General Board Business Item #1404

Transcription

1 General Board Business Item #1404 Christian Church Foundation, Inc. Gary W. Kidwell, President 130 East Washington Street P.O. Box 1986 Indianapolis, Indiana (800) Why don t we shoot for the moon anymore? The last time humans stepped on the surface of the moon was back in So why haven t we gone back? According to NASA, it is a question of funding. In the Apollo years, NASA made up 5% of the Federal budget but it is now less than 1%. Funding is a major drawback, no doubt, but lack of public support is likely an even bigger stumbling block. Has society collectively lost its appetite for tackling big things? Reaching for big things is an important part of the history of the Christian Church (Disciples of Christ). In 1913, Disciples launched a comprehensive stewardship project. Using the motto, We seek not yours but you, the Men and Million Movement publicized a three-fold aim: to enlist one-thousand young people for full-time ministry at home and abroad; to raise $6.3 million for mission, education, and benevolence; and to encourage each congregation to conduct an every member canvas. By 1919 over 8,000 young men and women had signed pledge cards declaring their intention to attend college and to consider entering some form of Christian ministry. Financial commitments totaled $7,105, of which $6,010, was collected over the next decade. Journey in Faith by McAllister and Tucker, pages Disciples played significant roles in the formation of both the World and National Council of Churches. Disciples formed colleges, seminaries and benevolent causes, and in 1961, Disciples boldly created a foundation with no money. Like NASA, funding is a major issue for the church, but perhaps we also need a double shot of vision and courage. Those bold leaders who created the Christian Church Foundation (during the Decade of Decision a denomination-wide planning strategy for restructure of all the church s ministries) would probably delight in reading the Foundation s current financial reports: The Foundation s financial position has never been stronger than it is today. Operating reserve guidelines established in 2007, which seemed ambitious at the time and by 2008 suddenly seemed nearly impossible, now are within reach. In spite of a slow economy and often turbulent financial markets, assets under management have grown. Through just half of 2013, the number of partner ministries who invested through the Foundation s Joint Investment Trust stood at 678, a number that has grown 20% over the last 10 years. Dollars invested by investment partners more than doubled over the

2 same period, growing from $144 million to $352 million. The growing number of investors who have entrusted $1 million or more through the Joint Investment Trust has not only served those larger investors well, but has lowered the cost of investing for all partner investors. Funds invested in the Joint Investment Trust have provided competitive returns for their owners, while also enhancing the Foundation s ability to offer many planned giving services at no cost to congregations and other ministries. These services strengthen congregations ability to witness and serve new generations, and these stronger congregations benefit all of the church ministries. The Foundation s investment services grew out of our success in investing our own endowment. This service has grown to bless Disciples ministries in ways early leaders could hardly have imagined when they first agreed to manage the funds of a handful of other Disciples ministries. Part of the Foundation s culture is the understanding that, if a gift or an investment isn t the best plan for everyone involved, then it isn t the best plan for anyone. Said differently, if it isn t in the best interest of a donor to make a gift to their congregation, then it isn t going to work out well over the long run for the congregation. If the Foundation isn t convinced that we are the best investment manager for a ministry s funds, then it isn t going to work out well over the long run to partner with that ministry for the investment of their funds. On the flip side, when the Foundation extends itself to help make a plan work for others, the benefits extend in unimaginable ways - back to and through the Foundation - and then throughout the larger church. There is no better example of that formula than the Foundation s Joint Investment Trust, where combining the long-term dollars of so many Disciples ministries has yielded a loaves and fishes miracle strengthening each partner investor, while also strengthening the church as a whole. Strong relationships with donors and partner investors, coupled with a robust market in 2013, have produced very positive financial results. Operating income exceeded expectations, and income provided by the Foundation s own endowments, coupled with investment income on its reserves, have both helped to speed the strong recovery from a challenging market. Growth and prudent budget management now position the Foundation to explore further ways to bless and support the whole church, including: Identifying that 100% of Area of Greatest Need Funds will be distributed to Disciples Mission Fund, as the Foundation relinquishes the 25% it previously used for operations. This means DMF will receive about $15,000 more in Reducing service costs on Steward s Bank (donor-advised) accounts, making the Foundation a more competitive option for donors and allowing more money to flow directly to church ministries. New gifts and partner investment additions are on a good pace, with new gifts for the first 11 months of $5.2 million and new deposits of $26.5 million. The Foundation is

