California-Nevada Board of Trustees adopts disaffiliation agreement template

June 06, 2022 | by Admin

California-Nevada Board of Trustees adopts disaffiliation agreement template

June 6, 2022

Sacramento, CA: The Conference Board of Trustees adopted a church disaffiliation agreement template during its meeting of May 25th. The agreement will be used for any church in our annual conference disaffiliating from the United Methodist denomination under ¶2553 of the Book of Discipline. The adopted agreement is attached.

The 2019 Special General Conference adopted ¶2553 “Disaffiliation of a Local Church Over Issues Related to Human Sexuality,” (attached) requiring the conference board of trustees of each annual conference to establish the terms and conditions for church disaffiliation in consultation with the cabinet, the annual conference treasurer, the annual conference benefits officer, the director of connectional ministries, and the annual conference chancellor. The process for church disaffiliation requires a two-thirds majority vote at a local church conference plus an affirmative “yes or no” vote from a simple majority at an Annual Conference Session. Church disaffiliations must be completed by December 31, 2023.

Under the adopted agreement, Cal-Nevada churches would be required to pay (1) any unpaid tithe for the past year (2) an additional year of tithe (3) its share of unfunded pension obligations (4) its share of the Annual Conference’s settlement amount in the Boy Scouts of America bankruptcy case (5) any unpaid property insurance due the Conference’s unit insurance program (6) any unpaid clergy compensation and benefits and (7) 20% of the fair market value of its property. The Conference would retain a right of first refusal on the property, giving it the right to repurchase the property at 20% of its fair market value if the church desires to sell the property in the 7 years after disaffiliation.

The disaffiliating church would be legally released from the United Methodist trust clause as described in ¶2501.1 of the Book of Discipline. Its 501(c)(3) tax exemption under the United Methodist group ruling would be removed. The disaffiliation process requires the local church to have a an audit by a CPA and an appraisal of its property by an independent appraiser.

Selby Ewing
California0-Nevada Conference Director of Communications