If you are following the streamlined sales process then please refer to the Streamlining Page of the TMCP Website and contact TMCP Legal initially. 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. The opinions and analysis expressed here are Dr. Scott's own and do not reflect in any way the official position of Global Ministries. 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. "Selling the real estate, especially in Nashville, makes sense because there is so much attractive, vacant Methodist Church property throughout the country that can be repurposed; but convincing a Bishop to give up a beautiful building in a vibrant downtown and move somewhere less desirable can be difficult at best," Dalton said. The United Methodist Church is not a human, with the exception of individuals who own property in trust for unincorporated local churches (more on that in a future post), and it does not have legal claim over the assets owned by any of the humans associated with it. 7. Published every four years since 1817, the Doctrine and Discipline of the African Methodist Episcopal Church (commonly known as the "Discipline") contains the fundamental laws, procedures, and beliefs that undergird and guide the Connectional AME Church at all levels.The year after the General Conference is always a time of . 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. 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. 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. Under Standing Order 930(3) TMCP is also required to give approval to all matters where it is Custodian Trustee. 2/21/23, 8:27 AM Why church property plays major role in United Methodist division . 3. What potential real estate partners realtors, developers, attorneys, engineers, architects are available in the community?3. If Managing Trustees do not intend to instruct one of the Panel Firms, one of the first steps is to obtain a QSR and send it to TMCP for review and approval before the property is placed on the market and negotiations commence with potential buyers. The UMC Separation Protocol, a proposal endorsed by five affinity groups within the United Methodist Church in January 2020, contained two covenants. Sell or redevelop the assets of one. So, in this scenario, if an annual conference leaves, it ends up being part of a fire sale that consumes itself. From Junior Church to leading the drive to support a foodbank. 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. Contact: Matt Garfield, United Methodist Foundation of Western NC 888-450-1956 Ext. (If you are following the streamlining process for sales then please read the general sales guidance together with the Streamlining Sales Focus Note to understand where the usual sales requirements fit into the Streamlining Process). Disposition of Property of a Closed Local Church. The annual conference board of trustees shall review all gifts held in trust, assets of any endowment funds, and assets of any foundation of the closed local church. What is Lent and why does it last forty days? Used by permission. Real estate is an information-intensive business, and most churches currently deal from a deficit of data. One problem here is that most bankers, investment brokers, and real estate agents are not familiar with the intricacies of the BOD. 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. collectively had $621 million in net assets in 2018. 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. Dr. Scott is neither a lawyer nor an accountant, and thus the following should not be interpreted as legal advice. It does not and cannot hold title to property, nor does it have any officer, agent, employee, office, or location. Is any additional support or assistance available to the Managing Trustees if they wish to explore alternatives? 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. Another section allows . Search by ZIP code or city/state to find a United Methodist Church near you. The denomination promulgates rules about uses of capital and operating money. The 20,000 sq. 6. 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. The United Methodist Church is a combination, mandating agreement between and among conferences, districts and churches as well as, at each level, between lay volunteers and clergy. 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. 376 Hendersonville Road, Asheville, NC 28803. Before marketing the property, it is essential for the church to understand the value of its site. The United Methodist Church has failed to tackle its real estate crisis for several reasons. On a related note, courts will often look to the founding incorporation of a church for property ownership clues. View OM. 4, 2023. Third, it is worth noting the variety of local church financial decision-makers established by the BOD. Hi, I'm Angie, and I'm going to help you with your question. ft. property includes the church building and parking lot to the west of the church and north of the church. Thus, this is the first post in an on-going series about UMC assets. In addition, the proceeds may be used to revitalize or enhance church ministry, or be given to an organization that is a vetted nonprofit and has values consistent with The United Methodist Churchs values and is consistent with our Wesleyan heritage, theology, and United Methodist polity. In addition, the proceeds may be used to embrace or continue the work and vision of ministry with the poor in the community. Commercial Property. The loss of local members has resulted in less donations to the local church, which in turn, has resulted in lower apportionments to the annual conferences, Dalton said. 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 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. "We are a smaller community now, and we want to . According to The United Methodist Church's Book of Discipline, all local United Methodist churches hold their properties, real and personal, tangible and intangible, in trust for the benefit of the general church.Typically that means that if a local congregation decides to withdraw from the denomination, it must leave without its property unless it negotiates . The preschool will move to the church's main campus over the summer and the property transfer is scheduled to close in June. "The church is the people - not the building," said Mike Moyer, chair of the Biltmore UMC Church Council. The webpage that the link takes you to contains additional important guidance and allows the surveyor to download the Template QSR in Word format. General & Covid-19 Queries, Leslie Matthews, Property Support Officer. . Learn more about our services for businesses and religious organizations at https://www.daltontomich.com/. In either case, property ownership is exercised in trust for The United Methodist Church. Most sizable congregations are incorporated as 501(c)3 organizations, but many small congregations are not. 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. Second, its important to remember that local church property includes more than just buildings. They owned $1.4 billion in real estate for 50,000 weekly worshipers $28,000 in real estate per attendee. Antioch Lutheran Church. 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 explicitly names the annual conference, which generally is a legal person capable of owning property, as having authority over local church property. 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). 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. Daniel Thus, this is the first post in an on-going series about UMC assets. 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 . (1), obtain a Qualified Surveyors Report for review and approval by TMCP, obtain a best price and adequate marketing certificate. CONGREGATION WILL SELL PROPERTY, INVEST IN LOCAL NEEDS A new way to proclaim the Gospel 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. 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. A Primer on UMC Assets: Local Church Assets. A forum for discerning God's future for The United Methodist Church, hosted by St. Stephen UMC, Mesquite, TX. "Since our university is so indebted, we decided that all unserviceable debts be . 3. . All the trappings, common property, and investments would be up for consideration to sell in order to pay the withdrawal penalty on that conference's disaffiliationand perhaps other costs of the Global Methodist Church as well. Mansfield Street Methodist Church, in Chester Green, which dates back to the late 19th century, has . 