by VM44 6 Replies latest watchtower scandals
I have read here that the Kingdom Halls usually have a mortgage held by The Watchtower (or by some elders?), and that when the congregation finally pays it off, the KH ownership is transferred to The Watchtower.
Can anyone here confirm that is what happens?
I have no idea how it works in other countries but in the US the congregation that holds the territory that the building sits on, forms a non-profit corporation with 3 elders from that congregation acting as trustees. Neither they or anyone in that congregation "own" the building or property.
When the mortgage is paid, those three elders handle any legal or tax requirements in the US for 503C nonprofit organizations. If that congregation is dissolved, then the land and property go to the parent non-profit corporation, the WTS.
Charitable and non-profit organizations are provided special status in the Internal Revenue Code. Section 501(c)(3) is the section of the Code that explains the more than 25 different types of organizations that qualify for tax exempt status. Many times Section 501(c)(3) is referred to as Section 503(c). 503(c) is actually a section of the Internal Revenue Code that explains the future status of organizations that applied for 501(c)(3) designation and were denied the tax exemption. For purposes of this article, 503(c) and 501(c)(3) will be used interchangeably.
There are 26 different types of non-profit organizations that qualify for federal tax relief. The most common types of non-profits seeking 501(c)(3) status include:
Organizations, such as those listed above, who qualify for this special status obtain important benefits. Those benefits include:
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every corporation associated with the group would have to be dissolved, otherwise the assets, transfer to another corporation in the group. The WTS is governed by the laws for non-profit corporations set up by the IRS in the US. Even if all were dissolved, the law does not allow the assets to be "owned" by an individual or group of individuals.
http://www.ehow.com/video_4981813_what-nonprofit-corporation.html
Summary: Nonprofit corporations are businesses that don't allow ownership and do not have an appreciation of stock or dividend distribution. Discover the differences between a for profit corporation and nonprofit corporation with insight from a lawyer in this free video on business law.
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http://www.jehovahs-witness.net/jw/friends/191711/1/Who-owns-the-Kingdom-Halls
In the US congregations are set up as non-profit corporations with 3 elders from the congregation that has the property in their territory. The elders are only trustees and do not own anything nor does the congregation. If any of these elders are removed or step down, die, or move outside this congregation, another trustee is appointed by the BOE. If this corporation is dissolved (if the congregation is dissolvedl), the property reverts to the parent non-profit corporation, the WTS, which also functions the same way with trustees with ownership not being held by them or the trustees. I can say that I have seen these trustees disregard the "requests" of COs and DOs to sell property.
Thanks blondie.
I gather that The Watchtower would not want the KH property to revert to them unless the mortgage had already been paid off!
Aren't wts the lenders in the first place? I thought local congs borrowed the money from wts and paid low interest on it to the wts.
What, charging their own brothers interest, did I hear you say? What a wordly thing to do, hopefully that doesn't happen in paradise.
The Org will stop charging interest on KH Building Fund loans effective Sep 1, 2008. Current loan payment amounts will remain the same so the loans can be paid off sooner.
Congregations should continue to donate to the KH Building Fund, and publishers can donate directly to the fund by sending donations directly to the Branch. Congregations are encouraged to forward surplus congregation and operating funds to the Branch until the time those funds are needed by the congregation (this was actually read to the congregation...talk about full disclosure).
This is for all Branches and congregations, not just the U.S.
http://www.jehovahs-witness.net/jw/friends/160688/1/WTS-Will-Stop-Charging-Interest-on-Loans
Hi Under and Stevec,
Under: You are mistaken on some points.
First, the money loaned is currently at 3%, which is about the rate of inflation. Therefore, the Society breaks even on the loan program. $200,000 loaned at 3% for 20 years (240 months) will repay approx. $266,000. I worked on these loans and typically they are not for more than 15-years to 20-years. For a time, the Society raised the loan rate as high as 6% when inflation was higher ... and if these loans are not yet retired, they will make some money. Jehovah's Witness Elders are aware of this, and have reported the fact to the congregation (at least we did in our congregation). Most JWs believe in the religion, and do not mind the Society getting extra money in this way. I have also seen the Society reduce the loan rate on existing loans. In such cases, they have offered the congregation the opportunity to continue the existing payment, and pay down the loan faster, or reduce payments if they feel that it is needed.
Secondly, the local congregation owns the Kingdom Hall with all rights, responsibilities, benefits, and control. About 20-years ago, after the Society lost the lawsuit in the Bonham, Texas case, they decided to be put on the deed ONLY in the event that the local congregation went into demise ... then, and only then would the property revert back to the Watchtower Society. Demise was defined if a majority of the congregation became appostate and attempted to take control of the Kingdom Hall, or if the congregation dwindled such that they were no longer viable. Most mainline Protestant churches operate this way, except for the apostate issue.
So, if a congregation builds a new hall for $200,000 in materials and free labor, the Watchtower Society will not benefit. If the congregation decides to sell the Kingdom Hall, they will then use the proceeds to buy land and materials necessary to build a new facility. Because of the gain in value, they often do not need to borrow, or it they do, their loans are much smaller. Usually this is a trade off. Where excess proceeds result from a sale of a Hall, the congregation is free to save the money for future maintenance, repairs, and expansion, and/or donate some to the Watchtower Society.
Third, the Society went into the quick-build program many years ago to meet a demand of a lot of growth. Later on this was expanded to include upgrading older Kingdom Halls. Some of the loan money does NOT come from the Society, but from a private arragement set up many decades ago in a trust account for King Hall contruction. The Society merely manages the fund and must return all proceeds to it. However, the fund did not keep up with growth, and the Society also set up its own loan funding. Since I have left, I lost tracl of the ratio of the private fund to the Society fund.
Currently, their growth has greatly slowed in the United States. Any quick-builds now are likely due to expansion into a better building with better parking, or the congregation is responding to a re-zoning issue, and using the opportunity to build a better facility.
I do not like the Watchtower Society, and left the religion years ago. I do believe that they have a lot of funds tucked away in various bank accounts, including foreign safe-havens. I have a record of some of these accounts and the account numbers. I also hold a list of about 100 of their corporations. But, we need to be realistic and honest about how we represent the claims we make against them. There is such a thing a liable, and the Witchtower has shown itself quite willing to sue ex-JWs.
I find it disgusting that the WTS even had the balls to charge interest on loans at all, considering that the people who are borrowing the money are the very same ones who donated it to them in the first place.
