Loading...
HomeMy WebLinkAbout01-31-14 1 �1 RECO,RDED OFFICE OF E TILES\CHents\15113 Methodist\15113.1_pet I(rev I)wpd REGISTER O F ILLS No V. Otto III, Esquire -, I.D. No. 27763 AJ iv 3� �1 17 y5 Seth T. Mosebey, Esquire CLERK OF I.D. No. 203046 ORPHAI7S' COURT MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER CUMGERLM41) CO., RA MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 IN RE: CARLISLE UNITED METHODIST: IN THE COURT OF COMMON PLEAS OF CHURCH, a Pennsylvania nonprofit CUMBERLAND COUNTY, PENNSYLVANIA corporation :ORPHANS' COURT DIVISION NO. 261-3 - ,21 —1 H — C 3RQ PETITION FOR COURT APPROVAL OF THE MERGER, TRANSFER, AND CHARITABLE USE OF NONPROFIT CORPORATION ASSETS AND NOW, comes CARLISLE UNITED METHODIST CHURCH, a Pennsylvania nonprofit corporation("Carlisle United"),by and through its counsel,MARTSON LAW OFFICES, and files this Petition for Court Approval of the Merger, Transfer, Charitable Use of Nonprofit Corporation Assets, and in support thereof, avers as follows: 1. Carlisle United seeks the Court's approval of the merger of corporate entities and transfer of corporate assets into Carlisle United and Carlisle United's continued use of the merged entities' assets for the charitable purposes to which the assets were dedicated. RELEVANT ENTITIES 2. Allison United Methodist Church was a Pennsylvania nonprofit corporation with an address of 99 Mooreland Avenue, Carlisle, Pennsylvania 17013. 3. First United Methodist Church was a Pennsylvania nonprofit corporation with an address of 64 West North Street, Carlisle, Pennsylvania 17013. 4. Grace United Methodist Church of Carlisle, Pennsylvania, was a Pennsylvania nonprofit corporation with an address of 45 South West Street, Carlisle, Pennsylvania 17013. 5. Carlisle United is a Pennsylvania nonprofit corporation with an address of 45 South West South Street, Carlisle, Pennsylvania 17013. JURISDICTION This Court has jurisdiction over this Petition and the merger of corporate entities, transfer of assets and use of related proceeds and other assets pursuant to the following: 6. Sections 5547 (a) and (b) of the Pennsylvania Nonprofit Corporation Law of 1988, as amended, 15 Pa. C.S.A. §§ 5547 (a) and (b) (the "Nonprofit Law"), provide as follows: § 5547. Authority to take and hold trust property. (a) General rule. - Every nonprofit corporation incorporated for a charitable purpose or purposes may take,receive and hold such real and personal property as may be given, devised to, or otherwise vested in such corporation, in trust, for the purpose or purposes set forth in its articles. The board of directors or other body of the corporation shall, as trustees of such property, be held to the same degree of responsibility and accountability as if not incorporated, unless a less degree or a particular degree of responsibility and accountability is prescribed in the trust instrument, or unless the board of directors or such other body remain under the control of the members of the corporation or third persons who retain the right to direct, and do direct, the actions of the board or other body as to the use of the trust property from time to time. (b) Nondiversion of certain property. - Property committed to charitable purposes shall not,by any proceeding under Chapter 59, 15 Pa.C.S.A. §5901 et seq. (relating to fundamental changes) or otherwise, be diverted from the objects to which it was donated, granted or devised, unless and until the board of directors or other body obtains from the court an order under 20 Pa.C.S.A. Ch. 77(relating to trusts) specifying the disposition of the property. 7. Section 5930(a)ofthe Nonprofit Law, 15 Pa.C.S.A. § 5930(a),provides as follows: § 5930. Voluntary transfer of corporate assets '(a) General rule.—A sale, lease, exchange or other disposition of all, or substantially all, of the property and assets, with or without goodwill, of a nonprofit corporation, if not made pursuant to Subchapter D of Chapter 19(relating to division),may be made only pursuant to a plan of asset transfer. In order to make effective any plan of sale, lease or exchange of assets so adopted it shall not be necessary to file any articles or other document in the [Department of State], but the corporation shall comply with the requirements of section 5547(b) (relating to nondiversion of certain property). 8. Section 5921 (a) of the Nonprofit Law, 15 Pa. C.S.A. § 5921 (a), provides as follows: § 5 92 1. Merger and consolidation authorized (a) Domestic surviving or new corporation.-Any two or more domestic nonprofit corporations, or any two or more foreign nonprofit corporations,or any one or more domestic nonprofit corporations and any one or more foreign nonprofit corporations, may,in the manner provided in this subchapter,be merged into one of such domestic nonprofit corporations,designated in this subchapter as the surviving corporation,or consolidated into a new corporation to be formed under this subpart, if the foreign corporations are authorized by the laws of the jurisdiction under which they are incorporated to effect such merger or consolidation with a corporation of another jurisdiction. 9. Section 711 (21) of the PEF Code, 20 Pa. C.S.A. § 711 (21) provides as follows: § 711. Mandatory exercise in jurisdiction through orphans' court division in general. Except as provided in section 712 (relating to nonmandatory exercise of jurisdiction through orphans' court division) and section 713 (relating to special provisions for Philadelphia County), the jurisdiction of the court of common pleas over the following shall be exercised through its orphans' court division: (21) Nonprofit corporations. The administration and proper application of funds awarded by an orphans' court or an orphans' court division to a nonprofit corporation heretofore or hereafter organized under the laws of the Commonwealth of Pennsylvania for a charitable purpose at the direction of the orphans' court or an orphans' court division or at the direction of a settlor or testator of a trust or estate,jurisdiction of which is exercised through the orphans' court division except as the administrative, presiding or president judge of such division disclaims the exercise of future jurisdiction thereof. 10. Rule 2156 of the Pennsylvania Rules of Judicial Administration, relating to the Distribution of Business Within Courts of Common Pleas, provides, in part, as follows: Rule 2156. Orphans' Court Division. In addition to other matters,which by law are to be heard and determined by the orphans' court division of the court of common pleas, the division shall hear and determine the following matters: (1) Nonprofit Corporations. The administration and proper application of property committed to charitable purposes held or controlled by any domestic or foreign nonprofit corporation and all matters arising under Title 15 of the Pennsylvania Consolidated Statutes(relating to corporations and unincorporated associations)or otherwise where is drawn in question the application, interpretation or enforcement of any law regulating the affairs of nonprofit corporations holding or controlling any property committed to charitable purposes, or of the members, security holders, directors, officers, employees or agents thereof, as such. "Property committed to charitable purposes" means all property committed to the relief of poverty, the advancement of education, the advancement of religion, the promotion of health, governmental or municipal purposes, and other purposes the accomplishment of which is beneficial to the community,except that the term does not include the property of any inter vivos trust jurisdiction of which was acquired by the court of common pleas prior to January 1, 1969 unless the president judge or the court orders the matter to be heard and determined in the orphans' court division. 