I have heard two conflicting statements about the intended use of the proceeds from the sale of the headquarters complex if and when it occurs. One person told me that all the money will be sent to the local churches and put into local church buildings. Another person told me that none of the money will be used for the local churches. Instead, he said, all the money will be spent on headquarters projects. Which of these rumors is true?
Neither of these rumors is true. Let me clearly explain the reasons for the sale of the property and the uses to which the money will be put.
As I have stated in various financial reports, including the Update from the Treasurer for this month (above), the employee numbers at headquarters have been dramatically cut over recent years.
At one time, when the college was located in Pasadena, there were many times more full-time employees at headquarters than there are now, and of course there were up to about 750 students.
Now, with only a small fraction of the employees in Pasadena as there used to be, and with no students at all, the campus is drastically underutilized. Not only is it underutilized, but upkeep on the campus is disproportionately large compared to the employee numbers since even empty buildings need repairs, and of course the grounds must be kept up.
Since the property is underutilized, and upkeep is a drain on our resources, it makes sense to sell the property and use the money in a way that will benefit the entire church.
When it comes to deciding how to use the proceeds of the sale, Mr. Tkach and the church Board have a duty to use the money in a careful and financially prudent manner. This means the money cannot be used in a manner that selfishly benefits any particular person or group of people in a way not fiscally wise.
Nor can the money be used for some purpose desired by a particular person or group who think they know what should be done but who are not really privy to the needs of the church and are not authorized by law to make these kinds of decisions on behalf of the church.
Instead, Mr. Tkach and the Board must carefully consider the needs of the church as a whole and then, after wise counsel, apportion the monies in a way that complies with sound financial management principles.
After such past and continuing study, counsel and contemplation, the church leadership intends to use the funds for the following purposes, among others:
First, the church intends to fund a retirement plan for faithful full-time ministers and employees who meet the criteria of age, years of service, loyalty, membership status and other requirements not delineated here.
(It is unfortunate but true that Mr. Armstrong never began such a pension program, and that Mr. Tkach Sr. wanted to fund a retirement plan but did not have the necessary funds.
(Mr. Tkach Jr. recognizes that the most prudent way to begin such a program would be to apportion some funds from the property sale for this purpose. In addition, since more than 100 people, mostly former employees, receive a type of assistance in lieu of a pension from the daily income of the church, funding of such a plan will alleviate a financial burden from the church's treasury).
Other uses of the sale proceeds will include (not in any particular order): to assist in the building of church buildings when and where warranted considering congregation size, location and other factors; prudent, professionally directed investments with interest to be used for pastoral support and development of local congregations; purchase or building of a new, much smaller headquarters property; prudent, professionally directed investments with interest to be used to preach the gospel by electronic media or print media; and a possible endowment or other assistance to Ambassador University.
Please bear in mind that the precise use of the funds and the proportion of such use for each of the above stated purposes will depend quite a bit on the final purchase price of the property.
What has been said here gives the general principles only and is not set in stone. In any case, none of the money will accrue to the benefit of any private person, be they a church employee, a church official, a church member or otherwise.
And, every single penny of the funds will be properly and legally accounted for using generally accepted accounting principles and methods, and will appear in the church's yearly financial statements.
Sept. 17, 1996, Worldwide News, page 7
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