Pastor Discovers Book He Wrote is Not His

By Raul Rivera

In today’s digital age, the creation and management of intellectual property (IP) are critical considerations for ministries and churches. Whether developing a curriculum or authoring a book, the question of ownership can become complex. In this blog, we explore two real-life cases that highlight the importance of having clear policies in place to protect both the organization and the individuals involved.

Case 1: The Curriculum Conundrum

Imagine a pastor who, while employed by a ministry, poured his heart and soul into creating a comprehensive curriculum and book for a new Bible school initiative. The curriculum was innovative for its time as a new online Bible College and aimed at young adults. However, once the work was completed, the ministry claimed full copyright ownership over the curriculum.

The pastor felt conflicted. He had invested countless hours into this work. It was his idea, after all. Although he created it as part of his employment, he questioned whether he should retain some rights to it. The ministry, on the other hand, argued that because the curriculum was developed during his tenure and with the organization’s resources, it fell under their ownership.

This situation raises a critical question: Who owns the intellectual property created by an employee during their employment? According to general legal principles, if the work was created as part of the pastor’s official duties, it is typically considered a “work for hire,” and the ministry, as the employer, retains the rights to the work. This scenario illustrates the critical need for clear IP policies to avoid misunderstandings and to make sure all parties fully understand their rights and obligations.

Case 2: The Book Written After Hours

In another case, a pastor decided to write a book during his off hours, detailing his spiritual journey and insights gained over years of ministry. He was careful to work on the book only during his personal time, but he used the church-owned laptop to write most of it. When the book was finally published, it gained significant attention, leading to questions about whether the church had any claim to the book or its profits.

The key issue here is whether the book can be considered a “work for hire.” Since the pastor wrote the book during his personal time and not as part of his official duties, it could be argued that the church does not have a claim to the intellectual property. The use of church resources complicates the matter, as some have mistakenly argued that using the church laptop gives the church a stake in the work. That’s why having a clear IP policy is essential—it helps prevent disputes and avoids potential legal challenges in situations like this.

Navigating Intellectual Property Ownership

These cases highlight the complexities of intellectual property ownership within a ministry context. It’s crucial for organizations to establish clear policies that outline who owns the rights to work created by employees, especially when ministry resources are involved. Such policies should address:

• Work for Hire: Clarifying what constitutes a work for hire and under what conditions the organization retains ownership.
  
  
• Use of Ministry Resources: Defining the implications of using organizational resources for personal projects.
  
  
• Personal vs. Organizational Work: Establishing boundaries between work done for the ministry and personal projects.

IRS Considerations and Compliance

Beyond internal disputes, the IRS also has a vested interest in how intellectual property is managed within tax-exempt organizations. The IRS scrutinizes two key aspects:

1. Non-Commercial Development, Use, and Distribution: The development and distribution of intellectual property should not primarily be a revenue-generating activity operated like a commercial enterprise. This doesn’t mean it cannot generate substantial income for the ministry; rather, it means that the primary purpose must support the organization’s mission, not just supplement its budget.
   
   
2. Private Benefit to Individuals: Intellectual property agreements should avoid conferring private benefits to individuals. Any proceeds from the sale made by the church or distribution of IP should primarily support its mission and not enrich individuals within the organization.

To comply with these requirements, ministries must ensure that their IP policies align with the IRS’s requirements for 501(c)(3) organizations. This means carefully defining how proceeds from intellectual property are handled and ensuring that all transactions are conducted at arm’s length, avoiding conflicts of interest.

Your Ministry needs an Intellectual Property Policy

The management and ownership of intellectual property (IP) within a church can often be complex and nuanced, especially considering the diverse content created by pastors, staff members, and volunteers. To avoid potential disputes and ensure clarity, it’s essential for churches to have a well-defined IP policy. Below is an outline of the key components that should be included in a church’s intellectual property policy, using a sample policy structure as a foundation:

1. Purpose and Scope

1. Description: The first section of the policy should clearly state its purpose and to whom it applies. It should specify that the policy covers all employees, volunteers, and contractors, with a focus on the creation, use, and distribution of intellectual property within the church context.
2. Key Points:
• The policy applies to all forms of content created under the church’s name, including sermons, recorded teachings, written materials, and any other media.
• It emphasizes that the policy is relevant to all individuals involved in church activities, ensuring that there is no ambiguity about its application.

2. Ownership of Sermons and Recorded Content

1. Description: This section should address the ownership of sermons and other content created by pastors and church representatives. It’s crucial to specify that such content, produced during the course of their duties, is considered the intellectual property of the church.
2. Key Points:
• All sermons, teachings, and related media created by church representatives are to be owned by the church.
• This ownership extends to all forms of media, including audio, video, and written transcripts.

3. Dual License Usage

1. Description: If the church allows for a dual license agreement, this should be clearly outlined. This ensures that both the church and the individual who created the work can use it, even if the individual leaves the church.
2. Key Points:
• The agreement should prohibit personal or business use of the intellectual property during the individual's time with the church.
• After leaving the church, the individual may use the property under the terms of the dual license agreement.

4. Ownership of Books and Written Works

1. Description: This section should clarify the ownership of books and other written works authored by pastors, particularly those written during their off-duty hours.
2. Key Points:
• Pastors are permitted to write books on their own time, and these works are their sole property.
• The policy should specify that any writing done outside of regular working hours, including beyond a 40-hour workweek, belongs to the pastor unless otherwise agreed in writing.
• If the pastor uses a laptop provided by the church to write the book, Do not worry; that would fall under De minimis^1, which refers to something so small or trivial that the law does not consider it significant enough to warrant legal concern or action. We need to change what we tell pastors.

5. Social Media Content

1. Description: As social media becomes a larger part of ministry work, this section should address ownership of content posted by pastors and employees on their personal accounts.
2. Key Points:
• Content created for personal social media during off-duty hours remains the property of the individual, provided it doesn’t involve church services or events.
• A disclaimer should be required for any posts related to church activities, stating that the views expressed are personal and do not necessarily reflect those of the church.

Conclusion: The Importance of Clear Policies

The cases of both pastors illustrate the potential conflicts that can arise without clear intellectual property policies. Ministries must take proactive steps to establish guidelines that protect both the organization and its members. By doing so, they can prevent disputes, ensure compliance with IRS regulations, and maintain the integrity of their mission.

In an ever-evolving digital landscape, the management of intellectual property is more important than ever. By understanding the legal principles at play and establishing clear policies, ministries can safeguard their work and continue to focus on what truly matters: their mission and service to the community.

At StartCHURCH, we offer the StartRIGHT and the GetRIGHT services, which include adding an Intellectual Property article and IP policy tailored to your church's needs. This service ensures that your church remains in compliance with IRS regulations and that all aspects of your intellectual property are properly managed and protected. With our support, you can rest assured that your ministry's valuable content and teachings are secure, allowing you to concentrate on fulfilling your mission.

• _{The IRS mentions the de minimis rule in 26 U.S. Code § 132, specifically under the section concerning "Certain Fringe Benefits." The de minimis fringe benefit is defined in 26 U.S. Code § 132(e). This section describes de minimis benefits as those that are so small in value that accounting for them would be unreasonable or administratively impractical.}

---