2016 Annual Report
REIMAGINING MINISTRY
Dear faithful steward,
Thank you very much for your continued support of the Florida United Methodist Foundation. Your financial gifts last year allowed the foundation to significantly impact the ministries described in this annual report. And these represent only a few of the many ways the foundation strives to make a difference for our churches, our state and the world.
In 2016, the foundation celebrated its 50th anniversary, and during these past 50 years, we have seen our assets grow to more than $326 million. But the most important part of our story isn’t told by the financial assets we administer, but rather by the churches and lives your gifts have touched. Many of those assets were given so future generations could be inspired and experience life-transforming ministry.
In addition to our core business of stewardship education, investment management and loans to churches, the foundation feels a strong call to reach the next generation of believers. Last year, we established the FUTURE GENERATIONS FUND to provide resources that will help
churches strengthen and develop programs designed to nurture young people. I encourage you to consider giving to this very important cause. Your support will help future generations grow in their faith and become disciples committed to transforming the world.
As you consider how you might participate in the ministries of the foundation, I welcome your questions, suggestions and participation in the years to come. The future of the foundation has never been brighter, and I look forward to being on that journey with you.
Peace, REV. MARK BECKER President
photo: First UMC, Orlando (FUMF/Alain Boniec)
photos: FUMF/Tita Parham
YEAR IN REVIEW
You can learn about the foundation’s 2016 financial performance and growth in our loan and investment portfolios in the following pages. Here are just a few of the highlights:
172 Loans to United Methodist churches and agencies
$124 million
Total value of loans
$326 million
Total assets
3 out of 4
United Methodist churches in Florida having some kind of relationship with the foundation
In 1966, a group of visionary individuals believed the Florida Conference needed a way to financially invest in the future. Out of those discussions, the Florida United Methodist Foundation was born. Its vision flourished over the years, and on June 15, 2016, the foundation celebrated its 50th anniversary. That milestone gave staff and leaders the opportunity to look back at past accomplishments and forward to what the next 50 years might bring.
In this report, you’ll see how the foundation has partnered with churches and individuals to make a difference in the lives of people throughout our communities. We made loans to churches so they have the space they need to reach more people. We provided scholarships that helped students attend college with fewer financial worries. We awarded grants so children could attend summer programs that helped them experience the love of Christ. And we helped churches and individuals make the best
use of their resources, with churches earning nearly $3.9 million from investments in their Development Fund and investment accounts, while also gaining $2.2 million as beneficiaries of gifts from faithful stewards.
The future is also important to us. Tom Locke, president of the Texas Methodist Foundation, once asked, “If we have over $1 billion in assets, but serve a lesser church, have we been successful?” Clearly, the answer is no. The future of the church’s mission and the foundation are inextricably linked. That’s one reason we created the Future Generations Fund. Through it, we’re partnering with churches and ministries to reach the next generation of disciples so they can be part of vital communities of faith.
2016 was a successful and pivotal year for your foundation, with a focus on the future of our ministry together. We look forward to our continued efforts with the annual conference, our churches and many faithful individuals as we all work to make disciples of Jesus Christ for the transformation of the world.
JULIA MERCIER Board Chairperson
CELEBRATING THE PAST, LOOKING TO THE FUTURE
Nearly 300 guests gathered June 15 at the Walt Disney Swan Resort in Orlando to celebrate the foundation’s 50th anniversary and launch the Future Generations Fund as part of the foundation’s vision for the future.
With a “Mad About the Future” theme, the celebration offered a light-hearted look back at the 1960s, including a Lucille Ball celebrity impersonator appearance. Musicians from Bethune-Cookman University also performed, dedicating their gifts to families affected by the Pulse nightclub shooting in Orlando June 12. And Bishop Ken Carter acknowledged the foundation’s legacy of stewardship, referencing the proverb, “We enjoy the shade of trees that we did not plant.”
Following dinner and a live auction of 1960s-themed items, the celebration ended with an after-party of dancing to a live band. “It was fun to see so many people joining the board and staff to acknowledge and support the work of the foundation,” said Markita Cooper, a foundation board member and coemcee for the evening.
Guests and donors also celebrated by raising more than $52,000 for the long-term Future Generations Fund, which will provide grants to ministries that nurture young people. A key focus will be mission and outreach initiatives and selected ministry projects. Funds will also relieve some of the financial burden campus ministries face so they can spend less energy fundraising and more time working with students.
