Held funds released to Episcopal, Anglican parishes

Via TitusOneNine:

Saturday, June 05, 2010

By Ann Rodgers, Pittsburgh Post-Gazette

Parish endowments that were frozen in litigation between the rival Episcopal and Anglican dioceses of Pittsburgh have thawed, and the Episcopal diocese has sent checks totaling $360,000 in back interest to parishes in both dioceses.

"We were concerned that money that could have been used for ministry in these local churches had been tied up and so we're happy to have it available again so that all of our work in mission and ministry can go forward," said Bishop Kenneth L. Price Jr. of the Episcopal Diocese of Pittsburgh.

His diocese was awarded about $20 million in centrally held diocesan assets in a 2009 decision by Allegheny Common Pleas Judge Joseph James. Parish property is to be negotiated separately. However, the Episcopal diocese also held $2.5 million in endowment funds belonging to parishes that had pooled their money to get higher interest. The court decree indicated that parishes had the right to that money.

The litigation surrounds an October 2008 split, when the original, unified diocese voted to secede from the Episcopal Church over theological issues. The Anglican Diocese of Pittsburgh, which is part of the theologically conservative Anglican Church in North America, has 55 parishes. The Episcopal Diocese of Pittsburgh has 28 parishes that have chosen to remain in the Episcopal Church. Due to litigation over diocesan property after the split, the investment bank Morgan Stanley froze the accounts, so that the money was unavailable to both dioceses.

The Anglican diocese is appealing the decision to award the assets to the Episcopal diocese, but didn't ask the court to stay its order to turn over its accounts to the Episcopal diocese, said David Trautman, communications director for the Anglican diocese. The Anglican diocese has also instructed its parishes that had loans issued by the original diocese to pay that money back to the Episcopal diocese while the litigation continues, he said.

Rich Creehan, communications director for the Episcopal diocese, said that checks for five quarters of interest went to 31 parishes and five church-related organizations. The parishes receiving checks were split almost equally between the two dioceses, he said.

The Rev. Karen Stevenson, chairman of the standing committee of the Anglican diocese, said that Anglican parishes had received checks over the past few days.

"They did give us money," she said. "It's not as if they're giving us their money. They're just releasing the money that belonged to us."

Her own parish, Trinity, in Washington, Pa., received a disbursement, although it was relatively small because the parish has a small endowment, she said.

"It was in the range of what we would normally expect" she said. It's not make-or-break money for the parish, "but it certainly helps," she said.

At Nativity Episcopal Church, Crafton, on the other hand, the check totaled more than $50,000.

"Instead of the check is in the mail, it's better to have it in your hand. And we did," said the Rev. Scott Quinn.

His 300-member parish did better than he had expected while the money was frozen, as members stepped up their giving and paid their pledges on time. Still, the parish put off needed repairs and fell far behind in paying its assessment to the Episcopal diocese.

The parish won't be launching any major new projects with the check, he said.

"Part of it will go toward the assessment that we owe, we will put some of it into deferred maintenance, and we really do need to put some of it into our endowment fund," he said.

The question of returning the principal to Anglican parishes is still being worked out, said Mr. Creehan.

"Nothing is being done unless the parishes ask for it," he said. Each fund will be reviewed to see whether it is restricted, and whether it was given to the Episcopal Church or strictly to the parish.

"To my knowledge, there has been no action either way," he said.

The Rev. Stevenson said she had requested the return of Trinity's unrestricted funds.

"There are monies that are free and clear of restrictions, but they have not moved on those yet for parishes that have requested them," she said.

Mr. Creehan said the transfer of assets, which has been primarily from the Anglicans to the Episcopalians, had been amicable.

"Once the judge issued his order in January, the two dioceses have been working very cooperatively together," he said.


Read more: http://www.post-gazette.com/pg/10156/1063383-455.stm#ixzz0qABw91QF