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1 building sharing a society grows strong, grows in goodness, grows in beauty and truly grows if it is built on the foundation of the family. POPE FRANCIS, WORLD MEETING OF FAMILIES 2015 papal foundation annual report 2016

2 TO THE STEWARDS OF SAINT PETER OF THE PAPAL FOUNDATION he joy of love experienced by families is also the joy of the Church. With these words, Pope Francis begins his post-synodal apostolic exhortation, Amoris Laetitia (On Love in the Family), published March This document follows on the 2014 and 2015 synods on the family as well as the intervening World Meeting of Families in Philadelphia. At the center of the Gospel of marriage and family is love, says the Holy Father. Offering counsel to couples, family members and all of us while reflecting on Saint Paul s First Letter to the Corinthians, Pope Francis explains that authentic love is patient and merciful, love is at the service of others and is marked by generosity and humility, it is neither rude nor resentful and it rejoices with others in hope and fruitfulness. One of the pastoral implications expressed in Amoris Laetitia is our challenge to be attentive to the needs of others expressed in so many different ways. This annual report will demonstrate how The Papal Foundation impacts the well-being of families all over the world. The Foundation supports education for all ages; provides safe, well-built centers for worship and faith formation; and aids the spiritual, emotional and physical care of vulnerable people. Families are strengthened and faith spreads when our Stewards offer their resources, Saint John Paul II Scholars teach others, and grants for various projects provide much needed assistance around the world. The Mission Fund brings substantial relief to some of the poorest of the poor. As you read through this report, my hope is that you will find reflections of The Papal Foundation s strong and effective support of our Holy Father s mission to bear witness to both the joy of the Gospel and the joy of love in both words and actions. With gratitude to God for the gifts with which we have all been blessed, and with a profound sense of appreciation to all of you who make the work of the Foundation possible, I am Faithfully in Christ, Archbishop of Washington Chairman, The Papal Foundation

3 has been a central FOUNDATION OF OUR FAITH since that holy night in Bethlehem long ago when a young mother and devoted foster father welcomed the Son of God, Jesus Christ, into the world. The Love born that night was stronger than all the wounding that the world could inflict. This is the MESSAGE OF HOPE that we as followers of Christ are called to share with all people. The Papal Foundation is a FA MILY OF FAMILIES Families who give generously of their financial and spiritual resources to address HUMAN NEED. Scholarship recipients who leave home communities for study, with a commitment to return and teach others. Church builders, classroom teachers, nurses, social workers, bakers, priests, sisters, and so many others who receive Foundation grants to MAKE LIFE BETTER for children, families, and vulnerable people AROUND THE WORLD. TOGETHER, we are BUILDING FAMILIES and SHARING FAITH.

4 GRANTS THAT UNITE, PROTECT AND NURTURE FAMILIES WORLDWIDE amilies from Bangladesh to Buenos Aires, from Tanzania to the Virgin Islands turn to the Church for education, faith formation, and care. Grants from The Papal Foundation help to ensure that wherever God s people are in need, the Church will be there for them and with them. We must learn to believe first of all in the family, in authentic love, the kind that comes from God and unites us to him, the kind that therefore makes us a we which transcends our divisions and makes us one, until in the end God is all in all. The requests we receive through The Papal Foundation grant program may range from a small amount to provide training for disadvantaged girls in Ethiopia to a grant large enough to build a parish church and center in Thailand. Each of the applications has been carefully screened and referred to us by the Secretary of State of the Holy See, so we are confident that the resources will be used to build the Kingdom of God and nurture our family of faith. In 2016, The Papal Foundation distributed $10 million in grants and scholarships through its close collaboration with the Holy Father. POPE BENEDICT XVI, WORLD MEETING OF FAMILIES Our family of Stewards including Tricia Flatley, Bernice and Brian Follett and Judy Barrett visited the NPH USA family in Mexico in October 2016.

