Church leadership urged to review outdated agreements for legal clarity
A pastor and his senior deacon discovered that an old agreement to provide retirement payments to the former pastor was not legally enforceable, costing the church $180,000 in unnecessary payments over a decade. The post Church leadership urged to review outdated agreements for legal clarity appeared first on AFRO American Newspapers.
Black News 
By Kisha A. Brown
Most churches are overexposed. Even the ones with clean books and a strong trustee board.
I recently sat with a pastor and his senior deacon—good people, thoughtful, trying to do right by everyone. The pastor had inherited an agreement: provide retirement payments to the former pastor. And to his credit, he honored it.
For 10 years.
Then we met.
In a Legal Clarity Session, we created space to step back—not just to react but to assess. To ask: What are you actually responsible for here? What led you to this moment?
What surfaced was uncomfortable, but necessary: the original agreement may not have been legally enforceable at all. It was structurally flawed from the start. The old pastor spent the funds before he left and the agreement didn’t include any safeguards. No financial protections for the church. No proper legal grounding.
Yet for a decade, the church paid because they thought they had to. It wasn’t easy because this old debt cost them investing in their future.
When you look back and realize you have $180,000 less in your accounts – unnecessarily – that not only hurts pride but it’s the definition of being overexposed.
We think about financial exposure coming from loans and debt but legal exposure doesn’t show up on a balance sheet. It lives in old agreements no one revisits, handshakes that became obligations, and leadership roles that no longer serve current day needs.
I’m not criticising the church. I grew up in church, where everything important is rooted in trust, history and service. That history, though, can make asking questions often feel like disruption or drama instead of stewardship. (That’s a whole other topic.)
However, if you are in leadership at your church right now, consider this:
What financial commitments exist without clear legal grounding?
What agreements are you operating under that no one has reviewed in years?
What risks are lingering—simply because “this is how it’s always been done?”
My hat goes off to the pastor and his leadership team who listened to their inner voice saying they needed to look into that old agreement. What good is faith without works?
Legal clarity is not about being adversarial or making the church a courtroom. It’s about being aligned and leaning into expertise designed to support and sustain the church. That support is not a luxury, it is needed now more than ever.
The opinions expressed in this commentary are those of the writer and not necessarily those of the AFRO.
The post Church leadership urged to review outdated agreements for legal clarity appeared first on AFRO American Newspapers.
