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If the church property belongs to a denominational body, any funds earned from the sale can be used only for either of the following: to purchase a new building and property for the church. to support a local community mission. to benefit local nonprofit organizations.
Some churches die by merging with another congregation. Some sell their property and donate the proceeds to food services, refugee support, or other community ministries. Others gift their furnishings, communion sets, or other items for use by other congregations.
Legally, ownership of a church is generally vested in the incumbent (Vicar, Rector etc) and held on trust by the PCC(Parochial Church Council) for the parishioners. This means that churches and churchyards are not owned or directly controlled by either the Bishop or the Diocese.
Local churches are most often listed as the owner in the deed to the local church property, but the denominations nevertheless sometimes claim a right to determine occupancy, use and control on the basis of a ?trust clause? added to the denominational constitution.
Church assets should go to the diocese or higher church organization in the case of dissolution. For independent churches it would be up to the board of trustees to decide. Typically there isn't any money as churches will cut expenses and borrow against their assets to keep running as long as possible.