The Financial Duties of Treasurers, Diaconate, and Session Roger N. Wiles, J.D. Executive Director of Central Services Associate Reformed Presbyterian Church

Essential Board Issues Understanding Corporate Legal Status Risk and Liability Duties and Responsibilities Organizational Authority and Structure Business Side of Ministry

Financial Responsibility Corporate Legal Non-Profit Entity Corporate Holds In Trust Church Funds Fiduciary Not For Profit and Tax Exempt IRS 501(c)(3)

“Board decisions are corporate and legal – not ministerial or personal

Risk and Liability of Treasurers amd Board Members The Corporate Shield Piercing the Corporate Veil The Business Judgement Rule

“The better the preparation and analysis by treasurers and board members in making informed decisions – the greater their protection from liability.”

Financial Duties and Responsibilities Duty of Care “Reasonably foresee potential institutional liability.”

Financial Duties and Responsibilities Duty of Loyalty “Maintaining an undivided loyalty by avoiding conflicts of interest”

Financial Duties and Responsibilities Duty of Fiduciary “Acting in the best interests of the institution”

Financial Duties and Responsibilities Duty of Confidentiality “Keeping sensitive board business confidential.”

Financial Duties and Responsibilities Duty of Unity “Board decisions are corporate not individual.”

“Board members must always act for the highest and greatest good of the institution.”

Organizational Authority and Structure Session – Form of Government 5.17, 5.18 Diaconate – Form of Government 5.6, 5.10 Treasurer – Form of Government 5.11

“Financial governance and oversight requires clear unambiguous lines of authority and responsibility.”

The Business Side of Ministry “There is a business side to ministry today that did not exist a few generations ago.”

Finally Brethren,