Understanding Fixed-Term Contracts: A Guide for the Prattville Community

Those who navigate church or community programs often face the task of managing up to hundreds of volunteers. It’s an all-hands-in approach that requires clear expectations and outcome measures to fit into a busy employee and volunteer host of activities. Understanding the nature of a fixed-term contract definition – which references the period of time for the term of the agreement- can be helpful in the multiple relationships found on a church campus. In addition to increasing understanding of how a formal agreement works, the use of fixed-term contracts can also promote accountability and demonstrate what a volunteer or employee brings to your organization.

Fixed-term contracts frequently are encountered within the not-for-profit sector. Often, a fixed-term contract refers to a contract that is limited to the duration of a particular project or activity. In the context of a church or non-profit program, it could involve an agreement to engage in service for a limited time or until funds are exhausted.

There are a variety of ways that an organized church-based program may be enhanced through the use of fixed-term contracts. Some examples where a clear articulation of terms can mitigate misunderstandings or disputes might include:

With the example of a fixed-term contract for an event, the agreement could outline how often the event takes place, what is expected in terms of attendance, how people can get involved, what donations will support, who will be invited, and feedback from fundraising events about what the organization’s volunteers do. The contract would specify the duration of the event and assign responsibility for specific tasks.

A non-profit organization may enter into a fixed-term contract with someone who is part or full-time during a cultural or sports pursuits program. So, if a church hires an exercise instructor for 10 hours a week for three months, they might use a contract for the service to run through the end of the activity period or until such a time as a certain number of clients attended the program. A contract would specify liability coverage, safety requirements, and the organization’s ability to shrink or terminate the contract within the specified time frame after a predetermined number of cancellations.

While there may be certain advantages to organizing your church or non-profit activities around fixed-term contracts, some potential drawbacks include:

A fundamental legal issue in using fixed-term contracts is whether employees and volunteers are treated equally or differently under them. For instance, what sorts of benefits do paid employees receive and how do these differ from how non-paid volunteers are treated? Under the law, they are not treated identically. However, there are legal implications in applying these agreements when a church may classify its members or volunteers as full-time employees.

Regardless of the precise role of an individual in an organization, whether as a volunteer, donor or employee, if you have entered into a fixed-term contract, this must hold up to legal norms and regulations. Fair treatment may require that assistance by attorneys or HR specialists be utilized to ensure that both the letter of the contract and the spirit of the agreement are met. It’s not recommended to have one set of rules for employees and another for volunteer staff.

Ultimately, the use of fixed-term contracts in the church environment links to the way that congregations and groups organize and collectively work toward a common goal. It should be viewed as a success when people of all backgrounds and abilities come together with mutual purpose. While there might be leaders and participants, barriers between these roles should not interfere with the organization’s foundation.

Here are some examples of questions or case studies to consider the issue of fixed-term contracts in church settings:

As with entering into any kind of contract, it’s important to have all elements of the relationship with a volunteer or employee secured. This might include a description of work or obligations, details of compensation and a timeline of when the person will start and stop.

If a church has an interest in discussing how fixed-term contracts might be utilized in the different roles in their organization, it may be a good time to contact a lawyer who has experience in articulating the needs and the expectations of the church in the context of the law.

For more information on contracts and legal considerations, you can visit Cornell Law School’s Legal Information Institute.