So, in this scenario, if an annual conference leaves, it ends up being part of a fire sale that consumes itself. 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. Thus,The United Methodist Church as a whole does not directly ownanyassets, since the church as a whole is not a legal entity capable of owning assets. Except as provided in 2549.3, the district superintendent may, pursuant to this paragraph, recommend the closure of a local church, upon a finding that: a) The local church no longer serves the purpose for which it was organized or incorporated ( 201-204); or. (Photo Courtesy of David Mosser). The city purchased the former Cove United Methodist Church . The same small congregation that currently meets in a relatively huge building could gather in smaller, less expensive space and survive, if not thrive maybe in a worshipers living room as a dinner church.Before the pandemic, one annual conference rated churches based upon nine performance criteria relating to economic health and congregational size. There are different amounts of property at each of these levels, though. 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. This trust clause applies to the property of all parts of The United Methodist Church, but local churches are in a unique position with regard to the trust clause for several reasons: 2503 . HARLEM A cash-strapped West 135th Street church is planning to sell its property to a billionaire developer for more than $10 million dollars to pay off its debt and secure a new space, court . Lay leaders often try to apply wisdom about their home ownership, but often those lessons do not apply.Similarly, clergy and lay leaders often find themselves debating moral and sentimental issues regarding property rather than tackling practical, often financial, issues. These are available to use whether Managing Trustees are instructing a panel surveyor or not and are proving successful in reducing the time taken to review and approve a QSR. 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. 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. May 3, 2019. " The ongoing master plan led the church to consider the sale," Dalton Rushing, the DFUMC's senior pastor told Decaturish. 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. Disposition of Property of a Closed Local Church. Dalton explained that the proposed budget to be voted on at the May 2020 General Conferencecalls for a23% reductionin spending based on2017giving levels, a major budget adjustment prompted by the staggeringnumber of people fleeing local Methodist churches over the past decade due to the internal denominational schism. Copyright 2016 by The United Methodist Publishing House. But there is a very important point to be made about assets and legal entities within the UMC. . As railroads began fading in the mid-20th century, railroad companies realized they needed to shift toward being more in the real-estate business. Whatever the reasons Managing Trustees as prudent charity trustees need to make the sale as beneficial to the charity as possible; by securing best terms for the charity and maximising the funds raised to further Mission on any part of the property that may have been retained or elsewhere in the Circuit, District or wider Connexion. For example:1. Requirement of Trust Clause. Rev. They need to strategize about their real estate as seriously as they treat their Sunday services, missions and Christian education. 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. Third, it is worth noting the variety of local church financial decision-makers established by the BOD. In other words, the UMC as a whole doesnt own anything, but ownership by specific UMC-related legal persons is subject to the provisions of The Book of Discipline. 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. Otherwise TMCP Legal looks forward to receiving confirmation that the charity law and Methodist law, policy and best practice requirements summarised in the Sale Checklist and detailed in the Sale Guidance for Managing Trustees andSale Guidance for Solicitors have been fulfilled. For unincorporated congregations, the property is technically owned by the trustees, who as humans are legal persons. Sell the property and buy (or rent) right-size quarters. Merge. The legal owner of nearly all Methodist land and property is TMCP. Lease out. If the Managing Trustees are aware of the existence of any covenants on the land restricting its use, early advice on whether such covenants are enforceable and what steps need to be taken or avoided before the property is marketed should help to ensure that any impact on the sale is kept to a minimum. 15,100 square-foot church seats 400+ plus 3-bedroom house plus 1-bedroom caretaker house. In either case, property ownership is exercised in trust for The United Methodist Church. 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. What is Lent and why does it last forty days? Opportunities for repurposing and redevelopment must be pursued more aggressively now than ever, given the precarious financial situations of many churches and COVID-19s effect on them.The upcoming closings of tens of thousands of U.S. houses of worship mean that The United Methodist Church at every level church, district, annual conference, agencies needs to become purposefully engaged in its real estate much more comprehensively than it has been. Actions. 1500. 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). The opinions and analysis expressed here are Dr. Scott's own and do not reflect in any way the official position of Global Ministries. 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. As pastor at Discovery United Methodist Church near Short Pump, Adam Sowder preaches about building community. The trust is and always has been irrevocable, except as provided in the Discipline. . 