Funds

Managing trustees are responsible for the good stewardship of local church funds.

The Charity Statement of Recommended Practice (SORP) sets out recommendations for the way in which a charity should report annually on the resources entrusted to it and the activities it undertakes.

The material resources of a church comprise all its assets. Some of those assets will be cash, bank balances and deposits and investments held either with The Central Finance Board (CFB) direct or via the Trustees for Methodist Church Purposes (TMCP). Other assets include land, buildings and contents (organ, furniture, etc).

The financial records for the church must distinguish between the funds held and the assets which represent those funds.

The difference between funds and accounts

• A fund is a pool of unspent resources (with or without a particular purpose).
• An account is where the funds are kept, such as the CFB Deposit Fund, or via TMCP. The word 'accounts' is also used to mean the whole of the financial statements and records.

Different types of fund

There are four types of funds: unrestricted, designated, restricted and endowment funds. The difference between the types of funds should be fully understood in order to comply with charity law. It is important to ensure that all funds are clearly noted according to their type. Definitions of each type of fund can be found at the bottom of this page.

Bequests

The work of the Methodist Church has been supported by bequests large and small over the years.  All bequests should be reported to TMCP regardless of size. However, bequests under £20k and that are unrestricted can be retained at a local level. Individuals who wish to can support the Methodist Church in this way by making provision in their will, and their legal advisers should refer to TMCP’s guidance on bequests.

Sometimes the original purpose of a charitable bequest becomes impossible to fulfil. In these instances, a request can be made to the Charity Commission to widen the purposes, though keeping as close to the original purpose as possible. All applications to the Charity Commission are made by the TMCP on behalf of the managing trustees. Other bequests may be unconditional and can therefore be used for a variety of purposes.

Click here for further information for those wishing to leave a legacy.

Connexional Funds

Churches, circuits and districts support work across the Connexion by donating to one or more of the Connexional Funds. The donations, gifts and all other income to the main funds can only be used for the particular work of the fund including the work of relevant sections of the Connexional Team. The main funds are:

• The Methodist Church Fund (MCF)
• The Mission in Britain Fund (MiB)
• The World Mission Fund (WMF)
• The Fund for the Support of Presbyters and Deacons (FSPD)
• The Methodist Medical Benevolent Fund (MMBF)
• The Fund for Training
• The Fund for Property.

Click here for more information about the funds.

District Advance Fund

All circuits are required to make an annual contribution to the District Advance Fund: the purpose behind such a fund is that money held by the more wealthy circuits can help to meet the need for financial assistance elsewhere in the district. Such gestures provide an example of the connexional nature of Methodism and demonstrate our Christian principles in action. The District Advance Fund is Model Trust money and the purposes are set in SO 963. It is the responsibility of the district to set up the process and criteria for grants from the fund (SO 439).

Circuits contribute to the Advance Fund on any Model Trust monies they hold at the end of the year. SO 955 sets out the exceptions but overall, the following is expected:

• Up to £100,000  – 2.5%
• Between £100,000–£250,000 – 5%
• Over £250,000 – 7.5%

Click here for District Advance Fund template.

Model Trusts

Most Methodist property and money is held on what are called the ‘Model Trusts’. When a Model Trust property is sold, the proceeds are held in a Model Trust fund. Click here for more information about Model Trust funds.

A levy is taken from the proceeds of selling Model Trust property, 30% of which goes to your district and 70% is used to fund Connexional Priorities. Where a property is being sold and there is a ‘replacement project’ (SO 973), an application can be made for the levy to be reclaimed. Replacement projects can include constructing a replacement building or purchasing a similar building, but it can also include missional work, including property projects helping churches towards net zero.
Click here for further information about replacement projects.

Grants

There are some connexional grants available for specific projects or needs. Grants can also be available from circuits and districts for specific projects such as property refurbishment. Click here to view Methodist Insurance's fundraising support hub.

The following are a list of current connexional fund grants:

• Funding is available for New Places for New People. Click here for more information.
• Funding is available for Action for Hope (the Church’s net zero carbon emissions aspiration). Click here for more information.
• Feasibility matched funding grants are available to support with scoping property projects. Click here for more information.
• Benevolent grants are available to support ministers and their families in a range of circumstances. In addition, circuits can apply for grants where modifications are required to manses to accommodate the particular health needs of the minister. Click here for more information and application forms.

In addition, external grant funding can be secured. Click here for a list of external grant providers for property projects and repairs.