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. Lot 21 Sold 101,000 Commercial Property. 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. Data. Stay up-to-date on important announcements, events and more. 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 . 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. 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. Please confirm your email address by clicking the activation link in the email that we just sent to your inbox. and sell property." Some United Methodist conferences have used the trust clause to claim ownership of a disaffiliating church's property or to require the property appraisement payment. (See Judicial Council Decision 1282). What are the rules imposed by the denomination, and how are those rules enforced by the annual conference and district? Partners. Barring action by General Conference, UMC assets will continue to be held in trust for the UMC as a whole, regardless of who may or may not be part of the denomination at any future point. The more complicated a sale may be, the earlier it is recommended that Managing Trustees seek advice from their professional advisers. Staff Directory. Newsletter Signup. 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. What is Lent and why does it last forty days? 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. Published May 14, 2018. The portfolio of United Methodist properties in the United States may approach $50 billion in value, six times the value of Rockefeller Center, 25 times the value of the Mall of America. Philosophy. 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. This array of decision-makers increases the chances for conflict over assets within the local church itself. Repairs and Maintenance. _____The certification by the district superintendent that he or she has complied with the requirements of 2539.3 is conclusive evidence of the same. A United Methodist Church in Marathon, N.Y. Creative Commons photo. 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. more than 3 years ago, Richard F Hicks 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. 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. On-site interviews and photos available upon request. 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. 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. 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. 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. 2509.2 gives annual conferences the authority to bring lawsuits to enforce the trust clause. May 3, 2019. 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 legal owner of nearly all Methodist land and property is TMCP. 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 . 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. Having looked at ownership, it's worth looking more specifically at what exactly is meant . In such case, the annual conference board of trustees shall hold or dispose of such property in its sole discretion, subject to any standing rule of the annual conference. The . Church of Christ, Mill Street, Ulverston, Cumbria LA12 7EB . Methodist Church, Ainstable , Carlisle, Cumbria CA4 9PZ. 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. Used by permission. 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. 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. This post is republished with permission from UM & Global, the collaborative blog of United Methodist Professors of Mission. Housing allowances are considered to be current expenses so sale proceeds cannot be used in this way. That annual conference may be faced with taking drastic action with half of its churches over the next few years. Westland Free Methodist Church. Work with a developer for-profit or not-for-profit to jointly develop a property into a mix of uses, maybe institutional, housing, office, retail or a combination. Liquidate. 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, andtitles 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. 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. This means that for incorporated congregations, the property is owned by the local congregation as a corporate entity. 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. New York's Religious Corporation Law prescribes the procedure to . "Throughout the process, the church has decided on multiple occasions to focus its work on community engagement. 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. 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. 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 . Monday 26 April 2021, 7:55pm. A Methodist panel of solicitors is in place and ready to act for Managing Trustees who are looking to instruct professionals who understand the responsibilities placed on them as Methodist charity trustees. Answer (1 of 3): No. What sorts of changes to church real estate will the municipality and the surrounding neighborhood tolerate? Money. But the lawsuit states UMC conspired to deprive Trinity of its right . Looking for a staff member? 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. As one colleague said: We force churches to collect information on every aspect of their worshipers but next to nothing about their property.2. The Trust Clause is contained in all the deeds of all the churches in the denomination. 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. The Book of Discipline of The United Methodist Church -- 2016. UM & Global is the collaborative blog of United Methodist Professors of Mission. First, it's important to explain two critical legal frameworks that impact all United Methodist assets: the concept of legal personhood and the trust clause. 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. 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. Especially when it comes to financial property, local congregations may have significant assets beyond their building over which annual conferences may want to assert their ownership. Property plays a significant role in enabling a presence within communities. 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. The opinions and analysis expressed here are Dr. Scott's own and do not reflect in any way the official position of Global Ministries. 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. What are the demographics of the congregation, and what is its will? Denomination. Just as with the railroads, which have used their assets to support their mission, The United Methodist Church can adopt strategies that will support its mission.While continuing to be engaged in the moral issues of our day, The United Methodist Church must focus just as intently on the present and future of its real estate. Religious organizations must come to the same understanding. For unincorporated congregations, the property is technically owned by the trustees, who as humans are legal persons. What is the Church's position on homosexuality? There will be a substantial loss of churches if either one of two likely scenarios occur. 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). For a variety of February 22, 2013. . 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. Moreover, there will be new costs to stay, as well. d) If the annual conference closes any local church, the failure to complete any of the prior steps will not invalidate such closure. The city purchased the former Cove United Methodist Church . 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. US local churches, districts, and annual conferences collectivelyowned $63.5 billion of property in 2018, an average of $1.2 billion per annual conference, over 90% of which is at the local church level. But Rev Ntombura said money and property has never been a source of trouble in the Methodist church. 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). " The ongoing master plan led the church to consider the sale," Dalton Rushing, the DFUMC's senior pastor told Decaturish. 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. Thus, when people are talking about the fate of UMC assets, what theyre really talking about is the assets owned by local churches (and associated entities), annual conferences (and associated entities), jurisdictional and central conferences (and associated entities), and boards, agencies, and other general church legal entities. Hence, a local church may wonder why it should remain in the denomination when apportionments they already cant afford will increase, services will decrease and the agencies they fund will provide little or no benefit.