11. Pursuant to the foregoing statutes and rule, this Court has jurisdiction over this Petition and the merger of corporate entities, as well as the transfer and use of charitable assets. VENUE 12. Section 726 of the PEF Code, 20 Pa. C.S.A. § 726, provides as follows: § 726. Venue of nonprofit corporations. Except as otherwise prescribed by general rules, in exercising the jurisdiction of the court over the property or affairs of a domestic or foreign nonprofit corporation, the venue shall be in the county where the registered office of the corporation is located or deemed to be located for venue purposes or, in the absence of a registered office within this Commonwealth, in a county where any property held or controlled by the nonprofit corporation is located. 13. Accordingly,venue of this Petition is properly in Cumberland County,Pennsylvania because the registered offices of Carlisle United is located in Carlisle, Cumberland County, Pennsylvania. MERGER 14. Pursuant to the terms of a Plan of Union and Articles of Merger filed with the Pennsylvania Department of State on July 1, 2013, Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church were merged with and into Carlisle United in accordance with Chapter 59, Subchapter C of the Pennsylvania Nonprofit Corporation Law(the "Nonprofit Law"). True and correct copies of the Articles of Merger, which include the Plan of Union, are attached hereto and incorporated herein as Exhibit "A." 15. Petitioners respectfully submit that,by virtue of the Merger,the following shall have occurred on July 1, 2013: (a) Allison United Methodist Church,First United Methodist Church and Grace United Methodist Church were merged with and into Carlisle United, and Carlisle United shall continue as the surviving corporation; and the separate existence of Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church has ceased. (b) All the property, real, personal and mixed, of Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church , and all debts due on whatever account to Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church have been taken and transferred to and vested in Carlisle United without further act or deed; and Carlisle United shall be responsible for all the liabilities and obligations of Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church. (c) Carlisle United shall be responsible for any and all restrictions on funds held by Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church, to the fullest extent provided in the Nonprofit Law. No liens upon the property of Allison United Methodist Church,First United Methodist Church and Grace United Methodist Church shall be impaired by the Merger, and any claim existing or action or proceeding pending by or against Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church maybe prosecuted to judgment as if the Merger had not taken place,or Carlisle United may be proceeded against or substituted in its place. (d) Any devise,gift or grant contained in any will or other instrument, in trust or otherwise, made before or after the Merger to or for Allison United Methodist Church,First United Methodist Church and Grace United Methodist Church shall inure to Carlisle United, subject to any restrictions applicable thereto. 16. Carlisle United has assumed any and all liabilities, obligations and responsibilities of Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church. 17. Gifts, donations and bequests made or received after the Merger naming Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church, or any one of them, as beneficiary shall be deemed the property of Carlisle United as successor of Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church. 18. Pursuant to the CUMC Legacy Funds Agreement,which was formally approved by Carlisle United at a October 20, 2013, church conference, Carlisle United accept all endowments, trusts,and gifts held by Allison United Methodist Church,First United Methodist Church,and Grace United Methodist Church and agreed to be bound by their restrictions. A true and correct copy of the CUMC Legacy Funds Agreement is attached hereto and incorporated herein as Exhibit `B." POST-MERGER CHARITABLE ACTIVITIES 19. Following the Merger,Carlisle United became the surviving corporate entity and has continued to operate consistent with the purposes of Allison United Methodist Church,First United Methodist Church and Grace United Methodist Church. 20. Following the Merger, any and all assets and accounts of Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church merged with and transferred to Carlisle United, pursuant to 15 Pa.C.S.A. §5929. 21. Section 5929 of the Pennsylvania Nonprofit Corporation Law, 15 Pa.C.S.A § 5929, provides, in part, as follows: (a) Single surviving or new corporation.--- Upon the merger or consolidation becoming effective, the several corporations parties to the plan of merger or consolidation shall be a single corporation which, in the case of a merger, shall be that corporation designated in the plan of merger as the surviving corporation, and, in the case of a consolidation, shall be the new corporation provided for in the plan of consolidation. The separate existence of all corporations parties to the plan of merger or consolidation shall cease, except that of the surviving corporation, in the case of a merger. The surviving or new corporation, as the case may be, if it is a domestic corporation, shall not thereby acquire authority to engage in any business or exercise any right which a corporation may not be incorporated under this article to engage in or exercise. (b) Property rights.—Except as otherwise provided by order, if any, obtained pursuant to section 5547(b)(related to nondiversion of certain property), all the property,real,personal,and mixed,and franchises of each of the corporations parties to the plan of merger or consolidation, and all debts due on whatever account to any of them, including subscriptions for membership and other choses in action belonging to any of them, shall be taken and deemed to be transferred to and vested in the surviving or new corporation, as the case may be,without further act or deed. The surviving or new corporation shall thenceforth be responsible for all the liabilities and obligations of each of the corporations so merged or consolidated. No liens upon the property of the merging or consolidating corporations shall be impaired by such merger or consolidation, and any claim existing or action or proceeding pending by or against any of such corporations may be prosecuted to judgment as if such merger or consolidation had not taken place,or the surviving or new corporation may be proceeded against or substituted in its place. Any devise, gift or grant contained in any will or other instrument, in trust or otherwise, made before or after such merger or consolidation, to or for any of the constituent corporations, shall inure to the surviving or new corporation, as the case may be, subject to compliance with the requirements of section 5550 (relating to devises, bequests and gifts after certain fundamental changes). (c)Taxes.—Any taxes,penalties and public accounts of the Commonwealth,claimed against any of the merging or consolidating corporations,but not settled,assessed or determined prior to such merger or consolidation, shall be settled, assessed or determined against the surviving or new corporation, and, together with interest thereon, shall be a lien against the franchises and property,both real and personal,of the surviving or new corporation-. Accordingly,pursuant to Section 5929, the net assets of Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church were distributed to and merged into Carlisle United, the surviving corporation. 22. The Merger has not,will not,result in a diversion of charitable assets as provided in 15 Pa.C.S.A §5547(b) and 15 Pa.C.S.A. §5930(a). 