The foundation has broadened its grant program from brick-and-mortar funding for churches to supporting ministry through programs, such as the 2015 Passing the Torch Fund, which provides grants to help clergy defray education expenses. It’s part of a larger vision to support future ministry, and key to it are collaborations with conference ministries to identify funding needs. The first Future Generations Fund grants will be awarded in late 2017. Meanwhile, donors can help the fund grow as a commitment to raising the next generation of faithful Christians.
Learn more: www.fumf.org/50th-anniversary
— By Martha Chamberlain
1969 seminar on wills (FUMF/Florida Southern College)
FUMF/Tom Parham, top right; Armando Rodriguez, all others
DOING MORE FOR THE ONE BODY
Myles Collier needed to get his family out of a homeless shelter, but he didn’t know how. UMCM Suncoast did. The social service agency of the Florida Conference’s Gulf Central District helped Collier, his wife and 5-year-old stepson afford a new home after a rent-to-own deal left them stranded. The ministry provides housing, literacy, childhood education and food assistance programs to 15,000 people annually from Citrus to Manatee counties. And like the Colliers, the agency found itself without a home in 2016. Its building, a former United Methodist church, was sold, leaving the ministry with six weeks to relocate. The foundation’s Development Fund provided a solution — a $1.12 million loan that helped the ministry purchase and renovate two office buildings. It’s an example of how the foundation is reaching beyond churches to impact communities. And it’s just one way the fund is stepping outside its ministry box. In 2016, the fund loaned $1.5 million to the Alabama-West Florida Conference’s First United Methodist Church in Port St. Joe, the first loan to a church outside the Florida
Conference. That collaboration with other conferences and agencies is integral to the foundation’s vision for the future — as one part of a larger, stronger ministry connection.
1,872
Number of Development Fund accounts (individuals, churches, other entities)
27, $24.7 million
Number of loans approved, their value
$2.3 million, $1.3 million
Total interest earned from Development Fund investments, total earnings for churches
$5.8 million
Value of largest loan
$3.2 million
Growth in value of active loans
Read the full stories: www.fumf.org/loan-impacts-community and www.fumf.org/panhandle-church-loan
Breaking ground at First UMC, Port St. Joe (FUMC)
Rotunda under construction at First UMC, Port St. Joe (FUMF)
“After six months of renovations, we have the property we need to accommodate our growth and give us room to engage more volunteers in the work we do. We’re excited for the future.”
— Pamela Qualls, CEO, UMCM Suncoast
UMCM Suncoast Center for Early Learning (UMCM Suncoast)
MANAGING GOD’S MONEY FOR GOD’S MINISTRY
Michael Galy is an accountant, so he knows a thing or two about finances and investing. And he’s a lifelong Methodist, so he also knows about giving and serving. He’s using that expertise at Fulford United Methodist Church in North Miami Beach, where he’s been helping the church use its financial resources wisely since 2008. “If your church knows you’re a CPA, it doesn’t take long to be asked to be on the finance committee,” he said. That’s where he learned about the foundation’s Development Fund. And when he saw the interest rate investors earned, the CPA in him said it was a good investment for both the church and individuals like him and his wife, Lyssa, a local high school teacher. It was so good, he convinced his 85-yearold mother to invest when she complained about poor returns on her accounts. The fund provides low-interest loans to United Methodist churches and agencies for renovations, new construction and loan refinancing. At the same time, individuals and organizations investing in the fund receive a competitive interest rate. “I like to think we are being good stewards of God’s money,” Galy said. “It’s all his money anyway, and I think God would be happy for us to manage God’s money for God’s glory.”
1,038
Number of individuals invested in the Development Fund
$64.3 million
Amount invested by individuals
$956,823
Interest individuals earned 1.5%, 3.5% Investor interest rate, loan interest rate
New FSU/TCC Wesley Foundation building (FSUWF/Mike Toluba)
Memorial UMC, Fernandina Beach, under construction (MUMC)
“I have no question that being on the finance committee, learning about the Development Fund was all God’s plan. … We’re going to be able to manage more for God, and at the same time, God’s ministry is expanded. I see it as a win-win everywhere along the way.”
