United Methodist Church’s Contribution to BSA Bankruptcy Survivors’ Fund Approved

United Methodist leaders expressed cautious optimism following a judge’s partial approval of the Boy Scouts of America’s bankruptcy reorganization plan. The BSA filed for bankruptcy in February 2020 amid mounting claims of sex abuse related to Scouting, with many allegations involving chartering or sponsoring organizations, including local United Methodist churches.

After months of negotiations and hearings, as well as a trial earlier this year, U.S. Bankruptcy Court Judge Laurie Selber Silverstein issued a lengthy ruling on July 29, approving initial settlements of about $2.3 billion to abuse survivors. This includes a $30 million contribution from the United Methodist Church to the survivors’ fund.

Silverstein rejected some parts of the bankruptcy plan, stating the BSA still has “decisions to make” as it continues its fight for survival. However, she expressed willingness to work with the organization moving forward.

United Methodist leaders and the BSA plan to continue as partners but in a new relationship that includes a standard affiliation agreement for local churches hosting Scouting groups. Bishop John Schol, among other United Methodist leaders, has negotiated on behalf of the denomination.

“I am grateful Judge Silverstein ruled that most of the BSA reorganization plan met with criteria of bankruptcy law and was constitutional, including approving the United Methodist settlement,” Schol said in an email to UM News. “However, there are several more matters the BSA must address in order for the plan’s full approval.”

Steven Scheid, director of the Center for Scouting Ministries at United Methodist Men, expressed hope for the future, saying he sees “God actively preparing a future” for the BSA.

In its own statement, the BSA said: “This ruling represents a significant milestone in the financial restructuring of the Boy Scouts of America. … We are committed to working with all constituents to make the necessary changes required by the ruling to drive this process forward and we remain optimistic about securing approval of a final plan as soon as possible.”

The United Methodist Church and its predecessor denominations have had a relationship with the BSA for more than 100 years, mainly by providing headquarters for Scouting groups at local churches. As of May, some 6,600 Scouting units were chartered by United Methodist churches in the U.S., making the denomination the largest partner of BSA programs.

Local United Methodist churches, which in many cases recruited and screened adult leaders of Scouting groups, have faced considerable liability in the aftermath of abuse claims. The bankruptcy settlement aims to address some of these responsibilities, though challenges remain in fully resolving the legal and financial implications.

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