23. The Merger and the proposed use of assets is in the public interest and appropriate steps have been taken to safeguard the value of charitable assets. FUTUREINTERESTS 24. Section 5550 of the Nonprofit Law provides in relevant part as follows: A devise, bequest or gift to be effective in the future, in trust or otherwise to or for a nonprofit corporation which has . . . become a party to a merger which it did not survive . . . after the execution of the document containing the devise, bequest or gift shall be effective only as a court having jurisdiction over the assets may order under 20 Pa. C.S. Ch. 77 (relating to trusts) or other applicable provision of law. 15 Pa. C.S.A. §5550. 25. As noted above, the Merger has not, and will not, result in a diversion of any charitable assets from the purposes to which they were dedicated by Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church. 26. Carlisle United therefore requests a ruling that all gifts which constitute future interests should be received and administered as part of the general charitable assets of Carlisle United, subject to any express use restrictions applicable to same which are not impossible or impracticable to fulfill. CONCLUSION 27. In accordance with the Merger,Petitioners have merged with and into Carlisle United in accordance with Chapter 59, Subchapter C of the Nonprofit Law. 28. The assets and liabilities of Allison United Methodist Church,First United Methodist Church and Grace United Methodist Church have been transferred to Carlisle United, and Carlisle United shall continue as the surviving corporation. ATTORNEY GENERAL REVIEW 29. The Pennsylvania Attorney General's Office has received notice of the Merger and the transfer and use of charitable assets described in this Petition. 30. Upon reviewing this Petition and related documents, the Pennsylvania Office of Attorney General does not object to this Petition and hereby joins in this Petition. A copy of said notice and non-objection letter from the Pennsylvania Office of Attorney General is attached hereto as Exhibit "C" and incorporated herein by reference. WHEREFORE, Carlisle United Methodist Church requests that this Honorable Court (a) approve the transfer, distribution and charitable use of nonprofit corporation assets to Carlisle United Methodist as set forth in this Petition; and (b) confirm that all the property,real,personal and mixed, of Allison United Methodist Church,First United Methodist Church and Grace United Methodist Church,and all debts due on whatever account to Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church have been taken and transferred to and vested in Carlisle United without further act or deed; and (c) confirm that the Merger has not resulted in a diversion of charitable assets as provided in 15 Pa.C.S.A §5547(b) and 15 Pa.C.S.A. §5930(a). MARTSON LAW OFFICES By:� 5 ooa� No V. Otto III, Esqui e I.D. No. 27763 Seth T. Mosebey, Esquire I.D. No. 203046 10 East High Street Carlisle, PA 17013 (717) 243-3341 Date: I J3)h y Attorneys for Petitioners COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF STATE BUREAU OF CORPORATIONS AND CHARITABLE ORGANIZATIONS 401 NORTH STREET, ROOM 206 P.O. BOX 8722 HARRISBURG, PA 17105-8722 W W W.CORPORATIONS.STATE.PA.US/CORD Carlisle United Methodist Church TIIE BUREAU OF CORPORA'T'IONS AND CHARITABLE ORGANIZATIONS IS I IAPPY TO SEND YOU YOUR FILED DOCUMENT. THE BUREAU IS HERETO SERVE YOU AND WANTS TO THANK YOU FOR DOING BUSINESS IN PENNSYLVANIA. II'YOU HAVE ANY QUESTIONS PERTAINING'10 THE BUREAU.PLEASE VISIT OUR WED SITE LOCATED AT WWW.CORPORA'I'IONS.S'FATE.PA.tJS/CORP OR PLEASE CALL OUR MAIN INFORMATION TELEPHONE NUMBER (717)787-1057. FOR ADDITIONAL INFORMATION REGARDING BUSINESS AND / OR UCC FILINGS. PLEASE VISIT OUR ONLINE"SEARCHABLE DATABASE"LOCATED ON OUR WEB SITE. ENTITY NUMBER: 4187016 Otto, No V,III 10 East High Street Carlisle, PA 17013 Entity P.410701g • Gain Filed:071Otr2013 , Carol Alchele secretary of the Commonwealth PEMSYLVAMA DEPARTMENT OF STATE BUREAU OF CORPORATIO)RS AND CHARITABLE ORGANIZATIONS me es em cafe o erger (I5 Pn.C.s.) Domestic eustnes Corporation(d 1926) T2 Domestic Nonprofit Corporation(d 5926) Limited Pulnership(f 8347) Nsmg Dotamentww be roamed to Ac tV0 V. Otto 111 agree sad sddras yet gmetr to I Add" the(en. 10 East High Street Carlisle PA 11013 Commonweafth of Pennsylvania ARTICLES OF MERGER-NONPROFIT 7 Page(s) Fee: Ei3t)plus E40 additional for each IIIIIIIIIIillll�llllllllll�ll{Illfi 111 llllllllfilll1111i� Party in adddlarrel to two nul4stote IA coMPIIW ee with the requ,romerna of the applicable provislons(Mating to articles nt merger or consolidation), the undera)gned.desiring to affect a merger,hereby state that: i.The name of the mrponclordlimited partnership turvivingthe merges is: Cafiisie U(tited hietltodist Church 2. C6eatondrony+ferrorttgfeMJoflowfrrd: X The surviving oorporattorAimftadparmirshiph adomcsNebusimxYnonp(ofitcotperadontitmitod Partnership and the(a)address of its current regincrod office in this Commonwealth or(b)name of its commercial registered office provider and the county of venue is(the Department is hereby authorized to correct the following Information in confbrm to the records of the Department}. (a)Numbs and Street t'Itr State Zi County 45 S.West Streart Carlsie PA IF013 Cumbertand (h)Name orComm=IW Registered Alice Provider County eta The surviving corporatlonlimitod partnership Is a qualified fnreign businessinonpront oorpomninn Aimitd partnership fincorporsuMbimed under the laws of and the(a)add"of Its current registered office in this Commonwealth or(b)name of its comet refit owic a provide and the county of venue is(the OeParament is hereby authorized to cornea the following intermadon to confrere to the records of the Deputncra: (a)Number andStrea City Stale ZIP County (b)Name or Commercial Reglatacd Office Provider County do The surviving ceryoWlardllmlld partnership is a nonquaiird foreign buslnessrnonpmtit corporadaNlimited pammnhip Incorporatedffotmd under the laws or and the address of let principal office under the tawsofsuch domiciliary)urisdidon Is: Number and Street City guts Zip PADEPLOFSTATE JUL S 12013 Rettived Time Jul. 31, 2013 8:22AM No. 8708 DSCati3.1936/5926/8387_x 3. ThenamC end the eddms»[the roglssaed offiero In th4s Commonweaidt or name orits commaciaf registered office Provldtr and ate coonty of venue of each other domestic businesynemproflt oorpormioMimited to nnonhip and qualified foreign bealnaaNnen mf1t corparatiorAimited pnmorshfp which is a party w the plan 0rmerger ere as follow' Grace Name MetthodistmCttuuh of Carlisle,P�i — 45V S.e West St., Cax?sale, PA First United Methodist Church, f/k/e xat Ibanaelical trnsr.d ar.rhrnn r arch tsLCarlisle YA 64 B North Seryeat Carlisle, YA Cuatbarland Allisa3t United Methedter ChArah f/i6(a Mstbodiet Episcopal Church of the sor, of Carlisle — 99 Mooreland Ave., Cerlia e, YA 4. Check and{fapprap Wa cemplarr,oar gf uiia jottewhg.. _Tho plan of merger shot be effective upon filing these AtticlearArtiffeate of Merges in the Deponment of State, X The pion of merger shall be effective on, July 'l,2013 st 12:01 am DEC Hour S. The manner In which the plan ofmager was adopwd by each dommfic empermtIOMiceitad partnership is ss follow»: Name MamtaofAdoption First United Methodlst Church Approval of members Grace United Methodist Church Approval of members A eon Un a et o a uro Approve me era f:arllsle United Methodist Church A 'oval of Q Leaderahi Council 6. SWkeour thtrjcmmgrmplttjaroforeignearporarlorrglmltedpattnnshlprropor(vto rhamerger. 