CCMBC Stewardship Ministries began with the idea that individuals could pool their money to help build churches. See MB Herald article "How a house fire sparked a million dollar ministry" and Centre for MB studies synopsis for more info on the history. With the ever-changing and increasingly complex government regulations dealing with financial matters, in order for the dream and purpose of this ministry to continue it became apparent that a separate organization was needed to comply with changing securities regulations.
Separating Legacy from CCMBC allows CCMBC to focus purely on church ministry as supported by churches in Canada, while Legacy can offer financial services to resource ministry. Legacy now oversees payroll and accounting services, CCMBC financial transactions, land and buildings owned by the conference and the administrative functions of Stewardship Ministries.
Legacy is a federally incorporated not-for-profit company (under CNCA) and is a registered charity. CCMBC is the sole member of Legacy. There are five members on the Legacy board, three of whom are from the CCMBC Executive board. Decisions at the Legacy AGM are made by the CCMBC Member Representative as directed by the MB churches at the CCMBC AGM.
For certain tax and securities law reasons a new for-profit entity was created in order to carry out the lending and investing activities of Legacy. All loans and investments are housed in CCMBC Investments Ltd. Legacy owns 100% of the common shares of CCMBC Investments Ltd. CCMBC Investments is governed by the same board of directors and management that currently governs Legacy.
Legacy's articles of incorporation stipulate that it exists to further the purposes of CCMBC ministries. Legacy administers CCMBC’s benefits and pension plans for MB church employees, and helps our churches fulfil their local ministries by providing support with payroll and accounting services. Legacy also offers free payroll and free accounting services to new church plants.
CCMBC Investments carries out the long-standing Stewardship Ministries, offering mortgages to churches and pastors by using the funds from people who want to earn a return while investing in ministry. This ministry enables churches and pastors to receive mortgages that were typically out of reach.
Legacy is registered with Canada Revenue Agency (CRA) as a charity and may offer charitable tax receipts for any donations it receives.
For-profit companies can donate up to 75% of their profit each year. Donations are made from CCMBC Investments to Legacy. The remaining 25% is used by CCMBC Investments for its operations or given to Legacy as a dividend.
Terms of Investment
Every time funds are put into an account, you are buying securities in the form of a promissory note. As such, every investment transaction will need to go through Capstone Asset Management prior to the funds coming to CCMBC. CCMBC Investments is not in the business of transacting securities trades and has engaged Capstone, a firm registered under the Securities Act, to provide this service.
There is no term.
Each client is required to hold $500 in preferred shares. Where a client only has one account, the first $500 will be designated as preferred shares. Where a client has multiple accounts, only the first $500 from one account will be designated as preferred shares. Preferred shares earn a dividend of 1% annually.
A client is a person or group of people who have accounts. For example, John and Jane Smith might be three clients: "John Smith", "Jane Smith" and "John and Jane Smith" if each of those people/groups have accounts with us.
The interest rate on the Notes is subject to change on January 1 and July 1 of each year. The dividend on the preferred shares will always be 1%.
Changes in interest rates will be reported on your semi-annual account statement and will be posted on our website.
We believe it is in the best interest of CCMBC Investments and investors to allow us the flexibility to increase the interest rate on the Notes, from time to time and at any time. We therefore amended the Note Terms and Conditions to provide us with discretion to increase the interest rate paid on the Notes. Our Offering Memorandum dated December 20, 2021 more fully describes the foregoing amendment.
For clarity, please note that the foregoing does not affect the dividend rate paid on the Preferred Shares.
No. In our sole discretion, we may determine to reduce the Premium Rate at any time and from time to time, provided that the Premium Rate cannot be reduced to an interest rate that is lower than the Standard Rate (the rate equal to the Bank of Canada rate plus 1.15%).
If CCMBC Investments determines to pay a Premium Rate of interest, we anticipate paying the Premium Rate for the balance of the then current 6-month period to January 1 or July 1 of each year, as the case may be; however, this remains at the discretion of the CCMBC Investments.
Yes. The Standard Rate is a variable rate of interest based upon the Bank of Canada rate on January 1 and July 1 plus 1.15%.
