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Antioch Lutheran Church. First, while most people assume that the trust clause means that the annual conference owns local church property, thats not technically true. " The ongoing master plan led the church to consider the sale," Dalton Rushing, the DFUMC's senior pastor told Decaturish. Copyright 2016 by The United Methodist Publishing House. Under the second scenario, no separation plan passes, and local churches will immediately leave, either to become independent, or to form a denomination with others. TMCP is therefore required to ensure the transaction complies with charity and Methodist law as well as ensuring there is no breach of trust in accordance with Standing Order 930(3) and approves the documents on behalf of the Connexional Team under Standing Order 931(3). Click here to search by department. 2501. leasing unused space and time to other churches, selling additional land, and leasing space to daycares, charter schools, and other businesses. Managing Trustees are encouraged to refer to the "Strategic Guidance for Property in Mission" (particularly the questions referred to in paragraph 3.3 of the strategy) and to talk to their Circuit, District and the Connexional Team. For information on the firms on the Methodist panel of solicitors, how the panel solicitor firms can help Managing Trustees and contact details, please see the Panel Solicitor pages on TMCP's website. Multiple use such as the sanctuary and other rooms used by other congregations or mixed use such as an education building converted into child-care center help bring revenues into a church and may generate activity that grows the congregation. Several other places in the BOD also give the annual conference explicit powers regarding the sale or transfer of local church property or its release from the trust clause. (Photo by Mike DuBose, United Methodist News) Second, its important to remember that local church property includes more than just buildings. From The Book of Discipline of The United Methodist Church - 2016. March 2nd, 2023 Church, does not sell but may transfer title of its facilities to another United Methodist church or agency; and (d) the congregation, in case of relocation, first offers its property to a United Methodist congregation or agency at a price not to exceed fair market value. In the Methodist church, the church's trustees have the power to acquire, use, sell, and mortgage property for the benefit of the church. Virtual churches like the Rev. Please refer to the Streamlining Page of the TMCP Website for guidance on the six stages of the process, the key steps for Managing Trustees to take, when and how TMCP and your professional advisors will assist throughout the process and links to all the resources that have been prepared to help you. Many churches considered healthy are in fact struggling, with a shaky bottom line, aging congregation and uncertain post-pandemic future.The United Methodist Church has failed to tackle its real estate crisis for several reasons. If houses of worship follow trends predicted for U.S. restaurants and retailers, as many as 20% of the national total could close up to 100,000 over the next several years with The United Methodist Church being no exception to the nationwide trend.The pandemic isnt the only reason for closings. The battles revolve around the "trust clause," a UMC policy that says in one section "propertiesare held, in trust, for the benefit of the entire denomination.". If Managing Trustees have decided that they want to explore the possibility of selling property and have considered the "Strategic Guidance for Property in Mission", then there are different steps to take depending upon whether one of the firms on the Methodist Panel of solicitors (Panel Firm) will be instructed to assist in the sale. (4) Develop a plan for the transfer of the membership of the local church ( 229). St. Mark United Methodist Church, at Peachtree and 5th streets, wants to sell about an acre of its land. "We are a smaller community now, and we want to be free to be the hands and feet of Christ." The Book of Discipline prohibits the use of sale proceeds from any church building or parsonage to be used for current budget or operating expenses (paragraph 2543). If Managing Trustees do not intend to instruct one of the Panel Firms, they will be unable to follow the streamlined sale process and in this case, one of the first steps is to obtain a Qualified Surveyors Report (QSR). What should United Methodist congregations know about disaffiliation? ST. PETERSBURG A downtown congregation has agreed to sell a portion of its prime property to a Connecticut developer. From The Book of Discipline of The United Methodist Church - 2016. There is not some pool of money out there separate from the assets of these specific groups. First, the denomination's structure and the pronouncements of its Book of Discipline make dealing with properties difficult. (1), obtain a Qualified Surveyors Report for review and approval by TMCP, obtain a best price and adequate marketing certificate. All of these provisions add up to clear enforcement of the trust clause on local churches by annual conferences. Congregations that will no longer continue as a United Methodist church may not sell facilities to another United Methodist church. The property includes the church's parking