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. Hi, I'm Angie, and I'm going to help you with your question. The annual conference board of trustees shall dispose of the property in its discretion, unless otherwise directed by the annual conference or as required by law. Under most countries property laws, assets can only be owned by legal persons, a lawyerly term meaning both actual humans and government-recognized entities such as corporations. COVID-19 innovations will make lasting impact on America's churches. 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. 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. 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 also applies to all financial assets owned by a local church. This is the famous trust clause of the UMC, which reads, in part: 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. Stay up-to-date on important announcements, events and more. The legal owner of nearly all Methodist land and property is TMCP. 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. Rev Kanyaru said they published the caveat after discovering that there was a plan to sell church land valued at more than Sh20 billion at Gitanga in Nairobi. If a local church in a non-urban center is closed, any proceeds of the sale of its property may be used for new churches, new faith communities, new missional initiatives, relocating churches, churches building multi-campus facilities for the purpose of evangelistic church extension, or an organization that is a nonprofit and has values consistent with The United Methodist Churchs values and is consistent with our Wesleyan heritage, theology, and United Methodist polity. Disposition of Property of a Closed Local Church1. Religion Unplugged believes in a diversity of well-reasoned and well-researched opinions. There will be a substantial loss of churches if either one of two likely scenarios occur. General & Covid-19 Queries, Leslie Matthews, Property Support Officer. As previously discussed, The United Methodist Church as a whole is not a legal entity capable of owning property or financial assets. The church hierarchy makes decisions and imposes them on the local church. leasing unused space and time to other churches, selling additional land, and leasing space to daycares, charter schools, and other businesses. Such action would violate the Book of Discipline and thus expose the local church and its leaders to lawsuits from the annual conference, but it might be harder for the annual conference to recover property that was already disposed of. 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.". Property plays a significant role in enabling a presence within communities. Procedurea) Prior to a recommendation to close a local church, the district superintendent shall: (1) Guide the congregation in an assessment of its potential as outlined in 213, in consultation with the appropriate agency assigned the responsibility of the conference parish and community development strategy; (2) Obtain and consider an opinion of legal counsel as to the existence of any reversion, possibility of reverter, right of reacquisition, or similar restrictions to the benefit of any party; (3) Develop, in consultation with the appropriate district board of church location and building, a plan for the future use of all the real and personal, tangible and intangible property of the local church; and. From The Book of Discipline of The United Methodist Church - 2016. They do assist with the financing of constructing new buildings if I'm not mistake. Mike Copeland Jan 13, 2023 Jan 13, 2023; 0; 1 of 4 . Contact: Matt Garfield, United Methodist Foundation of Western NC 888-450-1956 Ext. 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. The United Methodist Church needs to dedicate itself to a new philosophy about its real estate, one that seminarians are educated about, personnel are assigned to and resources are devoted to.As railroads began fading in the mid-20th century, railroad companies realized they needed to shift toward being more in the real-estate business. 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. Second, with the popularization of the automobile in the 20th century and the internet in the 21st, the need for every community to have a structure housing a United Methodist church has faded. (7), Trustee Documents An historic former Methodist church in a Derby suburb has sold at auction for 168,000. The Methodist Church is the fourth largest Christian Church in Britain, after the Anglican and Roman Catholic Churches and the Church of Scotland. From The Book of Discipline of The United Methodist Church - 2016. Thus, this is the first post in an on-going series about UMC assets. 23800 Lahser Rd. While in some instances departing congregations have negotiated with their annual conferences to take assets, when the trust clause has ended up in court, annual conferences have almost always won ownership of the property of departing congregations. 4, 2023. Quinquennial inspections. Trustees for Methodist Church Purposes 2023, Granting a Non-Residential Lease to a Third Party, Charity law and Methodist law, policy and best practice requirements on sales, Section F of the Sales Guidance for Managing Trustees, First Legal Steps on a Property Project chart, External Links Again, such action would violate the Book of Discipline and ultimately lead to lawsuits, but in an instance in which there is a lot of internal conflict within a church about that churchs continued relationship with the UMC, there is the possibility for factions within the church to use control of church property as a means to achieve their preferred outcome. 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. The church is headed to the Planning Commission on Tuesday, Jan. 5, seeking permission subdivide its current lot to reconstruct the church on one part of the property closer to the street and sell the rest to St. Stephen's . The calling of the Methodist Church is to respond to the gospel of God's love in Christ and to live out its discipleship in worship and mission. Owning a piece of land brings invaluable security and stability to a ministry and those . "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. On-site interviews and photos available upon request. (1), obtain a Qualified Surveyors Report for review and approval by TMCP, obtain a best price and adequate marketing certificate. "We are a smaller community now, and we want to . 