— Michael Galy, Development Fund investor
Michael and Lyssa Galy (FUMF/Tita Parham)
TRANSFORMING LIVES NOW, TOMORROW
Zion Methodist Children’s Home is located on a tiny island in the Bahamas, but it’s doing big things for children there. The 3.5-acre campus provides a safe haven for 16 children, all of whom have been abused. It’s a program of the Bahamas Conference of The Methodist Church, with children referred by courts, schools, churches and the government’s social services agency. Most stay for three months — the hope is to reunite with family. It’s a special place for the Zimmerman family. In fact, the entire country is. The Rev. Dr. Gene Zimmerman, affectionately called the godfather of The Methodist Church there, first visited the islands in 1958. Since then, he has filled in for pastors, helped youth get scholarships to U.S. colleges and seminaries, provided supplies and volunteers — anything needed. “We developed close friendships,” Zimmerman said. “It got to be our other home.” He and his daughter, Katharine, also helped raise $500,000 in funds and in-kind donations to build the home, launched in 2014. To continue that support and at the urging of Bahamian Methodists who value the family’s ministry, Katharine helped establish the Zimmerman Trust in 2016. Its funds will expand the home’s ministry and help Bahamian young people train for
ministry and attend Florida Conference camps. The foundation is helping fulfill that vision by managing the trust and accepting donations to it. It’s just one of the planned giving services the foundation provides to help faithful disciples continue a lifetime of Christian stewardship.
$39.3 million
Total value of planned gifts managed by the foundation (trusts, donor advised funds, charitable gift annuities)
$1.2 million
Value of stock gifts distributed to churches and agencies
$1 million
Value of gifts from charitable trusts and gift annuities distributed to churches and agencies
$114,144
Value of new planned gifts established by donors
(Donations to the Zimmerman Trust may be made by contacting the foundation or mailing a check with Zimmerman Trust in the memo line and designated ZCH, scholarships or camps.)
Children’s home under construction (ZCH/John Armstrong)
Children’s home consecration (ZCH/Katharine Zimmerman)
“We knew with 50 years’ worth of experience it was an organization of integrity and financial stability. … Money management is not my skill set. I know (the trust) is in good hands.”
— Katharine Zimmerman, planned giving client
Rev. Dr. Gene and Katharine Zimmerman (ZCH/M’Lou Rossi)
STRONG FAITH, BRIGHT FUTURE
Oliver Tribbie has a dream — to design computer programs and video games. He’ll achieve it with a degree from Florida Polytechnic University. In 2016, he became a freshman there. But reaching that milestone was difficult. By 25 months old, doctors had removed two tumors from Tribbie’s spinal cord, leaving little sensation in his legs. Despite that challenge, St. Paul United Methodist Church in Largo helped him thrive. “Through my church I have done things no child in a wheelchair could ever dream of accomplishing,” he said. “God has had my back all the way.” The foundation’s Sinclair Scholarship program also has his back, providing up to $12,000 toward Tribbie’s undergraduate work. Longtime United Methodists Aleen and Carson Sinclair established the awards to nurture young people and their leadership potential. The foundation manages the program’s funds and chooses recipients each year. It’s making a difference. So is the foundation’s grant program. Funded with excess revenue each year, grants meet emergency church needs, but they also support ministries that help
young people grow. The foundation expanded that commitment in 2016 by launching the Future Generations Fund — so churches and individuals can partner to foster the next generations of faithful disciples.
$52,000
Donated to the Future Generations Fund
$37,500
Tuition paid on behalf of 16 Sinclair Scholarship recipients
$32,500, $12,047
Grants awarded to 13 new clergy to defray education expenses, funding for clergy stewardship/financial education
$12,900
Grant to Simpson Memorial United Methodist Church, Jacksonville, for its summer camp for at-risk children
$10,000
Grant to the United Methodist Foundation of Louisiana for flood relief
Meet the 2016 Sinclair scholars: www.fumf.org/scholarship-recipients
Simpson Memorial UMC, Jacksonville, summer camp (FUMF/Tita Parham)
Louisiana flood relief (UMNS/Mike DuBose)
“I am very happy to have applied and to have this opportunity, and I’ll always be grateful for this assistance. … I can’t wait to see what God has in store for my life going forward.”
