GCFA: Serving the Church through the ministry of administrationGeneral Council on Finance and Administration. The United Methodist Church
About UsDepartments & ServicesForms/ReportsUM CalendarHelpful LinksContact UsHome Search
Department Resources

PDF documents require using the latest version of the freely available Adobe Reader for proper viewing. Click on the Get Adobe Reader link below for download and installation instructions.

Get Adobe Reader

Real Estate Policies and Procedures

Footnote:

¹ The term “gift” applies to gifts made intervivos, testamentary, through trusts or by any other means.
 
Contact Info
For more information about Administrative Services, please
contact us.






 
 
General Council on Finance and Administration
Gift 1 Acceptance Policy

 
 
Theological Introduction


The teachings of Jesus and all of the Holy Scriptures promote stewardship as fundamental to our Christian faith. Our Judeo-Christian heritage leads to an understanding of stewardship as the responsible gratitude and relationship of trust for all of God’s many blessings. A faithful response to this mandate includes a commitment to the highest ideals of stewardship by all parties to charitable giving, including the donor as well as the recipient ministry. In order to ensure that such ideals are pursued for all gifts to be received whether as donee or trustee, GCFA commits itself to the responsible administration of all prospective gifts. GCFA understands this commitment to include careful examination of the actual condition, use and benefits of the gift taking into consideration all legal, ethical and practical aspects. GCFA understands these considerations to be necessary steps toward the fulfillment of its own stewardship commitments, as well as those of the prospective donor. It is from this foundational understanding of stewardship, that GCFA adopts the following policy.

 
I. General Principles
   
 
GCFA seeks to support the mission of the United Methodist religious denomination and related organizations by developing financial resources and receiving and holding financial assets. This Gift Acceptance Policy is designed to facilitate the acceptance of gifts and the fulfillment of Disciplinary directives.
   
 
The following principles guide the acceptance and administration of gifts to GCFA and the Church:
   
  • To work to make all gifts possible, within the strictures of law and tax regulations;
  • To make resources available over time for the mission of The United Methodist Church, while upholding the purpose of GCFA as set forth in the Book of Discipline;
  • To honor the intent of the donor;
  • To protect the assets entrusted to GCFA; and
  • To accept only property free of liens and encumbrances.
II.  Terms and Definitions
   
  For purposes of this policy, terms are defined as follows:
   
  The United Methodist Organizations: Bodies within the organizational structure of the United Methodist denomination including local churches, districts, annual
   
  conferences, the General Conference, the general agencies, the Council of Bishops and organizations affiliated with such bodies.
   
  Related Organizations: Organizations related to the United Methodist denomination by historical or governance ties, or by the Book of Discipline.
   
  GARC: The Gift Acceptance Review Committee of GCFA, which shall consist of a staff representative of the Administrative Department, Legal Department, the Risk Management Department, and the United Methodist Church Foundation. GARC will serve to initially receive and process gifts.
   
  GCFA Property Services Committee: GCFA’s Property Services Committee as detailed in GCFA bylaws.
   
  Tax Exempt: Exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or other applicable section of such Code.
   
  UMC Foundation: The United Methodist Church Foundation
   
III. Acceptance
   
 
  1. Within the guidelines set fourth below, GCFA is authorized to accept gifts from individuals, estates, and organizations:
     
  • On behalf of The United Methodist church, GCFA General Agencies and as set fourth in the Book of Discipline;
  • To establish or expand permanent funds and endowments;
  • To be received and paid out by GCFA to qualified United Methodist charitable organizations or other proper charities;
  • As directed by this Gift Acceptance Policy.
  
 
  1. These gifts may take the form of:
   
  • Cash and checks;
  • Marketable and closely-held or thinly traded securities;
  • Real estate and interests in real estate;
  • Tangible personal property;
  • Other forms of property.
  