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. The UMC Separation Protocol, a proposal endorsed by five affinity groups within the United Methodist Church in January 2020, contained two covenants. 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). The proposed Separation Protocol provides that a local church leaving the denomination for one of two new Methodist denominations, conservative or progressive, must pay for any outstanding pension obligation, even if the pension is fully funded, as well as the cost of preparing new governing documents and real estate deeds that remove the Trust Clause. For a variety of February 22, 2013. . What should United Methodist congregations know about disaffiliation? Last year another arm of the Methodist Church made a grant of 78,500 to the project to convert the empty Bainbridge chapel, and Methodist Insurance gave a further 40,000 only in June - after . This means that TMCP needs to be party to the sales documents. Who technically owns local church property depends on whether a congregation is incorporated. collectively had $621 million in net assets in 2018. The United Methodist Church plans to contribute $30 million toward a fund for former Boy Scouts who suffered sexual abuse by Scout Leaders. "Since our university is so indebted, we decided that all unserviceable debts be . But the lawsuit states UMC conspired to deprive Trinity of its right . Need work. (Photo by Mike DuBose, United Methodist News) Church money. Real estate is an information-intensive business, and most churches currently deal from a deficit of data. That annual conference may be faced with taking drastic action with half of its churches over the next few years. All five jurisdictions together held less than $4 million in property, though corporate entities related to the jurisdictions held additional assets. This post is republished with permission from UM & Global, the collaborative blog of United Methodist Professors of Mission. Separate to the Methodist panel of solicitors, a Methodist panel of surveyors is also available to help Managing Trustees managed by the Property Support Team. 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. The trust clause may or may not apply to other UMC-related entities like colleges and hospitals. During this church conference, members will vote to sell the Cardinal Ct. parsonage at market value to the best offer. But Rev Ntombura said money and property has never been a source of trouble in the Methodist church. After that, who cares who keeps the Sunday School books, right? How state law directs the incorporated management of property, then, can be of critical importance. Is any additional support or assistance available to the Managing Trustees if they wish to explore alternatives? A forum for discerning God's future for The United Methodist Church, hosted by St. Stephen UMC, Mesquite, TX. Dr. Scott is neither a lawyer nor an accountant, and thus the following should not be interpreted as legal advice. Districts and annual conferences should do so for their portfolio of properties. Downsize. 5. First, the denominations structure and the pronouncements of its Book of Discipline make dealing with properties difficult. Before marketing the property, it is essential for the church to understand the value of its site. What is Lent and why does it last forty days? 3. Monday 26 April 2021, 7:55pm. Copyright 2016 by The United Methodist Publishing House. When it next meets, the annual conference shall decide whether to formally close the local church. Under the first scenario, the Separation Protocol passes and thousands of progressive and conservative churches leave the denomination and fold into a new denomination, leaving the UMC without future funding. It does not and cannot hold title to property, nor does it have any officer, agent, employee, office, or location. In 2018, three years into her tenure as pastor of the nearby First United Methodist, she helped arrange the sale of her church's original 1.15-acre property, just one mile north of First Miami . Except as provided in 2549.3, the district superintendent may, pursuant to this paragraph, recommend the closure of a local church, upon a finding that: a) The local church no longer serves the purpose for which it was organized or incorporated ( 201-204); or. 6. PastorMatt. 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. Quick Statutory Reference Guide Sale, mortgage and lease of real property of religious . 5051 Darlington Rd. 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. Post-pandemic, those numbers should increase sharply. This array of decision-makers increases the chances for conflict over assets within the local church itself. ), and such units of the church could certainly make grants to support the ministry of departing portions of the denomination, if they so chose and if those grants fit within the designated missional purposes of those agencies and annual conferences. Moreover, in multiple-point charges, there may be both local church trustees for the property of each congregation and a board of trustees for property owned by the charge as a whole. This means that for incorporated congregations, the property is owned by the local congregation as a corporate entity. A forum for discerning God's future for The United Methodist Church, hosted by St. Stephen UMC, Mesquite, TX. Updated: 10:44 PM EDT July 18, 2022. Learn more about our services for businesses and religious organizations at https://www.daltontomich.com/. Thus, the trust clause as applied to local church property has generally stood the test in secular courts. Information and guidance on selling Methodist property. Sincerely, 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. Please use the Template Instruction Letter when you instruct your surveyor and provide your surveyor with this link to the Template QSR (https://www.tmcp.org.uk/property/sales/resources/standard-documents-and-forms/template-qsr). 