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Q:
Should a Minister Give Financial Advice to Members?
Dear Attorney:
Members of my congregation, particularly young people, often
seek my counsel regarding business, financial or investment
decisions that they are about to make. It is often hard to give
spiritual guidance, i.e., praying with members about important
decisions, without expressing an opinion about such decisions.
Can I be held liable for financial advice I give to members?
Senior Pastor
Attorney Answer
Dear Senior Pastor:
When a business or investment fails or a financial transaction
goes south, people often look to hold someone else responsible
for their financial loss. In California, the general rule is
that there is no claim for clergy malpractice. However, this
rule may not apply to non-religious purely secular activities.
Thus, under certain circumstances clergy may be judged on the
same basis as other professionals when giving secular investment
or financial advice. Only qualified people should give business,
financial or investment advice to consumers. Even if a minister
has special financial knowledge or expertise, it is important to
remember that clergy may owe a fiduciary duty to members where
advice is given within the course of the ministerial
relationship. Clergy should be careful not to use their office
to unduly influence a member in any secular transaction. For
these reasons, we recommend clergy use due diligence and caution
in giving business or investment advice to members. Clergy may
advise members to seek counsel from qualified professionals
knowledgeable in the field.
Click here to see what
happened to one minister who gave investment advice. |
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The above is a hypothetical case involving fictional clergy
members. Any similarity to a specific person is purely a
coincidence. If you have a hypothetical question that you
wish to have anonymously published or if you wish to comment
on this hypothetical, please
contact us. The comments herein are not intended as a
substitute for legal advice about a specific situation. Any
clergy who is faced with a legal
issue is urged to consult legal counsel familiar with their
case to protect both themselves and their church. |
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