Petition 81118

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UM Foundations (81118-FA-¶2512.3b)

Amend ¶2512 (Section IV. Annual Conference Property)
3. The board of trustees shall have the following authority with respect to the properties of the annual conference and its agencies:
    b) When so directed by the annual conference, the said corporation may receive and hold in trust for and on behalf of the annual conference, its districts, or any of its agencies any real or personal property previously acquired by the conference, its districts, or its agencies to be used in carrying out their mission, ministry, and program. When such property is in the form of investable funds, the board of trustees shall consider placing the funds for investment and administration with the United Methodist conference or area foundation serving that conference or, in the absence of such a foundation, with the United Methodist Church Foundation. With respect to such properties, the board shall take no action that would alter or interfere with their missional or programmatic use or function unless such action is specifically directed by the annual conference. The provisions of this subsection shall not apply to educational or health and  
welfare institutions whose properties are held in their own name or in the name of their own duly elected boards of trustees or directors; nor shall they apply to the property of local churches except as such local church property may have been declared discontinued or abandoned under the provisions of ¶ 2548.
Add new sub-paragraph following ¶2528.4 (Section VI. Local Church Property)
5. To recommend such investable property be placed with a United Methodist foundation serving such charge conference, to benefit the local church, charge conference or their successors, or in the absence of such a foundation, with the United Methodist Church Foundation.
Amend ¶2532.5 (Section VI. Local Church Property)  
5. Subject to the direction of the charge conference as hereinbefore provided, the board of trustees shall receive and administer all bequests made to the local church; shall receive and administer all trusts; and shall invest all trust funds of the local church in conformity with laws of the country, state, or like political unit in which the local church is located. Nevertheless, upon notice to the board of trustees, the charge conference may delegate the power, duty, and authority to receive, administer, and invest bequests, trusts, and trust funds to the permanent endowment committee or to a local church foundation and shall do so in the case of bequests, trusts, or trust funds for which the donor has designated the committee or the local church foundation to receive, administer, or invest the same.
The board of trustees is encouraged to invest in institutions, companies, corporations, or funds that make a positive contribution toward the realization of the goals outlined in the Social Principles of our Church. The board of trustees is to act as a socially responsible investor and to report annually to the charge conference regarding its carrying out of this responsibility. Consideration shall be given to the placement of funds with the conference or area United Methodist foundation for administration and investment. When such property is in the form of investable funds, the board of trustees shall consider placement for investment and administration with the United Methodist foundation serving that conference or, in the absence of such a foundation, with the United Methodist Church Foundation.

Amend ¶2533.1 (Section VI. Local Church Property)
Permanent Endowment Fund Committee—A charge conference may establish a local church permanent endowment fund committee. The purposes for establishing such a committee include the responsibilities to:
1. Provide the services described in ¶ 2532.5 as designated by the donor or at the direction of the charge conference upon notice to the board of trustees. Consideration shall be given to the placement of funds with the conference or area United Methodist foundation, or local church foundation, for administration and investment.  When such property is in the form of investable funds, the permanent endowment fund committee shall consider placement for investment and administration with the United Methodist foundation serving that conference or, in the absence of such a foundation, with the United Methodist Church Foundation.
When the charge conference has designated the committee to provide the services described in ¶ 2532.5, the committee shall have the same investment and reporting duties as are imposed on the board of trustees in that paragraph.

Rationale

The above additions and amendments standardize the language used in paragraphs defining responsibility for financial assets as it relates to the consideration of a United Methodist foundation and, in the absence of a local foundation, the United Methodist Church Foundation.