Investment of Church Funds
Trustees of church funds may only invest those funds in an "authorised investment". The word "trustees" includes any person, persons or organisation holding church trust property and covers wardens, parochial organisations and boards, councils and committees established by resolution or ordinance of the Synod or its Standing Committee. An authorised investment is an investment authorised by the Investment of Church Trust Property Ordinance 1990.
Trustees must ensure that church funds are only invested in authorised investments. If church funds are otherwise invested, the trustees may be personally liable for any loss which results.Investment of Church Trust Property Ordinance 1990
What is an authorised investment for a trustee under the Investment of Church Trust Property Ordinance 1990 depends on whether the trustee is a person, an organisation or a diocesan corporation.
Wardens, parish councils, parochial organisations and other persons who are the trustees of parish or church funds may only invest those funds in investments authorised by the trust instrument (if any) which specifies the trusts on which those funds are held, or in one or more of the following investments -
Note: On 25 September 2006 the Standing Committee declared the following businesses to be disapproved businesses for the purposes of clause 5(j) -
(a) the manufacture, promotion, distribution or sale of armaments,
(b) a business which is illegal or immoral,
(c) the manufacture, promotion, distribution or sale of tobacco,
(d) the business of gambling or betting or directly connected therewith,
(e) the manufacture, promotion, distribution or sale of liquor,
(f) production, sale or distribution of 'X' or 'R' rated video or digital images, videos or films.
Diocesan organisations have power to invest in those investments referred to in (a) to (j) above. In addition, if one or more of an organisation's members are elected or appointed by the Synod or the organisation is a corporation which holds church funds, the organisation may lend those funds on the security of a first registered mortgage over land in New South Wales if -
A diocesan organisation constituted by ordinance or by Act of Parliament may invest funds held by it in such other investments as may be authorised by that ordinance or Act or any other ordinance or Act.
Some diocesan organisations have power to invest in shares or debentures in a company. As a general policy, the Standing Committee has directed that no investment shall be made by way of the purchase of or subscription for shares or debentures (or the like) or on deposit with or loaned to any company whose main business or one of whose main businesses is -
The Synod, by resolution 18/76, has directed that the Standing Committee and the Finance and Loans Board not make financial assistance available to church schools or other bodies over whose finances the Diocese cannot exercise control, except insofar as it may be expedient to provide an indemnity to persons accepting responsibility for the management of a church school, or in so far as the assistance may be provided under a variation of trusts ordinance.
Current as at 21 March 2011
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