lot and three buildings along 5th and Juniper . After selling all of those he closed the church and left town. Third, even with the property tax exemption that houses of worship enjoy, real estate has become more expensive to maintain, with hikes in utilities, insurance and capital repairs.Today, the pandemic has made it questionable whether worshipers will return to closed houses of worship.Many churches are in a downward spiral: congregations dwindle, contributions decline, reserves erode, buildings deteriorate, staff is less able to be supported, the church becomes less attractive to attend. The United Methodist Book of Discipline calls for a church vote when the Trustees recommend the sale of a property. It also applies to all financial assets owned by a local church. Monday 26 April 2021, 7:55pm. If the annual conference closes a local church, title to all the real and personal, tangible and intangible property of the local church shall immediately vest in the annual conference board of trustees, who shall hold said property in trust for the benefit of the annual conference. Factors. Yet, to carry out its property and financial decisions, the charge conference relies upon the work of the board of trustees, the treasurer, the finance committee, and (if they exist) the permanent endowment committee and directors of the local church foundation. 2552 refers to [t]rustees of schools, colleges, universities, hospitals, homes, orphanages, institutes, and other institutions owned or controlled by any annual, jurisdictional, or central conference or any agency of The United Methodist Church, yet it continues, It is recognized that there are numerous educational, health-care, and charitable organizations that traditionally have been affiliated with The United Methodist Church and its predecessor denominations, which are neither owned nor controlled by any unit of the denomination. It depends upon the specifics of each entitys articles of incorporation, as a future post will elaborate. I'd like to know what pool of money pays for the General Board of Church and Society, seeing as this Board has morphed into a pro abortion lobbyist group for the Democrat Party and various other extreme left wing activist groups. There has been a lot of discussion about the assets of The United Methodist Church related to the possibility of a division within the church. However, such grants would be at the discretion of the (still-UMC-affiliated) agency, annual conference, or congregation. Among the many amazing assets and tools with which Churches are equipped, the real property on which they worship, train, minister, and serve has to rank near the top of the list. a strip of land adjoining the chapel, or want to sell the whole property, it is strongly recommended that you contact the legal office of Trustees for Methodist Church Purposes at the earliest possible stage. "Of course, agencies, annual conferences, and congregations routinely make grants to support the ministry of non-United Methodist legal entities (partner denominations, non-UMC nonprofits, etc. Bishop Ruben Saenz Jr., bishop of the North Texas Conference, during a special called session at the United Methodist Church in Plano on Saturday, Mar. Thus, when were talking about United Methodist assets, were mostly talking about the assets of government-recognized non-human legal entities, which in the US usually take the form of 501(c)(3) non-profit corporations. The . The mission of the church is to make disciples of Jesus Christ for the transformation of the world. "We are a smaller community now, and we want to . Harp Design furniture business closing, selling property. Under the Constitution and disciplinary procedures set forth in this Book of Discipline,the United Methodist Church as a denominational whole is not an entity, nor does it possess legal capacities and attributes. TMCP Legal are also always on hand to answer any questions you may have (contact TMCP). This article was originally published at UM News.Richard Reinhard is associate of The Lakelands Institute and principal of Niagara Consulting Group. 2. UM & Global blogmaster Dr. David W. Scott, a United Methodist layman, serves as Director of Mission Theology at theGeneral Board of Global Ministries. For a variety of February 22, 2013. . property@methodistchurch.org.uk, 020 7467 5271. Updated: 10:44 PM EDT July 18, 2022. 41 churches are seeking approval . more than 3 years ago, If you really want to know where they get their money you can see that on their annual audit.https://www.gcfa.org/media/2002/2b1b2-general-board-of-church-and-society-12-31-18-financials.pdf. Most sizable congregations are incorporated as 501(c)3 organizations, but many small congregations are not. Dalton also identified a fatal flaw in the proposed budget: with the income set at2017 giving levels, there is no consideration of the exodus of local churches in the past three years, nor the anticipated loss of thousands of additionalmembers and donors after the May 2020 General Conference. Answer (1 of 3): No. Lease out. Quick Statutory Reference Guide Sale, mortgage and lease of real property of religious . Part of the question hinges on whether this process would involve the transfer of the trust (more likely allowable, since the legal entity would continue as is) or the transfer of parts of the entity's assets (less likely allowable, since it could violate the charter). 