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If you are doing it correctly it will create more work for you. An internship is an investment into the life of the intern and therefore adds one more thing to your plate. Do not start an internship if you can not devote the time and energy. Just my .02

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If you are located near a Christian college/seminary, I'd start by talking to them. I had to do two internships while in Seminary and the school was a great help to both myself & the churches I worked with.

Last school year I had a college student at my church ask if he could be my intern so he could learn about ministry. It wasn't all that official, but basically I decided on some ground-rules & expectations based on my internship experience and met with him enough in advance to make sure he'd be able to do it. It did create some work for me, but that was nothing in comparison to the amount he accomplished, so it was totally worth it.

To answer your questions specifically:
1) N/A
2) Give the intern responsibilities that will challenge him/her and provide future experience. Do written reviews & have them journal regularly to make the experience tangible. Let them do meaningful work (not just busy work), then it benefits you too so they can run with as much as you trust them to do & you don't have to micromanage.
3) Meet regularly, share feedback, be honest, teach them as much as you can, allow them to fail but learn from it.