Managing trustees have a general responsibility for the good stewardship of the assets of the church. Any cash resources not immediately required for Church purposes should be prudently invested. Many local churches maintain an account with the Central Finance Board of the Methodist Church (CFB) using the Deposit Fund for surplus funds which may be required in the foreseeable future. Where the local church has surplus monies or reserves (built up over a period) managing trustees must decide how to invest them. The CFB is able to provide more information to managing trustees as to the investment options available.
All Model Trust monies must be invested through the Trustees for Methodist Church Purposes including:
- Model Trust bequests
- Building funds
- Development funds
- Proceeds of sale.
In the end the Church Council has sole responsibility for making investment decisions and for obtaining the best terms and rates available appropriate for the Church's requirements. Managing trustees will want to give consideration to the wide choice of investments available through the CFB. Treasurers should consider contacting the CFB before making arrangements to invest the funds.
The managing trustees may decide to invest the funds elsewhere, eg by way of investments with other bodies or on the stock market. That kind of decision must always be taken with appropriate professional advice and in accordance with the powers afforded to managing trustees under Model Trust 17. The instruction to make an investment either with the CFB or elsewhere should be passed to the Finance Manager for TMCP who will then place the funds in the chosen CFB fund or give appropriate instructions through a broker if the investment is to be held elsewhere.
Trustees for Methodist Church Purposes
The Trustees for Methodist Church Purposes is a charitable body incorporated by the Methodist Church Act 1939. TMCP is custodian trustee of, and holds the legal title to, most Methodist property, including Methodist chapels in England, Wales, Scotland and Shetland. The Church Council are the managing trustees.
Any monies subject to the Model Trusts requiring investment must be invested through, and in the name of the custodian trustee (TMCP). This includes all sale proceeds of Methodist property and other capital monies, including Model Trust bequests. Click here for further information.
Trustees Interest Fund (TIF) cash deposits are held in this fund and deposited with CFB. Interest is received and paid monthly to the Trust. Managing trustees can elect to have the interest transferred to their local bank or CFB account when required.
TIF are cash deposits that come from Bequests, the sale of properties and other surplus cash funds (ie non-Model Trust Money) that the managing trustees wish to hold with TMCP and that they have decided to keep in cash rather than in investing in shares. If managing trustees have a project coming up, they might choose to set up a TIF so that there is quicker access to cash as well as the added benefit of additional security processes to mitigate potential fraud.
In the cases of each of the island districts there is a separate custodian trustee each with the same essential functions as TMCP:
- Jersey – Trustees for Jersey Methodist Church Purposes
- Guernsey – Trustees for Bailiwick of Guernsey Methodist Church Purposes
- Isle of Man – Trustees for Manx Methodist Church Purposes.
Central Finance Board
The Central Finance Board of the Methodist Church (CFB) was established by the Methodist Church Funds Act 1960. The Board aims to provide a high quality investment service to the Methodist Church seeking to obtain above average investment returns for its investors, whilst at the same time constructing investment portfolios which are consistent with the moral stance and teachings of the Christian faith.
The CFB provides investment services through a range of managed investment funds as well as the CFB Deposit Fund. Epworth Investment Management, a wholly owned subsidiary of the CFB, is authorised to provide a fully advised investment management service for those managing trustees who would benefit from guidance as to how best to structure any investments. This enables trustees to share in the CFB and Epworth’s wealth of professional investment experience. The CFB will always be pleased to talk with Methodist trustees to provide more information on the services it has to offer. Click here for more information about CFB or more information about Epworth Investments.
Click here for further information about ethical investment.
Methodist Chapel Aid
When Methodist Churches have proceeds of sale, bequests or monies raised for building schemes they may instruct TMCP to invest the money in a Chapel Aid Association account. Moreover, MCA offer loans for improving property facilities. Click here for further details.