7. Chick and/f approprlora complete.one gftA.joliormg X The plan ormergv Is set fonts in full In Pxhibil A attachad hereto and made a pan hemof. PanWant to 13 MC.S.0 1901118347(h)(relating to omission atones n provisions from filed plans)the provisions, —'•'ifany,of the plan of merger dw amend or conathtno the opaadve provisions of the Articles of IneorpomelonfCadeaolo of Limited Partnership of the surviving eorporatlongimitod par mrship as in effect subsequent to the effective date of the plan are sa forth In 1611 In Esh@It A attochod hereto and made a part'hereof. The toll test of the plan of merger is en file as Cho principal place of business of the surviving svrpecareMtimiwd partnership.the address of which it, Number and sues city State Zip County Received Time Jul, 31. 2013 8:22AM No. 8788 DSCa;13.1926/392dtg7 47-3 rN 1P.STIMONY WHEREOF,the undersigned mTOradonAlmitd I> *wshlp has mused then AnieleyCeriiReaee of Mager to be signed by a duly aud,odred offioathereof INN -�_day of July I----------------• 02013 Carlisle United Methodist Church amc o rpora o im, fleas ,p tgnn Chairperson-Leadership Council rte First United Nothodiet Church omc o otporat a m, p a ro Chairperson-Leaders Ip Council le Allison United Mtethods t Church BY: �"• )5-�- L 4--z"r Chairpe on - Leadership Council Orac Un ted Meth ist Cpurch Byt 2 kti �+ Chairperbefi - Leadership Council Received Time Jul. 31, 2013 8:22AM No. 8708 Plan of Union Allison, First and Grace United Methodist Churches of Carlisle Name The name of the unified congregation shall be chosen by vote of the members of the current congregations of Allison,First and Grace United Methodist Churches'. Mission Statement To build Bridges in our community by sharing the love of Jesus Christ Values Loving People,Growing Disciples,Engaging Children and Youth,Worshipping Passionately, Championing Missions and Impacting Communities. Strategy Build the church on the four pillars of Worship;Serve;Grow;and Connect Mission Measures We will use our strategy to build the following In every church member and friend: Prayer Warrior. 1 daily communicate with God. Active Worshipper.I passionately exalt the Lord. Servant Leader. I humbly serve others. Llfelong Learner. I regularly study God's Word. Bridge Builder. 1 continually share Christ Generous Giver. I sacrtflclallygive my time,treasure and talent Organizational Structure The new congregation shall be led by a nine(9)member Leadership Council of committed laity that shall serve the mission of the new church.The Council shall elect a Chairperson annually4l.Council members shall be elected to three(3)year terms at the annual Charge Conference meeting"'.The Council shall serve all the administrative functions required by the new congregation and the Book of Dlednllne of the United M tbo let Church as well as set policy and direction. Pastoral and Staff Leadership Pastoral Leadership shall he assigned by the Bishop of the Susquehanna Annual Conference.The Leadership Council of the new church shall adequately staff the new church in order to achieve Its mission.The Pastoral and Staff leadership shall oversee daily ministry and operational decisions,and ensure that they are in accordance with Scripture and the mission,values and strategy of the new church. Exhibit "A" Received Time Jul, 31. 2013 8:22AM No. 8708 Transitional Site The transitional location of the new congregation shall be the current Grace campus.The Leadership Council shall end the transitional status of the new church by determining and recommending the permanent worship site as soon as a qualified recommendation Is proposed by the site selection focus group which will be no later than July 2016.A congregational vote shall follow to affirm or reject this recommendation of the Leadership Council. Buildings and Assets Proceeds from the sale of any church buildings and/or property sold after the official date of incorporation shall be held In escrow until the site location congregational vote is taken. Other than repairs for health or safety reasons,no major renovations shall take place at either the Mooreland Ave.,North St,or Pomfret St.campuses. All assets of the congregations of Allison,First and Grace United Methodist Churches shall become the assets and responsibilities of the new congregation effective the day of official incorporation. Membership Rolls The Membership Rolls of Allison,First and Grace shall be merged into one roll to constitute the congregational roll of the new church. Effective Date The day of corporate reorganization 'The name chosen Is"Carlisle United Methodist Church" "The one exception:the Lead Pastor shall serve as Chair for the first year after unification only. In early 2013,the administrative/church councils of Allison,First and Grace Churches shall lead a Church Conference meeting to elect three(3)persons from their respective congregations to serve on the Leadership Council of the new church. While each council member's term wIU normally be three(3)years,and there will be a two-term limit,Initially, one will serve a three-year term,one a four-year term and one a five-year term, After the first three years;those elected to a three year term can be reelected,or a new member of the unified church can be elected to replace him/her. This process(re-elected or elected to a three year term)will be repeated in years four and five for the Initial members elected to the four and five year terms respectively. Having three members elected or re-elected every year will maintain continuity of the Council as well as allow for new members to serve. Approved by the Church conforences ofAlibon,Pbxt and Grace United Methodist Churches on December 9,2012 Received Time Jul. 31. 2013 8:11AM No. 8708 CUMC LEGACY FUNDS Gifts ofEndurinQ Love Fundine God's Work for the Future and Now ARTICLE I. PURPOSE A. The CUMC Legacy Funds Program provides members and friends with a number of options to give to Carlisle United Methodist Church, hereinafter called "CUMC", through wills, trusts, and memorial and honor gifts to support the mission and ministries of CUMC. B. This Agreement establishes: 1. The endowment funds of CUMC 2. "Ministry Funds" where endowment and trust income and memorial and honor gifts will be directed. ARTICLE H. THE FUNDS A. The Endowment Funds are permanent funds, the principal of which shall be held in perpetuity and cannot be used, except as hereinafter provided, or as specified in writing by persons making gifts and bequests to those funds. Income from Endowment Funds will either be re-invested or deposited in one of the Ministry Funds. 1. Appendix A identifies the General Endowment Project Funds created by this Agreement. Income from these Funds gives the CUMC greater discretion as long as it is used for the general purposes of the endowment. 2. Appendix B identifies the Designated Endowment Project Funds created by this Agreement. Income from these Funds is restricted to the specific designated purpose of the fund. B. The Ministry Funds are general funds that may include sub-fund accounts, established with the approval of the Leadership Council. The Ministry Funds are created to allow persons to: 1. Direct gifts to an identified Ministry Fund in memory or in honor of a loved one; 2. Direct income from their endowment gifts to identified Ministry Funds; 3. Direct income from their trusts to identified Ministry Funds;or 4. Direct the use of bequests in their wills to identified Ministry Funds. Principal and income in Ministry Funds shall be used only for purposes related to the ministry area associated with the identified ministry fund. ARTICLE III. SOURCES OF FUNDING The sources of funding for the various funds shall be: A. Endowment assets formerly held by Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church and transferred to CUMC. CUMC shall honor the commitments made to the donors by Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church in the acceptance of the endowment gifts. Those endowment assets have been categorized as either: 1) general endowments or 2) specifically-designated endowments. The general endowments are listed in Appendix A-1 and will be placed into one of the General Endowment Project Funds as indicated in Appendix A-L