3 grateful for the strong partnerships that have developed with varied ministries across the life of the church and the trust placed in the Foundation to steward the legacies of so many faithful donors. Joint Investment Trust (JIT) returns for 2013, through November, were 18.54% for Beasley Growth Fund, 12.42% for Common Balanced Fund, 16.44% for Campbell Multi- Strategy Fund, and 4.33% for Brown Income Fund (net of all fees and the maximum cost recovery charge.) The strong market and significant deposits, at the end of the 3 rd quarter 2013, pushed assets under management in the JIT to $506.1 million, the highest level in the Foundation s 52-year history. A new mentoring model, in which the Foundation works with church ministries to promote planned gifts, has already been adopted by more than 40 congregations and ministries. The culture of many of these ministries is changing as receiving planned gifts becomes the expectation instead of the exception. One congregation, for example, two years ago had nine donors who had included the church in their estate plans. At a meeting with church leaders in October 2013, it was reported that 44 donors had put plans in place to bless the church with a legacy gift. Another congregation went from having no one with a known gift plan in place to having more than 20. These gift intentions show that these donors have a deep love for their churches and want to support that ministry with a legacy gift, even though the church may not receive that gift for another 10, 20 or 30 years. Through November 2013, $3,784,175 was received by the Foundation in permanent fund gifts. Of that total, $3,077,592 was contributed by individuals and organizations from across the life of the church and $706,583 came from legacy congregations. The Foundation, through eleven months of the year, received $635,303 for charitable trusts, which compares favorably to $580,565 received in all of In addition, Charitable Gift Annuity contracts worth $526,525 were written through Nov. 30. The generosity of donors and their deep commitment to the church continue to amaze and inspire. John and Maxine McCaw devoted their lives to education and the church. One day during a routine visit, they shared a vision they had been nurturing for decades. The church needs strong preachers, committed to the Gospel, unfettered with debt and poor health habits, they said. That conversation led to a major gift, half of which was funded last year and the remainder will be funded from their estate. It is fair to say that nobody saw this gift coming. John and Maxine certainly did not appear to have the capacity for a major gift. Both were educators, John taught religion at Drake University and Maxine was a music teacher. They raised four children, tended a garden, and were faithful members of Wakonda Christian Church in Des Moines. But what nobody could see deep within them was a vision growing into a passion. In the fall of 2013, four Disciples of Christ seminary students received a total of $20,000

4 in scholarships from the John and Maxine McCaw Scholarship Fund. Unfortunately, Maxine died a few months before the first distribution was made from their scholarship fund, but as John says, She knows that everything was put in place. Our vision is a reality. John and Maxine shot for the moon and they got there. May their willingness to dream big dreams inspire all of us to follow God s call and never settle for what is, but always reach for what can be! Please contact the members of our staff to allow us the privilege to assist you, your friends, your congregation or your region in this important ministry of the stewardship of accumulated resources, to help turn big dreams into realities: Gary W. Kidwell, President, or Ruth Weaver, Senior Vice President Lori Lucas, Vice President and Controller Jim Cullumber, Vice President of Communications Sue Hansen, Assistant Vice President of Gift Administration Joe Hartman, Assistant Vice President, Investments and Permanent Funds Cathie White, Supervisor of Investment Services W. Darwin Collins, Vice President Randall Johnson, Vice President Jerry Lang, Vice President 6915 S. Ulster Circle Centennial, CO Phone: Kirby Gould, Vice President 4601 Main Street Kansas City, MO Phone: Bobby Hawley, Vice President P. O. Box Fort Worth, TX Phone: Marilyn Fiddmont, Vice President 3223 Westheimer Road Houston, TX

5 Phone: Enrique Ocasio, Vice President for Hispanics and Puerto Rico Recommended Action: The General Board receives the report from the Christian Church Foundation.