Managing the Resources of the Congregation

Support Church Vision Partner with God to make disciples of Jesus Christ for the transformation of the world. Trustees manage the assets of the church so ministry can be effective. In ministry together w/ staff- parish, finance, & church council.

What do Trustees do? Oversee & maintain all church property. Ensure articles of incorporation are kept updated Responsible (in conjunction w/ pastor) for all use of buildings and grounds. Tenant / shared space agreements. Maintain adequate insurance & manage risk. Administer gifts and bequests made to the congregation. Subject to direction of the charge conference.

Why Incorporate? Legal and Liability Issues NIC is Incorporated under Illinois Not for Profit (NFP) Corporations Act Each local church is a separate legal entity. Book of Discipline recommends Incorporation ¶ Not for Profit (NFP) or Religious Corporation (RC) Different filing requirements, costs, and reporting +/- Protect local church officials (particularly trustees) A must if church owns property

Update? Is the name correct? EUB, Methodist Episcopal, or other instead of UMC. Current copies available (safe deposit box offsite.) Annual filing requirement for NFP corporations.

So Who Owns It? Title to property is held by the incorporated bodies for the purpose of holding and administering real and personal, tangible and intangible property Titles shall be held in trust for the United Methodist Church and subject to the provisions of its Discipline.

Trustees Manage Assets Oversee, maintain, and supervise all local church property including the parsonage. Regular inspection of all properties, buildings and grounds. Frequent walk-thru to check for problems. Accessibility and risk management audit, at least annually. (partner w/ neighboring church) Annual parsonage inspection (with parsonage family and Staff/Parish). Care of all property (maintenance) Scheduled and mandated Unscheduled

Managing Assets cont’d. In your spare time… Reducing building costs Purchase and replace equipment, furnishings, appliances, etc. Inventory of property Accessibility and risk management audit, at least annually Copyright matters Elevators and lifts Keep files of purchases and specifications, maintenance records, parsonage book

Manage Risk Reducing the likelihood of: Someone getting hurt? Slips, trips & falls Uneven surfaces Concrete slabs & cracks Tiles Steps Slippery (wet or dry) Floor coverings other

Risk Building damage Water infiltration Roof leaks #1 Sump pump failures #2 Frozen /burst pipes Fire Overloaded electrical circuits (ext cords & power strips) Gas leaks Improper storage (especially in utility areas) Open flames close to combustibles

More Risk Weather Lightning rods and grounding Wind Snow & Ice Sidewalks & parking lots Roofs Gutters & downspouts (ice dams) Physical Security Locks & keys

Other Issues Bequests, Legacies, Trusts, & Endowments In the absence of a committee on memorials, or endowments, or local church foundation; the trustees become responsible for: Receiving Dispersing Investing The above is done in accordance with the Book of Discipline, the Social Principals, local laws and the terms of the bequest or gift.

Other Issues: Tax Liability A church must file for tax exempt status through the Illinois Department of Revenue, or the Board of Tax Appeals to the Department of Revenue in Cook County. Once you get it – you can lose it! Failing to file annual affidavits where required. Leasing any portion of property may affect tax exempt status. Parsonage – only to clergy who live in a parsonage as a condition of their employment

Insurance Murphy was an optimist… Something will go wrong, at the worst time Are you prepared? Are you covered? – Limits? Property damage General Liability Professional Liability Sexual/Physical Abuse Employment/Workers Compensation

Jim Howard

Resources: Cokesbury Guidelines Trustees Managing the Resources of the Congregation, Frank Dunnewind,2012. ISBN Book of Discipline 2012