Guide to Selling or Renting Your Parsonage for Churches

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Comprehensive guide on deciding whether to sell or rent your church parsonage, including factors to consider, questions to keep in mind, pros and cons of selling and renting, and the process to follow as per relevant church regulations.


Uploaded on Jul 10, 2024 | 0 Views


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  1. Selling Our Parsonage

  2. Questions to Keep in Mind Why do we want to sell? Can t afford the maintenance expenses Our new Pastor owns a home Our new Pastor is part-time or a Lay Pastor

  3. Questions to Keep in Mind What s the forecast for the local Real Estate Market? Are homes readily available if we need to provide a parsonage in the future? Can a new Pastor buy and then sell a home in this area easily? Are rental options available locally?

  4. Questions to Keep in Mind Do you have an expectation that your Pastor will live in the local community?

  5. Do We Sell or Rent the Parsonage

  6. Selling Pros No maintenance expenses. Lower insurance cost. No inspections required. Cons Must maintain the capacity to provide a parsonage in the future. Must provide a Housing Allowance No assurance Pastor will live in the local community

  7. Renting Pros Rental Income can be used to off-set Housing Allowance Can be used as a parsonage in the future if needed Cons Continued maintenance & insurance costs. Property subject to Property Taxes Income may be subject to Unrelated Business Income Tax (Form 990T)

  8. Weve Decided to Sell Follow the Book of Discipline Para 2540 Unincorporated Local Church Property Sales Para 2541 Incorporated Local Church Property Sales Para 2542 Disposition and Mortgage of Church Parsonage Para 2543 Restrictions on Proceeds from Mortgage or Sale

  9. Para 2540 & 2541 Process Notify District Superintendent to set-up review by the District Board of Church Location and to set the date for a Charge or Church Conference. Give notice at least ten days before the scheduled Charge/Church Conference from the Pulpit and from at least one other source of communication i.e. bulletin, newsletter, email notice

  10. Para 2540 & 2541 Process Any two officers of the Board of Trustees are duly authorized to sign any necessary written documents to carry out the direction of the Charge/Church Conference. The signatures are binding on the Local Church.

  11. Para 2542 Disposition of Parsonage The District Superintendent must sign consent to the action taken by the Charge/Church Conference in order to release the property from the Trust Clause and provide clear title to the buyer of the property.

  12. Para 2543 Restrictions on Proceeds of Sale Cannot be used for current operating expenses including housing allowance. Can be used for Capital Improvements only if adequate provisions have been made to meet the housing needs of the Pastor (requires consent of the District Superintendent and the Pastor)

  13. Para 2543 Restrictions on Proceeds of Sale Can be used for aiding in the construction of a new church Can be used for Congregational Development if a 3-5 year plan is presented and approved by the Annual Conference.

  14. Develop a Sales Plan Should we get an appraisal? Will we list the property ourselves or hire a broker? Will we make any necessary repairs or sell as is? What member of the Trustees will receive offers and communicate to the full Board?

  15. Investment Plan Proceeds should be invested to maximize the return in support of the housing allowance. Formalize an Investment Policy. Will we manage in-house or have an independent manager?

  16. The Mid-Atlantic United Methodist Foundation can assist you in developing an Investment Plan and also manage the investment of the proceeds from the sale of your parsonage.

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