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Section 14

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Section 14 Funds for the Church

Updated June 2023

Section 14: Funds for the Church

  • Funds

    For the development of new ministries or new buildings, funds are available from a number of sources within the Methodist Church of New Zealand.

    Connexional:

    a.  Development Funds
         There are two Development Funds:

         (i)  Development Fund Ministries and
         (ii) Development Fund Properties.

    b.  Loans
         Loans from Church Building and Loan Fund.

    Synods:

    Some Synods also administer Local and Regional Development Funds, some of which come from a share of proceeds from sales of redundant properties, which is available for new and innovative ministry.

    Parishes:

    The Church Building and Loan Fund holds in trust proceeds of Property Realisation to be available for “Approved Capital Projects within the Parish”, a requirement which is interpreted as broadly as possible while protecting the resources.

    Church Building and Loan (CB&L) Capital:

    The Capital is made up of the original deposit and the accumulated interest (20%) which is required to be added to the Capital each year.

    Capital Funds may be spent on authorised Capital projects. This includes new buildings, purchases, renovations and maintenance. All such work must be approved by the parish and include an asbestos management plan which is notified to the Methodist Connexional Property Committee, [E-Mail not displayed] If the total cost exceeds $50,000 or requires resource or building consent, then Synod Property Advisory Committee and Methodist Connexional Property Committee approval is also required. The Synod Property Convenor should be advised of any Capital projects at an early stage in planning.

    Use of Interest:

    In recent years it has been possible for parishes to use up to 80% of the interest earned on deposits from the sale of property held in the Church Building and Loan Fund for Ministry and Mission.

    The use of this interest is carefully monitored to ensure that those funds are used strategically. Spending the interest reduces the ability of the funds to keep up with inflation but can also release energy for and facilitate effective mission.

    The following process is required:

    1. A parish seeking to use 80% of interest can advise the Connexional Office by an email to the Insurance and Property Manager.
    2. On a five-yearly basis, Synod will examine the use of Church Building and Loan funds by any parish in its region. Any funds not being used strategically may be transferred to the Synod to help meet the wider strategy of Synod and Connexion (see Conference decisions 2008 – Law Book Section 9.3.4.1 and 9.3.4.2).

    The Development Funds – Ministries and Properties

    Development Fund Ministries

    Conference has recognised that property no longer required for its current use when sold may, through using part of its proceeds, make a new investment in people and meeting current needs.

    Section 9.3.4.2 of the Law Book provides:

    When a property is sold, that is no longer required for its current purpose, and it is not to be replaced:

    1. A portion of the proceeds of the sale shall be contributed to the Development Fund Ministries. That portion shall be 15% unless otherwise agreed between MCPC, the Synod and the parish.
    2. After five years from the date of sale, if the parish has not ensured the use of the remainder of the funds in furtherance of the mission of the Church as set out in the regional property strategy, the funds are to be released to the Synod for its use in the regional property strategy.

    Development Fund – Properties

    A Capital Fund was established by 1989 Conference through a grant of $250,000 from the Accumulated Funds of the Church Building and Loan Fund, together with the Capital of the old “Sites Fund”. 80% of the income from this Development Fund Properties is available for disbursement. In addition, a further 50% of the annual excess of income over expenditure of the Church Building and Loan is available to the Development Fund Properties, of which at least 20% is added to the capital.

  • Applications for Funding

    Development Fund Ministries

    • The national funding disbursement is the responsibility of Mission Resourcing, whose mandate is “to use its resources for Mission in New Zealand in outreach, evangelism, Church extension, and the provision of new ministries as may be required”.
    • Requests for assistance are to be made to Mission Resourcing. [E-Mail not displayed]

    Development Fund Properties

    • Requests for assistance are to be made to Methodist Connexional Property Committee.

