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Do you know how a business can impact a church’s employment policies and zoning?
Richard Hammar and James F. Cobble | posted 5/14/2008

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Two are better than one, because they have a good return for their work: If one falls down, his friend can help him up. But pity the man who falls and has no one to help him up! (Ecclesiastes 4:9–10)

A vision to launch a business at a church will generate energy in anticipation of strengthening the church's community, perhaps even its financial health. More importantly, the business may provide a needed bridge to connect with the surrounding community, providing an evangelistic opportunity.

But launching a business likely poses less obvious implications for a church. A business likely will need employees or volunteers, requiring screening and selection processes, and adherence to federal and state hiring laws. An enterprise also may shift the church property's use in a way that differs from how a local municipality zones it.

Below is a compilation of key points and examples from several sources that a church should keep in mind as it anticipates the launch of a business. Use this information to further investigate local, state, and federal laws and to prepare accordingly:

Zoning Laws

Local zoning laws generally allow "churches" in residential areas. The courts have struggled with applying this term to various activities and organizations other than traditional congregations meeting in a building for regular worship services.

Many other courts have been asked to decide whether a particular use of property comes within the definition of a church under municipal zoning laws. The following activities and uses have been held to come within that definition:

  • Use of a home across the street from a church for women's fellowship meetings and religious education classes;

  • A single-family residence used by the United Presbyterian Church as a religious coffeehouse for university students;

  • A priest's home, convent, and parochial school;

  • A kindergarten, play area, and parochial school;

  • And a private school operated by a Baptist church.

Other courts have concluded that certain uses of property do not constitute a church in the context of zoning laws. To illustrate, one court has held that an area restricted to residential and church uses could not accommodate temporary, open-air camp

meetings. The court observed that not every place in which religious services are conducted is a church. It inferred that a church at the least must consist of "a building set apart for public worship," and thus could not include camp meetings.

Other courts have held that the following activities were not churches for purposes of zoning laws:

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