by Lisa White

Legal Compliance, Lisa WhiteJune 26, 20260 comments

Are Your Church’s Governing Documents Compliant with Maryland Law?

The Maryland Corporations Code governs every religious corporation that is formed in Maryland by any church or congregation.  The statute contains provisions that govern hierarchical religious institutions like the Roman Catholic, United Methodist, United Presbyterian, and Episcopal churches – and it also has provisions governing independent congregations, such as independent Protestant churches, Jewish, Muslim, or other congregations. Many independent Protestant churches, Jewish, Buddhist, or Hindu temples, or Muslim mosques, have been around for decades, and function on a day-to-day basis without much thought to the organization’s governing documents.

Governing documents outline the religious organization’s temporal leadership structure, determine the duties, powers, and number of trustees, and state the election and removal procedures of trustees, among other topics. A religious organization’s governing documents include Articles of Incorporation, a Church (or organization) Plan, other policy and procedure manuals, and sometimes religious denominational documents. Articles of Incorporation are filed at the time of the religious organization’s formation with the Maryland Department of Assessments and Taxation.

As time goes on, the leadership of the organization may lose touch with the organization’s governing documents. It is all too easy for an organization’s leaders to evolve new patterns or methods of bringing in new leaders without a proper vote or without consulting the procedures outlined in its governing documents. This can create confusion and legal problems for the religious organization when disputes arise between members as to who has authority and what the scope of the person’s authority is. It is important from time to time to revisit the religious corporation’s governing documents to ensure compliance with Maryland laws for religious corporations.

Compliance of Governing Documents

From time to time, a Maryland religious corporation’s governing documents may need to be reviewed. A lawyer specializing in religious corporations can assist with revising these documents to ensure they are internally consistent with the practices of the organization and aligned with actual operations and denominational requirements. A lawyer also may identify conflicts between the documents and eliminate inconsistencies. The governing documents must be compliant with state laws, of course.

Modernization of Procedures

For religious corporations formed many years ago, governing documents may have been written before the current laws applicable to religious corporations were enacted. A religious corporation’s governing documents can be modified for ease of use to comply with the present and allow for participation and voting by electronic means, for example.

I assist churches and other religious corporations in modifying their governing documents to allow for ease of use in everyday operations, while maintaining compliance and flexibility. None of the information provided in this article constitutes legal advice. Every situation is different and should be thoroughly reviewed by and discussed with your legal advisors. Please do not rely on the contents of this article as a basis for making decisions regarding your situation. Please call us to schedule a consultation at (410) 489-1996.