past few years in our legal seminar we have addressed these situations and strategies for leadership to prevent abuse and mitigate damage once it has occurred. I encourage you to make arrangements to attend the fall conference – the program is free of charge thanks to our generous supporters. We meet together and share best practices regarding how to lead camp meeting ministries – I assure you there is no other event quite like it.

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Camp Meetings and the Homosexual Agenda

Last year at the camp meeting presidents conference I referenced a case out of Ocean Grove New Jersey where a camp meeting lost their not for profit status for refusing to allow a homosexual union to be held on their property.  This recent article from the 10/27/2008 Los Angeles Times references the case and puts it into a greater context of religious freedom and organizational autonomy.

Gay rights and the 1st Amendment on a collision course

Point: Dean R. Broyles

Does same-sex marriage threaten your freedoms of speech and religion? Put slightly differently, does the coordinated legal agenda of those who oppose Proposition 8 have the potential to undermine core 1st Amendment rights? Today in California and across our nation, the homosexual legal agenda and 1st Amendment rights are on a violent collision course. Religious freedom is your right to believe, profess and practice your faith without government interference. Freedom of speech is your right as a citizen to express yourself without government interference, no matter how unpopular your views. Freedom of speech includes religious speech.

In a Proposition 8 debate panel I was a part of a few weeks ago, an ACLU attorney kept repeating the mantra that same-sex marriage poses no threat to religious freedom. However, a broad range of constitutional attorneys and scholars disagree and affirm that this “rights” clash is real. Marc Stern of the American Jewish Congress calls it a pending “train wreck” or “Armageddon.” In a chilling statement, Chai Feldblum, a Georgetown University law professor and thoughtful gay activist who helps draft federal legislation related to sexual orientation, said that when push comes to shove and religious- and sexual-liberty conflict, “I’m having a hard time coming up with any case in which religious liberty should win.”

The actual evidence is overwhelming that this conflict is not imagined but very real. Unfortunately, religious freedom and free speech are increasingly on the losing end of the equation. In 2005, Swedish minister Ake Green was sentenced to jail for preaching about homosexuality from the New Testament book of Romans (the conviction was eventually overturned). New Jersey’s Ocean Grove Campground, a religious nonprofit, lost its tax-exempt status in 2007 because the organization refused to rent its facility to a lesbian couple for a civil commitment ceremony. In 2006, Catholic Charities of Boston stopped doing adoption work rather than be coerced by the Massachusetts to place children with same-sex couples. A Massachusetts father was arrested in 2007 when he would not leave the school because the administration stubbornly refused to acknowledge his legal right to opt his child out of ongoing homosexual indoctrination occurring in a kindergarten class.

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Creating Corporate Structure – Membership or No Membership

This week I am writing the bylaws for a youth sports organization here in New Jersey.  One of the questions I have been working on with the initial officers is whether to have a membership or a non-membership structure.  Both types of structure satisfy the Internal Revenue Service guidelines if done correctly so organizations do have a choice to make.

While I believe there is a time and a place for a membership driven not-for-profit organization, I believe it is rare in today’s legal culture.  There are reasons why the choice was much more palatable historically than it is now, but I won’t go into those here.  A nonmember structure is the superior choice for most new organizations because:


  • The simplicity of operation – Nonmember organizations can avoid having to return items to the voting membership or answering questions as to why they did not bring a certain issue to the voting membership.  The organization can hold internal elections and does not have to provide official notice to the entire body of the annual meeting.
  • Setting up a membership with voting rights hamstrings the board.  Assuming you have correctly vetted, trained and informed a good group of board members there is little a vote of the general body can add to the debate other than divisive feelings and lower morale.  A good board will bring in experts from outside of the board who are in love with the work of the organization and who can inform them on tough issues.
  • Trying to dismiss or expel a member is hard and getting harder in today’s legal climate.  If it comes to having to ask a member to leave they are often angry and bitter toward the board or the leadership, these are just the kind of irrational people who will sue to enjoin you from removing them.  Increasingly the courts are siding with the disenfranchised member.
  • Most people who want to support your group are not interested in having voting rights, they believe in your charitable outreach and want to get involved at some level in the work.  Beware of those who are interested in getting involved for the voting rights.  That is a storm brewing!
  • Many organizations find it hard to keep the important records of who is a member and do a poor job of vetting members.  A fight at the annual meeting over who and who cannot vote can cause a lot of damage to your organization.
  • If there is no voting member annual meeting you can still hold an annual meeting.  Rent a hall, hold a board meeting early in the day and that evening have a celebration banquet, share what good things have happened that year hand out awards, introduce new board members and network with your donors and friends to build goodwill and resources for your organization.
  • You can still create a class of supporters, in some states (check your state laws) you can even call them members.  You can also call them partners, the President’s Circle, the Gang of 250, use your marketing ability and imagination.

If you are birthing a new organization I recommend a nonmember structure.  If you are leading an existing structure I urge you to consider changing to a nonmember structure if at all possible.  I realize it may not be possible.

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Roberts Rules of Order

Once a meeting grows beyond 20 or so people the dynamic is for side conversations to break out and a meeting can quickly become stuck in a whispering quagmire. These situations require a different mindset than one would use in a meeting of a dozen or less persons. Roberts Rules are a proven tool for organizing large meetings.

Roberts Rules have fallen out of favor as public schools have cut parliamentary procedure from their curriculum and even extra curricular activities. (I learned Roberts Rules in an elective class at my New Jersey High School named Model Congress, my wife learned it at her Ohio High School in the FHA program)

The main hurdle in using Roberts Rules is to know them. At the Camp Meeting Leader’s Conference I will be sharing a little on Roberts Rules and how they can be an effective meeting tool. I would encourage every gavel holder or convener to study Roberts Rules and carry a “cheat sheet” like this one found at Jim Slaughter’s website There are other worthwhile resources on this site as well.

Along with these resources, if I were to have one book on Parliamentary Procedure (I have 4) it would be:

Robert’s Rules Of Order Newly Revised In Brief (Roberts Rules of Order (in Brief))

It is a small and handy book that fits easily in your bag. It is also very user friendly including a great section on “what to read if you only have 30 minutes”. It would be a great gift for those in your camp who tend to get a little side tracked at meetings!

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Camp Counselors and Background Checks



Senate Bill 321 is working its way through the Ohio Legislature. The bill would require all Ohio day and overnight camps to perform background checks on their staff.

Senator Stivers is the sponsor of the bill whose introductory paragraph reads:
…to require a criminal records check conducted by the bureau of criminal identification and investigation to be completed for each employee of a residential camp and to require a social security number criminal records check to be completed for each volunteer of a residential camp.

Already the state welfare department is doing checks on camps, though they have little power to enforce background checks.

An article from the July 6, 2008 Columbus Dispatch states:

“We are putting a structure into place where we can levy fines and work with the attorney general’s office to collect fines,” he said.

The department polled 96 of the 250 or so children’s day camps, 70 more than it checked last year, and found that 42 percent hadn’t conducted the background checks.

Read the full article here.

Massachusetts and at least four other states already require background checks. Ohio looks to join these states by next summer.

Though your state may not require background checks for counselors, making that investment is a proactive move you should consider.

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