The trust clause applies to all other property that a local church owns, from its hymnals to its choir robes to its sound equipment to its vans to its tableware. Local church property (real or personal, tangible or intangible) is owned by local legal entities and held in trust for the denomination as a whole. He managed economic-development organizations and city agencies for 30 years before working for the past five years in management positions involving properties for The United Methodist Church. Districts and annual conferences should do so for their portfolio of properties. Downsize. (See Judicial Council Decision 1282). These individuals have access to and oversight of the property of a church. The property is on the market for $4.9 million. Real estate is an information-intensive business, and most churches currently deal from a deficit of data. Antioch Lutheran Church. The Summary Flow Chart provides an at a glance of the streamlining sales process. 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. Incidentally, thats true not just for the UMC, but also for the Episcopalian Church and other bodies that also have a trust clause in their church law. Yet before United Methodists make plans to divide their assets, it is important to come to a clearer understanding of just what those assets are and how they may (or may not) be disposed of in the future. TMCP have prepared a template Qualified Surveyors Report (QSR) (Template QSR) and template letter of instruction to surveyors (Template Instruction Letter) to help surveyors produce a QSR that provides clarity of advice to Managing Trustees (before marketing) and deals with the requirements under charity law. 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. Property plays a significant role in enabling a presence within communities. "Throughout the process, the church has decided on multiple occasions to focus its work on community engagement. In accordance with the Connexional Property Strategy launched in summer 2019 and later revised in February 2021, before making the difficult decision to sell property or getting into a position where sale is the only option, Managing Trustees will be anxious to explore whether there are any alternatives available. Simply put, the Trust Clause states that the local church owns the property in trust for the annual conference. " The ongoing master plan led the church to consider the sale," Dalton Rushing, the DFUMC's senior pastor told Decaturish. The congregation of Biltmore United Methodist Church has voted to sell its property and devote its energy and resources toward responding to Asheville's most pressing social needs. Although TMCP are not involved in the process the following guidance is available from TMCP on the steps to be taken by Managing Trustees: If Managing Trustees or their solicitors would like any further guidance please do not hesitate to contact TMCP. The congregation of Biltmore United Methodist Church has voted to sell its property and devote its energy and resources toward responding to Asheville's most pressing social needs. Housing allowances are considered to be current expenses so sale proceeds cannot be used in this way. obtain confirmation as to whether the seller is connected to the charity within the meaning of s.118 of the Charities Act 2011. ask your legal advisers to ensure that the draftsale contract, transfer and/or lease include the. Signposting to wider support. Lease out. Any gift, legacy, devise, annuity, or other benefit that accrues to a closed local church shall become the property of the annual conference board of trustees. 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. Under most countries' property laws, assets can only be owned by "legal persons," a lawyerly term meaning both . It would not be required unless stipulated by General Conference by amendment to the Book of Discipline. He may be contacted at richardtreinhard@gmail.com. (They may transfer the facilities.) The Property Development Pathways are a good place to start as they help Managing Trustees to actively explore alternative potential uses for their properties whilst remaining under Methodist ownership: Contact details for the Connexional Team can be found here. References to the United Methodist Church in a congregation's articles of incorporation, for instance, can be damaging. Used by permission. Book of Discipline: 2549. A historic Methodist chapel in Cornwall has gone on sale for a bargain . The denomination needs to analyze six possible alternatives for each property. Managing Trustees decide to sell property for different reasons; perhaps a property needs to be sold to fund a new, more suitable, manse or worship space or is simply surplus to requirements. On a related note, courts will often look to the founding incorporation of a church for property ownership clues. 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. 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). b) Upon a recommendation by the district superintendent, and with the consent of the presiding bishop, a majority of the district superintendents, and the appropriate district board of church location and building, the annual conference may declare a local church closed. Commercial Property. Michigan Conference Center. For a variety of reasons, the religious institution may wish to sell, mortgage or lease its property. There are various charity law and Methodist law, policy and best practice requirements that must be fulfilled before a sale of Methodist Model Trust Property can proceed. 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. TCG Proudly Presents The Darlington Property. 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. Monday 26 April 2021, 7:55pm. Dr. Scott is neither a lawyer nor an accountant, and thus his explanation herein should not be interpreted as legal advice. This array of decision-makers increases the chances for conflict over assets within the local church itself. The Trust Clause is contained in all the deeds of all the churches in the denomination. Is any additional support or assistance available to the Managing Trustees if they wish to explore alternatives? The authority to make all decisions regarding property, both real and personal, is vested in the charge conference. 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. This post is republished with permission from UM & Global, the collaborative blog of United Methodist Professors of Mission. What are the demographics of the congregation, and what is its will? Denomination. 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. Of 500-plus churches, more than 100 were rated in critical condition; another 200-plus were rated in serious condition. Requirement of the Trust Clause for All Property-1. PastorMatt. 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. Litigation Issues for Church Property Ownership. This means that TMCP needs to be party to the sales documents. In the event of loss, damage to, or destruction of such local church property, the annual conference board of trustees, as the duly and legally authorized representative of such local church, is authorized to make a claim for, and collect on, any applicable insurance policies. 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. A forum for discerning God's future for The United Methodist Church, hosted by St. Stephen UMC, Mesquite, TX. CONGREGATION WILL SELL PROPERTY, INVEST IN LOCAL NEEDS A new way to proclaim the Gospel 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). The mission of the church is to make disciples of Jesus Christ for the transformation of the world. They often find themselves behind the eight ball on their operating budgets, spending half or more on property-related expenses, and on their balance sheets, finding the vast majority of their assets tied up in difficult-to-market real estate. Newsletter Signup. Biltmore United Methodist Church, which has occupied a spot on the southeast side of I-40 for over a half-century, made the decision this month. St. Mark United Methodist Church, at Peachtree and 5th streets, wants to sell about an acre of its land. The property includes the church's parking lot and three buildings along 5th and Juniper . UM & Global blogmaster Dr. David W. Scott, a United Methodist layman, serves as Director of Mission Theology at theGeneral Board of Global Ministries. Exigent circumstances include, but are not limited to, situations where a local church no longer serves the purpose for which it was organized or incorporated ( 201-204) or where the local church property is no longer used, kept, or maintained by its membership as a place of divine worship of The United Methodist Church. Before marketing the property, it is essential for the church to understand the value of its site. Click here to search by department. The requirements can seem daunting and Managing Trustees may therefore find it helpful to break these down into the steps set out in theSale Guidance for Managing Trustees. It reflects the connectional structure of the Church by ensuring that the property will be used solely for purposes consonant with the mission of the entire denomination as set forth in the Discipline. b) The local church property is no longer used, kept, or maintained by its membership as a place of divine worship of The United Methodist Church. Whang's congregation aren't new, but the pandemic thrust them to the fore. 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.". While it would violate the BOD, it might be possible for local leaders to work with bankers, brokers, or real estate agents unfamiliar with the trust clause to sell or otherwise dispose of local church property without annual conference consent. A post shared by Scottie Scheffler (@scottie.scheffler). The United Methodist Church needs to collect and analyze key information not only about real estate, but also six additional factors that go to determine future viability: Market. 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. 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.