TTATTelder wrote:
There is also something in place now that I'm not sure if many people know about.
They encourage congregations to keep any excess funds on deposit with the branch. They call it "Funds On Deposit". Our congregation has several thousand dollars on deposit with the branch. We only keep about 2-3k in our checking account.
The arrangement is to let them hold and use the money until if/when we need it in the future. So basically it is a no-interest loan.
That makes you wonder how many congregations have how many thousands "On Deposit" with the branches around the world?
That is correct. While this sounds like a beneficial plan for both the Kingdom Hall (safety of funds) and the Watchtower (more cash reserves available), the reality was brought to my attention a few months back when I was involved in researching the Menlo Park Kingdom Hall scandal.
In the past each Kingdom Hall would take in its incoming contributions and each month pay the utilities, pay for literature, pay for minor repairs, and cover any out-of-pocket expenses of the elders and others for supplies and minor items like flowers, stationery, Memorial wine and crackers, etc. A certain amount or percentage of what was left over would be sent to the Watchtower, as would payments on any moneys still due for construction or improvement loans on the Kingdom Hall. The remainder would be placed in a second bank account (often in a different bank) to be used as reserves.
With the new arrangement, most of the reserves would be forwarded to the WT and only a small amount <=> $1000 USD would be retained in the KH reserve funds.
My contact told me that something is not quite right with this arrangement. When his KH accounts elder contacted the WT and asked for $10,000 of their own money to pay for exterior paint and roof repairs required after a local RBC building inspection, the WT denied their request. Instead, they suggested that the local elders ask the congregation to increase their donations specifically for the repairs rather than draw down on savings deposited with the WT.
When he was having an off-the-cuff conversation with an elder from another congregation he was told that they had experienced the same thing. When they decided to increase the level of their local savings and reduce the amount of "excess" sent to the WT, they came under fire by the CO and DO. They actually had to go to a "come to Jesus" meeting about this and all got their butts chewed. The elders agreed that when it came to local bank accounts that they were "damned if they did and damned if they didn't when they sent it to the WT.
My contact told me that local elders who have been through this process know that any excess bank moneys deposited with the WT will likely never be seen again. The Watchtower will simply tell them to find other ways to gather up the funds they need and leave the money on deposit with the Watchtower.
I've also heard rumors that the Watchtower will have deposit and withdrawal rights on all local KH bank accounts. This may be in place now for some larger congregations. If that happens, all financial control of local fund will be assumed by New York HQ.
JV
