The debate over homosexual clergy in Episcopal Church USA reached the point-of-no return Nov. 2, when the Rev. V. Gene Robinson, a divorced father of two in an active homosexual relationship, was consecrated by the church as bishop of New Hampshire.

A schism within the 2.3-million member denomination, many observers believe, looms on the horizon as a result.

Should a schism occur, there is much more at stake than a doctrinal or theological fight between liberals and conservatives. A split would precipitate an even bigger fight over the property and assets of dissenting churches.

The 7,364 congregations receive $2.14 billion in offerings a year and their property and liquid assets are worth untold billions.

"In the Episcopal church, the [national church] owns the land and buildings in which the parishes are," said Adair T. Lummis, faculty associate at the Hartford Institute for Religion Research. "So if a parish, and this has happened, decides it no longer wants to be affiliated with the Episcopal church, it wants to join one of the more conservative [denominations] or just become independent, it has to leave all of its buildings and assets.

"In other words, the people can go, but their property stays."

The so-called "trust clause" (Canon I7.4) in the Episcopal Church USA Constitution and Cannons states: "All real and personal property held by or for the benefit of any Parish, Mission or Congregation is held in trust for this Church and the Diocese thereof in which such Parish, Mission or Congregation is located."

The Trust Clause

United States courts have held in a number of recent cases that the trust clause gives the national church legal standing to withhold property and assets from congregations that choose to break away from the larger body.

In March 2000, for example, the vestry of St. Andrew's Episcopal Church in Morehead City, N.C., notified Bishop Clifton Daniel III that it was withdrawing the congregation from the Diocese of East Carolina and the Episcopal Church USA.

The diocese and national church maintained that the parish had not been dissolved and was still a continuing parish. Daniel sent a letter to the breakaway group demanding the property and assets be returned to the diocese.

In an ensuing lawsuit, Superior Civil Court Judge John Jolly sided with the diocese and ordered all property be returned. That decision was later upheld by a court of appeals.

Similar cases involving the United Methodist Church have been decided in favor of the national body.

A New Test

While the courts have come down in favor of the denomination retaining property and assets when a congregation chooses to break away, the jury is still out on a break at the diocesan level.

"What happens if the diocese unilaterally says, ‘We're breaking with you and taking our property and assets with us?' That's uncharted waters." said the Rev. John Guernsey, an Episcopal priest and board member of the American Anglican Council.

If recent news reports are any indication, that strategy may soon be tested. After Robinson was affirmed as bishop elect at the denomination's national convention in June, there was talk of entire dioceses breaking away.

Dioceses in several states, including Florida, South Carolina and Texas, voted to withhold funds from the national church.

In Pittsburgh, a constitutional amendment was drafted that would supercede national canons if those canons were contrary to the historic faith and tradition of the Episcopal Church. Such a move would permit unilateral action by the Diocese of Pittsburg.

Leading up to a vote on the measure, Bishop Robert W. Duncan Jr., a national leader of conservative Episcopalians, released a statement that the diocese would allow liberal parishes to leave it with their property and assets intact if a schism did occur.

To counter Duncan, the Rev. Harold Lewis, pastor at Calvary Episcopal Church in Pittsburgh, sued him and a host of other Episcopal leaders, saying he had no authority to make decisions regarding ownership of property and assets.

Other Ramifications

If a schism occurs, clergy and employees who leave the national body will also have to walk away from retirement plans.

"In regard to pensions, it's pretty straightforward. I'm too young to retire. If I were no longer in the Episcopal Church, I could no longer pay into the pension fund," said Guernsey, pastor of All Saints Church, Woodbridge, Va. "If you work for General Motors and are in the General Motors pension fund that's fine. But if you quit and go work for Ford, you can't be in the General Motors pension fund anymore. That's just common sense."

David Strand, director of public affairs for the Lutheran Church-Missouri Synod, which experienced a split in the 1970s, said the emotional cost of a schism can be great because those leaving the fold leave behind a great deal of heritage in many cases.

"It's like the Civil War, where its brother against brother," he said. "We had cases where certain members of the same family stayed and certain left. That leads to some hard feelings."