5 One component of the Foundation s grant program is the Doing Small Things with Great Love Mission Fund. The Fund was inspired by Mother Teresa s work to care for the poor and needy. Many of the grants have provided special care to mothers and children who are living in desperate circumstances. Since 2011, the Mission Fund has given over $1 million to the Missionaries of Charity for projects such as: A safe haven in Rome for mothers and children who suffer because of forced migration and the homeless A four-year vocational school for young mothers in the Democratic Republic of the Congo who are HIV-positive or the victims of rape Shelters for children and teenagers in Poland and Czechoslovakia who have been endangered by social pathology and poverty A childcare center in Colombia for 350 infants and children up to six years old who have been displaced by family violence 3

6 TOUCHING FAMILIES AROUND THE WORLD rants from The Papal Foundation addressed spiritual, emotional, and physical needs of many families each year. Here are a few examples: LEBANESE FAMILIES GROW STRONG IN THE FACE OF CRISIS Many families in the Diocese of Jounieh, Lebanon, face modern stresses and forces that threaten to isolate, divide, and weaken. Lay members of a Maronite rite decided to create a place to offer programs that would counter these trends. A grant from The Papal Foundation has helped the community turn a former convent into The House of the Lebanese, a center where young people and their families receive spiritual formation and psychosocial support. The center includes a restaurant that will make the project self-sustainable. AFFIRMING THE IMPORTANCE OF MARRIAGE AND FAMILY Saint John Paul II founded the Institute for Marriage and Family on the belief that the salvation of the individual, as well as of society itself, is intimately connected to the health and wellbeing of marriage and the family. Today, the Institute sends visiting professors to many countries to keep this vision vibrantly alive. A grant from The Papal Foundation has extended this program to a wider circle of cultures and countries including Zambia, Korea, Colombia, and the Philippines. The grant also allowed the Institute to host seminars and other activities on family pastoral care, good life practices for a culture of the family, and the theology of the body. 4

7 A CENTER IN PERU HONORS AND CARES FOR ELDERS The families in Lurin, Peru, face generational divisions familiar to us all. The local diocese wanted to establish a center that would encourage children and young adults to respect, care for, and be concerned about the well-being of their ageing family members. And elders in the community were longing for a place to receive physical and spiritual nurturing for this stage of their lives. The Papal Foundation answered the need with a grant to build and furnish the Juan Pablo II Day Care Center. Families now have an important resource where elderly parents receive health care, acceptance, and socialization through daily programs and activities. NATURAL DISASTERS CAN T STOP A DETERMINED STUDENT Wilhelm was an 11th grade student at the Sisters of Mary School Boystown in Cebu, Philippines, when the earthquake hit. Buildings where he studied and lived were so damaged that he and his fellow students were sent home. He arrived in his hometown just in time for Hurricane Yolanda. His life was devastated. But Wilhelm believed in survival. He helped his family clean up from the storm as best he could and kept hope that he could one day return to school. With a Papal Foundation grant, the Sisters of Mary repaired their campus and made it safe once again. Now Wilhelm is back in Cebu with new hope that the computer technical skills he is learning will make it possible for him to give his family a more stable life. The mission is important, but it is also important to form those for the mission, form the passion of proclamation, the passion for going wherever, in every periphery, to tell everyone about the love of Jesus Christ POPE FRANCIS 5

8 SCHOLARSHIPS THAT PREPARE NEW FAITH LEADERS the family, like the Church, ought to be a place where the Gospel is transmitted and from which the Gospel radiates the future of evangelization depends in great part on the Church of the home. SAINT JOHN PAUL II ach year men and women who have already committed their lives to the Church apply for Saint John Paul II Scholarships to study in Rome. They come from India, Haiti, Venezuela, Ukraine and many other countries to prepare for an expanded role in the formation and education of future generations. When their studies are completed, these dedicated leaders return home to serve families and communities. Many would never have been able to complete this journey without scholarship support. In 1998, with a generous gift from John and Carol Saeman of Denver, Colorado, and matching money from the Foundation, we established the Saint John Paul II Scholarship Fund. Over $9 million in scholarships have been awarded to more than 1,000 Saeman Scholars since then. This year the Fund provided $760,000 in scholarships to 104 candidates from 41 countries. It has become a cherished tradition that the Foundation s annual pilgrimage to Rome includes an opportunity to meet current Saeman Scholars face to face. During the reception, we hear about their experiences in Rome and their plans for service when they return to home countries. The Board of Trustees, staff, and Stewards of Saint Peter welcome this encounter with our extended family of faith. 6

