How do B-schools view church involvement?

fervorking,
If you help your church outside of work as a volunteer activity, then schools would consider it as an extracurricular or community involvement. Admissions committees would regard it very positively because of the level of impact and responsibility you have vis-a-vis less impactful roles. Involvement in a church differentiates you from other applicants in that few applicants talk about religious involvement, either because it isn't important in their lives or because they are concerned that it's considered controversial or politically correct. But church involvement only becomes a potential negative in an application if the applicant focuses on issues of doctrine etc. If you describe it as a way to be positively involved in your community then it is a big plus for you.
Hope this helps,
--Paul Bodine, Great Applications for Business School, www.paulsbodine.com/testimonials