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16 A N N U A L R E P O R T Valley Family Church 2016

CONTENTS Letter From Pastors... Weekend... Series... 25th Anniversary... Events of 2016... Kids / Students / Young Adults... Growth Track... Outreach... Basics with Beth... Boom Network... Financial Report...

LETTER FROM YOUR PASTORS Because of God s amazing grace and your prayers, generous giving and willingness to serve, 2016 was one of Valley Family Church s best years to date. We hit a couple of huge milestone as we celebrated 25 years of ministry as a church and we celebrated 30 years of marriage. In 2016, we were able to reach m ore kids, students, families and individuals with the gospel of Jesus throughout Southwest Michigan and beyond than ever before, it was a fantastic year. Through our w weekend s services, we heard consistent testimonies of how the Lord impacted people through worship and the Word. Through our K ids and s students m ministries, we saw thousands of young people from birth through the college years grow in their relationship with God. Through FridayGroceries and our Thrift Store outreach efforts, we literally gave away tens of thousands of meals to thousands of people and we even reached our millionth meal mark in October. We are so excited for what God has ahead for us all as we launch into 2017. Thank you for your part in helping us as we work together with Jesus Christ as He builds His church in Southwest Michigan and beyond! With love and gratitude, JEFF & BETH JONES Senior Pastors Valley Family Church

3,835 salvations WEEKEND SERVICES KALAMAZOO, MI We champion the Church! Jesus loves His Church - people, not the steeple. In fact, it s the only thing He gave His life for. So, we have His heart for His house and we align our lives with His primary purpose - building His Church! From birth through adult, the whole family is being ministered to on Sundays. Together, with the Lord, we are building a movement not a monument. Eternity is a long time so we take God, His Word, His Church and the Great Commission seriously. We are focused on constant change and continual growth and are always focused on reaching people for Christ and expanding our influence for the gospel. Through weekend services the Word is going forth and lives are being changed as they are connected to Jesus. In 2016, we saw 3,835 salvations. That s a number worth celebrating it s why we do what we do! Thousands of lives forever changed by making Jesus the Lord of their life. There s no place like home. There s nothing like family. You belong here.

SERIES 2016 The most important thing we do as a church is preach God s Word. It s the only thing that can effect a heart for eternity. WHY I KNOW ESCAPE LOVE, HONOR & CHERISH UP EASTER HE LOVES ME SPIRIT EMPOWERED LIFE WEALTH AND GENEROSITY 25TH ANNIVERSARY THE INSPIRED LIFE PRAY-VERSATION BEHOLD, I BRING YOU PLAID TIDINGS The keystone of our faith is not solely that Jesus lived or that He died, it s that He s alive! Why I Know Pastor Jeff God loves you the exact same way He loved Jesus and you are accepted in the Beloved! He Loves Me Pastor Beth The Story begins with a baby in a manger, then a man on a cross and ends with a King on the throne. Behold, I Bring You Plaid Tidings Pastor Jeff The more you behold Jesus, the more you will experience His goodness! The more you behold Him, the more you are transformed into His image! Pray-versation Pastor Beth

25TH ANNIVERSARY We see a large family church with a global impact - a church where we experience God s great love and great joy - a church where we live by great faith, live for the great commission and live out the great commandment. 2016 marked our 25th anniversary as a church. 25 years of sowing God s Word, His love and His gospel into Kalamazoo and the surrounding region. As we reflect on what is ahead for VFC, we have great expectation in our hearts for what the next 25 years will look like as we continue to partner with God to reach southwest Michigan and beyond. One of our Core Values, We Live By Six Greats, defines our history and our future well: We love being a church where God s great love and great joy abound; being people who live by great faith, live for the great commission and live out the great commandment - and doing all of this by the power of the Greater One. The best is yet to come.

WE CHAMPION THE CHURCH MATTHEW 16

WE ARE BUILDING A MOVEMENT NOT A MONUMENT ACTS 12

KIDS & STUDENTS Every Sunday, we minister to nearly 600 kids and students, birth through high school. From the smallest of babies to the most mature of students, we are teaching and training them to become world changers for the Kingdom of God. EPIC COMMISSION EPIC Commission (EC) is our twoyear discipleship program for 18-24 year-olds. EC is a mix of Bible Classes, Internship, Discipleship, and Community that positions students to live the life God created for them. The 2015-16 class graduated 34 first and second year students. The 2016-17 class anticipates 32 first and second year graduates. Preschool & Elementary Birth-4th Grade: Average Sunday Attendance: 355 1st-4th Grade First Time Guests: 264 1st-4th Grade Salvations: 34/Monthly Average Flex Club 5th-7th Grade 5th-7th Grade Average Sunday Attendance: 111 5th-7th Grade First Time Guests: 260 5th-7th Grade Salvations: 24/Monthly Average VOX Youth 8th-12th Grade 8th-12th Grade Average Sunday Attendance: 119 8th-12th Grade First Time Guests: 252 8th-12th Grade Salvations: 272

