At LifeChurch.tv, risk management strategies are in place to protect information, financial assets and non-cash, intangible resources.

As church leaders, we understand that we’re called to steward the financial resources God has entrusted to us. The cornerstone of stewardship is an effective process of internal control.
But, what  is “internal control?”

A solid foundation
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is widely regarded as the authoritative source on the establishment of an internal control framework. COSO defines internal control as “a process, effected by an entity’s board of directors, management and other personnel … designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.”

The foundation upon which an effective internal control process is built is the control environment. Commonly referred to as the “tone at the top,” the control environment consists of the attitudes, values, awareness and tone of the church’s governing body and senior leaders. Taking the high road of financial accountability requires that church leadership demonstrate: heart for financial accountability, a willingness to be diligent, and an acceptance of policies and procedures. These values are elements of a healthy control environment.

Should every action or transaction be the subject of an internal control policy and procedure? Absolutely not! If that was the case, our churches would become seas of bureaucracy, with no time or energy left for ministry.

Instead, within a healthy control environment, we’re able to engage in an ongoing process of financial risk assessment: identifying the risks to the church’s ministry, and assessing for each risk the likelihood of its occurrence — along with the magnitude of its impact, should the risk become reality.

As each risk that poses a great threat to the church is identified and assessed, we may choose to accept the risk, if the likelihood of occurrence and/or magnitude of impact is very low; eliminate the risk by avoiding the activity altogether, if the likelihood of occurrence and/or magnitude of impact is high; or mitigate the risk by implementing effective internal control activities.

Common risk management strategies
For the remainder of this article, we’ll address some areas of financial risk that are common to all churches, and the control activities we’ve chosen to put in place here at LifeChurch.tv.

Cash receipts: Policies and procedures for processing the offering are documented. Each person assisting with the processing of the offering is required to have previously completed training. A minimum of two people must be present while the offering is being processed — no exceptions! The offering is processed in a secure location, away from high-traffic areas, behind a closed door, and often in the presence of a hired security officer. Cash receipts are promptly deposited. (We deposit checks immediately using electronic deposit software.)

Cash disbursements: Each staff member has an approval authority limit, based on his or her position and experience. Invoices or check requests in excess of the requestor’s approval authority limit are processed only upon secondary approval by the requestor’s supervisor. Policies and procedures for personal reimbursement of business expenses (including limitations on travel and meals) are documented. Each staff member must submit substantiating documentation for expense reimbursements within 60 days of incurring the expense. All personal reimbursements require supervisory review and approval.

Purchasing cards: Each staff member’s purchasing card, or P-card, is structured with a monthly spending limit, a per-transaction limit, and restrictions from purchasing with certain types of suppliers. P-card expense reports are required to be submitted monthly, along with substantiating documentation and supervisory approval. Accidental personal purchases made on the church’s P-card are required to be reimbursed to the church immediately. Noncompliance with P-card policies results in revocation of P-card privileges and/or disciplinary action.

Compensation/private inurement: Church resources (facilities, finances, personnel) may not be used for personal or for-profit purposes. The compensation of the highest levels of leadership is approved by an independent compensation committee, in a process that meets the IRS requirements for establishing a rebuttable presumption of reasonableness. The compensation of all other team members is based on the results of a formally documented annual performance review process.

Financial reporting: The leader of each department is responsible for preparing a budget, which is reviewed and approved by church leadership. Leaders are held accountable for budget results through the annual performance evaluation process. All external accounts (cash, investments) are reconciled monthly to third-party statements. All internal accounts (accounts receivable, accounts payable, contribution records) are reconciled monthly to their corresponding sub-ledgers. Financial statements are prepared monthly and are subject to successive levels of review and analysis within the Finance function. Monthly financial statements and explanatory notes are presented to and discussed with the highest levels of leadership. An independent accounting firm, selected by and reporting to the board of directors, conducts an annual audit of the church’s financial statements.

In addition to risks specifically related to financial assets and information, the internal control process encompasses safeguarding of the church’s non-financial assets. The lack of an effective internal control process in areas such as these can have significant financial implications. Examples include:

Non-cash physical assets: Security systems are in place to protect all church facilities. Off-duty police officers provide security for most church events. Insurance policies with sufficient coverage are maintained.

Intangible assets: Access and network controls are in place for all information systems. Licensing agreements are maintained for the church’s use of others’ intellectual property, and for others’ use of the church’s intellectual property.

Volunteers: Every volunteer must complete the screening process, which includes a criminal background check, and be approved prior to serving in any capacity as a volunteer.

Our churches are a repository for resources generously provided by our faithful Father — resources of time, talent and treasure. The development of an effective process of internal control can help us be better stewards of these precious resources.

Cathi M. Linch serves LifeChurch.tv as its financial operations leader and treasurer, and is a member of the leadership team that directs the church’s global missions initiatives.

