The church property trustees

By Josephine Reader

Managing around $80 million dollars in deposi ted funds, overseeing property matters and managing the beneficiary fund (another $70 million) are just some of the things the Church Property Trustees do on your behalf every day.

Working through property-related requests is where parishes and the Trustees interact the most, but it is also the area that causes most confusion, says Chairperson Margaret Galt.

It is a commonly held belief that the Trustees have autonomy in how they make decisions about property requests, says Margaret. In reality, CPT’s responsibilities and decisions are governed by provisions the Presbyterian Church Property Act (1885) and various rulings by General Assembly.

By law, legal title for all property is held by the Church Property Trustees on behalf of the parish. The Trustees are also required to hold all proceeds from property sales, and are only allowed to release those funds for capital (rather than operational) spending.

Parishes sometimes feel frustrated that they can not spend the funds as they wish, but the Trustees are bound by the rules as they currently exist says Margaret. Property-related regulations are spread throughout the Book of Order, which makes it harder to know exactly what the rules are. To make things easier, the Trustees now publish a layman’s guide to the Book of Order regulations about property, The Property Handbook. This is available on the church website.

Margaret describes the Trustees’ property responsibilities as like being part of a family: “We hold your property while you are part of the family. The family - at parish, presbytery and trustee levels - all have a role to play when major decisions are being made.”

Managing the Presbyterian Investment Fund (formerly known as the Amalgamated Investment Fund) is another of the Trustees’ big tasks, says secretary Doug Langford. The investment committee meets monthly and its purpose is to maximise the return on invested funds (over $80 million currently) within a low-risk portfolio.

A full Church Property Trustees meeting occurs bi-monthly, but most of the detail work is done at committee level. There is a farm advisory committee which oversees two farms – Glen Innis and Flaxburn – that have been bequeathed to the Church; the investment committee; an audit committee; a communications committee and an executive committee, which is responsible for administering Burnett loans, ministers’ mortgages and approval of property transactions in line with Trustee policy.

For more information about the Church Property Trustees and their role, check out the Presbyterian website at http://www.presbyterian.org.nz

  • Church property throughout New Zealand is vested in two separate trusts: for those parishes north of the Waitaki River, property is held by the CPT and property south of the river is vested in the Otago Foundation Trust Board.

Duties of the church property trustees:

  • To know and adhere to the Presbyterian Church Property Act and its amendments; New Zealand law; the Presbyterian Book of Order, and the Trust Deed of the Beneficiary Fund, the terms and conditions of any monies entrusted to them, and the relevant recommendations to Trustees from previous General Assemblies of the Church.
  • To act in the best interests of those for whom the property and money is held in trust. To act impartially and in good faith
  • To ensure the prudent investment of the Trust Funds
  • To maintain proper records and financial accounts
  • To establish policies for the adequate management of all areas of the Trustees responsibilities
  • To establish committees of Trustees to ensure that adequate oversight is achieved of all areas of Trustee responsibility.

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