GROWTH TRACK In 2016 our brand new Valley Growth Track was launched. We believe people flourish as they grow in their faith and in their relationships with others. Each step in the process provides attendees with the opportunity to grow spiritually, while also developing community with others. The Growth Track is for anyone - whether it s their first time to church or they ve been calling VFC home for years. The Growth Track consists of three sequential steps: Valley Vibe, Valley Basics, and Valley University. Through completing each step, a person will get connected to Jesus, find their place to serve at Valley Family Church, grow in the basics of their faith through foundational Bible teaching and become a mature believer able to disciple others in their faith. 1 2 3 STEP ONE: VALLEY VIBE STEP TWO: VALLEY BASICS STEP THREE: VALLEY UNIVERSITY In 2016, 255 people completed step one of the Valley Vibe and are on their way to completing step two in Valley Basics. Valley University saw 97 students complete the 2016 school year and anticipate 99 students will complete the 2017 school year. Two aspects of the Growth Track involve joining the VCrew (the army of volunteers that make Sundays happen) and a GIG (our version of small groups). We couldn t do without the hearts and hands of faithful people serving others each Sunday. 851 VFCers actively serve on the VCrew in various serving roles from the parking lot to the sanctuary, and every role matters! 57+ GIG groups VCREW 851 on the VCrew GIGS 850+ VFCers in a small group With over 57 GIG groups actively meeting each month, the level of connectedness across VFC has increased and meaningful relationships with iron sharpens iron friends are forming like wildfire. Seeing our church family grow more closely knit, walk through real life situations together and providing Godly encouragement to each other has been incredibly rewarding! That equals over 850 VFCers actively connecting in a small group.

Outreach is an important priority of VFC. One of our core values defines this pursuit well, Generosity Defines Us, we are known for generosity in our personal giving, in caring for one another, in giving to our community and those in need around the world. The main thrust of our local outreach is through FridayGroceries. In 2016 we ONE MILLION meals provided celebrated our three-year anniversary and reached the 1,000, 000 meals provided milestone. We were able to expand into new territory by launching MobileGroceries in the community of Lawton. Not only did we break new barriers, but we saw lives changed forever as 667 people gave their lives to Jesus during our devotional services offered on Friday mornings. FRIDAY GROCERIES 2016 STATS 80 Hours Open 45,632 People Fed 377,599 Meals Provided 667 Salvations 322 Bibles Given Away MISSIONS GIVING AROUND THE WORLD Building Homes for Widows in Guatemala Evangelism in Africa, Peru and Jamaica Grants & Scholarships for At-Risk Children in Inner Cities International Fellowship of Christians and Jews Kalamazoo Gospel Mission Ministry to At-Risk Young Women Mission of Life Orphanage in Haiti Rhema Bible Church & Training College Rhema Europe, Middle East & Africa Rhema Mexico Rhema Nigeria & Egypt Rhema Singapore Rhema UK & Ireland Rhema Zambia Supporting Various Pastoral Networks

HAITI ORPHANAGE For the past three years we have supported an orphanage in Carrefour, Haiti - Kominote ti Fanmi Nou. Through our support, we were able to provide over 60,000 meals to the children living in the orphanage. During our trip to the orphanage in 2016 our team of 12 people repainted the entire compound inside and out, provided new dining tables and chairs, provided seal-able food storage for their pantry, and worked on interactive projects with the kids. LOVE WEEK One week each summer we partner with FridayGroceries to put on Love Week. Across 6 nights and 6 communities around southwest Michigan we provided free groceries, backto-school backpacks, clothing, and books for families in need. 6 Communities Lawrence, Lawton, Comstock, Gobles, Centreville, Kalamazoo 4,014 People Fed 30,080 Meals Provided 1,000 Back-to-School Backpacks Given to Kids VALLEY CHRISTMAS DINNER During the Christmas season, our church family rallies together to help provide full Christmas dinners for our FridayGroceries guests. Families, GIGs, VCrew teams and friends came together to adopt a bag and shopped for the supplies and ingredients for Christmas dinner. VFC tops each bag off with hams, potatoes, rolls and more. This year, we were able to provide 1,000 full Christmas dinners to people from all over SW Michigan facing food insecurity! VALLEY THRIFT STORE To help support our various outreach initiatives, the Valley Thrift Store is open to our community. This donation-driven outreach has helped us to feed southwest Michigan through our weekly FridayGroceries ministry.