Churches conduct different types of live performances especially during the holidays – ranging from small plays to elaborate theatrical productions. There are many things to consider, including stage construction, painting of the set and scenery, costume design and rehearsals.
There are also numerous hazards that come along with a theatrical production, including fires, rigging failures and slips and falls. If these hazards are not controlled, they can result in severe property damage and injury or death to staff, volunteers and possibly audience members. The following examples describe some common types of hazards that can be associated with performance activities and how to control them:

Electrical – Additional electrical demands are often required for stage lighting, props and equipment. This can lead to overloading of the current electrical service. If flickering lights, blown fuses or tripped breakers are occurring, this is a good indicator the electrical service is overloaded. The use of extension cords and temporary wiring should be avoided if at all possible. Any necessary electrical work should be completed by a licensed electrical contractor.

Fire hazards
Churches conduct different types of live performances especially during the holidays – ranging from small plays to elaborate theatrical productions. There are many things to consider, including stage construction, painting of the set and scenery, costume design and rehearsals.
There are also numerous hazards that come along with a theatrical production, including fires, rigging failures and slips and falls. If these hazards are not controlled, they can result in severe property damage and injury or death to staff, volunteers and possibly audience members. The following examples describe some common types of hazards that can be associated with performance activities and how to control them:

Flammable liquids and solvents – The use of flammable-based liquids, such as paints, stains, varnishes, adhesives and chemicals used for set decoration are all possible sources of fuel. Proper use, storage and disposal of these liquids are critical to reduce the chances of fire. Solvent-soaked rags can actually catch fire on their own (spontaneous combustion), and these should be kept in metal containers with self-closing lids.

Housekeeping – The backstage areas can be very tight for space. It is critical to maintain a clutter-free backstage and provide a clear space from combustibles and ignition sources, such as lights and electrical equipment. Lighting, with protective guards, may need to be provided to ensure combustible materials cannot come in contact.

Stage curtains and sets – Stage curtains should be certified flame-retardant, according to the National Fire Protection Association (NFPA) Standard 701. If your stage curtain does not have a certificate stating it meets this standard, one should be requested from the manufacturer. If this cannot be supplied, the curtain should be replaced with a compliant curtain. Remember, flame-retardant treatments do not last forever and the certificate should indicate when retreatment is required. Wood stage decorations, props and scenery should be adequately fire-proofed. There are paints and sprays available to complete this. Another option is to build stage sets using fire retardant pressure treated wood (FRPTW) that does not need any additional fire proofing. Standards for theater scenery, curtains and furnishings are commonly set by law, and churches should check with state and local authorities to be sure of compliance.

Rigging
A rigging system is typically comprised of a series of ropes, pulleys, counterweights and similar devices that allow for raising or lowering of curtains, lights and stage effects during the theatrical production. These systems can suspend hundreds of pounds of equipment, and if a rigging failure would occur, these heavy objects can fall.

Do-it-yourself rigging should be avoided if at all possible. Rigging should be left to the professionals who are properly trained and knowledgeable in the safe operation of the equipment and what to do in an emergency. This also would include regular inspections of the rigging equipment before the production, after any changes are made and at scheduled intervals.

Slips, falls and life safety
There are many slip and fall hazards present during any theatrical production. Life safety concerns also should be considered. For example:

If scaffolding is needed, it should be installed and taken down by trained professionals. Guardrails, mid rails and toe boards should be installed on all open sides and ends of platforms that are 10 feet or more from the floor. The correct type of ladder to safely perform the job should be used. Ladders have ratings associated with them based on weight and use. If the rating label is not found on the ladder, the ladder should be replaced. Ladders should be inspected before each use and any ladders with defects such as broken or missing rungs should not be used. Non-skid feet should be installed and the ladder should be placed on a dry, level, and stable surface. Never use metal ladders around electrical work. Stepladders should be used in the fully opened, locked position and the top step should never be used to stand on.

The number of people who can occupy the building during a performance is called the occupant load. Allowing too many people inside your building could hinder proper evacuation of the building under emergency situations. Contact your local fire marshal to help you determine the occupant load and adhere to this number during performances.

All cords (electrical, sound, etc.) should be taped down to avoid someone tripping over them.

All exits should be marked, unlocked, free of obstructions and illuminated. Any doors or corridors that are not actual exits, which could be confused as exits, should be properly marked indicating they are not exits.

Stairs should be provided with handrails, kept clear of obstructions and lighted.

All walking surfaces should be level and in good condition with no cracks, potholes or depressions.

Under emergency situations where power is lost, it is critical to have emergency lighting units installed that are in proper working order. Under power failure conditions, these lights will automatically come on and light the main area and the exits out of the building, allowing for safe exit from the building.

Planning, practicing and presenting a church performance should be a fun and exciting time for your organization. Help ensure that everyone who is participating is kept safe from harm by following these guidelines.

Mark Mohler is risk manager at GuideOne Insurance, West DeMoines, IA. [www.GuideOne.com]

Security of three campuses can be monitored from one location, even from one’s home.

Victory World Church is one of the fastest-growing multicultural churches in America, with a main campus in Norcross, GA, and two satellite campuses in the greater Atlanta area.

With more than 10,000 people coming to the campuses each weekend, security is a big concern.

In researching our needs, we turned to Atlanta-based Remote Protection Systems for a cost-effective security solution for the new sites.  We took everything we learned and incorporated them into the Victory North and Hamilton Mill sites at the beginning of construction.