    Criteria for Obtaining Assistance from both funds

    The Mission Statement, as set out below, forms the basis of the criteria which is applied to all applications for funds:

    1. The Mission Statement adopted by Conference 1989:
      “Our Church’s mission in Aotearoa/New Zealand is to reflect and proclaim the transforming love of God as revealed in Jesus Christ and declared in the Scriptures. We are empowered by the Holy Spirit to serve God in the world. The Treaty of Waitangi is the covenant establishing our nation on the basis of a power-sharing partnership and will guide how we undertake mission.”
    2. The criteria as established in the Mission Statement speak of Christian community as being:
      “...a worshipping, praying and growing community, sharing and developing our faith, and working through its implications in our social context” and “...flexible, creative, and open to God’s Spirit in a changing world and Church, so that the Church is relevant to people’s needs. To release energy for mission rather than to absorb energy for maintenance.”
    3. The particular mandate of Mission Resourcing states:
      “Mission Resourcing will be responsible for assisting the Church to use its resources for mission in New Zealand in outreach, evangelism, Church extension and the provision of new ministries as may be required.”

    Thus, Mission Resourcing and Methodist Connexional Property Committee will:

    • evaluate each request in terms of the Church’s Mission Statement
    • evaluate each request in terms of current and future health and safety
    • consider what resources are available locally and in the Synod
    • ensure each request is accompanied by a current asbestos management plan
    • check that the proposal fits in with the strategy for development held by the Synod
    • bear in mind the responsibility to meet requests from the whole country and all sections of the Church in terms of the resources available
    • be flexible, be creative, and promote the mission and ministry of the Church rather than Church maintenance.
  • Procedures to Follow

       
    1.

    The Parish Meeting (or other responsible body) will need to evaluate its proposals in light of:

    The Church’s Mission Statement

    The Criteria set out in the last section.

    2.

    Consult with the Synod Property Advisory Committee and Synod to ensure that proposals are in keeping with Synod Policy and Strategy and to ascertain if local or Synod funds might be available.

    3.

    Consult with Mission Resourcing (Ministries) or Methodist Connexional Property Committee (Property).

    4.

    Make formal application to Mission Resourcing for Development Fund Ministries, or to the Methodist Connexional Property Committee for Development Fund properties.

  • Properties Development Grant Fund

    The Properties Development Grant Fund is designed to assist The Methodist Church of New Zealand with property developments.

    For Cooperating Ventures:

    This is a ‘capital’ grant which must be noted on the property schedule and will mean the property ratio will need to be adjusted. A Cooperating Venture without an established property schedule or property ratio is not eligible for a grant. Grants are only available for properties held on Methodist title.

    On behalf of The Methodist Church of New Zealand, the BOA is responsible for administering this fund. Grants from the fund are disbursed on the recommendation of the Methodist Connexional Property Committee in consultation with Mission Resourcing.

    Notes:

    • Include a copy of the minutes from the parish and/or Synod meeting which approved the application.
    • The maximum grant available is normally limited to $50,000.
    • Subsequent grants are subject to a satisfactory review, achievement of set goals, and other funding continuing.

    Properties Development Grant Fund Criteria

    The Methodist Connexional Property Committee has agreed on the following criteria for the Properties Development Grant Fund:

    • grants of up to $50,000 for repairs, essential reports, maintenance, upgrades and new work
    • this fund is available for Methodist parishes and Cooperating Ventures with a Methodist partner
    • the fund excludes insurance payments, rates and operating expenses
    • the priority is for projects that can demonstrate a significant benefit to the mission of the congregation
    • applications are assessed on several criteria, including the parish finances
    • the parish must have a maintenance budget of at least $3,000 per building for future maintenance
    • normally not more than one application every two years.

    Application Process

    1. The parish is to provide a quote in writing for the work required and supporting information to the Synod Property Committee for approval.

    Once approved, the application form (Appendix 1) and the supporting documentation, including the supporting letter from the Synod Property Committee, are to be sent to the Connexional Property Committee for consideration

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