Delaware Maryland Synod 1988 - Evangelical Lutheran Church in America

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Delaware-Maryland Synod, ELCA

Synod Mission Fund

This fund was established by the 1976 Convention of the Maryland Synod, LCA, for the monies derived from the sale of reverted church properties. Subsequently, contributions from individuals, congregations, organizations and grants from the Maryland Synod have been added to the fund. Contributions and/or gifts to the fund are designated for the corpus of the fund unless otherwise indicated by the donor.

Synod Mission Fund (SMF) Guidelines
Revised and Adopted by the Synod Council, July 26, 2003

The intent of the Synod Mission Fund is to supplement and undergird the efforts of the Evangelical Lutheran Church in America (ELCA) and this Synod in developing new congregations and aiding existing congregational ministries, including cooperative ministries of congregations, in communities experiencing significant growth or economic and cultural change. This is accomplished through loans from the principal (corpus) for capital purposes and program support and grants from the interest (Restricted Grant Fund) earned by the SMF.

New congregations building their first structure should obtain primary funding from the ELCA or commercial sources. It is not the responsibility of the SMF to be the sole provider of construction funds.

The Synod Outreach Mission Force shall recommend loans, grants and program support from this fund to the Synod Council. These recommendations shall be shared with the Mission Through Congregations Mission Team. Grants or loans require Synod Council approval prior to disbursement.

Exceptions in the following procedures may be recommended to the Synod Council from time to time by the Synod Outreach Mission Force to provide the best possible service to congregational ministries. All exceptions must be approved by the Synod Council.

LOANS FOR CAPITAL PURPOSES

  1. Eligible congregations and ministries of the Delaware-Maryland Synod:
  2. Activities sponsored by individual congregations
    1. Developing congregations building first or second structures.
    2. Congregations refinancing maturing loans, especially those which must relinquish favorable interest rates to restructure capital debt.
    3. Congregations in communities undergoing significant population and/or economic change requiring building renovation.
    4. Emergency needs of synod-related ministries.
  3. Loans are to be secured and may be legally recorded.
  4. The Synod Outreach Mission Force will consider requests for loans in any of the following categories using the appropriate proposal (Church Building, Refinancing Analysis or Renovation Plan) for information. Financing proposals (second mortgage, guaranteed loan, note, etc.) shall be prepared by the appropriate churchwide staff and Delaware-Maryland Synod staff to show the complete funding.
    1. Capital loans for land and first or second structures of developing congregations: the maximum amount for outstanding loans for any congregation shall not exceed ten percent (10%) of the corpus of the fund. A Church Building Program for developing congregations shall be prepared by the appropriate churchwide staff and synod staff to be used in the evaluation of the request by the Synod Outreach Mission Force. Such loans may be secured by second mortgage.
    2. Refinancing to allow congregations to pay off maturing loans while maintaining other capital loans at favorable interest rates: outstanding loans for any congregation shall not exceed five percent (5%) of the corpus of the fund. A Refinancing Analysis for a congregation with a maturing loan shall be prepared by the churchwide staff and synod staff as requested by the congregation and reviewed by the Synod Outreach Mission Force.
    3. Renovations which are necessary for the continued operation of the church plant in a safe and efficient manner: outstanding loans for any congregation shall not exceed five percent (5%) of the corpus of the fund. Renovation Plans shall be reviewed by appropriate churchwide staff and/or synod staff, and the Synod Outreach Mission Force.

GRANTS FOR CAPITAL PURPOSES

  1. Monies from the income of the SMF may be made available to eligible congregations for capital purposes in the form of a grant when a congregation faces exceptional circumstances of a temporary nature which cannot be met by a loan. The procedures and criteria for loans are to be followed with the exception of the provision for security.
  2. $10,000 shall normally be the maximum grant to an individual congregation.

CONGREGATIONAL MINISTRY SUPPORT GRANTS

  1. Funds available from income may be used for support of congregational ministries.
  2. Applications for Program Support of congregational ministries shall be prepared using the appropriate application form of the churchwide staff or Synod Outreach Mission Force and submitted to the Synod Outreach Mission Force with a covering letter.
  3. Support Grants for a congregational ministry normally shall not exceed $15,000 per year.
  4. Review of each application shall be the responsibility of the Synod Outreach Mission Force.

TERMS OF LOANS, GRANTS, PROGRAM SUPPORT, ETC.

  1. All loans from the SMF shall normally bear interest at a rate below prevailing commercial rates.
  2. All loans should be on a monthly Repayment Schedule, with a maximum of five (5) years' duration. The Amortization Schedule for this loan may be up to twenty (20) years, with a balloon payment at the end. In cases of extreme hardship, the Synod Council may negotiate an extension of another five years after 3-4 years.
  3. All loans may be secured by a mortgage on the assets of the congregation obtaining the loan.
  4. Interest on the outstanding balance of all loans will be deducted from payments before any principal reduction is credited.
  5. Should a congregation be unable to make a payment for three (3) consecutive months, the interest arrears may be added to the principal due. If payments do not cover the interest due, the shortage will be added to the principal due.
  6. Should a congregation be unable to make any payments for six (6) consecutive months, the loan shall be considered in default, and the congregation would be expected to "show cause" to the Synod Council why the mortgage should not be foreclosed.
  7. The Synod Council may grant partial relief to a congregation against its obligations for a period not to exceed six (6) months. Additional relief would require another review and action of the Synod Council.
  8. All relief granted by the Synod Council will be considered a grant to the congregation, and "charged" to the Restricted Grant Funds account within the SMF.
  9. All interest paid on outstanding loans, and interest earned from the Restricted Grant Fund and Corpus Fund available for loans, should be credited to the Restricted Grant Fund as received.
  10. All transfers from the Restricted Grant Fund should be shown in the treasurer's reports. No portion of these transferred funds should be subject to "Mission Support" splits with the ELCA as they are not congregational receipts.
  11. Restricted Grant Funds may be used to augment regular Mission Support receipts from congregations in the annual budget. If used in this manner, the uses of these transfers should be clearly identified within the expense portion of the budget, and conform to the limits placed on Restricted Grant Funds.
  12. No grant to any congregation from the restricted Grant Fund should be made for a period longer than the current Synod fiscal year. Subsequent grants may be made, but are subject to review and approval by the Synod Outreach Mission Force and the Synod Council. These actions shall be shared with the Mission Through Congregations Mission Team.
  13. No grants may be made from the corpus of the SMF.
  14. Loan repayments shall be made directly to the Treasurer of the Delaware-Maryland Synod.
  15. Delivery of loan funds may be made by a representative of the Synod Council or the Synod Outreach Mission Force at a Sunday Worship Service of the congregation.