Room for growth
“Victory World wants the latest technology to protect its property, and they also work hard to stay within their budget,” says Scott Hightower, president of RPS. “We put in a Honeywell system that integrates video surveillance, intrusion detection and user-friendly access control. It’s perfect for their needs now, and it will expand with them as they continue to grow.”

Hightower recommended a combination of high-definition dome cameras and high-resolution day/night fixed cameras to provide complete coverage of the church properties during the day and at night. Surveillance footage is retained by digital video recorders, and access to the buildings is easily handled with access control software.

We have 850 staff and volunteers who have access to different areas; plus, people are constantly changing roles. Someone might leave employment with Victory but continue to volunteer, which might change areas where they need access. I used to spend a lot of time making new cards and deleting old ones. The Honeywell system makes it easy to update a card right away.

In addition to having the sites monitored by a central station, church officials use a web-based access control to manage the integrated access, intrusion and video systems remotely from their homes.

Here in Atlanta we have a lot of storms each fall, and our old security system would go crazy. I’d be out in the storm at 2 a.m., driving around the church and checking doors. Now, if the alarm goes off in the middle of the night I can just check my home computer. I don’t have to get out and drive over.

Access cards used
Another benefit is the ease of tracking the numerous access cards issued. Hightower showed church security staff how to make a temporary card for someone, for example, on the first day of the month that will automatically expire on the last day of that month.

The investment in Honeywell security helps us fulfill our mission to spread the Gospel, and also supports our commitment to being good financial stewards. The installation at Victory North gave church officials a chance to see what the integrated technology could do and gave them a head start on ideas for the new construction. We’re looking forward to using the system for a long time. Best of all, when construction is finished, staff will be able to monitor all three campuses from one site.

Dennis James is director of security with Victory World Church, Norcross, GA. www.victoryatl.com

Damages can result in irreversible harm to a congregation’s image and sustainability.

Worldwide cybercrime, the theft and abuse of personal identification information, is a billion-dollar business now surpassing illegal drug trade.

In April 2012 Robert Mueller III, director of the FBI, reported to The New York Times,“Cyber attacks [will] soon replace terrorism as the agency’s No. 1 concern.”

Congregations are cast as easy targets for data theft. Frugal budgeting and limited resources in technological intelligence inherent with religious organizations often lead to weak security controls. The risk of losing data is high, given the scope of programs happening at all hours on and off campus. Furthermore, the high concentration of children under 18 – their stolen-identity value is higher than adults – makes churches more appealing to cyber thieves.

A data security breach occurs when an unauthorized person inadvertently receives or steals any nonpublic, personal identifiable information from an electronic system or mobile device.  An example of a breach is when a youth pastor misplaces his iPad containing a youth group’s medical information while on a mission trip, or an executive pastor leaves his iPhone in an airplane seat pocket, providing access to reports with church members’ birth dates, phone numbers and addresses.

Churches are vulnerable to a breach if they:

• Record or store credit card, tax identification information and birth dates on donors, staff, members or volunteers.
• Maintain drivers’ licenses, insurance or Social Security information.
• Obtain medical information or histories on any church member for mission trips or youth activities.
• Issue smart phones, iPads, laptops or other electronic devices to staff.

An organization can incur several costs following a data breach, such as expenses for defense counsel and payments to a third party or victims of identity theft.

Depending on the jurisdiction, civil fines and penalties will be assessed for not reporting a data breach accurately and promptly to victims and to certain governing agencies.   Forty-six states have enacted laws holding data owners responsible for a breach and requiring notification to the injured parties.

According to the Ponemon Institute’s 2010 Annual Study of U.S. Companies, tangible activities such as forensic detection and then the response — including legal advice, invitation to a credit report and monitoring service for the affected persons, mailing costs and public relations — consulting — quickly add up to an average of $73 per breached record. Indirect damages such as lost business and overhead expenses can cost on average an additional $141 per record.

Organizations can implement controls to reduce exposure and their data breach liability:

• Ensure all agreements with outside vendors, contractors and cloud computing providers include strong hold-harmless and indemnity clauses.
• Maintain a single computer exclusively for banking and donor information. Limit access to drives.
• Require, by contract, that all outside data providers and merchants stress-test their data systems for data breaches.
• Use complex passwords and current encryption software on all data devices; more importantly, know where confidential data is stored.
• Along with a “who-to-call” sheet following a breach, line up qualified consultants in PR and legal communication who have cyber expertise before an actual breach occurs.
• Conduct simulation exercises on lost data and penetration tests on data systems.
• Consider a data security or privacy liability insurance policy, which can restore a financial loss, cover notification expenses, and provide access to experienced legal, information technology forensic and PR advice.

It is critical that churches maintain the highest internal standards possible for protecting their members’ records. It is part of their fiduciary duties. Being good stewards of funds also means being good stewards of private information.

David A. Jones is a vice president at Lockton Companies, a privately owned, independent insurance and risk management broker. www.lockton.com

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Cyber liability possibilities

Reckless posting of Internet content can lead to civil suits as well as image damage.

The risk is increased if a church conducts the following activities:

• Maintains a pastor’s blog, a social network page such as Facebook, an online book store or webcasts of services.
• Posts songs from an audio file on a social media website like YouTube or a pastor’s blog.
• Loads pictures of congregation or staff members on the organization’s website.
• Permits free local Wi-Fi access to the organization’s wireless router or cable modems.