7. From Junior Church to leading the drive to support a foodbank. In any sale, the QSR that the Managing Trustees are obliged to obtain under s.119 of the Charities Act 2011 will provide vital guidance to the Managing Trustees on how to proceed in the best interests of the charity. Need work. Selling a Property If you are looking to sell part of your premises e.g. For unincorporated congregations, the property is technically owned by the trustees, who as humans are legal persons. What are the rules imposed by the denomination, and how are those rules enforced by the annual conference and district? Partners. "Since our university is so indebted, we decided that all unserviceable debts be . collectively had $621 million in net assets in 2018. The opinions and analysis expressed here are Dr. Scott's own and do not reflect in any way the official position of Global Ministries. Philosophy. Methodist Church, Ainstable , Carlisle, Cumbria CA4 9PZ. Although the exact requirements will depend upon the type of property being sold and method of sale, in summary the Managing Trustees will need to: The Sale Guidance Notes aim to help Managing Trustees and their professional advisers to navigate their way through the charity law and Methodist law, policy and best practice requirements on sales: If you are following the streamlined sale process then please use the resources on the Streamlining page of the TMCP website: If you want the sale to be considered as a replacement project please address any questions relating to logging a project to the Web Applications Team and any other questions to Property Support who are responsible for decisions relating to replacement projects. The process aims to reduce the time that is spent on simple property transactions where one of the Panel Firms is involved by identifying and dealing with any issues at a much earlier stage and relying on the expertise of the Panel Firms at the time critical stages of a transaction which take place once a buyer has been found. Find out more information about events here! If Managing Trustees intend to instruct one of the Panel Firms (see box above), then they can take advantage of the streamlining process for sales introduced in September 2021. CONGREGATION WILL SELL PROPERTY, INVEST IN LOCAL NEEDS A new way to proclaim the Gospel A hundred years ago, when many United Methodist churches were founded, a worshiper needed to be able to walk or ride a horse to church on Sundays, but no more. Thus, this is the first post in an on-going series about UMC assets. The 20,000 sq. Covenant United Methodist Church in Dothan has a big decision to make on Sunday. The Book of Discipline of The United Methodist Church -- 2016. Wis Stat & 187.15(1). If the property ceases to be used as a United Methodist Church, then it reverts to the annual conference of which that church is a part. Not fair! For information on the panel surveyors please refer to the panel surveyors page on the Methodist Church website contact sheet produced by the Connexional Team:: Panel Surveyors Page Methodist Church Website. Local churches and other United Methodist agencies and institutions may acquire, hold, maintain, improve, and sell property for purposes consistent with the mission of the Church, unless restricted or prevented by the Discipline. Sometimes, rather than dealing with the complicated process, people run the other way, not attempting to tiptoe through the minefield that is The United Methodist Churchs real estate.Second, clergy and lay leaders are not equipped and sometimes less than interested in dealing with church real estate. Moreover, there will be new costs to stay, as well. Contact: Matt Garfield, United Methodist Foundation of Western NC 888-450-1956 Ext. The United Methodist Church has failed to tackle its real estate crisis for several reasons. The Book of Discipline outlines property-related responsibilities for the charge conference, the board of trustees, the financial secretary, the treasurer, the finance committee as a whole, and, in cases where they exist, the permanent endowment committee and the directors of the local church foundation. When it next meets, the annual conference shall decide whether to formally close the local church. The surveyor may for example suggest alternatives to a sale or recommend that certain actions such as obtaining planning permission or undertaking repairs are taken before putting the property on the market in order to obtain best price. Religion Unplugged56 BroadwayNew York, NY 10004, Religion Unplugged is a production of The Media Project and a member of the Institute for Nonprofit NewsEIN: 83-0461425site design by Peter Freeby, Center for Analytics, Research & Development and Data, Analysis, Catholicism, Opinion, Politics, Religion, Clemente Lisi, President Joe Biden, Holy Communion, Catholicism, Communion, bishops, Pope Francis, politics, religion, opinion, Recharge, Hamil R. Harris, Primary Feature, SBC, SBC 2021, Southern Baptist Convention 2021, Al Mohler, Mike Stone, Critical Race Theory, Paige Patterson, Randy Adams, Secondary Feature. TMCP Legal will also help Managing Trustees' solicitors to ensure that the transaction is otherwise lawful and in the best interests of the Managing Trustees. The remaining local churches within the UMC will be left with no cash to continue, coupled with a collapse of future donations.Under either scenario, the local churches who remain in the United Methodist Church will end up paying substantially higher apportionments, Dalton said. General Conference can do so by inserting such rules into the Book of Discipline, which functions as a legal document for local church, conference, and agency government. 