The transferred assets identified as specifically designated endowments are listed as Designated Endowment Project Funds in Appendix B. B. Endowment gifts made to one of the listed General Endowment Project Funds, identified in Appendix A, or one of the listed Designated Endowment Project Funds, identified in Appendix B. Appendix B may be amended by action of the Leadership Council but only to add new Designated Endowment Project Funds. C. Memorial and honor gift assets formerly held by Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church and transferred to the CUMC. All those assets have been categorized by ministry area and placed into one of the Ministry Funds or a particular sub-Fund account, shown in Appendix C, with appropriate placement being guided by the desires of the donor. Appendix C may be amended by action of the Leadership Council to add new sub-Fund accounts or remove sub-Fund accounts whose assets have been exhausted. D. Memorial gifts, honor gifts, lifetime gifts, bequests by will, and other gifts, which are received from members and friends of CUMC and added to one of the Ministry Funds, or a particular sub-Fund account, shown in Appendix C, with appropriate placement being guided by the desires of the donor. E. Trust income received by Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church and transferred to the CUMC. F. Trust income received by CUMC. CUMC is a beneficiary of the trusts listed in Appendix D. Trust income shall be placed into the Appendix C Ministry Funds as indicated in Appendix C or used for the specific purposes directed in the trust agreement. G. Restricted gifts received by Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church and transferred to the CUMC. The use of these gifts is restricted by a binding legal agreement. Those restricted gifts are listed in Appendix E. ARTICLE IV. DUTIES AND RESPONSIBILITIES OF THE LEADERSHIP COUNCIL In addition to the other duties and responsibilities set forth in this document, the Leadership Council shall: A. Receive, administer and invest all gifts, bequests, trusts and trust funds. The Charge Conference delegates to the Leadership Council the power, duty and authority to receive, administer and invest bequests, trusts and trust funds made to the Church (reference paragraph 2533.5, The Book of Discipline - 2012). The Lead Pastor shall send a written acknowledgment of receipt of accepted gifts,bequests and trusts. B. Provide instructions to appropriate CUMC staff on how bequests and trust monies to the Church shall be used or invested, if the bequest or trust is not designated. If designated and accepted, then the Leadership Council shall ensure that the gift, bequest or trust is used or invested as designated. C. Add new Designated Endowment Project Funds, when, in its discretion, Leadership Council determines that an endowment gift should be accepted by CUMC. D. Accept or reject a gift, bequest or trust monies that: • Are not given for one of the Ministry Funds or a sub-Fund account or • Are not given for an Approved M&H Project, as later defined herein, if it meets the criteria for acceptance of a gift found in Article XIII of this Agreement. If the gift does not meet the criteria, it can only be accepted at a meeting of the Charge Conference. (Reference paragraphs 246, 247, 248, 2528.3 and 2533.5, The Book of Discipline—2012.). ARTICLE V. CUMC LEGACY TEAM A. The CUMC Legacy Team (hereinafter referred to as"the Team") shall be composed of a team assembled by the member of the Leadership Council assigned to the Finance Area. The team shall include the Leadership Council member,the Treasurer and others selected by the Leadership Council member. B. The Team shall be amenable to the Leadership Council of the Church. ARTICLE VI. DUTIES AND RESPONSIBILITIES OF THE CUMC LEGACY TEAM A. Using the Gift Acceptance Policy (as found in Article XIII),recommend to the Leadership Council either the acceptance or .rejection of those gifts, bequests and trust monies to CUMC that are not given for: • One of the Ministry Funds or a sub-Fund account or • An Approved M&H Project,as later defined herein. If the gift is given for one of the Ministry Funds or a sub-Fund account or for an Approved M&H Project,no review or action is required by the Team. B. Maintain a permanent written record of each and every gift, bequest and trust made, received and accepted and how the monies were distributed or used or invested and provide copies to the Lead Pastor and appropriate CUMC staff. For memorial gifts, the total amount given in memory of or in honor of the saint (and not each individual gift) shall be recorded. C. Permanently record any restrictions on gifts, bequests and trusts. D. Be responsible to promote the funds, educate the members and friends of CUMC on the uses of the funds and encourage all types of gifts and bequests to the mission and ministries of CUMC. E. Develop the program proposing additional policies and procedures as needed. The Leadership Council will be responsible for review and approval of any future policies and procedures related to this Agreement or the funds. F. Make the Leadership Council aware of undesignated gifts and undesignated income. G. Report to the Leadership Council any use of fund monies, which the Team perceives is contrary to the purpose or donor's designation. ARTICLE VII. INVESTMENT MANAGEMENT OF ASSETS A. While the Leadership Council is responsible for overall investment and management of the assets of endowment funds,the Team shall: 1. Ensure that CUMC staff follows through on Leadership Council investment decisions. 2. Make recommendations to the Leadership Council on the general management and investment of the funds. B. The principal of the funds and any undistributed income shall be invested in the manner deemed most advisable by the Leadership Council. C. The Team shall make recommendations to the Leadership Council on the need for, acquisition of and selection of, a professional to manage the investments. Leadership Council shall make the decisions and authorize execution of contracts with all professionals. D. The Team shall make recommendations to the Leadership Council on the selection of financial institutions for deposit of investments. Leadership Council shall make the selection decisions. ARTICLE VIII. INVESTMENT OBJECTIVES A. While investment strategy will largely depend upon the purpose, duration (long- term/short-term) and need for annual income, CUMC will be guided by the following general investment objectives: 1. The primary goal for most of the endowment investments is to provide long term growth so that eventually sufficient income can be generated and used for the work and the ministry of CUMC. 2. For those endowments where all or most income is distributed or used annually, the primary goal is to generate regular income at a competitive rate of return. 3. Another objective is to conserve the principal of all endowment funds for the effective maintenance of purchasing power. 4. Income and growth of principal should both keep up with inflation or better. 5. As practically possible, funds should be invested in accordance with the Social Principles of the United Methodist Church. 6. Funds should be managed, held and identified for specific purposes. ARTICLE IX. GIFTS TO THE FUNDS A. Gifts to the funds may be classified as "undesignated" and the Leadership Council shall receive, administer, invest and/or provide direction for use. B. Gifts may be classified as"designated"for one of the following: • General Endowment Project Funds listed in Appendix A. • Designated Endowment Project Funds listed in Appendix B. • Ministry Funds or Sub-Fund accounts listed in Appendix C. • An approved M&H Project,as defined herein. C. Gifts classified as "designated", but not for one of the funds or projects in Subsection B above, but which the Leadership Council determines meets the requirements of the Gift Acceptance Policy, as stated in Article XIII, may be accepted by the Leadership Council. D. Gifts of money, checks, and automatic debit arrangements will be accepted. E. Gifts of stock, life insurance, items of personal property and real property will be accepted provided that the Leadership Council determines that they meet the criteria of the Gift Acceptance Policy as stated in Article XIII. F. Prospective donors will be advised: 1. In their wills,to make bequests to "Carlisle United Methodist Church, located in Carlisle,Pennsylvania". 