 
  1. Any charitable beneficiary organization must, at all times while the gift is administered, be qualified as tax-exempt, and must have a mission that is consistent with The United Methodist Church Social Principles. The purpose of the gift must be consistent with the theological beliefs of The United Methodist Church.
   
IV. Gifts and Acceptance
   
  GARC is authorized to accept gifts for the benefit of GCFA, The United Methodist Church and related organizations subject to this policy and related procedures. Gifts of monies, stocks, bonds and other marketable securities are to be received by GCFA through GARC and notifications of such gifts will be made to the Property Services Committee. If any concerns, conditions or restrictions exist that may raise a question about the advisability of acceptance, the Property Services Committee, or subcommittee thereof, shall be authorized to review and act. Should further review or authority be needed, the GCFA Executive Committee will be consulted. Attached as Exhibit A to this Policy are Real Estate Procedures. This set of procedures, and any other procedures as shall be adopted from time to time, shall be used to govern the acceptance of gifts. When an exception to such procedures is requested, acceptance will be evaluated by the Property Services Committee, or a subcommittee thereof, and reported to GCFA at its next regularly scheduled meeting. The GARC is directed in most instances, absent donor direction or other good reason, to convert donations into cash and to allow the GCFA Investment Committee to place those cash funds with the UMC Foundation or otherwise as it deems appropriate.
   
V. Records and Reporting
   
  Accounting records will conform to the requirements of generally accepted accounting principles, as recommended by the Financial Accounting Standards Board and GCFA’s external auditors. Supporting documents will be filed with the Internal Revenue Service and other regulatory bodies as required or appropriate for each gift or asset accepted.
   
VI. Notifying Risk Management
   
  As set forth above, GARC will notify GCFA’s Controller and the Risk Management Department as early as possible prior to acceptance of the gift, so it may be added to insurance coverage.
   
VII. Commitment to Donor Directions
   
  It is the intention and commitment to comply with the legal intent and directions of donors. In the event that GCFA is unable to comply with such wishes and directions, GCFA will transfer the assets to assure compliance with such wishes and directions. GCFA shall develop procedures, consistent with applicable law, for determination of alternate uses which will comply, as fully as reasonably possible, with the original wishes and directions of donors where precise compliance is impossible because:
   
   
  • Compliance has become illegal;
  • The charitable beneficiary is unwilling or unable to use the funds as directed; or
  • The charitable beneficiary has ceased to exist, to qualify as tax exempt, or to provide the designated service.
  
VIII. Donor Relations & Ethics
   
  GCFA representatives will urge prospective donors to have the terms of proposed gifts reviewed by legal and financial advisers to give added assurance that the donor’s interests are protected.
   
  It shall be the presumption that a donor, or their authorized representatives permit public announcement of any features of a gift. If a donor indicates a desire for anonymity or confidentiality, such requests should be made in writing and GCFA will hold all gift and investment information in confidence. GCFA will make its complete files available on request, as required by law, and to its own auditors. GCFA is not obligated to inform the donor of such requests. All other requests for information will be honored only if the donor, or their authorized representatives approve, in writing, the release of information, or if a court has issued an order to GCFA to that effect.
   
IX. Fee and Services
   
  It is the intent of GCFA to fulfill its Disciplinary directives without addition of acceptance fees or costs. However, in the case of real property the attached GCFA Real Property Procedures may establish a schedule of fees and costs. Additionally, GCFA reserves the right to obtain consent of the Property Services committee to approve unusual or extraordinary expenses related to the acceptance of a gift. Further it is understood that if GCFA has chosen to use The UMC Foundation to work with donors, manage the gifts and provide other services, the UMC Foundation may develop and present to GCFA a reasonable fee structure. Policy Adopted: September 2003 Last Revision Adopted Date: Copyright © 2003 General Council on Finance and Administration of The United Methodist Church. Click here to go to Real Estate Policies and Procedures.
   
  Policy Adopted: September 2003  
   
  Copyright © 2003 General Council on Finance and Administration of The United Methodist Church.
 


 


© All rights reserved.