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. Repairs and Maintenance. 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. Since church properties are owned by whatever regional Annual Conference where they are located, it is the responsibility of each of those conferences and districts to work with local realtors. Find A Church. Since this type of conflict would occur within a church, an exit plan would not necessarily mitigate it. There have yet to be any official changes to the UMC's doctrine. All the deeds, records, and other official and legal papers, including the contents of the cornerstone, of a closed local church shall be collected by the district superintendent and shall be deposited for permanent safekeeping with the annual conference commission on archives and history. As one colleague said: We force churches to collect information on every aspect of their worshipers but next to nothing about their property.2. 7. Daniel What are the demographics of the congregation, and what is its will? Denomination. UM & Global is the collaborative blog of United Methodist Professors of Mission. 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. Now, with the help of a local developer, Sowder and the church are taking that idea literally. What is the financial situation of the church? Congregation. The 20,000 sq. 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. Dalton added that the only proposal in the budget to raise cash outside of apportionments is toevaluatethe $70 million dollars of real property assets owned by the denomination in the red hot real estate market of Davidson County (Nashville) Tennessee, and determine whether to sell the property and secure more funding for the denomination now, or retain it for future needs. A United Methodist Church in Marathon, N.Y. Creative Commons photo. 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. When an individual Methodist church becomes defunct, the property vests in the annual conference and is administered according to the rules and discipline of the church. The annual conference board of trustees shall dispose of the property in its discretion, unless otherwise directed by the annual conference or as required by law. TCG Proudly Presents The Darlington Property. Of course, the exit provision passed by General Conference 2019 and any future exit provisions passed by General Conference 2020 reduce the chances for lawsuits between local congregations and annual conferences over control of property. Stay or leave, there are costs that local churches must consider in the exploration of the life of their local church after the United Methodist Church General Conference in May 2020, Dalton said. For example, if Managing Trustees want to sell part of a site and use the proceeds of sale (Circuit willing please see Section F of the Sales Guidance for Managing Trustees for guidance on the application of proceeds) to transform a retained Sunday School into a new and vibrant worship space, their legal adviser and surveyor will be able to advise them on the options available. TMCP holds legal title in its capacity as Custodian Trustee on trust for the local Managing Trustees by virtue of the Methodist Church Act 1976. If you are following the streamlined sales process then please refer to the Streamlining Page of the TMCP Website and contact TMCP Legal initially. 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. He may be contacted at richardtreinhard@gmail.com. Hycemoorside House, Bootle Station, Millom, Cumbria LA19 5XG . The United Methodist Church has failed to tackle its real estate crisis for several reasons. In consonance with the legal definition and self-understanding of The United Methodist Church (see 141), and with particular reference to its lack of capacity to hold title to property, The United Methodist Church is organized as a connectional structure, and titles to all real and personal, tangible and intangible property held at jurisdictional, annual, or district conference levels, or by a local church or charge, or by an agency or institution of the Church, shall be held in trust for The United Methodist Church and subject to the provisions of its Discipline. UM & Global blogmaster and United Methodist layman Dr. David W. Scott serves asDirector of Mission Theology at the General Board of Global Ministries. This is allowed under rules created by the conference, if done by Dec. 31, 2023. Plus, commercial real estate considerations of prime church properties, Media Contacts: Barbara Fornasiero, EAFocus Communications; barbara@eafocus.com; 248.260.8466; Daniel Dalton; ddalton@daltontomich.com; 248.229.2329. Not fair! It shall be the duty of the annual conference board of trustees to remove, insofar as reasonably practicable or necessary, all Christian and United Methodist insignia and symbols from such property. Conferences, councils, boards, agencies, local churches, and other units bearing the name United Methodist are, for the most part, legal entities capable of suing, and being sued, and possessed of legal capacities. (emphasis added). Looking for a staff member? As cut and dried as the trust clause may appear, there are facets to keep in mind when thinking through the sorts of conflicts and potential lawsuits that might arise over ownership of local church property. c) The annual conference board of trustees may retain, sell, lease, or otherwise dispose of the property of a closed local church in accordance with the direction of the annual conference, if any.
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