Use of Funds Realised from the Sale of Assets

BASIS FOR THIS PAPER :

The Presbyterian Church is asset rich and cash poor.  It is essential for the future of the church that there is more focus on mission.

 

BACKGROUND  :

There are parishes with surplus assets (buildings and property) who have the wish to undertake one or more mission projects for which seeding money is needed.  These parishes would seek to transform some of ‘their’ physical assets into cash if they could use at least some of that money for those projects.  The general policy of PCANZ and CPT is that monies realised through the sale of assets can only be used for capital purposes (see section 6 of Property Handbook).

COMMENT :

The Property and Finance Work Group of Northern Presbytery believes that this existing general policy should be amended to allow monies realised through the sale of assets to be used for non capital mission purposes under conditions which are applied and monitored by the Presbytery and CPT.   We believe that in the emerging ‘new ways of doing church’ environment there are and will continue to be opportunities for mission projects which will grow the church provided at least some of the monies realised through the sale of physical assets  can be used for approved missional projects.  We wish it to be clear however that we support the continuation of a policy whereby a parish which disposes of a physical asset cannot draw on the resulting capital for the purpose of meeting operating expenses.

RECOMMENDATION :

It is recommended that the Northern Presbytery Council agree with the views of the Property and Finance Work Group that current PCANZ and CPT policies which preclude the use of monies raised through the sale of property for other than property purposes be changed to allow expenditure of such monies on mission projects which have been approved by the Presbytery and CPT.