T H E
B APTIST
SPRING 2009
FOUNDA TI ON
OF
OKLA H O M A
VOLUME THREE, ISSUE ONE
GENEROSITY Staying on Mission
Spring 2009 | Volume 3, Issue 1
J
ohn Maxwell said, “A difficult time can be more readily endured if we retain the conviction that our existence holds a purpose, a cause to pursue…a goal to achieve.” The financial market decline, which began in late 2008, and has likely touched most everyone you and I know, has placed our country in the middle of difficult times. It is presenting the Foundation and other charitable organizations with a myriad of challenges and opportunities. As a charitable organization, we have the opportunity to demonstrate our ability to stay focused on and engaged in the Foundation’s mission, “…to promote charitable planned giving and provide financial management for the gifts that strengthen Southern Baptist ministries today and tomorrow.” This mission will lead us in good financial times and through trying financial times. You as Foundation donors have set the example for your fellow Oklahoma Baptists by staying on mission and supporting Southern Baptist ministries with your resources. For the second consecutive year in a row the Foundation made more than $10 million available for distribution to approximately 300 charitable causes in Oklahoma, around the nation and throughout the world. Mailing the annual distribution checks is a highpoint of each year. The articles you will read in this issue are examples of individuals who have stayed on mission. Betty Jo Chesher Harper knew her purpose in life was to serve Christ and share His love with her family and the people she served through the Baptist Mission Center. After her death, her family wanted to continue that legacy and created an endowment that will continue to carry on their mother’s purpose. Sarah Williams has always lived her life aware of and thankful for the resources God has given her. You will see how she stays focused on stewardship in her day-to-day activities. Kathy Lee Hatchett, the Foundation’s contact for Women’s Estate Planning, shares with readers how women can gain focus and financial confidence in an uncertain economy. And, New Hope Baptist Church of Mannford has stayed on mission as they held church throughout the years in a Bingo Hall and then in their current location, a former dance hall. They continue to stay on point and have bought land with a Foundation Church Building Loan. “Every time we’ve stepped out on faith, we’ve grown,” said Pastor Manuel Parker. Absent a significant market recovery in the near term, the Foundation will be called to make tough decisions regarding expenses, fees and distributions. Staff members are working proactively to identify stress points and develop viable alternatives and solutions. Please pray for wisdom for the Foundation staff as we wrestle with these issues in upcoming months.
A magazine for clients and stakeholders who support The Baptist Foundation of Oklahoma’s mission to promote Christian stewardship and provide financial management for the gifts that strengthen Southern Baptist ministries.
Production
Barros Design Group| Design Layout Bill Pope| Photographer Taprina Milburn| Editor
Send questions/comments to: Editor, Generosity 3800 N. May Avenue Oklahoma City, OK 73112 generosity@bfok.org
Administration
Robert Kellogg| President & CEO Jim Wilsie| Executive Vice President & CFO Janna Charles| Executive Assistant to the President Dan Allen| Senior Vice President, Donor Services & Tulsa Regional Office Shryln Treadwell| Senior Vice President, Beneficiary Services Jerry Vaughan| Senior Vice President, Foundation Loan Services & Real Estate David Depuy| Vice President, Director of Investments Michael Romero| Vice President and Trust Counsel John Schantz| Vice President, Operations
Area Managers
Curt Gathright| Northwest Area Manager Kathy Lee Hatchett| Estate Stewardship Counselor, Central OKC Area Paul Kersh| Southwest Area Manager David Polk| Southeast Area Manager Jerry Zumwalt| Northeast Area Manager Generosity is published in the fall and spring by The Baptist Foundation of Oklahoma, Oklahoma City, Oklahoma. Recipients include approximately 10,000 clients, stakeholders, and churches in Oklahoma. To request a copy or to update mailing information, please call 405.949.9500. “…through us your generosity will result in thanksgiving to God.” II Corinthians 9:11
Robert Kellogg Foundation President & CEO
CONTENTS COVER STORY
2
A Mother’s Legacy
Gift Will Touch Many Girls’ Lives
FEATURES
4 7 2 8
8
Financially Boggled to Financially Bold
Gaining Confidence in Uncertain Economic Times
Auguie Henry Society Members Enrich Lives
Sarah Williams Demonstrates Generosity
Teaching Others About Generosity by Living with Purpose
ON THE COVER
Baptist Home for Girls, Madill. The Annual Raymond Gary Fish Fry. See article on page 2.
