Legal issues confronting religiously-affiliated colleges and other nonprofit institutions are discussed in this study prepared by the Center for Constitutional Studies at the University of Notre Dame. Legal and structural relationships between colleges and religious bodies that are discussed include: governing documents, governing boards, principal officers, and budgets and assets. Liability issues--ascending liability and individual trustee liability--are examined. It is emphasized that if a religious body chooses to be involved in the life of a college or university, the leaders of colleges and religious bodies should have a clear understanding of the legal consequences of their relationships. Public financial assistance, the exercise of religious preference in employment policies, academic freedom, student admission and student discipline, use of publicly-funded facilities, and property relations are discussed as they relate to church-related colleges. Further research examining regulation of a religion and religiously-affiliated higher education is recommended as well as examination of the constitutional status of church-related colleges and universities. Appended are three papers: The Present State Of Roman Catholic Canon Law Regarding Colleges and Sponsoring Religious Bodies (James E. Coriden and Frederick R. McManus); Property Relationships: The United Methodist Church and United Methodist Related Colleges (Kent Weeks); and Property Relationships of Southern Baptist Colleges (Preston H. Callison). (SF)