The KH I grew up in (and left) was sold a few years ago for a newer, bigger, more elaborate cathedral -- er, hall to be built. The old KH was sold to a man who turned it into cigarette and liquor store. When I drive by I get a chuckle thinking about all those sermons against tobacco and the elders sell out to a smoke shop. All that preaching went up in smoke I suppose.
Kingdom Hall For Sale
by hubert 19 Replies latest watchtower bible
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Scully
A lot of the older KHs which were owned free and clear by the Congregation(s) have given in to the pressure to sell and rebuild, using the WTS's KH building fund.
The Congregation would have to sell the property and raise enough money to cover at least 50% of the projected amount of the new building. Of course, the WTS charges a nominal interest rate for loans from the KH building fund - which, as you all know, is funded by Donations? from Publishers?. The practice seems a little hypocritical to me, considering that the Hebrew Scriptures/ Mosaic Law condemned the practice of charging interest on loans, and I would think that it could be considered highly unethical to charge people interest for using money that they donated for their own use and benefit. Why ignore that part of "The Law", when they enforce almost every other facet of it (blood, rape, cutting people off/DFing)?? Oh yeah, money (and possibly property) comes into the WTS... how silly of me!
Love, Scully
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blondie
Scully, I think the WTS has stopped charging even nominal interest because of the attention/trouble it might attract.
Most KHs are sold to raise funds to build another. The WTS is discouraging the use of the KH building funds in countries like the US (not forbidding or cutting out altogether but discouraging). Any profit is usually eaten up with the cost of the new one which is substantially higher than old one.
The profit from the sale is not considered "unrelated business income" by the IRS.
The Code contains a number of modifications, exclusions, and exceptions to unrelated business income. For example, dividends, interest, certain other investment income, royalties, certain rental income, certain income from research activities, and gains or losses from the disposition of property are excluded when computing unrelated business income. I
http://www.irs.gov/charities/article/0,,id=96104,00.html
Blondie
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Scully
Scully, I think the WTS has stopped charging even nominal interest because of the attention/trouble it might attract.
Even that is an interesting switch, Blondie. Does that mean that they refunded any interest they received from this arrangement from the 80s and 90s?? Does it mean that congregations who are currently repaying a loan to the WTS that carried interest initially, have had their loans converted to interest free loans?? Or will the WTS continue to benefit from the "previous" arrangement for the lifetime of the loans?
Besides, with mortgage rates being so low right now, a lot of congregations were probably getting a better deal from banks... maybe that's why the WTS really made the switch... to get the Brothers? to keep relying on the Fund rather than seeking out a better deal from the World?.
Love, Scully
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blondie
I doubt they would refund any past interest. All I know is about new loans. I can check discreetly about old loans. The WTS has been encouraging some congregations to go to financial institutions (at least in this area). It seems to indicate that they are either low on funds, directing more of those funds to poorer countries, discouraging unnecessary remodels or unnecessarily expensive ones, it is hard to say without working in the accounting area of Bethel.
All I know is when I brought up interest paid on WTS loans recently, the brother who pays the bills at this one congo said they no longer pay interest on WTS loans. I don't see him often, so I'll try and remember about old loans.
Blondie
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hubert
My theory is; The congregation may have been offered a "free" home or land in which to build on, from a will donation, so they would make a huge profit on the sale of the old Kingdomm Hall, and get a new one for practically nill.
I do know an ex-j.w. that, a few years ago, was "asked" to donate some of his land to build a Hall on, so that's why I have this theory. (He didn't). ..... Hubert.
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Farkel
blondie,
: All I know is when I brought up interest paid on WTS loans recently, the brother who pays the bills at this one congo said they no longer pay interest on WTS loans.
Either that, or it is a very, very low rate of interest. In all fairness, the WTS KH loans were always lower in interest than loans offered by financial institutions. Of course, in reality they were just loaning back money dubs gave to them in the first place!
Farkel -
observador
Hubert, you have a PM. Thanks.
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DebraDoll
The KH in our town was too small for the growing congregation (YIKES!), so they sold it to the town. It is now the Justice Court! Imagine the horrors compounded on the people sitting, awaiting trials, sweating already, surrounded by the worst 1970's neon and avocado greens, oranges, and browns, accented with floor to ceiling, hand painted (and beyond POORLY so) murals of "The new system?" Damn, I for one would plead "GUILTY!" just to end my misery there!
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blondie
If the sold property makes a profit does the society pay taxes on this?
Cybersista, if you were to sell your house and make a profit, you would not play taxes if you turned around and bought another property with that money. It works the same way with a nonprofit organization.
Blondie