Congregational Life Hub – Governance
Congregational Life Hub
There are a number of sections in the hub that are of use to all our congregations. In this series we are looking at some of the webpages that are of use to LCNZ congregations, parishes, leaders and members. Have a read and make use of these resources.
Governance (Governance)
Governance refers to the role and responsibilities of boards of organisations. In our congregations, a designated group is elected or appointed by the congregational members, which works with and leads the congregation. This page provides resources designed to help those on church councils to understand and fulfil their roles.
LCA Governance Handbook for Parishes and Congregations
The Lutheran Church of Australia (LCA) is committed to carrying out our mission responsibly and effectively through exercising good governance policies and practices consistent with our theological foundations and obligations to obey the laws of Australia and New Zealand. The LCA Governance Handbook for Parishes and Congregations has been developed and approved by the General Church Board to support this commitment. This handbook is part of a broader Governance Framework developed by the church for the purposes of:
- documenting its commitment and approach to good governance practices
- defining clearly the roles and responsibilities of parish and congregation councils
- providing interested persons within the congregation/parish an insight into the structure and operations of the congregation/parish, its relationship to the wider church, and respective authorities of the church and congregations/parishes.
Download a copy here: https://www.lca.org.au/download/governance-handbook-for-parishes-and-congregations/#
Mission and Vision
Having a mission and vision can unite a congregation. It helps to give you a common direction and ensures that everyone is on the same page, working towards the same goals. A mission and vision that is regularly articulated, referred to and promoted reminds your congregation of what your key focus should always be. It guides your decision-making and helps you keep the main thing the main thing.
- Your mission statement is your overall purpose. It should be concise and specific.
- Your vision is the inspirational, long-term desired change resulting from your ministry.
Change Management
We are part of a changing world. Change is a part of life and our church life. It cannot be avoided. Churches can have a tendency to resist change because of the comfort of past success, practices and traditions. Change can be difficult. It takes wisdom and courage.
Change can also bring excitement, energy, fresh perspective and new ministry opportunities. Responses to change often depend on how it is presented, communicated and managed. The LCA have provided a number of documents to help you. Please download them ands use trhmn in your church council meetings and deliberations.
Constitution
It is important that the chair and members of congregational or parish councils read and are familiar with their constitution. It is also recommended that the constitution be reviewed periodically.
A constitution is a foundational document that sets out the beliefs, objects, powers and operations of an association, in this case, the congregation or parish. The constitution also provides a framework for the association to go about its business, including how to conduct meetings of the association and the governing body.
New Zealand arrangements for the legal structure of an association (which is what the congregation or parish is, in more legal terms). Please seek the advice of the LCNZ district administrator about the legal structure of your congregation or parish.
NZ Charities Services requires all associations to have a valid constitution.
All congregation and/or parish council members must have read and understood the constitution to ensure correct procedures are followed, particularly in relation to the calling and holding of meetings. Contact the LCNZ district administrator for assistance if you do not understand parts of the constitution.
The LCA recommends that all constitutions be reviewed regularly to ensure that the constitution is in line with the happenings of your congregation or parish. Regular review is also required to ensure that all current legislative requirements are included.
Incorporation or unincorporated
It is important for church governing bodies to have an understanding of their legal structure. There is a big difference between being an incorporated or unincorporated entity.
Unincorporated
Unincorporated associations are not separate legal entities from their members. They are technically a collection of people acting together who have agreed to pursue a common purpose, such as to establish a faith community.
As an unincorporated association has no legal identity, it cannot hold assets in its own name. It cannot own land or property, employ people, enter into contracts in its own name, or sue and be sued.
The members of an unincorporated association do these things on behalf of the association. The members may have individual liability for the association’s debts and defaults. The association cannot be sued, but individual members may be sued.
For further information on unincorporated associations, refer to the Charity Services
Incorporated
If an organisation becomes incorporated, it is recognised as a legal entity with an existence separate from that of its members.
An incorporated organisation can:
- make contracts in its own name
- sue and be sued in its own name
- hold assets in its own name
- be eligible for many types of grants.
When an incorporated organisation has liabilities, its own assets can be used to pay the liabilities; however, assets belonging to a member cannot be taken. If an incorporated organisation is sued, its members will generally not be personally liable. If the organisation does not have enough assets to pay its debts, it can be wound up; however, members will not have any personal financial responsibility.
It is important to consider incorporation if your congregation:
- owns any land that must be registered in the Lands Titles Office or any other substantial assets
- employs someone
- needs insurance
- wishes to enter into a substantial contract
- wishes to apply for a grant of funding.
In New Zealand the LCNZ has the LCNZ Trust Board which holds real assets (buildings, land and other significant assets) on behalf of the parishes or congregations. Please contact the LCNZ district administrator for further information. A number of congregations also have their own trusts to hold their assets separately.
Legislation
Church councils must be aware of and comply with their legislative obligations.
The accordion on the LCA website has been designed to introduce you to the key areas that need to be addressed by church councils and also refer you to sources where you can discover more detailed information. Scroll down this page to access the accordion: Governance
Risk Management
Risk management is a proactive process of identifying possible risks, problems or disasters before they happen so you can protect your people and assets. This allows you to set up procedures to avoid the risk, minimise its impact or, at the very least, help cope with its impact. Scroll down this page to access the risk management pages: Risk Management
If you have any questions, please contact your LCNZ district administrator.
Debbie Venz
M 021 2232734
E debbie.venz@lutheran.org.nz