— Oliver Tribbie, Sinclair Scholarship recipient
Oliver Tribbie at Florida Polytechnic University (Oliver Tribbie)
MINISTRY THAT LASTS
Vernon Swartsel has heard people say endowments make churches complacent — more inclined to live off those funds. He disagrees. “All of us have a duty to provide for the future,” he says, “and one way we can do that is to have some endowed funds.” His church does — nearly a dozen. Swartsel is a member at First United Methodist Church in Orlando and chairperson of its endowment committee. His team manages endowments that fund mission work in the United States and provide about $40,000 in college scholarships each year. One fund supports theological education and guest speakers. Another bolsters the budget. The church began investing those resources in the foundation’s managed investment funds in 1995. They’ve continued, Swartsel says, because they feel good about the foundation’s leadership, its investment options and the socially driven nature of the funds. Consistent growth has also been key — one endowment has gained $300,000. The foundation is a “family investment,” says the Rev. Tom McCloskey, the church’s lead pastor. “We’re all in the same business together.” And that, he says, is spreading the Gospel, sustaining the church and bringing “people into a relationship with God through Jesus.”
$130.8 million
Balance of assets in the foundation’s investment funds
$2.6 million
Total the conference, churches and agencies earned from investments in the funds 290
Number of accounts
Contemporary service, First UMC, Orlando (FUMF/Alain Boniec)
“I
doubt we would have (established the endowments) if the foundation hadn’t been there. … The foundation is really looking after the churches. It’s been a very good relationship over the years.”
—
Vernon Swartsel, endowment committee chairperson, First United Methodist Church, Orlando
The children’s message with Rev. Tom McCloskey, First UMC, Orlando (FUMF/Alain Boniec)
NOT ONE THING, BUT EVERYTHING 255
Stewardship is “the total package,” says Donald Miller, a trustee and member at Faith United Methodist Church in Boynton Beach. It’s making sure the property is in good shape, caring for members and ensuring there’s money for ministry and operations. It’s also talking about giving and generosity all year, cutting expenses and making facilities environmentally friendly. Faith has been working on that whole package for years, including sharing pastors and ministries with First United Methodist Church downtown to maximize resources. The foundation has been with them along the way. Tom Wilkinson, the foundation’s vice president of new business and church relations, has preached on how giving impacts ministry, coordinated classes for church leaders, met with individual givers — all to help members be good stewards of their gifts and the church’s resources. It’s just one of the stewardship services the foundation provides. “(Tom’s) been able to reiterate all the things we teach … throughout the year, but he’s been able to say it in a different way,” said the Rev. Matt White, the church’s lead pastor. “(Members) knew the message and were reminded of it. … People are rising up and giving.”
Number of staff calls and meetings with church members and district leaders offering assistance with planned giving, and stewardship initiatives
16
Number of Faithful Expressions
Workshops provided to churches — explores the practical, legal and spiritual steps taken as part of a lifetime of Christian stewardship and offers guidance on end-of-life issues
Members at Faith UMC, Boynton Beach (FUMF/Alain Boniec)
Worship at Faith UMC, Boynton Beach (FUMF/Alain Boniec)
“I appreciate the fact there’s a lot of experience there. They have seen it, they have done it, and they are willing to share it and do. … The foundation is willing to work with you. They would rather see you succeed than fail.”
— Donald Miller, trustee, Faith United Methodist Church, Boynton Beach
Rev. Matt White and ushers during worship (FUMF/Alain Boniec)
PEACE OF MIND
The Rev. John Hay had several “aha” moments after deciding to retire. One was realizing he and his wife, Marie, would not receive the full amount contributed to their pension the day they retire. The couple had also wanted to use a small pension from Marie’s job with the state to finance the home they’re building, not realizing the income would put them in a higher tax bracket. The foundation’s financial planning consultations with the couple cleared up those misconceptions and more. Hay says the Rev. John Peterson, a certified financial planner and the foundation’s vice president of stewardship and education, helped them better understand the pension program and tax options and how to use their funds most effectively. The free planning for clergy, a service resumed by the foundation in 2016, also includes assistance completing pension and social security elections before retirement. Hay wishes they had started planning and saving earlier. “We were never taught this” during seminary, he said. But with the advice they’ve now gotten, Hay says they are more confident about their financial security. “John has given us such an affirmation that we are going to be fine,” Hay said. “It’s working out well.”
Personal connection
Hired the Rev. John Peterson, increasing support to churches and members and providing financial planning for clergy
56
Number of participants at R-10 and Counting, an annual seminar for clergy retiring within 10 years
39
Number of participants at the Clergy Retirement Workshop, a one-day session each spring for clergy retiring that year
2016 Clergy Retirement Workshop (FUMF/Tita Parham)
“John
Peterson helped me understand the pension program. … He made very good recommendations about (taxes). We feel a whole lot better now than we did months ago. He has given us incredible, incredible retirement advice.”