Internal controls include:

• Enact peer review of all posted Internet content.
• Enable strong firewalls that are tested frequently.
• Control distribution of Wi-Fi passwords.
• Maintain records on photography or music releases and in-source website programmers.

Kansas church relies on concealed carry rather than a professional security team.

The headline of this article was spoken at the Ministry Security Regional Training Conference that I attended in Kansas City, KS, presented the other month by the Center for Personal Protection and Safety.  “Prepare for the worst, pray for the best” makes sense to me as the executive pastor of Westview Community Church in Manhattan, KS.

We are a Wesleyan church in the middle of the Flint Hills, with both a military base and a university within a few short miles of our building. The workshop alerted me to our need as a church for a security plan. When you begin discussing security, gun control becomes a major topic.

Westview does not have any of the stickers on our doors that say “NO GUNS.” For us and other churches that do not employ a professional security team, it is a blessing to have cool-headed and responsible people in our congregation who are licensed to carry concealed firearms in public. They form an informal security team in our church. They have agreed to be alert, attentive and active if necessary. We also have medical personnel in our church that can be counted on in case of a medical emergency on-site.

Our thoughts concerning the NO GUNS stickers being placed on our doors is that it would be the responsible, conceal and carry “packers” who would obey the stickers and leave their guns at home or in their vehicles. For those who were irresponsible with guns and weapons, the stickers would mean absolutely nothing. So of what safety benefit do the stickers really serve?

I and several church staff have taken the concealed carry (CCW) class and obtained our licenses. We serve as the point people in any type of emergency in our premises, and each of us has brought our handgun to church. The 10th anniversary of 9/11 was one Sunday that we contacted several people on our security team to be on high alert for all church services. When I say that we pack our weapons, this does not mean that our guns are showing outside of our clothing.

In January 2011, a new gun law took effect in Iowa, allowing permit holders to openly carry their firearms in public. I don’t know what Westview leadership would do about that obvious indiscretion.

Bob Brueggen from Harvest Bible Chapel in Davenport, IA, says his church has a professional security team of uniformed and plainclothes officers, and will simply ask people who display their weapons to leave them in their cars. If the person refuses, the church asks them to leave.  If the person resists, a uniformed officer will escort them out of the property.

Thomas Doidge at Woodridge Community Church, New Berlin, WI, says his church is figuring out whether those who are not part of the church’s security team should be allowed to carry firearms on-site.  He says the leadership is leaning toward allowing weapons on the property but not in the buildings. Doidge says, “You could have a weapon in your trunk but not in your pocket.”

Steve Paxton, executive pastor at LifePointe Church in Fort Collins, CO, says, “It is good to have people you know carrying handguns for safety sake. Due to past church violence, I would say if you know who is carrying and you have a security training meeting, this is the way you have a sense of safety as a congregation.”

Westview would agree with Paxton as our staff has had training on church safety and security, and has passed the safety and security training highlights on to our congregants. We have formed a nonprofessional security team with the standard of procedures for the various possible scenarios, and we feel somewhat prepared for the worst.

But always, we pray for the best. We pray we will never have to implement any of this training or face any occasion where we would feel the need to discharge our firearms.

Deb Kluttz is executive pastor at Westview Community Church in Manhattan, KS. www.westviewcommunity.com

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Key controls lower insurance costs

With open access to worship facility equipment such as computers, copiers and expensive media tools, access and key control is a challenge for congregations. One misplaced key represents a crack in the armor protecting a church against intruders.

Grace Christian Center in Killeen, TX, acknowledged that it can no longer afford to continue using a mechanical key system. The church is turning to smart-key solutions not only to improve security but to reduce vandalism and theft.

With more than 2,000 members, three buildings and about 170 doorways to secure, Grace Christian faced a significant key control issue. The church had to hire outside contractors to re-key the buildings three times in a span of six years due to lost master keys. The church decided to use CyberLock, an electronic lock system.

Pastor Steven Timmerman says, “We saved a great deal on installation costs because no wiring was required for the installation. The audit trail from the locks and keys is very important to us and has increased accountability throughout our facilities. We especially like being able to program each person’s key to allow or restrict their access to specific areas during set times of the day and week. Most importantly, we’ll never have to re-key again.”

Grace Christian has also found additional cost savings. Facility manager Jim Reed observes, “Incorporating security has had a positive effect on our insurance costs. We invited the insurance company underwriters to evaluate our security improvements. After looking at the increased security measures we put in place, they lowered our rates.”

Calvary Chapel in Costa Mesa, CA, had similar key control issues. With nearly 20,000 members, the church faced the challenge of raising the level of security across its large campus. Facility manager John Jackson wanted to implement a security system that was affordable and scalable. “As a church, we are concerned about every penny that is spent. Our first concern was keeping track of physical assets that help us minister to our people,” he says.

Calvary Chapel implemented a comprehensive security system that includes the CyberLock system. “With the electronic lock and key system, we can change someone’s access privileges on-the-fly without issuing cut-keys. Each person’s electronic key is programmed with the permissions they need to do their job, so we have overall tighter control. We also have electronic padlocks on the shipping cases that store our recording and sound equipment so only authorized people can access it,” he says.

