United Methodist panel addresses church property issues
Mar. 31, 2006 News media contact: Linda Green * (615) 7425470* Nashville {185}
NOTE: A photo is available at http://umns.umc.org.
By Linda Green*
NASHVILLE, Tenn. (UMNS) - Do the property rights of a local congregation ever supersede the rights of the denomination?
That is one of the questions U.S. civil courts are answering in the affirmative, and denominational questions related to property issues are on the rise.
As a result - and in light of secular legal and regulatory changes - the United Methodist General Council on Finance and Administration has created a panel to work on challenges facing the denomination with regard to corporate, property and trust issues.
Historically, the denomination fared well in property dispute cases, thanks to a trust clause with origins that date back to Methodism founder John Wesley. On occasions when a local congregation wanted to break away from the denomination and take the church building too, the civil courts upheld the denomination's ownership based on the clause. In recent years, however, courts have not sided with the denomination in some cases.
The United Methodist panel on property issues organized March 17 to address the theological context of property ownership and the preservation of the denomination's Wesleyan heritage of connectionalism. GCFA coordinates and administers finances and safeguards the legal interests and rights of the United Methodist Church.
The panel anticipates working for 12 months to develop recommendations for the GCFA, including possible changes to The Book of Discipline. Any proposed changes to the book would have to be considered by the denomination's legislative assembly in 2008.
Specific issues identified by the panel include trust clauses, local church corporations, and property deeds. The panel will meet again April 25. People wanting to provide suggestions about property issues can do so by writing to property@gcfa.org.
"We are in search of strategies to preserve the denomination's property for future generations of United Methodists," said James R. Allen, church counsel. "The policies and procedures that were put into place several decades ago to address denominational property and trust concerns need to be revised to account for secular legal and regulatory changes."
The Book of Discipline states that all property held at any level of the church is kept in trust for the United Methodist Church. The "panel will be reviewing current legal structures to ensure appropriate policies and procedures are in place for the denomination to maintain this trust for future generations of worshippers," Allen added.
The United Methodist Social Principles state that property ownership "is a trusteeship under God." The panel will study the theological meaning of the denomination's role as a steward of the property God has entrusted to it, he said.
"The property of local churches represents the United Methodist Church's heritage of spreading this holiness throughout the country," he said.
In today's changing legal environment, the primary trust issue is related to the Uniform Trust Code, which has been adopted by many states. The code includes language that changes the legal presumption that trusts are irrevocable. This change requires more specificity on the part of the United Methodist Church in regard to property deeds and may require changes in The Book of Discipline, Allen told United Methodist News Service.
In addition, many local churches go through an incorporation process that does not address relationships delineated within The Book of Discipline, Allen explained. So when legal issues arise, local churches spend additional time and money to ensure that their incorporations are in compliance with denominational requirements. The panel will study the need for measures that could help local churches with incorporation processes.
Nominations for the panel came from a variety of sources, including bishops, conference chancellors and conference treasurers. Panel members were selected for their expertise, and the members include attorneys experienced in property litigation, trust law and United Methodist legal proceedings. Two non-lawyer members were selected to provide a theological and Wesleyan historical context for the panelists.
Panelist Tom Dahl, a United Methodist clergy member and chancellor of the Alaska Missionary Conference, died March 30 from injuries sustained by a fall from a ladder. He was part of a Volunteer In Mission team working on Katrina recovery in Moss Point, Miss.
The panel is staffed by Allen and attorney Dan Gary. Members include: Don Avery, a United Methodist clergy member of the Louisiana Annual Conference and attorney. He is chairman of the GCFA's Legal Responsibilities Committee.
David English, a professor at the University of Missouri Law School and a reporter for the Uniform Trust Code. Steve Harbison, chancellor of the California-Pacific Annual Conference. Richard Heitzenrater, a United Methodist clergy member and professor at Duke University. Lisa McLaughlin, co-chancellor of the Missouri Annual Conference. Warren Plowden, chancellor of the South Georgia Annual Conference. John Topolewski, a United Methodist clergy member and author from New York.
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*Green is a United Methodist News Service news writer based in Nashville, Tenn.
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United Methodist News Service Photos and stories also available at: http://umns.umc.org
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