The Council of the Presbytery of Hudson River Asks the Presbytery to Concur with This

The Council of the Presbytery of Hudson River asks the presbytery to concur with this overture from the Presbytery of New York City:

OnCreating aSpecialCommitteeto AssureCompliancewithDonorRestrictionsontheAdministrationoftheJarvieCommonwealService

TheGeneralAssemblyexpressesconcernthattherecentrestructuringoftheJarvieServiceraisesecclesialissues; andrecognizingits responsibilityandduty to overseetheworkofitsbodies,andto ensurethatthosebodies honorexpress promisesmade to donors,and topromoteopennessand accountabilityinthePresbyterian Church(U.S.A.):

The223ndGeneralAssembly(2018)directsthemoderatororco-moderatorstoappointwithin60days fromthe closeofthe223rdGeneralAssembly:

1.Aspecialcommitteetoconductanadministrativereview,whichshallhavethepowerandresponsibilitytoinvestigatethe recentchangestothegovernanceandaccountingtreatmentoftheJarvieCommonwealService(“JarvieService”)andcompliancethereofwiththetermsofthe1934TrustAgreementandtheGeneralAssembly’s instructionstoitsconstituentbodies,andtotakewhatactionitfindsnecessary to assurethattheJarvieServicethenceforthcontinuestobeincompliancewiththeTrustAgreementandthoseinstructions,includingthepowertospeakwithappropriatewitnessesandobtainrelevantdocumentsunderthecontrolof anyPresbyterianChurch (U.S.A.)body oragency;andincluding the authority toobtainstaff support(as fundedbelow)through the Office oftheGeneralAssembly;

2.Thespecialcommittee shallcomplete thefirstphaseofitsworkand prepare aninterimreport andsetofrecommendationsnolaterthanoneyearfrom itsdateofappointment,bearinginmindtheneedsoftheJarvieServicerecipients,whichshallbepresentedtotheStatedClerkoftheGeneralAssembly; andafinalreport thatshallbemadetothe224thGeneralAssembly(2020);and

3.Theexpenses incurredby thespecialcommittee shallbebudgetedandadvancedbytheBoardofNationalMissions(“BNM”)oritsfiduciary,thePresbyterianChurch(U.S.A.)Foundation(“Foundation”)outoftheJarvieendowmentortheearningsthereon,asadministrativeexpensesincurredundertheTrustAgreement.

Rationale

1.ThenewFormofGovernmentinG-4.0101requiresthatacorporationformedbytheGeneralAssemblytoholdproperty(suchasmoney),shall“receive,hold,encumber,manage,andtransferproperty, realorpersonal,forandatthedirectionofthecouncil”[i.e.,theGeneralAssembly].

2.TheGeneralAssemblyhasplacedexpressrestrictionsonthemanagementof“property”byitssubordinateentities,whichincludetheFoundationandtheBNM,whicharedesignedtopreservethispropertyandensurethatthenationalPresbyterianChurch(U.S.A.)honorstheexpresstermsofanygiftaccepted bytheFoundation oritsconstituentcorporations,includingtheexpresstermsoftheTrustAgreementsignedbyBNMin1934whenitacceptedtheJarvieendowment.

3.The198thGeneralAssemblyincludedsuchrestrictionsinthe“DELIVERANCEIMPLEMENTINGADESIGNFORTHECORPORATIONSTRUCTUREOFCERTAINAGENCIESOFTHEGENERALASSEMBLY” issued in 1986, whichstatesinSection 3(d)(3)that“in everycasewhereadonorhasspecifiedthepurposesforwhichprincipalorincomemaybeexpended,refrainfrommakinganyexpenditureinconsistentwiththetermsofthegift."

4.TheJarvieServiceisanoldageandreliefserviceforpeopleintheGreaterNewYorkCityarea(definedbya50mileradiusofColumbusCircle,Manhattan)thatwascreatedandoperatedby Mr.JamesN.Jarvieinthe 1920’s andsubsequentlytransferred bytheJarvieFundtoBNMwithasignificantself-sustainingendowmentpursuanttoa1934TrustAgreement.

5.The1934TrustAgreementrequiredtheBNMtocreate,continueandsupporttheJarvieCommonwealServiceCommittee(“JCSC”)withtheresponsibilityofconductingtheJarvieService.ItrequiredtheBNM to“chargesaidcommitteewiththedutyofadministeringthecommitmentsaboveassumedandofaddingtheretoandcontinuingasoutlinedherein,infactandinspirit,theJarvieConceptofOldAgeReliefandService.”