When churches secure their buildings and assets through the use of practical and effective security measures, they not only increase security in their premises but also lower insurance premiums and reduce re-keying costs.

— James T. McGowan is vice president of sales and marketing at Videx in Corvallis, OR. www.videx.com

Apply both faith and caution overseas — and take out kidnap and ransom insurance.

As governments across the world wage war on drugs and black market trades, criminals are quietly advancing the front of another lucrative, illegal industry. Kidnapping, including extortion and detention, is now a global epidemic, growing 15 to 20 percent annually in hot spots such as Mexico, Venezuela, Columbia and Brazil.

In the last decade, kidnappers have expanded their sights beyond multinational corporate employees to missionaries dispatched from mission agencies, religious and higher education institutions and church groups. Missionary kidnappings around the globe now account for almost half of reported cases, a 100 percent increase over the last five years.

The increase is a result of two factors:

• Relief organizations are pulling out of dangerous regions where kidnappers sought many of their victims, thereby reducing income for criminal organizations and forcing them to target alternative income sources – missionaries.
• Authorities in countries like Haiti, Ecuador and Egypt — which are major mission fields — are reportedly encouraging the business of kidnapping.

Why Missionaries are easy targets:

• Obvious language barriers make missionaries more vulnerable, particularly when traveling without a translator or cultural liaison.
• Short-term missionaries travel with 90-day visa turnarounds. Coupled with deliberately slow court proceedings – unlike the United States’ sixth amendment guaranteeing a speedy trial – time is limited for court testimony against kidnappers. As a result, it either reduces or removes criminal penalty that would otherwise discourage further kidnapping.
• A lack of comprehensive risk management training on how to act and react on unfamiliar foreign soil makes missionaries, particularly short-term missionaries, prime targets.

According to Citizens’ Action Against Crime (CAAC) and the Movement for the Restoration of Peace and Order (MRPO) in 2005, between 80 and 90 percent of kidnapping cases go unreported.

The average ransom for reported cases is $62,071, but settlements often are between 10 and 20 percent of the original demand. If the ransom is small and late, kidnappers may be discouraged from kidnapping again.

Most missionary-sending organizations have strict policies against ransom payments to discourage appearing as a bank for criminals. Organizations that do pay ransom as a business decision typically do so quietly. Some agencies’ stance on not paying ransom, like that of the Association of Baptists for World Evangelism (ABWE), serving 70 countries, affords some protection to its members simply because militant groups know that ransoms will not be paid by the organization. This public knowledge is often enough to discourage kidnapping.

Minimize your risks
Understanding the dominant religion of a country, its political climate (whether war-torn or controlled by an extremist group), and by being smart about conducting oneself is critical to safety and survival. Some tips:

• Travel with a group.
• Wear clothing local to the host country, removed of U.S. trademarks.
• Conceal all monetary transactions.
• Don’t give too much information.
• Keep conversations short and brief, unless with a trusted party or authority.

Despite being extremely vigilant of their surroundings, missionaries still succumb to the hazards of foreign countries. Phil Snyder of Zeeland, MI, was abducted in Haiti during a mission trip for GLOW Ministries in 2005. Snyder planned to return to the U.S. with a Haitian child for eye surgery. Snyder, the child and his father were ambushed on a public road by kidnappers. They shot Snyder in the shoulder and abducted the party. The initial ransom was $300,000, but the kidnappers settled for a lesser undisclosed amount, returning Snyder to Michigan five days later.

Fortunately, it is rare that an abduction results in the death of the victim. In fact, most deaths related to abduction are due to an attempted rescue. Kidnappers in South and Central America tend to treat their religious hostages better, given the religious culture of the countries. The same holds true for Mexico where only 8 percent of kidnappings end in fatality, according to Clayton Consultants Inc. However, in Asia and the Middle East, death is far more likely for religious proponents.

Protect assets and provide relief
Reliance on the local embassy, the FBI and the sending organization’s crisis team are often not enough. Kidnap ransom detention and extortion insurance (K&R insurance) can provide protection and relief to victims.

The insurance not only reimburses the insured for the ransom amount, but also provides expert negotiating strategists, security consultants and interpreters, all of which may cost an average of $85,000 per incident, according to Lloyd’s of London. Additional risk management services offered are qualified counselors and medical rehabilitation facilities for when victims return stateside, as many have medical, cosmetic, psychiatric and dental impairments. The coverage also provides defense and indemnity to church and mission agencies from family or estate lawsuits. Finally, in addition to health, consultant and repatriation costs, the policy provides loss of income or receipts resulting from the incident.

A K&R policy’s ransom amount limit is typically determined by the person or sending organization’s net worth, since the policy only reimburses ransom paid and will not front the ransom demand. In some cases, banks will provide loans if the church or mission agency is deemed credit worthy. The premium starts around $1,000 and is based on net worth of insured, location, profile and loss experience. Since the mere knowledge of an insurance policy is a lure for any militant group, it is imperative that the insurance policy be kept private.

An insurance policy is no substitute for applying good judgment, listening to intuition, and staying abreast of all potential risks in the host country. Organizations can manage their risk best through the following:

• Research the political climate often.
• Understand the religious tolerance of the host country.
• Determine the need for an insurance policy to assist with expenses and expert services.