2. In their trusts,to make "Carlisle United Methodist Church, located in Carlisle, Pennsylvania"the beneficiary. 3. For cash gifts,to make gifts payable to"Carlisle United Methodist Church". 4. To clearly express any intention/use of the bequest in the body of the will or in a codicil. 5. To clearly express any intention/use of the trust monies in the trust agreement. 6. To clearly express any intention/use of a gift in a signed letter or agreement. ARTICLE R DISTRIBUTION OF INCOME A. Income of the Endowment Funds or trusts shall be placed into one of the Ministry Funds by the Leadership Council and staff for use as directed by the donors at the time of their gift or as directed by will,trust or other gift document. B. If the use of the income is designated for a purpose unrelated to one of the Ministry Funds, but the gift was accepted by Allison United Methodist Church, First United Methodist Church, Grace United Methodist Church or CUMC, then the income shall be used as directed by the donors at the time of their gift or as directed by will,trust or other gift document. C. Income and principal shall be recorded and tracked separately. This will enable income to build to a set amount for a specific project if so desired. It will also permit easy identification of income for withdrawal and use. ARTICLE XI. USE OF PRINCIPAL OF ENDOWMENT FUNDS A. Although the endowment funds are intended primarily as permanent funds to be held in perpetuity, principal may be used from the funds under justifiable circumstances. However, under no circumstances may principal be used which donors designated to be held in perpetuity, for a fixed number of years which have not yet been completed, or until the occurrence of a specific event which has not yet occurred. B. Before any endowment fund principal is used or encumbered, there must be compliance with the process specified in Article XII. ARTICLE XIL RECOMMENDATIONS FOR USE OF UNDESIGNATED PRINCIPAL Recommendations for use of undesignated principal from any endowment fund including a payback plan must be initiated by two-thirds (2/3) of the total membership of the Leadership Council. Any such recommendation and payback plan initiated by the Team shall be submitted to the Leadership Council for consideration. If two-thirds of the total membership of the Leadership Council agree that principal should be used from an endowment fund, their recommendation including a pay-back plan shall be submitted to an authorized and properly- called Charge Conference (reference paragraph 248,The Book of Discipline- 2012) for action. Upon becoming aware of a recommendation and pay-back plan from the Leadership Council for use of undesignated principal, the Lead Pastor shall request the District Superintendent to chair a Charge Conference to consider the recommendation. A favorable vote by two-thirds (2/3) of the members present and voting at the Charge Conference shall be required to approve such a recommendation. ARTICLE XIII. GIFT ACCEPTANCE POLICY A. Each gift shall be reviewed from the perspective of its potential benefit to the mission and ministries of CUMC. B. No gift shall be accepted when its benefit to CUMC is so remote as to be negligible. C. CUMC retains the right to refuse gifts in any form that are deemed inappropriate to its purposes. D. CUMC reserves the right to refuse a bequest or to seek other legal relief regarding a bequest if it determines that it is in the best interest of CUMC to do so. ARTICLE XIV. APPROVED M&H PROJECTS A. Leadership Council shall develop a list of current needs of CUMC for specific items of personal property or repairs or service. The list will be developed with input from the pastors, leaders,teachers and staff of the CUMC. The list will be updated regularly and the congregation informed. B. Memorial and honor gifts given for Approved M&H Projects do not require review, approval or further action by the Leadership Council for acceptance or disbursement. ARTICLE XV DISBURSEMENTS The Treasurer of CUMC shall disburse all monies from the funds. ARTICLE XVI. REPORTING Leadership Council shall be responsible, with the assistance of the Team and the Treasurer, for annual financial reporting to the congregation of CUMC regarding the funds. The Team shall also be responsible to make periodic reports to the Leadership Council. ARTICLE XVII. AUDIT OF RECORDS The Leadership Council shall make provisions for an annual audit of the financial records of the funds. (Reference paragraph 259.4c, The Book of Discipline -2012) 9 ARTICLE XVHI. CHANGES TO THIS DOCUMENT Changes to this document may be made at a duly authorized Charge Conference of the CUMC, upon prior concurrence of two-thirds (2/3) of the total membership of the Leadership Council with a prior recommendation of two-thirds (2/3) vote of total membership from the Leadership Council. A favorable vote by two-thirds (2/3)of the members present and voting at the Charge Conference shall be required to approve changes to this document. This Agreement was approved during a duly authorized Charge Conference at Carlisle United Methodist Church, Carlisle, Pennsylvania on OC to"r 2C 2013. V r Pas tor a retary, Charge onfere ce sle United a odist Church arlisle United Methodist Church Member of Leader p Council—Finance Area Presiding Elder,Charg`ew/Conference Carlisle United Methodist Church Susquehanna Conference of the UMC 10 Appendix A General Endowment Project Funds These are the General Endowment Project Funds of Carlisle United Methodist Church: • General Ministries • Children/Youth Ministries • Music • Christian Education • Outreach and Missions • Caring/Congregational Care • Facilities • Worship 11 Appendix A-1 General Endowment Project Funds Listed below are endowment funds transferred from Allison United Methodist Church, First United Methodist Church and Grace United Methodist Church to one of the of the General Endowment Project Funds of Carlisle United Methodist Church. Name of Endowment Specified Use of Income Investment Financial General Endowment Fund Advisor Institution Fund Placement United PNC Enduring Grace— General Ministries Methodist Financial General Ministries General Ministries Stewardship Services Foundation Group,Inc. United PNC Enduring Grace- Building Methodist Financial Facilities Building Stewardship Services Foundation Grou , Inc. United PNC Enduring Grace- Missions Methodist Financial Outreach&Missions Missions Stewardship Services Foundation Group, Inc. General Endowment General David Fidelity General Fund -General Wisehu t Allison Endowment Building David Fidelity Facilities Fund—Building Wisehau Allison Endowment Music David Fidelity Music Fund-Music Wisehau t Allison Endowment David Fund - Mission Mission Wisehau t Fidelity Outreach&Missions Allison Endowment Fund— Christian Education Education/Children's Education Wiisseh upt Fidelity Children's Ministries Ministries Lois Eddy McDonnell Children's Ministry Susquehanna ChildrenlYouth Ministries Legacy Team Bank Lois Eddy McDonnell Children's Ministry David Fidelity ChildrenlYouth Ministries Wisehau t Phyllis North Church Teachers Church School David Fidelity Children(Youth Ministries School Fund Programs Wisehau t 50%added to the corpus Warren and Alice Gate a Susquehanna Fund and 50%to the Current Legacy T Sus eam Bank