The more money the Fund has available to loan, the more the Fund is able to help United Methodist Churches, agencies and missions across the Memphis and Tennessee conferences thrive and grow. By investing in the United Methodist Development Fund of Tennessee/Kentucky, Inc. you can help the Church and earn interest on your investment at the same time. As of April 30, 2017, we have 27 active loans, with a total loan balance of $12,174,069.45.
Interest paid by the Fund is taxable as income by the Federal Government The interest paid to you each year will be reported on form 1099-INT. Churches are exempt from this income but a 1099 form must be furnished to the IRS.
You may withdraw a portion or all of your investment anytime. There is never a penalty, fee or loss of interest when withdrawing funds. There is no minimum length of time required for investments. We do request that if at all possible, funds stay invested for at least one year.
Investments are not FDIC guaranteed. Investments are secured by the assets of the Fund and by the first mortgages of the Churches, agencies and missions borrowing the funds. Money not yet loaned as well as cash reserves are held by the Fund in insured accounts.
No loan has ever failed to be repaid in full. Loan applications go through a careful process to ensure that the Church, agency or mission is capable of making the loan payments and committed to repaying the loan in full. Furthermore, all loans are secured by a first mortgage on a building or property.
Yes, the Fund is a registered 501 (c)(3) organization. Its purpose is to provide a service, connecting investors and borrowers for the benefit of the United Methodist Church in the Memphis and Tennessee Conferences. Interest paid by the Fund is subject to federal income tax.
The Fund seeks investors rather than donors. However, if you would like to make a gift, the Fund is a 501 (c)(3) non-profit organization and donations are tax deductible to the full extent allowed by law. Gifts become a permanent part of the Fund, strengthening its ability to make loans.
No, you do not have to be a United Methodist in order to invest but you do have to reside in the state of Tennessee or Kentucky. Individuals, groups, companies, Churches and other organizations are all eligible to invest.
You must first receive and review an Offering Circular. Information on how individuals and organizations can invest is included in the Circular. To obtain one, please contact our office or request one online via our contact form.