Managing kidnapping risks is a continuous process. Missionaries should continually assess threats, vulnerabilities and consequences, and take appropriate action to reduce or eliminate risks.

David A. Jones is vice president at Lockton Companies, a privately owned, independent insurance and risk management broker. www.lockton.com

In times of crisis and emergencies such as hurricanes, floods and power outages, many churches open their facilities to provide shelter to those in need. While such outreach clearly reflects care and compassion, church leaders should be aware of risks, especially if it involves overnight or extended accommodation. Some of these risks include an increased potential for fire, property damage, and liability for injuries to people.

Plan and collaborate
Proper planning will go a long way toward managing an influx of people and preventing some serious problems. First, determine if your church is equipped to be a shelter. You’ll need to implement safety procedures, put rules into place, and train your staff how to handle emergencies.

One consideration for your church is to become a designated American Red Cross shelter. Not only will that organization’s expertise help you establish a shelter, there also can be a measure of liability protection for your church.

Confer with local authorities on their shelter requirements to make sure your facility meets their standards. For example, some require premises to have shower facilities. Check with the fire department to find out the maximum occupancy allowed and other safety precautions required for shelter operations.

To prepare for situations such as a fire, make sure staff and volunteers are trained to help evacuate the grounds. Ensure that exits are clearly marked and all access in and out of the building is unobstructed.

Protect the people who take shelter in your church. Designate a supervisor to manage volunteers and ensure that key workers take turns to stay awake and monitor activities at all times. If necessary, hire security or off-duty law enforcement personnel to screen for illegal substances, alcohol or weapons. For the safety of everyone on site, these should not be allowed on the premises. In addition, limit and secure access to all other areas of the building, and monitor each entrance and exit to the shelter.

Establish guidelines
To maintain order, establish guidelines for everyone to follow and give people copies of those rules. Those seeking emergency help from your church should adhere to your safety policies. Establish shelter hours. For example, do not allow anyone to enter your premises after 10 p.m. Require people to complete a guest registration form and to sign in and sign out daily. Prohibit the use of weapons, alcohol and drugs on the church’s premises. Many shelters do not permit animals or pets unless they are bona fide service animals for the disabled.

Check which local authorities are responsible for supplying food, water and other emergency items. If it is the church’s responsibility, make sure you are able to obtain an adequate supply of goods and that staff will be available to distribute them. If preparing meals, make sure food is handled only by those certified in food safety. Use sanitary methods in preparing, storing and serving food.

Food is not the only area that requires close attention in terms of sanitation. Bedding, restrooms, showers and garbage removal also should be handled carefully and appropriately. You may want to consider hiring additional janitorial staff for as long as the shelter is functional.

Even with all of these extra precautions in place, illnesses can still occur. You should have already discussed with your team how your church would respond when people contract a communicable disease or become seriously ill. Confer with your local health department on how to best handle this situation. Send people who require medical monitoring to the proper facility.

Maintain a safe facility
Keeping your facility in proper working condition is always important, but it becomes imperative when you have increased traffic at your site. Inspect and monitor interior and exterior walking surfaces to make sure they are in good condition, adequately lit, and free of slip, trip and fall hazards. Consider the requirements of people with special needs, such as the elderly, or those with wheelchairs and walkers, and plan accordingly so you will be able to accommodate them.

Taking care of those in need during a crisis is oftentimes a natural extension of your ministry. However, it is crucial that you consider the risks that come along with opening your doors to the community. Make sure your leadership team is making every effort to minimize those risks.

Eric Spacek is senior risk manager at GuideOne Insurance, West Des Moines, IA, and was a liability litigation trial attorney in Washington, D.C. www.GuideOne.com

Members view conflict as an aberration to the way a church is supposed to be.

Risk-taking is underestimated when it comes to church-going. Consider common church youth group activities such as Ultimate Frisbee and camping or more adventurous ones such as whitewater rafting. Many churches also sponsor sports and schools of various kinds where kids are prone to be kids.

Social service ministries of churches commonly serve troubled youth and adults in dangerous areas. Churches also dispatch members to assist with relief efforts while electrical lines still dangle in the water or send members on mission trips to desolate and dangerous places without nearby medical facilities.

Church-going can be risky; consequently, when matters go haywire churches without valid releases can suffer serious damages.

Ski trip accident
As an example, a Florida jury awarded a $4.75 million judgment against Idlewild Baptist Church when a youth at the age of 14 suffered an injury to his left leg on a ski trip his youth group took to Beech Mountain, NC. The mother had attended the church for several years. She alleged that the church had too few chaperones and that her son received no instruction before careening down a slope at near 55 mph before crashing into another skier.

Fortunately for the church, the judge vacated the verdict when he learned two jurors, including the foreman, concealed their involvement in prior litigation, giving the church a rare opportunity to retry or settle the case.

Other churches have not been as fortunate. For example, the court entered a verdict against Grace Community Church of the Assemblies of God totaling $2 million, after reducing the jury verdict of $4 million to the limits of the church’s insurance policy, when the inner tube in which a youth was riding pulled by an ATV all across a frozen lake crashed into a boulder embedded in the ice and broke her back. The parties concluded the litigation with a confidential out-of-court settlement.