General Ministries Operating Budget Amy Fisher Church Expenses David Fidelity General Ministries Wisehau t 12 Name of Endowment Specified Use of Income Investment Financial General Endowment Fund Advisor Institution Fund Placement Virginia Sharp Masland General Purposes David Fidelity General Ministries Memorial Fund Wisehau t Regeneration Worship David Fidelity Worship Wisehau t General Endowment General Ministries David Fidelity General Ministries Wisehau t Sarah Vale Rush General Legacy Team Susquehanna General Ministries Bank Reynold Building David Fidelity Facilities Wisehau t Maude Donor General David Fidelity General Ministries Wisehau t Mary J. Hockman General General Ministries Legacy Team Susquehanna Bank 13 Appendix B Designated Endowment Project Funds Listed below are the Designated Endowment Project Funds of Carlisle United Methodist Church. To the extent that these funds have specific instructions on investment and use, they are contained in Appendices B-1 through B-23. Name of Endowment Fund Specified Use of Income Investment Financial Advisor Institution B-1 Dr. Gerald D. Kauffman Ministerial Scholarships United PNC Bank Ministerial Scholarship Methodist Fund Stewardship Foundation B-1 Dr. Gerald D. Kauffman Ministerial Scholarships Todd Raymond James Ministerial Scholarship Fogelsanger Fund Vuillemier Music Fund Choir/Organ David Fidelity Wisehau pt B-2 Braund Memorial Music Music and Choir David Fidelity Fund Wisehaupt B-2 Virginia Sharp Masland Music David Fidelity Music Fund Wisehaupt Ann E. Olmstead Fund Pastor Discretionary Legacy Susquehanna Team Bank B-2 Mary Alice Lippert Big Spring, Carlisle, Scholarship Fund Boiling Spring HS. Religious studies, David Fidelity education, health service, Wisehaupt social work. Undergrad only. B-2 Mary E. K. Peters Scholarship David Fidelity Scholarship Fund Wisehau pt B-3 Connie Gruber Scholarship Ministry, music,religious Fund studies,mission studies, David Fidelity teaching. Notify donor Wisehaupt relative B-3 Robert Harding Scholarship PA resident. Fund Psychology,health care, David Fidelity social service,ministry Wisehaupt B-3 King-Crowding Scholarship Pursuing Christian David Fidelity Fund vocation Wisehaupt 14 Appendix B-1 Gerald D. Kauffman Ministerial Scholarship Fund Rev. 913012010 Rev. 812612013 HISTORY The Gerald D. Kauffman Ministerial Scholarship Fund was established in the 1980's and was administered by Rev, Dr. Gerald D. Kauffman in the early years. Because Dr. Kauffman was planning to retire; a document was prepared spelling out the name of the Fund, its purpose and how it was to be administered. This document was prepared by Attorney Dale F. Shughart, Jr. on behalf of Dr. Kauffman and approved by Grace United Methodist Church on April 16, 1989. In 2000, monies from the Anna Group Scholarship Fund were added to the Gerald D. Kauffman Fund. Viola Wagner bequeathed a major gift to the Fund that substantially increased the corpus of the Fund. From 1989 — 2009, income from the Fund has been used to grant scholarships to the following persons: Gerald Day, Chris Renner, Eric Snyder, Robert Marsh, and Linda Mayfair. Income from the Fund has also been deposited with the Student Aid Fund of Central Pennsylvania Conference to provide scholarships to students preparing for Ordained Ministry in this Conference. NAME The Fund shall be known as the"Gerald D.Kauffman Ministerial Scholarship Fund". PURPOSE The purpose of the Fund is to grant scholarships to any member in good standing of Carlisle United Methodist Church, of Carlisle, Pennsylvania, who is a "Declared Candidate" for ministry in the United Methodist Church or its successor. ADMINISTRATION OF THE FUND The Leadership Council has given the CUMC Legacy Tem of Carlisle United Methodist Church the responsibility for administering the Gerald D. Kauffman Ministerial Fund and giving an annual report to the Leadership Council and the congregation. The Fund shall be placed in the "Designated Endowment Projects Fund," the endowment fund of Carlisle United Methodist Church. The Legacy Team may recommend investment of or reinvestment of the funds in such investment vehicles as is customarily utilized by fiduciary investors. All income earned, and dispositions made, from the Fund shall be accounted for and reported to the Leadership Council of the Church on an annual basis. The Fund shall be considered perpetual and all contributions to the Fund shall be administered in accordance with the terms of this document. The amount of scholarship money to be awarded in any given year shall be an amount equal to 75% of the income earned on the corpus of the Fund for the previous year. An amount equal to 25%of the income earned on the corpus of the Fund the previous year shall generally remain with and become part of the corpus of the Fund and be invested therewith in order to insure reasonable growth, but the Legacy Team shall have the discretion to reinvest less than 25% of the income when there are multiple applications for scholarships and/or the need for financial assistance is great. 15 If the earned income in any year is less than 5% of the corpus and a qualified application(s) for scholarship(s) is submitted that exceeds the amount of the earned income, the Legacy Team shall have the discretion to take from the corpus an amount up to 5% of the corpus less the earned income received to pay the scholarship(s). APPLICATION PROCESS Declared ministerial candidates from Carlisle United Methodist Church may apply for scholarships from the Fund by presenting a written request to the Legacy Team. The application shall include the steps he or'she has taken to date and intends to take in the future to become a minister in the United Methodist Church. If the candidate has received a scholarship in the previous year, the application shall include a report on how the prior year's scholarship was used by the applicant. GUIDELINES FOR GRANTING SCHOLARSHIPS When more than one application is made for a scholarship in any year, the Legacy Team shall have the discretion to determine each scholarship amount. The Team shall consider the amount of scholarship money available, the total number of applications, the amounts requested, and the total costs of the applicants' educational expenses for that year and attempt to award scholarships based on the need of each applicant. In any year when there is no applicant for the scholarship,or the amount requested is less than the total scholarship amount, the scholarship amount, or portion thereof, for that year may be paid to the Student Aid Fund of Central Pennsylvania Conference of the United Methodist Church or its successor to be used to provide scholarships on the condition that the scholarship be paid during the ensuing year to one or more candidates for ministry in the United Methodist Church for use by the recipient to pursue his .or her education. In its discretion, the Legacy Team may hold the scholarship amount, or portion thereof, for a period of up to three years, if the Team is aware of a future significant need for financial assistance. In the event the annual scholarship becomes a sum of money sufficient to cover substantially all of the educational expenses of the applicant, the Legacy Team will have authority to change the provisions under which the scholarship is awarded in a manner consistent with the purposes for the establishment of the Fund and the best interests of both the congregation and the applicant. 