Yes, the funds are held by CCMBC Investments Ltd. and controlled through the personnel and board of CCMBC Legacy Fund Inc. We work together with Capstone Asset Management who functions as our Portfolio Manager (for excess funds above what is invested into mortgages to MB churches, pastors, schools, camps and related organizations) and as our Exempt Market Dealer (through whom you need to "subscribe" when looking to invest funds).
Legacy does not charge any service fees to CCMBC Investments' account holders.
No, the funds held with CCMBC Investments are not protected by the Canadian Deposit Insurance Corporation. CDIC is a federal requirement that applies only to banking institutions. Neither Legacy nor CCMBC Investments is a bank.
Your funds will be invested in the same way as they have been in the past: primarily in mortgages for churches and pastors, and excess funds in a diversified investment portfolio. However, any investment you make has risks and you are encouraged to discuss those risks with your financial advisor.
Each mortgage is carefully evaluated before approval. Legacy ensures that the loan-to-value-ratio protects your savings. Put simply, the value of the properties exceeds the amount of the mortgages. Legacy also applies management policies to ensure that annual interest payments can be made, and cash-on-hand is available to manage cash flow for withdrawals.
To open a new account, you need to contact Capstone Asset Management and tell them you would like to open an account with CCMBC Investments.
No, you do not need to be a member or attendee of an MB church to open an account.
Yes, we require a $3,000 minimum per registered account (RRSP, RRIF, TFSA) with an overall $3,000 minimum per client. The minimum additional investment is $1,000 (e.g. A client with an RRSP of $3,000 is able to open a non-registered account with as little as $1,000.).
CCMBC Investments takes care of the daily transactions. Withdrawal requests, internal transfers between accounts, changes of address, beneficiary, estates, etc. Contact Capstone Asset Management only when you want to make a new investment.
You can request to withdraw funds at any time, however there will be a black out period during the last three business days of each month where we will not process the requests. Any withdrawal requests received during the last three business day of the month will be processed on the first business day of the following month.
Funds are usually received within 2 business days of the request. When the amount is over $500,000, we require 45 days' notice.
Yes, monthly recurring withdrawals can be set up for 1st, 15th or last business day of the month. Please contact our office to set up your recurring withdrawal.
Investments can be made at any time. Prior to making any investment you need to contact Capstone to arrange the subscription.
Investment funds received by the due date listed here will start earning interest after the close date (2nd last business day of the month). E.g. Investments made on January 15, 2021 will start earning interest on January 28, 2021.
Investments made after the due date each month will start earning interest after the close date of the following month.
Yes, CCMBC Investments requires a completed Subscription Agreement each time that you wish to add an investment/contribution to your account(s). If it has been less than 12 months since you completed your original Subscription Agreement, you are able to complete an Additional Subscription Agreement, which is a smaller, more simplified agreement.
We are not able to accept any funds without an accompanying Subscription Agreement. If we receive funds without a Subscription Agreement, we will contact Capstone to help you complete your Subscription Agreement. The funds sent to us will be held in our Trust account until we receive your completed paperwork.
Please note: if you send funds to our office and decide not to complete a Subscription Agreement, your funds will be returned to you.
Typically the receiving institution would send paperwork to CCMBC Investments requesting the transfer. The transfer would be subject to the 3 day blackout period at the end of each month (requests received during this period would be processed on the first business day of the following month).
Contact Capstone to discuss your options.
CWT is part of the Canadian Western Bank Financial Group company and is the trustee for the CCMBC Registered funds (RRSP, RRIF and TFSA).
Capstone is working alongside CCMBC Investments and is the registered firm through which you purchase your securities in CCMBC Investments. Their website states "Equipped with our key investment principles and a Biblical perspective, we apply a disciplined approach which allows us to remain focused on managing your assets with integrity and excellence." We encourage you to read more about Capstone at https://www.capstoneassets.ca/about.
In order to keep costs low so that more funds are directed towards ministry, Legacy is not planning to open local branch offices. Legacy exists to support ministry. Keeping our costs low allows more funds to go to resourcing ministry.
Call our office toll-free at 1-888-669-6575 (office hours are Monday-Friday, 8:30 am - 4:30 pm Central time).