The plaintiff’s father had paid the church $40 and received a scholarship for the difference for her to participate in the church’s “Winterama 2005” program in Colorado. He also signed a “registration and information” form stating, “I will not hold Grace Community Church or it’s [sic] participants responsible for any liability which may result from participation,” but the court held the document legally insufficient anyway.

These and other examples underscore that churches should not sponsor dangerous programs or events without insurance or insisting upon releases and waivers – and not just any releases or waivers prepared by a non-lawyer or borrowed from a well-meaning online source or form book.

Insist on releases
A form release can be as bad as or worse than no release because it creates an illusion of protection. There are several reasons.  In many states, a release is not valid if it fails to provide adequate information about the nature of risks and events to which a person will be exposed. Fully informed and voluntary consent to the particular dangerous activity a child or person will engage in is critical to cut off a releasor’s defense that she was unaware of the real risks involved.

In several states, a release is not valid at all in relation to an ultra-hazardous activity, such as driving ATVs. This is especially  so when the activity appears to concern primarily a commercial or business activity more than a religious activity. Form releases and even releases prepared by secular counsel rarely disabuse potential plaintiffs of the notion that a camping trip is about entertainment, rather than Christian formation and, therefore, are more likely to be set aside than a prepared release addressing the religious purpose of an event.

Not just anybody can sign a release or waiver and have it apply to a child either. The legal custodian or guardian’s signature on the release is necessary.  Parents and legal custodians do not always agree among themselves about whether children or wards should participate in events. When only one parent has legal custody of the child, the other may not have legal capacity to enter into the release. Yet form releases rarely require signatories to declare their legal capacity to enter into the agreement or address what happens when the signatory misrepresents the facts.

State law also varies when it comes to the language that must be included in an effective release and even concerning whether the release itself must be upper case and/or bolded.

Medical consent
Then, there is the question of whether to include a medical consent to provide first aid or admit a child to a hospital in an emergency situation where the parents are unavailable. Form leases vary in terms of whether they incorporate medical consents at all, solicit information about the extent of medical treatment approved without parental consent, or require information about drug intolerances or other medical conditions that are important to proper medical treatment.

Religious organizations may also want to consider alternative dispute resolution or biblical mediation and arbitration as part of a release. In some cases, churches may even want various representations and warranties from program participants. As a rule of thumb, the more dangerous the activity and the more participants there are in the dangerous activity, the wiser it is to solicit church-state counsel to assist with reviewing and drafting a release and waiver specific to the event or program your church is sponsoring.

A common objection is that releases are seeker insensitive or a deterrent to participation. Another way to look at it is that their absence is member insensitive and a deterrent to volunteering, because releases protect congregants entrusted to your care. A sound release can actually encourage program participation even as it impresses the signatory with the seriousness with which the church takes its responsibility to steward the time, talent and treasure volunteers dedicate to serving them and expanding the ministry’s outreach.  This is work and calling for not just any member of the bar, but faithful church-state counsel.

Nathan A. Adams IV is a partner in the law firm of Holland & Knight LLP, Tallahassee, FL, and chair of the Religious Institutions team. www.hklaw.com

Last December, the U.S. Consumer Product Safety Commission (CPSC) voted unanimously to approve new mandatory standards for full-size and non-full-size baby cribs, as ordered by the Consumer Product Safety Improvement Act of 2008 (CPSIA).  These new regulations took effect in June, and include all cribs manufactured and sold, including resale, or leased in the United States. The new safety standards are intended to do the following:

1. Stop the manufacture and sale of dangerous, traditional drop-side cribs;
2. Make mattress supports stronger;
3. Make crib hardware more durable; and
4. Make safety testing more rigorous.

These standards had not been updated in nearly 30 years and with the new guidelines, a safer line of cribs is expected to enter the marketplace. An increase in safer cribs could not come at a more critical time.

Since 2007, the CPSC has recalled more than 11 million dangerous cribs. Since 2000, detaching drop-side rails were associated with at least 32 infant deaths, and faulty hardware can be blamed for additional deaths.

Identifying new safety benefits
While drop-side cribs have received the most press for the number of fatalities they have caused, the new safety standards go beyond removing the drop-side from the marketplace.
They also include cracking down on malfunctioning or faulty hardware. This ensures that when older children begin shaking the frames or jumping in the cribs, the screws or other hardware stay tightly fastened and secure, even over years of use.

Mattress supports, slats and hardware now must be more durable to withstand this type of use. In addition, testing requirements are more stringent in order to ensure that the new beds are compliant with the stricter, safer regulations.

Managing financial investment
Because most current cribs will not meet these new standards, child care centers, daycares and places of public accommodation, including churches, have until Dec. 28, 2012, to comply with the updated safety standards. Until that time, owners are warned to frequently check all non-compliant cribs for loose hardware, and loose, missing or broken parts. These situations should be remedied immediately if any are occurring.

Having to replace multiple cribs can be a costly investment for a church, so organizations are encouraged to have a plan in place to help make the transition less strenuous.
Not only is the CPSC asking all consumers to purchase new cribs, they also are recommending that old cribs not be resold, donated, or given away. Because they are unsafe, no one should be using these older cribs. They are as equally unsafe for at-home use as they are for daycares and churches. The CPSC recommends disassembling the cribs before discarding so that no one else is tempted to use them.

