Churches are spiritual sanctuaries, but they are also legal entities that must operate within the law. Every year, churches face lawsuits, IRS issues, and compliance challenges that can threaten their existence. Without the right legal protections, pastors and church leaders may find themselves personally liable for legal and financial issues.

In this guide, we will cover the five essential steps to legally protect your church in 2025. By following these steps, you can ensure your ministry is safe, compliant, and free to focus on its mission.

Step 1: Secure 501(c)(3) Status & Maintain Compliance

Why This Matters:

Having official 501(c)(3) tax-exempt status protects your church from unnecessary taxes, allows for tax-deductible donations, and shields you from legal risks.

How to Get It:

1. File Articles of Incorporation with your state.

2. Obtain an EIN (Employer Identification Number) from the IRS.

3. Create legally sound bylaws that define your church's governance.

4. File IRS Form 1023 to officially request 501(c)(3) status.

5. Follow annual compliance rules, including proper financial reporting and governance.

Want help? STRONGChurches simplifies this process to ensure approval without delays with our Strong Foundations System.

Step 2: Create Strong Bylaws & Legal Governance Structures

Why This Matters:

Church bylaws serve as the legal foundation of your ministry. Without them, leadership disputes, financial mismanagement, and legal vulnerabilities can arise.

What Your Bylaws Should Include:

• Church leadership structure (roles and decision-making authority)

• Membership requirements and voting policies

• Financial management rules (handling donations, budgets, and audits)

• Conflict resolution procedures

• Pastoral succession planning

If your bylaws are outdated or missing critical elements, STRONGChurches can help you revise them for full legal protection. Click here to find out more!

Step 3: Implement HR & Employment Best Practices

Why This Matters:

Many churches unknowingly violate employment laws by misclassifying staff, failing to document policies, or mishandling payroll. This can result in lawsuits and IRS penalties.

Essential HR Steps:

• Properly classify workers (employee vs. independent contractor)

• Create an employee handbook with workplace policies

• Ensure payroll tax compliance (especially for pastoral compensation)

• Implement clear hiring & termination policies

• Train staff on employment laws and liability protection

STRONGChurches provides a complete HR kit for churches to prevent legal issues before they arise. Want more information book a call with us today!

Step 4: Strengthen Child Safety & Volunteer Policies

Why This Matters:

Churches have a legal and moral duty to protect children and vulnerable individuals. Failure to have proper safety policies can lead to devastating legal consequences.

Key Child Safety Measures:

• Mandatory background checks for all staff & volunteers

• Two-adult rule (no child alone with a single adult)

• Clear reporting procedures for suspected abuse

• Safety training programs for all church workers

STRONGChurches offers a legally sound Volunteer & Child Safety Kit to keep your church protected.

Step 5: Protect Your Church with Legal Documents & Contracts

Why This Matters:

Churches frequently enter into agreements with employees, volunteers, contractors, and vendors. Without legally binding contracts, your church could be exposed to financial and legal risks.

Essential Legal Documents Every Church Needs:

• Facility use agreements (for rentals and events)

• Pastor & employee contracts (to define expectations and compensation)

• Independent contractor agreements (for worship leaders, guest speakers, etc.)

• Liability waivers (for events, missions, and youth programs)

STRONGChurches provides a complete set of Big Power Legal Documents to safeguard your ministry.

Final Thoughts: Take Action Now to Protect Your Church

Legal protection is not optional—it is essential for the health and longevity of your ministry. By securing 501(c)(3) status, creating strong bylaws, implementing HR best practices, strengthening child safety policies, and using proper legal documents, your church will be safeguarded from unnecessary risks.

Don’t wait until a crisis happens. STRONGChurches has helped thousands of pastors protect their ministries. Let us help you today.

👉 Click here to get started with STRONGChurches and secure your church’s future.