FAQ’s

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 Tennessee-Western Kentucky Conference 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 July 31, 2024, we have 19 active loans, with a total loan balance of $14,332,251.60.

The interest rate is set on the first business day of each calendar quarter. It is currently set at 3.5% as of October 1, 2024.

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.

There is an initial investment minimum of $2,500.

No, there are never any fees, charges or penalties for investing in or withdrawing from the Fund.

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.

The Fund makes loans to United Methodist Churches, agencies and missions in the Tennessee-Western Kentucky Conference.

Yes, the Fund makes loans for these and many other purposes. The loan must be secured by the Church building or property and there are other requirements. For more information, contact our office.

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.

The Fund does not provide interest-free loans. Periodically, the Fund may offer grant programs at the discretion of the Fund’s leadership board. These grant programs vary in nature.

No, all loans must be secured by first mortgage on land or a building of greater value than the loan.

No investor has ever lost any part of his or her investment in the Fund. Furthermore, the Fund has always paid the promised interest in full and on time.

As of July 31, 2024, the Fund had $23,261,413.45 in deposits.

The Fund was organized in 1992 and has been in continuous operation since.

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 Tennessee-Western Kentucky Conference. 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 member of the United Methodist Church, but you are required to be a resident of either Tennessee or Kentucky and are required to have some type of prior relationship to or participation in the United Methodist Church or to the Issuer, or to the mission and theology of the United Methodist Church.  Individuals, groups, companies, Churches and other organizations are all eligible to invest.

The Fund is audited every year by an independent, outside CPA firm. Copies of the most recent audit are available upon request.

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.