The importance of safety
It is important that churches take these new guidelines seriously.  If an injury or death were to occur from use of an older crib, being found non-compliant could result in a liability claim. It also could do irreparable damage to the trust your church congregation has in your safety and security practices.

Despite the financial investment involved, transitioning to cribs that meet the new federal safety standards is another way to keep the members of your church safe and secure, and help protect your organization from adverse publicity and an expensive claim or lawsuit.

Eric Spacek is senior risk manager at GuideOne Insurance, West Des Moines, IA. [ www.GuideOne.com ]

They provide a respite for children and allow them to get outside, play and enjoy themselves. However, ensuring that a playground is properly installed and maintained is critically important to the safety of all who step foot into the area.

In fact, the Consumer Product Safety Commission estimates that more than 200,000 children are seen in the emergency room each year due to playground injuries. It is inevitable that accidents will happen on the playground; however, taking the proper precautions can help reduce the number of accidents at your facility.

Choosing the proper site and layout is a critical process in making the playground safe for use. Choose a location that will eliminate obstacles and hazards children could encounter when traveling to and from the site. For example, don’t have children crossing a street or through a parking lot. Make sure to secure the area with a fence or landscaping hedges to help ensure that children are unable to leave, and others will be unable to enter unnoticed.

Those in charge should designate different areas for different types of activity. For example, an open field should be separated from a sandbox. Divide the equipment by age groups. Remember to avoid crowding by spreading out heavily used equipment. Supervisors need to make sure that they are able to maintain a clear line of sight at all times.

Selecting equipment
Using high quality equipment will ensure that your playground is safer for those who play on it and the equipment lasts longer. Use only commercial grade equipment and have it installed according to the manufacturer’s recommendations.

Also, purchase equipment according to the age groups that will use it the most, as not all equipment is appropriate for all ages. Make sure you request detailed product information from the U.S. Consumer Product Safety Commission. Leaders should avoid installing any hazardous types of equipment, including the following:

• Animal figure swings
• Spring-loaded equipment
• Exercise rings and trapeze bars
• Glider swings
• Merry-go-rounds
• Metal slides
• Monkey bars
• Seesaws
• Swings with hard surface seats
• Swinging ropes
• Trampolines

Safe surface
The surface material can play a role in the safety of your playground, as nearly 70 percent of playground injuries result from a fall and the surface material can be a major determining factor in the seriousness of an injury.

Because head injuries can be life threatening, taking this precaution is a necessary step in ensuring the safety of those who use your facility. The following materials should be avoided:

Asphalt or concrete: These are unsuitable for use under or around playground equipment.

Earth surfaces (soil and hard-packed dirt): These are not recommended because of their poor shock absorbing properties.

Grass and turf: These are not recommended as they are subject to wear and environmental conditions, which can reduce their effectiveness in absorbing shock during a fall.

Equipment should be surrounded by at least nine to 12 inches of wood chips, mulch, sand or pea gravel and mats or synthetic surfacing made of safety-tested rubber or rubber-like materials can be used as an alternative.

Inspection and maintenance

Not only does a safe playground require proper equipment and installation, regular inspection and maintenance will help ensure that your playground remains safe and in proper working order.

Install and maintain all playground equipment according to manufacturer’s recommendations.

Inspect all equipment on a regular basis for the following:

Sharp points, corners and edges: Metal and wood corners should be rounded and wood parts should be smooth and free of splinters.

Protective caps: Caps should not be able to be loosened or removed without the use of a tool.

Fasteners and connectors: All nuts and bolts should be made of corrosion-resistant material and have lock washers, self-locking nuts or other locking means to prevent them from easily becoming loosened.

Openings: No openings should measure between 3 1/2 to nine inches, to prevent entrapment, except where the equipment meets the ground. Pay special attention to the top of slides, between platforms and on limbers.

Anchoring: Securely anchor all equipment to the ground, making sure that all anchoring devices are below ground to eliminate tripping hazards.

Protrusions or projections: These should not be capable of entangling clothing.

Hand/guardrails, protective barriers and steps or rungs on ladders: Check for broken or missing components.

Exterior condition: Paint, galvanize or treat metal equipment to prevent rust. Confirm that the finish does not contain harmful amounts of lead. Test the finish on older equipment to determine the amount of lead it contains, especially if it is beginning to flake or peel.

S hooks: Ensure that all hooks are squeezed closed and in good condition, with no visible signs of corrosion or deterioration. Open S hooks can present a strangulation hazard.

In addition to regularly examining the equipment for hazards, the playground area should be inspected and maintained so that hazardous materials can be removed. Some things to look for include: Broken glass or other dangerous debris, tripping hazards, such as exposed concrete footings, tree stumps and rocks, and shock absorbing surfaces in and around the equipment that have been displaced or compacted.

While having a playground is a source of fun and entertainment for the youth of the church, it is a responsibility that requires regular upkeep and proper training for those who are in charge. By taking the time to properly maintain your playground, it can be a safe place for all to enjoy.

Eric Spacek is senior risk manager at GuideOne Insurance, West Des Moines, IA.  www.guideone.com