This portion of the newsletter that I contribute is intended to provide inspiration and information. It usually leans to the inspiring (hopefully) side, but this week I’m going more with information and invitation.

I recently reached out to a member of the Tennessee-Western Kentucky Conference Treasurer’s office with this question: How many active local churches do we currently have in the Tennessee-Western Kentucky Conference? After checking the currents stats, the answer is 539. There could be a small margin of fluctuation based on some minor categorical circumstances, so let’s say a +/- of 5.

I wanted to compare the total number of local churches to the number of local church participation accounts in our Development Fund. You may be wondering about the use of the phrase “Development Fund” and not just “Foundation”. The full scope of the entity which I am privileged to shepherd consists of both the United Methodist Foundation for the TWKC and the Development Fund of TN/KY, Inc. There is a tendency to lump them together as just the “Foundation”, when in reality they are two very different, separately functioning entities that coexist under our roof.

The existence of an investment Foundation dates back to at least the 1940’s in both the legacy Memphis and Tennessee Conferences. The Development Fund would come along later. The Foundations served their respective Conferences well over the years as trustworthy, profitable investing arms for local churches and missional agencies to place their funds for long-term growth and stability. Just as the two Conferences merged to become the TWKC, so did their Foundations. Most Foundation accounts are church endowment funds and trusts, with the local church setting the parameters for their accessibility and use.

In the early 1990’s, a Development Fund component was created and served what was still the Memphis and Tennessee Conferences.  The Development Fund functions more like a savings-and-loan for churches to place their money in an interest-bearing savings account. Do not think of a Development Fund participation account as a CD (Certificate of Deposit). This is a common misconception. In the case of a CD, a slightly higher return is likely, but the participant cannot access their money for a designated period without a penalty. In a Development Fund participation account, the funds are always available. All it takes to open a participation account is $2,500.00. That’s just two thousand five hundred dollars. Our present interest rate paid on participation accounts is 3.5%.

So, out of approximately 539 congregations in the TWKC, how many have such an account with the Development Fund? The answer is approximately 100. That is only 18.5% of our local churches. There are more total accounts because some churches have multiple accounts with funds designated for different purposes. Also, individuals may open participation accounts (I did!) with the same minimum deposit of $2,500 and current return rate of 3.5%. We also have extension ministries and non-United Methodist individuals and entities who have accounts. You do not have to be specifically United Methodist to have either a Foundation or Development Fund account…but our by-laws do state that it is preferred that there is a recognizable Wesleyan/Methodist connection.

Ideally, EVERY church and clergy person in the TWKC should have an account with the Development Fund. The entry balance is affordable for most churches and individuals, the benefits begin immediately, and you help create the resources needed for this ministry to offer affordable loans at a GREAT rate (presently 4.95%). Both rates are reviewed quarterly and adjusted as needed in comparison to other market, industry, and federal rates. The loan rate has held at 4.95% since October of 2023. The participation deposit interest rate started 2024 at 3.0% but was increased to 3.5% on April 1. No foolin’!

One of the goals I have set for this conference year is that our local church participation percentage would increase from 18.5% to at least 25%. That means 35 new churches will have opened an account by June 30, 2025. Some of our presently participating churches have the bare minimum in their account(s), while others have funds totaling in the millions of dollars…and a whole lot in-between.

Why is this important? Both the Foundation and Development Fund play an essential role in the overall strength of our United Methodist Connection. Not every conference has these resources, and some only have a Foundation without the additional component of a savings-and-loan Development Fund. We are blessed to have both!

The Church Building/Renovation Grants (more information HERE) that are being offered through the Development Fund are an example of how we are able to give back in a meaningful and impactful way. It would be ideal (and eventually expected) for a church or mission that receives such a grant to also have a Development Fund Participation Account. I consider opening such an account as the first blank in a bridge that leads to future exchanges that will benefit all parties.

In this season of emerging from the challenges of the past few years, it is vital that ALL our churches, extension ministries, campus ministries, missional agencies, clergy, and laity be as CONNECTED as possible in as MANY WAYS as possible. No one can afford to live or serve on an island. We ALL need each other, for the sake of the overall health of our connection, and for generating the positive momentum necessary for living fully into our true purpose…being an effective Witness for Jesus Christ.

If you or your local church are interested in opening a Development Fund Participation Account, use one of the following options to begin the process:

*call our UMDF office at (615) 259-2066 (if prompted, please leave a message and your call will be returned ASAP)
*send an email stating your interest to tiffany.ford@umftwk.org
*submit a request using our online contact form.