9 Home Communities Welcome Scholars Back A HEALING MINISTRY FROM ROME TO ILLINOIS TO NIGERIA Healing Ministry is the subject of the thesis Fr. Fredrick Mbiere wrote during his doctoral studies in Rome from Without the financial support he received from the Saint John Paul II Scholarship program, Fr. Fredrick would not have been able to leave Nigeria for this time of intensive study. Before he returns to the Diocese of Nnewi in Nigeria, Fr. Fredrick is putting his pastoral care studies into practice as part of a two-month assignment to St. John s Hospital in Springfield, Illinois. Fr. Fredrick will take home an international understanding of the healing ministry work of the church because of this opportunity. RETURNING TO SERVE IN WAR-TORN CENTRAL AFRICA Sister Maryvonne Palessonga left Bangui in the Central African Republic with high hopes to study canon law as a Saeman Scholar. Before she could complete her degree, however, her country fell into the chaos of war. Many people were homeless and terrorized by rebel soldiers. Her general superior was struggling to meet the basic needs of those suffering. Finally, she asked Sr. Maryvonne to come home and help. And she did, knowing her studies would have to wait. Side by side, they worked and prayed for peace. In late 2015, Pope Francis courageously traveled to Bangui and called their community a world spiritual capitol. Peace is beginning to return since the Holy Father s visit, and The Papal Foundation has gratefully awarded Sr. Maryvonne a second scholarship to complete her studies. 7

10 STEWARDS OF SAINT PETER BUILD THE CHURCH AT HOME AND IN THE WORLD The triune God is a communion of love, and the family is its living reflection. POPE FRANCIS, AMORIS LAETITIA he Papal Foundation s Stewards of Saint Peter have become an extended family of families. Together, they contribute their financial resources, time, and vision to make the work of the Foundation possible. For many, the Steward experience is part of a life of service they joyfully share with their children and grandchildren. Bound together by Christ s call to love one another and our neighbor as ourselves, the Stewards join the Holy Father in reaching out to brothers and sisters around the world. Since our last Annual Report, six families made the decision to become Stewards of Saint Peter. In April, many of our Stewards traveled to Rome to meet with the Holy Father and present him with the Foundation s annual financial commitment. While the papal audience is a highlight of our annual pilgrimage, Stewards also enjoy the trip as a time of reunion with each other and an opportunity to see the day-to-day life of our international Church at work. In December, the Stewards met again in Washington, DC, for the annual Winter Gathering to conduct Foundation business, hear from leaders of the U.S. Catholic Church, and meet with representatives from the Holy See. 8 Cardinal Wuerl with Margie and Dave Hunter and family in Rome 2016.

11 A Commitment that Grows and Blesses AN INTERNATIONAL EXPERIENCE THAT COMPLEMENTS LOCAL SERVICE When Rob and Berni Neal from San Juan Capistrano, California, put their children in Catholic school, it was their first real taste of the Church in the community. It didn t take long for that taste to create a hunger for more. The Neals soon became active in Catholic organizations that serve people in their own diocese and across the United States. After a friend invited them to a presentation about the work of The Papal Foundation, they realized that international service offered a whole new set of possibilities. The Neals said Yes to becoming Stewards with little hesitation. It s been one of the finest calls we ve ever answered, says Rob Neal. The experience has not limited their commitment to local service, but helped it grow. They include their children, now adults, in the annual pilgrimage to Rome, and all of them have been blessed throughout the year from the relationships that have grown from the Steward experience. COMMITMENT THAT BLESSES A WIDE FAMILY NETWORK Mary Beth Philipp of Kingwood, Texas, is a second generation Steward. Her father and mother, Warren and Marylou Hayford, of Winnetka, Illinois, introduced her to the Foundation and its work many years ago when they invited all of their children to be part of the Stewards annual pilgrimage to Rome. Mary Beth says, We were each in very different places spiritually, but that trip was a beautiful chance to reconnect with each other and our faith. Before Marylou died, the Hayfords gifted Mary Beth and her six siblings with Papal Foundation Stewardship. And the circle grew once again with the welcome in 2010 of Beverly and her five children into the Hayford family. Warren promptly extended the gift of becoming a Steward to each of his stepchildren also. Each pilgrimage becomes an opportunity to share God s amazing grace with 12 children, 35 grandchildren, 10 great grandchildren and the in-laws, too. We re all part of a big family, says Mary Beth, bonded to faith and the Holy Father by our parents gift to us. 9

