Doctrinal differences and disputes – some considerations

Faith-based charities operate in a unique environment, where legal structures intertwine with theology and doctrinal traditions. Legal advice for these organisations can extend beyond the conventional – the faith on which a charity is based, and that its members and trustees follow, forms the foundation for the structure of that charity. When the foundation rocks, so does the legal structure.

Understanding faith-based charities

Faith-based charities functioning as part of a wider organisation or denomination generally fall into two broad categories:

1. Single charities with local congregations: These organisations operate as one charity with one governing document and one charity number. However, internally a unified governance structure is then created by documents such as a basis of faith, rules on ordination, how local congregations are grouped together and led, policies and procedures for safeguarding, finance, baptism and so on.
2. Federated charities: These consist of a central organisation overseeing multiple semi-autonomous or fully autonomous member charities or congregations. Each part – the central organisation and each charity – has their own governing document and charity number. Their relationships can vary significantly. Some federations are connected solely through a shared statement of faith, while others, such as the Church of England, operate under extensive legal frameworks. The governance arrangements might include rights for the umbrella body over the individual charities, again with rules on ordination and so on (see above).

Faith-based charities differ in multiple ways, particularly in four key areas:

1. Legal structures

The governance structure of a faith-based charity influences ownership, decision-making and obligations. Single charities typically centralise ownership of assets at the national level, whereas federated charities may have varied property arrangements. Questions of property ownership—whether an asset belongs to the local congregation or the national body—often arise, along with intellectual property rights over sermons, teaching materials, worship songs and so on.

2. Legal procedures

Faith-based charities usually have rules about when a local congregation can join or leave the wider grouping or refer to itself by reference to a particular denomination’s name. These can be informal, part of internal documents or enshrined in a governing document. Some organisations impose strict limitations on departing congregations, meaning that such a congregation has to forfeit its property, change its name and so on.

3. Beliefs/objects

A charity's objects define its purpose and activities, and for a faith-based charity, doctrine often forms part of those objects. Doctrinal disputes can arise when a congregation's beliefs shift (for example, on leadership, marriage etc.), leading to legal considerations regarding their ability to remain as part of the wider denomination.

4. Leadership structures

There are two key considerations for the leadership of faith-based charities:

• Legal leadership: charity trustees who have a legal duty to oversee governance and compliance with charity law
• Spiritual leadership: pastors, elders, ministers etc. who provide spiritual oversight

Key is how spiritual leadership interacts with legal leadership.

Dispute Resolution

When different parts of a faith-based charity or grouping of charities fall out, the key question, even in a legal context, is what does God say? Christ gave up all his ‘rights’ to die for us, so what might God be asking a charity or congregation to lay down, regardless of its ‘rights’ – and can it do that from a legal perspective? The prayerful answer to this question can also answer the key questions: What do you want to achieve, and what are you willing to leave behind? These discussions can be emotionally charged, requiring careful (prayerful) consideration and negotiation.

1. Property ownership and trusts

• Does the local congregation own its property, or is ownership vested in the national charity?
• Are there specific trust provisions limiting how the property can be used?
• Can intellectual property, such as teaching materials, be freely used even if a local congregation leaves the wider network?

2. Contractual arrangements and governance rules

• What rules, etc. govern the charity?
• Do these agreements impose limitations on leaving the wider organisation? If so, what would the consequences of leaving be?

Dispute resolution strategies

Mediation can be particularly useful to resolve doctrinal disputes as it can address emotional aspects of disagreements, whilst also seeking a mutually acceptable resolution. Litigation is often a last resort due to its cost, the negative media attention that it can attract and doctrine – when you take another believer to court, you have lost the battle already (see 1 Corinthians 6:7).

Final Thoughts

Sadly, disputes within faith-based charities are nothing new – just read Paul’s letters in the New Testament – but they can be heartbreaking. They are also complex, involving interplay between legal obligations and doctrine. However, key to finding a solution is prayer and the answer can be transformational but also not what you ever anticipated.

[email protected] Legal Director, Charities Team, Anthony Collins Solicitors LLP