BASICS WITH BETH THEBASICSWITHBETH.COM For more than 30 years, Pastor Beth Jones has been helping people get the basics of God s Word through pastoring at Valley Family Church, authoring 20+ books and speaking/teaching at churches and conferences around the world. We have seen incredible fruit, both in this lifetime and for eternity, as a result of her efforts. Through The Basics With Beth, an outreach of Valley Family Church that launched in 2016, we want millions more get the basics - the truth of God s Word - so that they can live the life they love! In today s rapidly changing technology culture, that means packaging the basics in ways that can be accessed digitally, straight from your phone, tablet or computer. The Basics With Beth endeavors to do so by utilizing a variety of platforms to teach the basics including: The Basics University - an online discipleship process with on-demand courses available 24/7 The Basics TV The Basics With Beth podcast Social media outreach Partnerships with global organizations Publishing new books And more! To be mature is to be basic. Christ! No more, no less. Colossians 1:28

BASICS WITH BETH WHAT LAUNCHED IN 2016 The Basics University Launched The Basics University in October 2016 Launched First Course: The Inspired Life - How To Live The Life You Love with 241 people (to date) going through this course Filmed the next two courses: The Spirit Empowered Life and The Generous Life (to launch 2017) The Basics TV Filmed a 5 episode pilot mini-series for The Basics With Beth TV based on The Inspired Life course. Prayerfully considering best avenues to share TV content: online platforms vs. traditional TV to launch in 2017 The Basics With Beth Podcast Recorded 17+ interviews with VFC guests, pastors and ministry friends in 2016 Guests include Dr. Dave Martin, Nicole Crank, Tim Hawkins, Dr. Greg and Erin Smalley, and more. Podcast to launch on itunes in February 2017. Books: Pastor Beth authored and released two new books in 2016: The Spirited Empowered Life: Find Your Flow Wealth & Generosity: Living In God s Economy Social Media Total Reach: 17,348 The Basics Daily Devo Subscribers: 4,430

THE BOOM NETWORK FRIENDS DON T LET FRIENDS DO MINISTRY ALONE The BOOM Network was launched in 2016 as an outreach of Valley Family Church specifically for the purpose of connecting Senior Pastors and their spouses, Pastoral Staff and their spouses, Missionaries and their spouses, and PK s to one another to build friendships and be sharpened in ministry. Those in ministry know first hand that pouring into others is a great joy, but can at times be lonely. Pastors Jeff and Beth have a heart to help other pastors and those in ministry around the world connect with one another and know they are not alone.the BOOM Network was launched to help ministry leaders build iron-sharpens- iron relationships through fun and sharpening events each year. In 2016, 82 adults and 66 kids joined The BOOM Network. Through the Launch Party in July and the Sharpen Your Ax event in October, The BOOM Network saw Pastors and ministry leaders finding friendships and connections!

GIVING STATEMENT 2016 GIVING TOTALS Donations / Benevolence *Local Community Outreach Missions Giving Total $100,119 $1 Million $53,700 $1,153,819 *The value of VFC s local community outreach easily equals or exceeds $1 million dollars in gifts given to those in need in our community. Whether it was through the FridayGroceries Outreach, Love Week, FridayGroceries Christmas Dinner or other outreach events, hundreds of thousands of dollars of goods and countless volunteer hours were gladly poured into southwest Michigan in 2016. Heart for the House Campaign Giving $464,123 The Heart for the House Campaign is our annual fundraising initiative through which VFCers (and those who do not attend VFC, but who have a heart for what we are doing) commit to give above and beyond their normal tithes and offerings to advance the kingdom of God through Valley Family Church. Because of the faithfulness of those who pledged and gave towards Heart for the House we were able to reach more people through several of our community outreach activities, church expansion and campus upgrades, such as upgraded equipment for FridayGroceries, funds for Love Week and Christmas Dinner, updated landscaping, north steps snow melt and irrigation water wall, upgraded camera system, Cathedral boiler replacement and IT and Media Tech equipment upgrades.

FINANCIAL REPORTS BALANCE SHEET CURRENT ASSETS Cash Inventories & Other Current Assets Accounts Receivable Investments Total Current Assets $540,307 $29,452 $0 $207,059 $776,818 PROPERTY & EQUIPMENT Main Campus Other Properties Equipment Accumulated Depreciation Total Properties & Equipment $10,432,068 $1,509,259 $1,336,653 ($2,404,379) $10,873,601 SUMMARY OF ASSETS & PROPERTIES Total Current Assets Total Property & Equipment Total Assets, Properties & Equipment $776,818 $10,873,601 $11,650,419 LIABILITIES Long Term Liabilities Other Liabilities Total Liabilities Total Equity $8,991,295 $187,006 $9,178,301 $2,472,118 SUMMARY OF LIABILITIES & EQUITY Total Liabilities Total Equity Total Liabilities & Equity $9,178,301 $2,272,118 $11,650,419

FINANCIAL REPORTS STATEMENT OF OPERATIONS REVENUE & SUPPORT General Offerings Designated Contributions Events/Tuition/Sales/Rents Grand Total $4,010,641 $519,680 $704,052 $5,234,374 MINISTRY OPERATING EXPENSES Christian Education Admin/Office Human Resources Properties Special Events/Guest Speakers Marketing/Advertising Information Technologies Care/Outreach Ministries Media Tech/Video Production/Worship General Church Expenses Giving Total Total Operating Expenses $367,891 $264,087 $2,289,836 $345,956 $52,954 $36,149 $96,367 $326,399 $87,303 $802,074 $153,819 $4,822,834 SUMMARY Total Revenue & Support Total Operating Expenses Net Income $5,234,374 $4,822,834 $411,540

There s no place like home. There s nothing like family. You belong here.