16 Appendix B-2 Braund Memorial Music Fund Income from this Fund shall be used for the support of music and the choir in the Church and if the Church has no such fund then this bequest shall, create such a fund and my daughter, Linda shall have input as to the use of the income and/or principal fund. Virginia Sharp Masland Music Fund Income from this Fund shall be used for the purchase of music for the choir, the hiring of soloists, the purchase of choir robes and similar choir expenses and not for the organ or other similar fund. Mary Alice Lippert Scholarship Fund The purpose of the Fund is to provide financial aid to a student(s) attending Big Spring High School, Carlisle High School and/or Boiling Spring High School. Preference will be given to those who will be majoring in: 1. Religious studies 2. Education 3. Health Service 4. Social Work The student must be an undergraduate.No graduate student will be considered. There is no stipulation as to what type of higher education the student will be attending-2 yr.,4 yr.,technical. etc. Need will not be a determining factor. Mary E. K. Peters Scholarship Fund The purpose of the Fund is to award funds for educational assistance to members of the church attending or planning to attend a college or university. Preference shall be given to members who are attending or planning to attend private college or universities. However, funds may be disbursed to members attending public institution if there is no application for private school. Funds may in any given year be split between one or more person or may not be awarded at all should the scholarship committee decide not to do so for any reason. 17 r Appendix B-3 Connie Gruber Scholarship Fund The purpose of the Fund is to provide financial aid to any Carlisle resident, who is pursuing studies in an institution of higher education in any of the following areas of study: 1. Ministry, including seminary studies 2. Music 3. Religious 4. Mission studies 5. Teacher education Mrs. Heidi Hunted shall be notified of scholarships awarded: Mrs. Heidi Hunted 1401 Orchlee Stree Pittsburgh Robert Harding Scholarship Fund The purpose of the Fund is to provide financial aid to any resident of Pennsylvania who is pursuing studies in any of the following areas: 1. Psychology 2. Health care field 3. Social Service 4. Ministry King/Crowding Scholarship Fund 1. The amount of aid will be limited to the interest earned by the invested funds. 2. The scholarship will be available to any member of the church who was pursuing studies in preparation for entering a Christian vocation. 3. The scholarship will be a grant and not a student loan. 4. Application for the scholarship would be made to the church scholarship committee, which will be charged with the responsibility of administering the fund. 5. Preference would be given first to students enrolled in an accredited school of theology, second to upper class student in an accredited college or university, and third to fast and second year student in an accredited college or university. 18 s Appendix C Ministry Funds These are the Ministry Funds of Carlisle United Methodist Church: 1. General Ministries 2. Children/Youth Ministries o God's Little Ones Preschool • Little Angels Day Care • Church Camp Scholarships • Upward Program • Karen Layman Vision Fund 3. Music 4. Christian Education 5. Outreach and Missions o CARES • Samaritan Fellowship • Salvation Army o In His Service • Project Share • Missionary • Haiti Partnership o Sierra Leone Initiative o Emergency Assistance Fund(Pastor's Discretionary) o UMCOR Disaster ReliefNolunteers in Mission(VIM) o Mission Central o Safe Harbour • Fruitbelt Farmworkers • Y Mentoring 6. Caring/Congregational Care • Lydia Fund(Food and Drink following Funerals) • LAMA Health Fund 7. Facilities 8. Worship 19 r Appendix D Trusts These are the sources of trust income for Carlisle United Methodist Church: Name of Specified Use of Ministry Financial Trust Trust Funds Fund Annual Share Trustee Institution Placement 5%of Year Such purpose as End Market Albert Watson the church deems General Value with 1/3 BNY Mellon BNY appropriate Ministries of income to Mellon GUMC and its successors 5%of Year End Market Such purpose as Value Naomi the church deems General with to BNY Mellon BNY Watson appropriate Ministries of income t Mellon GUMC and its successors 5%of Year Wilmington Charles S. Fry Such purpose as End Market Trust &Helen B. Value with Fry Memorial the church deems General Investment M&T Bank 50%of Income Trust appropriate Ministries to GUMC and Advisors, Inc. its successors 5%of Year Wilmington Such purpose as End Market Trust Leslie M. Value with Karper TUW the church deems General Investment M&T Bank 50%of Income appropriate Ministries to GUMC and Advisors, Inc. its successors Dorothy M. Scholarships for BNY Hill Memorial Nursing or As Income BNY Mellon Mellon College Specified Wilmington Scholarships for Trust Dorothy M. Nursing or As Income Investment M&T Bank Hill Memorial College Specified Advisors, Inc. 20 b• Care of grave of Thomas Lindsay Wilmington at Green Village Trust Mary J. Cemetery, As Income Only Investment 7M&TBank Gilmore Trust Balance for Specified Advisors, general grounds Inc care of entire cemetery Flowers at Wilmington Westminster Trust Mausoleum, Income Only nvestment M&T Bank Gilmore Trust balance for Specified y Advisors, general church Inc. use Wilmington 3% of residual Trust Luther C. Hall General Use General value of the Investment M&T Bank Trust Ministries trust Advisors, Inc. 21 Appendix E Restricted Gifts These are the Restricted Gifts: Name of Donor Specific Use of Gift Control Ministry Fund Agreement Placement Dr. Ray R. and Thelma Preschool Program for Restricted Fund God's Little M. McCullough Children Ages 4 and 5 Agreement Ones Preschool 22 7• COMMONWEALTH OF PENNSYLVANIA KATHLEEN G. KANE OFFICE OF ATTORNEY GENERAL ATTORNEY GENERAL December 16, 2013 Charitable Trusts and Organizations Section 14`h Floor, Strawberry Square Harrisburg, PA 17120 Telephone: (717) 705-1611 Facsimile: 717-787-1190 hvance_rittman @attomeygeneral.gov Seth T. Mosebey, Esquire MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 Re: Carlisle United Methodist Church; Cumberland County. Dear Mr. Mosebey: This will acknowledge receipt of your notice pursuant to Supreme Court Orphans' Court Rule 5.5 regarding the above-captioned matter. Based upon the submitted information, I have no objection to the Prayer for Relief, provided that the restricted assets listed on the March 10, 2013 spreadsheet and any other restricted gift shall be used in conformity with the terms of its granting instrument and shall not be diverted to any other purpose without further notice. Please forward a copy of the filed petition as soon as it is available. Please be advised that the above review was conducted pursuant to the parens patriae role of the office and has no bearing on any matter unrelated to that function. Thank you for your time and attention to this matter. Sincerely, Heather J. Vance-Rittman Senior Deputy Attorney General VERIFICATION I, James E. VanZandt, of Carlisle United Methodist Church, hereby verify that I am authorized to sign this Verification and have reviewed the foregoing Petition for Court Approval of the Merger,Transfer, and Charitable Use of Nonprofit Corporation Assets and to the extent that the foregoing document contains facts supplied by or known to me,they are true and correct to the best of my knowledge, information and belief. I understand that false statements made herein are subject to the penalties of 18 Pa.C.S.A. §4904, relating to unsworn falsification to authorities. CARLISLE UNITED METHODIST CHURCH By: 5, v'^Z J es E. VanZandt CERTIFICATE OF SERVICE I,Mary M.Price,an authorized agent for Martson Deardorff Williams Otto Gilroy&Faller, hereby certify that a copy of the foregoing Petition for Court Approval of the Merger,Transfer,and Charitable Use of Nonprofit Corporation Assets was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Heather Vance-Rittman, Esquire Commonwealth of Pennsylvania Office of Attorney General Charitable Trusts and Organizations Section Strawberry Square - 14`h Floor Harrisburg, PA 17120 MARTSON LAW OFFICES By o..f.� NPrice Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: j11111144