Some music, especially hymns, are aready in the public domain. Most works copyrighted before 1928 have fallen out of copyright protection now. With works in those categories you can transcribe and otherwise distribute copies.
With works NOT meeting those conditions, it is a bit more complex:
In the case of music, the law is very restrictive with one exception: in a church setting, copyrighted music may be sung or performed freely as a part of the religious service. (In secular settings, musicians must pay a fee to perform copyrighted music.) Other than that one exception, a church must seek and secure permission from the copyright holder prior to
1. reproducing copyrighted music or lyrics in any manner, whether by overhead transparencies, word-only chorus books-even hand-written words on a chalkboard
2. taping copyrighted music, even for sharing the service with shut-ins or in order to help a choir or music group learn a piece
3. putting new words to copyrighted music or matching copyrighted words to new or different music
4. creating new arrangements of copyrighted music (for instance, for a women's trio or a church orchestra)
Frankly, the chances of a church getting caught or of a copyright holder suing are slim. But the law nevertheless stands, and churches should be law-abiding. Of equal importance, churches by their unwarranted use of a work should not be depriving the originator of the music and the publisher of a fair financial return on their efforts. More:
http://cpinet.christianpublications.com/cpipublishing.nsf/0/a70ac687695d9c3e85256e44006e5014?OpenDocumentStill more:
http://www.google.com/search?hl=en&ie=UTF-8&q=fair+use+hymns&btnG=Google+SearchHope that helps. :-)