2016 Wesleyan Discipline:B. United Stewardship Fund Basis

b. Basis

2005. The USF-General Fund and the USF-Educational Institutions Fund shall be determined annually by a percentage (2016 Wesleyan Discipline:2005:2) of the base income of all churches for the previous fiscal year which shall be computed in the following manner (cf. 2016 Wesleyan Discipline:2005:3):

(1) Base Income. The base income shall be the total income of a local church and all of its departments for the previous fiscal year less money received:

(a) From loans (borrowed money).

(b) From the sale, rental or lease of property.

(c) From grants from other entities including the general church, districts, governments, corporations, and other non-profits.

(d) From a bequest through a will, trusts, and estates.

(e) From day care centers, day schools, retirement homes, nursing homes, and such enterprises (cf. 2016 Wesleyan Discipline:782:35).

(f) From investment earnings.

(g) From designated funds for major building projects that have been approved by the district board of administration (2016 Wesleyan Discipline:2005:3b).

(h) From money raised for district or denominationally approved church plants and sent through the district or the Church Multiplication and Discipleship Division.

(i) From money raised for urban missional churches

(j) Additionally, funds that were received from assessable contributions that were dispersed to the following will be exempt from the base income:

For offerings and approved projects of or event registrations operated by:

The Communications and Administration Division

The Church Multiplication and Discipleship Division

The Education and Clergy Development Division

The Office of the General Superintendent

The Office of the General Treasurer/Chief Financial Officer

The Global Partners Division

For contributions to Hephzibah Ministries.

For contributions to Wesleyan Native Ministries

For contributions to World Hope International

For contributions to World Hope Canada

(2) Percentage. The percentage for determining the USF-General Fund and a separate percentage for determining the USF-Educational Institutions Fund, shall be fixed by the General Conference (2016 Wesleyan Discipline:1590:8). The percentage in each case shall be applied to the assessable income as defined in 2016 Wesleyan Discipline:2005:1 except as provided for in 2016 Wesleyan Discipline:2005:3. In the event of an emergency during the interim of General Conference sessions, the General Board may alter the percentage of the USF-General Fund by a two-thirds majority vote of all its members (2016 Wesleyan Discipline:1655:22).

(3) Exceptions and Adjustments

(a) Assessment Limits and Maximum. All churches shall be subject to full assessment on all assessable income up to $500,000. Above that level, there shall be a graduated reduction in the percentage applied. For that portion of a church’s assessable income between $500,000 and $1,000,000, there shall be a reduction of one in the total percentage divided proportionately between the USF-General Fund and the USF-Educational Institutions Fund. For that portion between $1,000,000 and $2,000,000, there shall be a reduction of two in the total percentage divided proportionately between the two funds. For that portion that exceeds $2,000,000, there shall be no assessments. The percentage in each case shall be applied to the same base income as defined in 2016 Wesleyan Discipline:2005:1 subject to the exceptions and adjustments set forth in 2016 Wesleyan Discipline:2005:3b-f.

(b) Building Project Adjustment. Whenever a local church engages in a major building project (2016 Wesleyan Discipline:1345:2) and fund drive which has been granted district board of administration approval, the involved local church’s base income figure shall be reduced by the amount of designated funds received for the approved project.

(c) Mother Church Exception. For the first year following the planting of a daughter church, the mother church shall pay the USF assessments based upon the base income (cf. 2016 Wesleyan Discipline:2005:1) received in the mother church during that first year.

(d) New Church Plant Adjustment. Whenever a district plants a new church, the USF obligation for that church shall be phased in over the first five years of its operation in the following manner: For the first year of operation, there will be no obligation; for the second year the assessment will be set at 25 percent of the regular assessment; for the third year at 50 percent; for the fourth year at 75 percent; and for the fifth year at 100 percent.

(e) Developing Church Adjustment. Whenever a developing church is deemed to be under financial duress by the district board of administration, that board may subtract up to $40,000 from the USF base income used to calculate the USF obligation.

(f) Restart Project. When a district declares a church to be a restart project (2016 Wesleyan Discipline:510:6d), the USF obligation shall be phased in over the first five years of its operation in the following manner: For the first year of operation, there will be no obligation; for the second year the assessment will be set at 25 percent of the regular assessment; for the third year at 50 percent; for the fourth year at 75 percent; and for the fifth year at 100 percent.

(g) Urban Missional Church Exception. Whenever a local church is designated as an urban missional church, the USF obligation for that church shall be set at 50 percent of the regular assessment (2016 Wesleyan Discipline:523).