It must be fully understood that Southern California Network, Assemblies of God (hereinafter referred to as SoCal Network) is, in cooperation with the Parent Affiliated Church, ______(hereinafter referred to as P.A.C.), handing control to the Parent Church, ______, (hereinafter referred to as the Parent Church) and as such, all parties must give due consideration to the history, ministry and membership of the P.A.C. as it exists today. Further, it is understood that the P.A.C. will be a campus under the legal and organizational umbrella of the Parent Church

The Basic Presumption

While all parties understand that this is a beginning document, and that situations are subject to change beyond our control, it is the basic presumption of the P.A.C., the parent church, and SoCal Network that the ultimate goal of this relationship is that the P.A.C. will become a General Council Affiliated Church in the future.

This agreement will be reviewed on ______by representatives of SoCal Network, the parent church and the P.A.C. The criteria for evaluation will include, but not be limited to the “Mile Markers on the Road to General Council Status” (please see below).

Legal and Financial

· Deeds and titles to real property owned by the P.A.C. will be in the names of the P.A.C. and The Southern California District of the Assemblies of God, inc. ;

· The P.A.C. will operate under the bylaws of the parent church beginning on ______

· The responsibility for the initial review of the financials of the P.A.C. shall rest with the P.A.C., parent church and SoCal Network

· The P.A.C.’s corporation will be kept current with the State of California. The president of the corporation will be the lead pastor of the parent church

· The board of the corporation shall be the official board of the parent church

· As a current Network Affiliated Church, the P.A.C. asks the SoCal Network Superintendent to appoint the lead pastor of the parent church as pastor and the parent church board as the board of the D.A. church

· The parent church will assume the following from the P.A.C.:

o Missions commitments

o Mortgages

o Debts

o Other liabilities –including utilities and services;

· The parent church will employ and assume the financial responsibility of the campus pastor effective ______(if applicable). The campus pastor shall be reviewed by the parent church lead pastor periodically, contingent upon the P.A.C.’s attendance and financial growth;

· Financial accounting by the P.A.C. will terminate on ______with responsibility for accounting to be assumed by the parent church as of ______

· Financial responsibility for the P.A.C. will be in the hands of the parent church’s accounting department

· The P.A.C. will/will not (chose one) maintain a separate checking account

· The offerings and receipts taken at the P.A.C. will be handled in the following manner: ______

· The manner of payment of invoices, check requests and reimbursements of the P.A.C. will be handled by the parent church accounting department. The P.A.C. will provide the parent church any and all invoices, check requests and reimbursements for payment within a reasonable amount of time to assure timely payment. These all must be approved and initialed by the campus pastor or other parent church approved individual. All checks will be signed by two parent church approved signatories

· As an N.A. church, the P.A.C. currently has insurance through the SoCal Network District Affiliated Church Master Policy. Insurance coverage (Liability and Property) will be transferred to insurance provided by the parent church effective ______

· Should SoCal Network decide to terminate this agreement without the agreement of the parent church, SoCal Network will reimburse the parent church under the following schedule:

o First year – up to $40,000 of compensation for the campus pastor, up to $15,000 in ministry expenses and up to 25% of the value of the land and buildings as determined by the most recent tax statement at the time of the signing of this agreement for building renovation, improvement and enhancement

o The same schedule applies in years 2 through 5, with the total of reimbursements of years 1 through 5 not to exceed 70% of the value of the land and buildings as determined by the most recent tax statement at the time of the signing of this agreement

o All expenses to be reimbursed must be accounted for in full with appropriate supporting documentation

Governance

· The campus pastor will be selected by the parent church lead pastor

· The membership of the P.A.C. will remain separate from the parent church

· Future membership will be approved by the parent church board using currently established procedures

· Annual business meetings shall be conducted according to State of California and bylaw requirements, with the lead pastor of the parent church as chairman of the meeting

Ministry through the Transition to General Council Affiliation

· The weekly services will be planned and organized by the P.A.C. campus pastor in consultation with the parent church lead pastor

· Initially, the weekly services at the P.A.C. site will be held on ______

· Oversight of P.A.C. ministries shall be a collaboration between the parent church and the campus pastor with final approval for all ministries to be given by the parent church lead pastor;

· The relationship of the parent church lead pastor to the membership and adherents of the P.A.C. is general vision and oversight;

· The relationship of the campus pastor to the membership and adherents of the P.A.C. is pastoral care and leadership of campus ministries;

· The parent church will oversee and approve renovations and repairs necessary to the building and grounds of the P.A.C. campus.

The Responsibilities of the Parent Church

· The lead pastor of the parent church shall meet with the campus pastor for mentoring and support on an agreed to schedule;

· The parent church will provide the P.A.C. with vision and direction as necessary.

Mile Markers on the Road to General Council Status to be used as a guide, not intended a a definitive set of criterion

The P.A.C. should demonstrate consistent growth using the measure of ten (10%) percent or more annual growth as measured by water baptisms for at least two (2) years;

The pastoral leadership of the campus must be strong enough to thrive on its own;

The P.A.C. advisory board must demonstrate leadership qualities consistent with that of a fully functioning church board of at least five people, and its members must meet the qualifications of a church board member as outlined in scripture and Assemblies of God Bylaws. There should be at least 2 qualified and “electable” church members for each board position;

The P.A.C. must offer a full range of ministries appropriate to meet the needs of the existing church family and to reach the community. These ministries must be led by qualified lay leaders who demonstrate the appropriate qualities of overseeing their respective areas of ministry;

There should be strong agreement and consensus within the P.A.C. regarding the desire to transition to D.A. status;

The PAC must demonstrate financial soundness by being able to pay for all its expenses on its own for more than two year’s period of time. This includes: salaries and wages mortgages, utilities, vendor contracts, ministry costs, missions commitments, and any other expenses incurred by the campus;

The P.A.C. must demonstrate the ability to reimburse the Parent Church for all verified, receipted actual expenses incurred for the benefit of the P.A.C. during the parenting relationship

The lead pastor, the campus pastor, the parent church board, and the P.A.C. congregation must be in agreement as to the time and process to re-launch the campus.

This Memorandum of Understanding shall become effective ______upon the authorized officials’ signatures of the P.A.C. and parent church

Date: ______(for the P.A.C.)

Date: ______(Lead Pastor, Parent Church)

Attach to this MOU:

____ Minutes of Parent Church Official Board accepting responsibility for this P.A.C. relationship

____ Proof of insurance for the P.A.C. under the Parent Church policies

____ If applicable, minutes of the P.A.C. membership meeting where P.A.C. status was accepted

____ Parent Affiliated Church Charter (from Springfield)

____ Parent assessment with appropriate documentation

this document is not in effect until parent church has been notified in writing that it has been approved by socal network ag