12 STATEMENT OF FINANCIAL POSITION June 30, 2016 and 2015 (in thousands) ASSETS Cash and cash equivalents $ 11,347 $ 6,472 Contributions receivable, net of allowance and discounts 23,253 24,139 of $2,868 in 2016 and $3,405 in 2015 Accrued investment income Investments, at fair value 169, ,218 Cash surrender value of life insurance 1,422 1,321 Other assets Total assets $ 206,033 $ 215,413 LIABILITIES AND NET ASSETS Liabilities Accounts payable and accrued expenses $ 258 $ 28 Line of credit 6,250 6,250 Total liabilities 6,508 6,278 Net Assets Unrestricted - Board Designated 199, ,135 Total liabilities and net assets $ 206,033 $ 215,413 The accompanying Statement of Financial Position and Statement of Activities as of and for the year ended June 30, 2016, are excerpted from the annual audit of the Foundation s financial statements. The complete report including the Independent Auditors Unqualified Opinion and notes to the financial statements can be obtained from the Foundation by contacting Francis X. Connell, CFO at 150 Monument Rd., Bala Cynwyd, PA

13 STATEMENT OF ACTIVITIES Years Ended June 30, 2016 and 2015 (in thousands) Revenues Contributions New Stewards $ 3,000 $ 9,000 Other 3,075 1,263 Total Contributions 6,075 10,263 Investment income Interest and dividend income 2,768 2,998 Net unrealized and realized gains on investments, net of fees (6,739) (1,439) Total investment income (3,971) 1,559 Total revenues 2,104 11,822 Expenses Compensation Professional fees Interest Office expenses Insurance Rome pilgrimage Washington dinner Travel Committee meetings and other 1 2 Bad Debt Expense 606 Total expenses 1,848 1,422 Grants Made Papal grants 9,240 14,373 Scholarship aid Total grants made 9,866 14,982 Change in net assets (9,610) (4,582) Net Assets, Beginning of Year 209, ,717 Net Assets, End of Year $ 199,525 $ 209,135 11

14 Board of Trustees/Members A two-tiered Board of Trustees manages The Papal Foundation funds. American Cardinals who reside in the United States serve as ex-officio members of the Board. Archbishops, Bishops and elected laity from across the country serve as Trustees. MEMBERS Donald Cardinal Wuerl Chairman Archbishop of Washington Blase Cardinal Cupich Archbishop of Chicago Daniel Cardinal DiNardo Archbishop of Galveston-Houston Timothy Cardinal Dolan Archbishop of New York Roger Cardinal Mahony Archbishop Emeritus of Los Angeles Adam Cardinal Maida Archbishop Emeritus of Detroit Theodore Cardinal McCarrick Archbishop Emeritus of Washington Sean Cardinal O Malley Archbishop of Boston Justin Cardinal Rigali Archbishop Emeritus of Philadelphia Joseph Cardinal Tobin Archbishop of Newark TRUSTEES Most Reverend Samuel J. Aquila Archbishop of Denver Most Reverend Gregory M. Aymond Archbishop of New Orleans Most Reverend Jose H. Gomez Archbishop of Los Angeles Most Reverend Wilton D. Gregory Archbishop of Atlanta Most Reverend Michael J. Bransfield President Bishop of Wheeling-Charleston Most Reverend Edward J. Burns Bishop of Dallas Most Reverend David A. Zubik Bishop of Pittsburgh Frank J. Hanna Secretary Atlanta, GA James Longon Newtown, PA Patricia Lynch Edwards, CO Eustace Mita Media, PA Wayne W. Murdy Treasurer Cherry Hills Village, CO James A. Nolen III Berwyn, PA J. Eustace Wolfington Bryn Mawr, PA STAFF James V. Coffey, M.A. Vice President for Advancement Francis X. Connell Chief Financial Officer Jane A. Schnatz Office Manager/Program Support Ann Schnatz Administrative/Program Support Our Mission The mission of The Papal Foundation is to serve the Holy Father and the Roman Catholic Church. We do this by gathering in a corporal and cooperative collaboration of laity, clergy and hierarchy within the Church, in witness to one another of our faith, and drawing strength from the witness of the Holy Father. We bring and contribute our faith, our energy and our financial resources, to serve those needs of the Church that are of particular significance to the Holy Father, always with a commitment to walk in union with the Holy Father and the Magisterium of the Church.

15 THE PAPAL FOUNDATION 150 Monument Road, Suite 609, Bala Cynwyd, PA

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