Every week, the National Center for Life and Liberty (NCLL) receives calls from pastors, ministry leaders, and Christian schools facing unexpected legal threats, some urgent, some subtle, but all potentially devastating if left unaddressed.
Our mission is simple: to stand in the legal gap so ministries can stay focused on their calling without the weight of legal confusion, intimidation, or litigation.
This month’s Insider Legal Brief highlights three situations that could confront any church: a ministry that unexpectedly lost its tax-exempt status, a congregation navigating leadership collapse after criminal allegations, and a routine accident that turned into a costly insurance claim.
This Month’s Featured Cases
When the IRS Revokes a Church’s Status
A congregation received a letter no church ever expects to open: notice that its federal tax-exempt status had been revoked.
Leadership was confused. The church had operated for years without issue. Tithes were steady. Reporting had been handled internally. Yet according to the IRS, required documentation had not been properly filed at some point in the past.
Without tax-exempt recognition, donor deductions could be affected. Payroll questions arise. Confidence within the congregation begins to waver.
The NCLL immediately contacted the IRS, reviewed prior filings, identified the documentation error, and guided the church through corrective submissions. Within weeks, their recognized church status was restored and the matter fully resolved.
What could have escalated into long-term financial and reputational harm was corrected with careful legal navigation and prompt action.
A Church in Crisis After Leadership Collapse
In another case, a pastor was arrested following allegations of inappropriate conduct with a young adult. The news spread quickly throughout the small community. The church removed the pastor, but uncertainty followed.
A neighboring church stepped forward, hoping to help stabilize the congregation and preserve its ministry. At the same time, attorneys representing the alleged victim signaled their intent to file suit.
Emotions were high. Multiple parties were involved. Governance questions emerged. Who was in authority? Who could make decisions? How should assets and operations be handled?
The NCLL worked behind the scenes to structure a lawful and orderly transition. We advised on leadership authority, helped protect the assisting church from unnecessary exposure, and established a framework for moving forward responsibly.
The goal was not to erase what happened but to ensure that ministry could continue in a healthy and accountable way.
An Accident That Became a Legal Threat
One church experienced what initially appeared to be a minor property incident. A commercial truck struck a tree on church property. The impact caused the tree to fall, damaging the vehicle.
Soon after, the trucking company’s insurer contacted the church, asserting that the church was responsible for the damages. Legal correspondence followed, suggesting potential claims against the church’s insurance.
The NCLL reviewed the facts carefully. The evidence showed the truck, not the tree, caused the incident. We defended the church’s position, prevented an unfounded claim from advancing, and ultimately positioned the church to recover costs for the damaged property.
What began as a routine accident could have resulted in unnecessary liability. Instead, it became an example of why ministries should never respond to legal threats alone.
Looking Ahead
These real-life cases remind us why we do what we do. When churches and ministries face lawsuits or legal threats, resources meant for outreach are diverted to legal defense.
By coming alongside them, we help ensure they can continue preaching the Gospel, serving their communities, and shaping lives for Christ as we move forward together in this season of ministry.
