Q.

What is the United Methodist Foundation of the Texas Annual Conference?

A.

It is a Foundation for the Texas Annual Conference of the United Methodist Church. It was established in 1978 to provide financial and stewardship services to Methodist Churches, Methodist Institutions and their members.

Q.

How can individuals participate with the Foundation?

A.

Individuals can purchase interest bearing Certificates of Participation from the Foundation. The Foundation uses these investments along with other capital in the Loan Fund to make loans to United Methodist churches.

Q.

What are the terms of the Certificate of Participation?

A.

The Foundation issues one-year Certificates of Participation with a minimum investment of $1,000.00 that earn investors a competitive rate of interest.

Q.

When do investors receive their interest?

A.

Investors receive their interest either semi-annually or annually at maturity. The amounts are prorated if they have been deposited for less than six months. With a deposit of $10,000 or more, an investor can receive automatic interest payments as frequently as monthly.

Q.

Can investors choose to reinvest as their Certificates of Participation mature?

A.

Yes. Approximately thirty days prior to the maturity date an investor will receive a renewal notification letter. One of the options will be to reinvest the interest due and renew the certificate for another year.

Q.

How is the rate of interest for Certificates of Participation established by the Foundation?

A.

The Foundation’s Board of Trustees has authorized the Investment Committee to set the rate at the beginning of each month. Factors that determine the interest rate paid to investors include: the rate of interest earned from current loans, market conditions, and rates of similar investments. The investor receives a fixed rate for the full year.

Q.

How secure is an investment in a Certificate of Participation?

A.

The Foundation is an agency of The United Methodist Church and its investments are not insured like bank deposits or CDs. Under strict guidelines, investment funds are loaned to United Methodist Churches and Institutions in the Texas Annual Conference and secured by first mortgages on property and buildings. A liquid reserve equal to 5% of all investments is maintained at all times.

Q.

What about withdrawal possibilities?

A.

Certificates of Participation are time deposits and are designed to be left on deposit for one year. Withdrawals are possible before maturity, but with a penalty. In the first year the early withdrawal penalty is six months interest. For investors who have had funds in place for more than a year the penalty is three months interest.

Q.

Is the interest paid to investment taxable income?

A.

The interest paid is ordinary income and is taxable just like interest from any other taxable investment.

Q.

Is there a charitable tax deduction for investing in a Certificate of Participation?

A.

No. Charitable deductions are not permitted for investments in Certificates of Participation.

Q.

Can a husband and wife invest as joint owners of a Certificate of Participation?

A.

Yes. They may invest as joint owners with rights of survivorship.

Q.

Can I invest in a Certificate of Participation as an IRA?

A.

At the present time IRAs are not available through a Certificate of Participation Investment.

Q.

How is the offering of Certificates of Participation made?

A.

The offering is made by the Offering Circular and is limited to individuals associated with the United Methodist Church in the State of Texas.

Q.

How do I receive an Offering Circular?

A.

You may download a printable PDF copy of the Offering Circular. Otherwise, you may call, write, or visit the United Methodist Foundation using the contact information below. Our regular office hours are 8:30 a.m. to 4:30 p.m., Monday - Friday.