Sell or redevelop the assets of one. TMCP Legal are also always on hand to answer any questions you may have (contact TMCP). Serving as a partner to religious organizations, Dalton + Tomich is a national leader in religious property law land use, notably with cases related to the Religious Land Use and Institutionalized Persons Act (RLUIPA) and denominational splits. 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. As members will vote on whether or not to leave the United Methodist denomination. 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. For example:1. 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. 4, 2023. A California-based seminary affiliated with the United Methodist Church dealing with financial woes was recently ordered by a court to sell its campus to a local consortium of higher education institutions although it hoped to merge with another college with ties to Methodism. This means that for incorporated congregations, the property is owned by the local congregation as a corporate entity. The property is on the market for $4.9 million. Not fair! Westland Free Methodist Church. From The Book of Discipline of The United Methodist Church - 2016. 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 . There are several possible implications when making this type of move. 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.. Antioch Lutheran Church. Rather than eliminate or restructure programs and agencies, the annual conferences have pressured local churches to pay more in apportionments.. Newsletter Signup. 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. 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 15,100 square-foot church seats 400+ plus 3-bedroom house plus 1-bedroom caretaker house. 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. This article was originally published at UM News.Richard Reinhard is associate of The Lakelands Institute and principal of Niagara Consulting Group. 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. 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. Covenant United Methodist Church in Dothan has a big decision to make on Sunday. 3. As railroads began fading in the mid-20th century, railroad companies realized they needed to shift toward being more in the real-estate business. 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. 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. 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. 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. Sincerely, 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. Nonetheless, an exit plan that sets or allows a congregation to set a relatively high standard of agreement for exiting is likely to reduce internal conflict around that decision. Thus, the trust clause as applied to local church property has generally stood the test in secular courts. Real estate is an information-intensive business, and most churches currently deal from a deficit of data. 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. Daniel The more complicated a sale may be, the earlier it is recommended that Managing Trustees seek advice from their professional advisers. Methodist 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. Copyright 2016 by The United Methodist Publishing House. 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. What is not spelled out though, is the cost to remain with the denomination. 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. Virtual churches like the Rev. History has shown that annual conferences and agencies dont engage in wholesale restructuring or eliminating agencies that no longer serve the local church. 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. 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 . 3. Dalton outlines short-term and long-term considerations for local churches weighing their options to separate or stay from the United Methodist Church: What the Proposed UMC Separation Means for Your Churchis available for complimentary download on the Dalton + Tomich website. All five jurisdictions together held less than $4 million in property, though corporate entities related to the jurisdictions held additional assets. From Junior Church to leading the drive to support a foodbank. 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. Book of Discipline: 2549. 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. Lease out. ), 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. 5. Requirement of the Trust Clause for All Property-1. The Tennessee Conference has avoided litigation since Carson assumed the chancellor position in 2012 by either keeping control of the church property or selling it to the departing congregation. GNJ Events. 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. The Los Angeles Superior Court issued a ruling earlier this month . Some denominations, such as the Roman Catholic Church and the Church of Jesus Christ of Latter-day Saints, are top-down. CONGREGATION WILL SELL PROPERTY, INVEST IN LOCAL NEEDS A new way to proclaim the Gospel 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. Mike Copeland Jan 13, 2023 Jan 13, 2023; 0; 1 of 4 . 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. 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. A Methodist building that is welcoming, eye-catching and that . 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. Now, with the help of a local developer, Sowder and the church are taking that idea literally. However, such grants would be at the discretion of the (still-UMC-affiliated) agency, annual conference, or congregation. The mission of the church is to make disciples of Jesus Christ for the transformation of the world. 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. $1,895,000. The trust is and always has been irrevocable, except as provided in the Discipline. "We are a smaller community now, and we want to be free to be the hands and feet of Christ." Philosophy. Having looked at ownership, it's worth looking more specifically at what exactly is meant . 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. Sell the property and buy (or rent) right-size quarters. Merge. There have yet to be any official changes to the UMC's doctrine. 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. What are the rules imposed by the denomination, and how are those rules enforced by the annual conference and district? Partners. 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 mission of the church is to make disciples of Jesus Christ for the transformation of the world. Requirement of Trust Clause. Control of property within a highly divided congregation may actually become more contentious with the existence of an exit plan. 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 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. 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. 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. Second, its important to remember that local church property includes more than just buildings. What will happen to those assets has become a topic of debate, with varying proposals part of the different plans. Find other organizations that will pay to use existing space, perhaps the sanctuary or other buildings, such as an education building or parsonage. Develop. 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. New York's Religious Corporation Law prescribes the procedure to . 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. 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. 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.