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Memorandum
Leasing
of Parish Property
Nursery
Schools
Outside
Organizations
TO:
All Rectors, Wardens, Vestrymen, Vicars and Missions
FROM: John Wood Goldsack, Esq., Chancellor, Diocese of New Jersey
DATE: October 5, 2007
The Standing Committee for the Diocese of New Jersey has asked that I
communicate with each of you regarding the leasing of your parish property
for use by Nursery Schools and all other outside organizations.
New Jersey Statutes, Title 16:12-4 specifically provides:
Sale, conveyance, mortgage or lease of real estate; consent of bishop and standing committee.
No sale, conveyance or mortgage of any real estate other than burial lots in churchyards or cemeteries, and no lease for a longer term than one year shall be made by such corporation without the previous consent of the bishop and a majority of the standing committee of the diocese within which the corporation is located, or in case of a vacancy in the office of bishop, or of his absence from the diocese, then of a majority of the standing committee. Such consent shall be acknowledged or proved and recorded with the deed, lease, mortgage or instrument of conveyance. Without such consent the sale, conveyance, mortgage or lease shall be void.
If a Parish/Mission determines that it wants to lease a portion of its property or facilities to an outside group for a period of more than one (1) year, it must:
a. First forward a copy of the proposed lease to the Diocese to request the consent of the Bishop and Standing Committee.
b. The Parish/Mission must also provide a statement indicating how the Church will benefit from any such proposed lease.
Nursery School
leases commonly exist throughout the Diocese. If such lease is for
a period of one (1) year or less, such lease does not require the
consent of the Bishop and Standing Committee but where such lease
is for longer than one (1) year, consent must be obtained for the
lease to be valid.
Parishes and Missions should be careful to determine whether the entity
leasing space from the Church is a qualified not-for-profit organization.
If the leasee is a profit making entity, the Parish may be subject
to losing its property tax exemption. Numerous communities have required
religious institutions to provide proof that all groups using the
church facilities are not-for-profit.
Finally, every Parish or Mission leasing out facilities must make
certain that their leasee carries all necessary insurance. The Church
should check with its own insurance carrier to make certain what insurance
outside groups must furnish.
Should you have any questions, please contact me directly at 908 756-7806.