717 reads, in part: United Methodist institutions shall endeavor to avoid investments in companies engaged in core business activities that are not aligned with the Social Principles through their direct or indirect involvement with the production of antipersonnel weapons and armaments (both nuclear and conventional weapons), alcoholic beverages or tobacco; or that are involved in privately operated correctional facilities, gambling, pornography or other forms of exploitative adult entertainment. There are a variety of other examples of such rules. As 2501.2 says, Property can be released from the trust, transferred free of trust or subordinated to the interests of creditors and other third parties only to the extent authority is given by the Discipline.. The legal owner of nearly all Methodist land and property is TMCP. Rev. While the UMC as a whole does not own assets,all of the assets of each of these groups are heldin trustfor the UMC as a whole. One well-known example of General Conference exercising such power is the restriction on agencies investing in companies that engage in businesses contrary to the Social Principles. JACKSONVILLE, Fla. The Florida Conference of The United Methodist Church was slapped with a 36 page lawsuit; 106 of its churches alleging the conference's . All properties of United Methodist local churches and other United Methodist agencies and institutions are held, in trust, for the benefit of the entire denomination, and ownership and usage of church property is subject to the Discipline. It is also possible that doing so might conflict with the fiduciary responsibility of such legal entities to use their assets for the purposes stipulated in their charters. Ad Interim Proceduresa) At any time between sessions of annual conference, a local church may voluntarily transfer title to all its real and personal, tangible and intangible property to the annual conference board of trustees following the procedures set forth in 2540 or 2541. Property can be released from the trust, transferred free of trust or subordinated to the interests of creditors and other third parties only to the extent authority is given by the Discipline. Under Standing Order 930(3) TMCP is also required to give approval to all matters where it is Custodian Trustee. The United Methodist Church plans to contribute $30 million toward a fund for former Boy Scouts who suffered sexual abuse by Scout Leaders. Simply put, the Trust Clause states that the local church owns the property in trust for the annual conference. History has shown that annual conferences and agencies dont engage in wholesale restructuring or eliminating agencies that no longer serve the local church. Newsletter Signup. What is Lent and why does it last forty days? If a local church in an urban center with more than 50,000 population is closed, any proceeds of the sale of its property must be used for new and/or existing ministries within urban transitional communities, as described in 212. Requirement of the Trust Clause for All Property-1. During this church conference, members will vote to sell the Cardinal Ct. parsonage at market value to the best offer. Biltmore United Methodist Church. I know of a church where the pastor was voted in and through the course of 2 years he drove all the members away and then sold the Church building, the Christian School, and the land that the church was planning on building a future building on. The authority to make all decisions regarding property, both real and personal, is vested in the charge conference. Housing allowances are considered to be current expenses so sale proceeds cannot be used in this way. DOTHAN, Ala ( WDHN) Another church in the Dothan has a big decision on its hands in the coming days, and the church's fate will fall into the hands of its congregation. Titles are not held by The United Methodist Church (see 807.1) or by the General Conference of The United Methodist Church, but instead by the incorporated conferences, agencies, or organizations of the denomination, or in the case of unincorporated bodies of the denomination, by boards of trustees established for the purpose of holding and administering real and personal, tangible and intangible property. (Book of Discipline 2501; emphasis added). It is strongly recommended that Managing Trustees instruct one of the Methodist panel firms to act for them to help transactions run as smoothly as possible. Kenya Methodist University belongs to the church. Certainly, the church building itself (and perhaps a parsonage) would likely be the biggest point of contention, since that generally represents the largest chunk of a local churchs assets. 4, 2023. (See Judicial Council Decision 1282). For a variety of reasons, the religious institution may wish to sell, mortgage or lease its property. religious corporation intends to sell or otherwise dispose of all or substantially all of its assets, regardless of their form, including intangible property such as bonds, stocks or certificates of deposit, Article 2-b of the RCL should be consulted.