6.TheJarvieConceptofOldAgeReliefandServiceisnotmerelycareforelderlypeople;rather,asstatedinthe1934TrustAgreement,theagedneedymustbehelpedtolive,notmerelytoexist.ThisalsoincludesaTrust requirementformakingoutsidegrantstoNYC-areaseniororganizations.

7.TheJarvieServiceisentirelyfinanciallysupportedbytheearningsontheJarvieendowment,nowworthapproximately$90millionandheldandinvestedasagentfortheBNMbytheFoundation.

8.Untilmid-2015,theJarvieServiceanditsstaffwereadministeredsolelyanddirectlybytheJarvieCommonwealServiceCommittee,agroupindependentoftheBNMboardasrequiredbythe1934TrustAgreement.

9.Inmid-2015aftersecretpreparations,theJarvieServicewasdramaticallyrestructuredanditsregularprofessionalandotherstaffsummarilyfiredbytheFoundation,without thepriorapprovalandknowledgeoftheentireJarvieCommonwealServiceCommittee.TheFoundationthenhiredaprivatefor-profithomecareagencytoprovideallservicestoJarvieServicebeneficiaries,dismissedsomeoralloftheJCSCmembersmid-term,andreplacedtheJCSCitselfanditsTrust-mandatedauthoritywithaFoundation“JarvieAdvisoryCommittee”whichoperatesinacloudofsecrecy.

10.In2016,theFoundationabruptlychangeditsaccountingtreatmentofthe$90millionJarvieCommonwealEndowmentFundwhichhadbeenaliability“fundsheldforbenefitofothers”for80years,commingled itwiththeNetAssetsequityownedbytheFoundation,andnamedtheBoardofNationalMissionsasitsnew“beneficiary” withoutrequiredCourtapproval.AlargegroupofNewYorkCityareaMinistersandEldersaskedtheFoundationtoreconsiderthisnewaccountingtreatment,andprovidedsubstantialsupportingdocumentsandinformation.TheFoundationrefusedtomakeanychangesandrefusedtoexplain whyit wouldnotdoso.

11.TheorganizationalandaccountingchangesmadebytheFoundationtotheJarvieServiceandFundwillpreventanyotherPresbyterianstakeholdersfromverifyingcompliancewiththepromisesBNMmade totheJarviedonorundertheTrustAgreement.AlloftheearningsontheJarvieFundsisrequiredtobeavailableinprioritytoprovidebenefitstoJarviebeneficiaries,nottotheFoundationoritsdesignees.

12.The223rdGeneralAssemblyreceivedaCommissioner’sResolution(13-08)raisingconcernswiththeFoundation’srestructuringoftheJarvieService,anddirectedthattheFoundationandtheCommissionersseekreconciliationofthoseissues.(

13.TheGeneralAssemblyPermanentJudicialCommissiondeclinedtotakejurisdictionoverthisdisputewiththeFoundation,sayingthatanyfailurebytheFoundationin2015tocomplywithBNM’sfiduciaryandotherpromisestotheJarvieFunddonorraiseonlycivil,statelawissues;neitherdonornorbeneficiarieshaveanyecclesialcompliancerecoursewithintheChurch.(TheSessionoftheRutgersPresbyterian Church v.ThePresbyterianFoundation,theBoardofNationalMissions,andthePresbyterianMissionAgency,RemedialCase222-08).

14.DespitethepriordirectionoftheGeneralAssemblytomeetandresolvetheseissues,thestaffoftheFoundationandtheBNMandtheirBoardshavesofarfailedtoproviderequestedrelevantinformationanddocumentsrelatingtotheirunlawfuldecisiontorestructuretheJarvieService,andsatisfactorilyexplainhowtherestructuringandalmosttotallackoftransparencyandprofessionaloversightinitssubsequentoperationmeetsthe

plainrequirementsofthe1934TrustAgreementandthelimitationsonuseofpropertyentrustedtothePresbyterianChurch(U.S.A.)imposedbytheGeneralAssemblyandtheneedsofJarviebeneficiaries.

15.ThePresbyteryofNewYorkCitythereforeexpressesconcernthattheforegoingoperational,accountingandotherirregularitiesanddeficienciesdetrimentallyaffectingtheJarvieService,asignificantmissionoutpostinitsjurisdictionalarea,raisebasicecclesialissuesandrequirereviewbytheGeneralAssemblythatrecognizesitsresponsibilityanddutytooverseetheworkofitsbodies,ensuringthatthosebodieshonorexpresspromisesmadetodonors,andpromotingopennessandaccountabilityinthePresbyterianChurch(U.S.A.).ConsequentlythePresbyteryofNewYorkCityrequeststhattheGeneralAssemblyappointaspecialcommitteewithdirectionandpowersassetforthabove.