Rather than eliminate or restructure programs and agencies, the annual conferences have pressured local churches to pay more in apportionments.. 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. Copyright 2016 by The United Methodist Publishing House. 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. There have yet to be any official changes to the UMC's doctrine. 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.. This article was originally published at UM News.Richard Reinhard is associate of The Lakelands Institute and principal of Niagara Consulting Group. The Ins and Outs of the 2016 (Bicentennial) Discipline. 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. 2/21/23, 8:27 AM Why church property plays major role in United Methodist division . Congregations are finding themselves spending half and more of their annual budgets on real estate, leaving few resources for much else. The Los Angeles Superior Court issued a ruling earlier this month . Not fair! It also applies to all financial assets owned by a local church. Search by ZIP code or city/state to find a United Methodist Church near you. 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. 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. If the annual conference board of trustees sells or leases the property, consideration should be given to selling or leasing the property to one of the other denominations represented in the Commission on Pan-Methodist Cooperation and Union. 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. John Wesley, the founder of the Methodist movement, kept the various Methodist societies and small groups bound together through covenants, shared practices (such as love feasts and night watches) and the model deed, or "trust clause."The model held all church property under a shared trust and ensured the various societies and bands used their assets and facilities to faithfully carry out . A forum for discerning God's future for The United Methodist Church, hosted by St. Stephen UMC, Mesquite, TX. 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. Before marketing the property, it is essential for the church to understand the value of its site. Some churches, especially those in vibrant real-estate markets, have joint-ventured with developers to build mixed-use properties that may include housing, office and retail in addition to a faith-based component, e.g., SouthPark Church in Charlotte, North Carolina.Some annual conferences, like Western North Carolina, have formed their own not-for-profit redevelopment corporations; others have proved willing to partner with other for-profit and not-for-profit developers. Others, such as the United Church of Christ and other congregational denominations, are bottom-up. Used by permission. 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. 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. 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. Contact: Matt Garfield, United Methodist Foundation of Western NC 888-450-1956 Ext. Lot 22 Sold 300,000 5 Bed Detached House. It is common to hear congregational trustees say that they are one new roof (or boiler or steeple repair) away from closing.The high costs of too-large, too-burdensome real estate can smother congregations. 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. 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. 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. 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 Book of Discipline of the United Methodist Church, 2016 The church must present to the District Superintendent a compelling missional reason for selling the parsonage (a compelling missional reason include building a new building, renovating an existing building. 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). 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). March 2nd, 2023 Find A Church. Combine with a nearby house of worship. The authority to make all decisions regarding property, both real and personal, is vested in the charge conference. Book of Discipline: 2549. 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. This means that TMCP needs to be party to the sales documents. Is the church located in a high- or low-demand real estate market? Politics. There will be a substantial loss of churches if either one of two likely scenarios occur. History has shown that annual conferences and agencies dont engage in wholesale restructuring or eliminating agencies that no longer serve the local church. Housing allowances are considered to be current expenses so sale proceeds cannot be used in this way. 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. Disposition of Property of a Closed Local Church. 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. 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. 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. Thus, the trust clause as applied to local church property has generally stood the test in secular courts. Under the United Methodist trust clause, all local church property, even down to the Bibles in the pews, is held in trust by the congregation for the annual conference. This post is republished with permission from UM & Global, the collaborative blog of United Methodist Professors of Mission. All of these provisions add up to clear enforcement of the trust clause on local churches by annual conferences. Hi, I'm Angie, and I'm going to help you with your question. 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. They owned prized real estate in Americas greatest cities, especially underutilized waterfront adjacent to downtowns. 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. Click here to search by department. The 19th century church is for sale at a bargain price - for good reason Credit: BPM Media. Looking for a staff member? 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.". 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. What is the Church's position on homosexuality? 5. 7. What is Lent and why does it last forty days? Districts and annual conferences should do so for their portfolio of properties. Downsize. The local church makes decisions almost without regard to a national or regional body. The United Methodist Church has failed to tackle its real estate crisis for several reasons. (7), Trustee Documents 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. 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). This means that for incorporated congregations, the property is owned by the local congregation as a corporate entity. What is the Church's position on homosexuality? WINCHESTER First United Methodist Church plans to sell its longtime location at 308 N. Braddock St. in downtown Winchester and relocate to property it owns on Apple Pie Ridge Learn more about our services for businesses and religious organizations at https://www.daltontomich.com/. 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. They do assist with the financing of constructing new buildings if I'm not mistake. The church and Rob Lanphear of Pivot Development are planning to build 25 townhomes on part of the church's property at 13000 Gayton Road. 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. Dr. Scott is neither a lawyer nor an accountant, and thus the following should not be interpreted as legal advice. Philosophy. 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. View OM. Quick Statutory Reference Guide Sale, mortgage and lease of real property of religious . A post shared by Scottie Scheffler (@scottie.scheffler). 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. After that, who cares who keeps the Sunday School books, right? 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. What potential real estate partners realtors, developers, attorneys, engineers, architects are available in the community?3. Annual conferences have an incentive to assert their right to this property, even if just to give themselves better leverage in bargaining with a departing 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. Westland Free Methodist 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. 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. There is not some pool of money out there separate from the assets of these specific groups. Any or all of these items could be a point of conflict between a departing church and the annual conference.