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PAGE ›› 30 THE PROPERTY HANDBOOK These types of expenditure might be approved • extensions and major maintenance of buildings • painting the existing buildings • major refurbishments of the interior, including carpeting • purchase or repair of the principal musical instrument used in services • costs associated with fulfilling legal requirements e.g. building warrant of fitness • security and fire protection installations How do we apply to use the proceeds of the sale of property? Any application to use capital funds needs to be approved by: • Board of managers/ deacons court/ parish council • Congregation • Presbytery/UDC • Church Property Trustees The Trustees’ approval must be received before you commit to spending the money. Application forms, together with supplementary questions, are available from the Secretary to the Trustees. Depending on what you propose, presbytery/UDC and the Trustees may ask for your parish accounts, valuations of the property, and plans and costings. If you are planning to use property money, check early with the Secretary to the Trustees as to whether your proposal is likely to be within the Church Property Trustees’ discretion. What happens to property money we aren’t spending? Property capital funds which you are not using must be held in the Presbyterian Investment Fund. Interest earned in the parish’s account is credited quarterly. The interest may be used to meet the running costs of the parish. Synod of Otago & Southland authority Parishes located south of the Waitaki River must apply to the Synod of Otago & Southland (not to the Church Property Trustees) for any approvals relating to relating to property, and the use of property proceeds. The Synod’s regulations vary in some respects from those of the Church Property Trustees. Southern parishes should contact the Executive Officer, Synod of Otago & Southland, P O Box 1131, Dunedin. Phone 0800 76 22 22 or email synod.otago. southland@xtra.co.nz.
PAGE ›› 31 THE PROPERTY HANDBOOK Gifting property Rather than sell, can we gift the property, or discount its price, to a worthy cause? Occasionally, congregations prefer not to sell their property, but to have it used in some worthy manner (or sold at below market rates to a cause which cannot afford the full value of the property). Yes and No. SECTION 07 The main distinction is the status of the congregation concerned. If the congregation is continuing its ministry in the area, it is appropriate to place such a proposal, after careful consideration, before the presbytery/UDC. If, however, the parish is closing down, only the presbytery/UDC can make such decisions. Is such a proposal the best use of the property to fulfil the mission of your local, regional and national church? The wider proposal will also need the specific approval of your church courts, presbytery/UDC and the Trustees. This can take a lot of talking through – so allow plenty of time for the process, and don’t promise the property when you are not the only people who have a say. Remember that church property is a trust from all the past members of your congregation, going right back to its establishment. The assets have been given in the expectation they will continue to be used for the mission of the Presbyterian Church. It is important that any gifting fulfils this trust. In some circumstances, if all the approvals have been given, sales can be arranged at a discount to the real value of the property. This may include the nominal sum of $1, though the tax implications of such gifting need to be checked out. Proceeds from the sale of a property may gifted to another congregation. The Trustees Office has details. Closure of a parish When a congregation is dissolved i.e. the parish closes, it is not the end of the Presbyterian Church’s mission in that area. Presbytery/UDC will ensure that mission of the church continues, often by amalgamating the area into one or more of the neighbouring parishes. The beneficial ownership of the assets of the parish will be transferred to the presbytery/UDC, and responsibility for determining the future of
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