Church Extension Funds are nonprofit organizations that provide financial service support for an affiliated church or denomination. This certification permits the Foundation to offer approved investment opportunities to Church of God members and ministries in Tennessee, Aultman explained.
The Tennessee Division of Securities monitors investment activities in the state of Tennessee. Like most states, Tennessee investment and operation standards flow from the North American Securities Administrators Association, Statement of Policy, he said. Having served higher education colleges for 24 years, Aultman views the Tennessee Division of Securities standards and approval as being analogous to a regional accrediting association’s role in the accrediting of colleges.
The Foundation Board of Directors has envisioned this accomplishment since August 2010.
“Receiving this recognition by the Tennessee Division of Securities in less than three years is a remarkable achievement,” Aultman said. “The Board had opined that the CEF approval process could take at least five years. Clearly, the Foundation Board of Directors and staff have performed something close to a miracle.”
This recognition changes aspects of the Church of God Foundation’s operation in Tennessee, he said. It simplifies reporting, reduces restraints on operations and increases the potential to accept new investment funds from church-related constituents. The Foundation continues to accept investment funds as the need arises for loans to the churches it serves, Aultman noted.
The Division of Securities approved a $20 million offering by the Foundation — more than half of which already has been subscribed.
“An important additional benefit to official recognition as a Church Extension Fund is that, for the first time, the Foundation can market and advertise its investment offerings to potential investors in Tennessee,” Aultman stressed.
In achieving this level, the Foundation can better inform the Church and community who it is and what it has to offer, he pointed out.