— Rev. John Hay, 2017 retiree
Rev. John and Marie Hay (FUMF/Tita Parham)
ASSETS
Cash,
LIABILITIES, NET ASSETS LIABILITIES Accounts
STATEMENT OF ACTIVITIES, CHANGE IN NET ASSETS REVENUE
Ending Balance Dec. 31, 2016
$281,868 Cautious $2,979,494 Income With Growth $65,628,970 Balanced Growth $17,798,264 Growth
$1,369,885 Aggressive Growth
$5,253,480 Charitable Gift Annuity
$93,311,961 TOTAL
BOARD MEMBERS (2016–2017)
JULIA MERCIER
CHAIRPERSON
Partner
Mercier CPA Associates, PA
Englewood UMC
ROBERT WHITE
VICE CHAIRPERSON
President
White and Luczak, PA
Asbury UMC, Maitland
BEVERLY JUDGE SECRETARY
Retired Executive Vice President/Chief
Operating Officer
Faith & Values Media
Coronado Community UMC, New Smyrna Beach
REV. LAWRENCE BARRINER
Simpson Memorial UMC, Jacksonville
STEPHEN R. BELL
Student Development Technology Coordinator
Florida Southern College
Heritage UMC, Clearwater
REV. GUSTAVO BETANCOURT
Property and Project Manager
Florida Conference South East District
Peace UMC, Miami
DAVID BUTCHER
Associate/Senior Project Manager
Amec Foster Wheeler Environment & Infrastructure Inc.
First UMC, Plant City
MARKITA COOPER
Professor
Florida A&M University College of Law
Peace UMC, Orlando
ANN EPPINGER DAVIDSON
President
Eppinger and Associates LLC
St. Luke’s UMC, Orlando
P.J. GARDNER
Co-founder/Managing Member
AGW Capital Advisors
Hyde Park UMC, Tampa
DAN HAGER
President
West Florida Market Harbor Community Bank
Trinity UMC, Bradenton
REV. HAROLD HENDREN
New Covenant UMC, The Villages
SHERRY HOUSTON
Executive Director
Ronald McDonald House Charities of North Central Florida
Trinity UMC, Gainesville
PHYLLIS KLOCK
Retired President/Chief Operating Officer
Comp Benefits Corporation
Asbury UMC, Maitland
REV. DR. GERALDINE MCCLELLAN
Mt. Pleasant UMC, Gainesville
REV. STEVE PRICE
Co-pastor
Trinity UMC, Gainesville
BOB SHOWALTER
Retired Chairman
Showalter Flying Service Inc.
Asbury UMC, Maitland
JANE ZODY
Accounting Information Systems Manager
Florida State Board of Administration
Bethel UMC, Tallahassee
NONVOTING, EX-OFFICIO DIRECTORS
FLORIDA CONFERENCE
BISHOP KENNETH H. CARTER JR.
REV. DR. SHARON AUSTIN
Director, Connectional Ministries
TONY PRESTIPINO, Treasurer
JUNE 2017
(Pending approval at the 2017 annual meeting)
ROBERT WHITE CHAIRPERSON
DAN HAGER VICE CHAIRPERSON
WILLIAM FRYE JR.
President
Florida Sheriffs Youth Ranches Inc.
Youth Ranch Chapel, Boys Ranch (Live Oak)
LARRY HANNAH
President, Demeter Energy LLC
Chairman, OMNI AI LLC
Boca Grande Lighthouse UMC
EVANS HUBBARD
Retired Executive Vice President, Hubbard
Construction Company
President, Mel Friends Inc.
St. Luke’s UMC, Orlando
STAFF OFFICERS
GINNY GARSKE
ASSISTANT SECRETARY
MARGARET COX TREASURER
REV. MARK BECKER
PRESIDENT
ANDY CRASKE
PAM HICKS
REV. JOHN PETERSON
J. THOMAS WILKINSON
VICE PRESIDENTS
866-363-9673 |
First UMC, Orlando (FUMF/Alain Boniec)
Florida United Methodist Foundation Inc.
P.O. Box 3549
Lakeland, FL 33802-3549
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