Lease vs. Sell ???

Q: “You mention in your articles about when a church closes, to lease it rather than sell it, if possible, that this is more in line with the vision of the founding members of the church, rather than selling it. How can you say that? Especially when they put it right in their By-Laws that they wanted the church sold if they ever cease to function as a church?” 

A: Good question. Let’s go back to the founding of your congregation. Odds are, in your original Constitution and By Laws, in the Preamble and Purpose section, there is a statement to the effect that the congregation was formed for the purpose of establishing a church for the glory of God in such and such town, village or city. That is their overarching vision – a church for the glory of God on that location in your town. So, at THIS point, CLOSING that church is contrary to their vision, praying and sacrificial giving.  

Now, towards the end of your Constitution and By Laws, you’ll find some version of a “reversion clause” which is necessary in all non profits’ corporate papers. The reason for this is so that after the no profit accumulates a fair degree of wealth and real property, it can’t be closed and have the assets go to benefit any individual or family. So, the simplest reversion clause is for it to state that the property be sold to settle any corporate debts, and the remainder of the monies and/or assets be given for the forwarding of the purposes of the framers, to another non profit or church or mission. In some cases it will state that the properties be sold and the monies be given to the denomination to use for church planting or missions work. 

This is a legal clause, required in the incorporation of a not for profit corporation. As a matter of fact, when talking about the intention of the original founders, you can be sure that CLOSING this church was never their intention! If you want to come against their original vision, then go ahead and close the church!  

Why close it when you can ensure that the Gospel will continue to go forth from that location that they prayed and sacrificed to acquire, and then dedicated for the glory of God? Lease the building to a church that will bring the Gospel message, and then use the proceeds from that lease to further missions, church planting and other things that were near and dear to the hearts of the founders. As a plus, you can always decline to renew the lease should you get together a group who wants to reopen the church and has the means to do so, in the future. Also, you have the equity in the property that can be drawn upon to support even more outreach, should the Lord lead. The founding members would be opposed to this? I don’t think so. They would be more opposed to their church not reaching out to the lost, and not bringing people into the church and the Kingdom of God.

Copyright Steven L. Davis  www.SteveDavis.org