DEPARTMENTS
10
www.bfok.org
Donor Services
Stable Income in an Unstable Economy A Case for the Charitable Gift Annuity by Dan Allen, Senior Vice President, Donor Services
Investments
Market Commentary The Credit Crisis of 2008 by David Depuy, Vice President, Director of Investments
10 The Baptist Foundation of Oklahoma
12
Congregation Steps Out on Faith to Buy Property
Generosity
11
Church Building Loans & Investment Funds
1
Wallace gift honors mother’s lifelong purpose: Front, left to right, Audrey and Cooper Edelen, Vickie Wallace and Giana Marie Summers, Lauren and Trey Summers; Back, left to right: Jarrod Edelen, Gil Wallace, and Carlton Summers.
Generosity
The Baptist Foundation of Oklahoma
B
2
etty Jo Chesher Harper lived
ing to the area’s poor. Betty Jo was in-
with a radiant love for Christ
volved during a time when BMC also
and the heart of a servant.
provided school supplies, breakfast,
“Her whole purpose in all that she
and preschool classes for the area’s
did was to share Christ’s love with
children ages three to kindergarten.
others as He shared His love with
Vickie said that her father Dwayne
us,” said Vickie and Gil Wallace,
Harper, Katy, Texas, knew from the
Betty Jo’s daughter and son-in-law of
first time he met her mother that her
Ardmore.
purpose was to serve Christ.
Betty Jo, who died in 1995, began
“Dad supported her and had a heart
volunteering in the late 1960s at the Bap-
for the ministries she was involved in,”
tist Mission Center in south Oklahoma City and eventually became the director where she served until the 1970s. The BMC provides food, clothing, medical services, and counsel-
Vickie said. “He trusted that God was with
Betty Jo
her and her faith made his faith in Christ much stronger. We got to see our parents live out their faith together.”
Many times Betty Jo would bring a child home from the
In a worn Bible given to Betty Jo one Christmas by her
BMC or a girl from the Baptist Home for Girls to spend
nine grandchildren, each child wrote a note of gratitude to
the weekend with Vickie and her two brothers, Aubrey
their grandmother thanking her for her strong faith and
and Bryan.
for teaching them about Christ.
“In doing this she taught us that there were people who
“She was the steady in the family and held things to-
had needs. My mom had a compassionate way of spread-
gether and that always came with an altar call,” Gil re-
ing the good news of Christ with children. My brothers
membered fondly. “Her example showed us how to study,
and I, and our friends, got to watch this process of help-
worship and put faith into practice during times of trials
ing and sharing Christ’s love with others,” Vickie said. “She
because we saw her do this. When we come to hard places
gave us the gift of seeing young children come to know
in our lives, we know where to go because of her example
Christ and the hope, grace, and mercy that comes with
and we have tried to pass that on to our kids as well.”
having Christ in your life.”
To honor and continue Betty Jo’s legacy, Gil and Vickie,
She also knew that if she ministered to children, she
along with their daughters Lauren Summers, 28, and Au-
would eventually have the opportunity to minister to their
drey Edelen, 26, and their families, created The Betty Jo
parents, Vickie said.
Chesher Harper Memorial Endowment Trust.
It was not out-of-the-ordinary for Betty Jo to pack up a
The family believed the logical beneficiary of the trust,
U-Haul truck with Bibles, clothing, and blankets and head
managed by the Foundation, should be a local Baptist
to Mexico with her sisters to minister to families or to visit
organization that serves children and shares the hope of
Oklahoma City’s impoverished Mulligan Flats neighbor-
Christ, as Betty Jo had done for so many years, Gil said.
hood to help local children and their parents.
The endowment will benefit the Baptist Home for Girls
“She’d step into a house made of cardboard and ask if
of Madill.
the family needed food or clothing,” Vickie said. “She’d let
In the years since Betty Jo died, Vickie’s friends have
them know that the gift wasn’t from her but from the Bap-
asked what it was about her mother that made her such a
tist Missions Center and ultimately Jesus Christ.”
happy person.
Betty Jo was so effective with children because she remained a peer to children, her son-in-law Gil added.
“My mom’s desire to be a servant for Christ was obvious and she illuminated Christ’s love. She first shared that
“She never lost the child-like innocence. She was more
Christian faith with her husband, children and grandchil-
comfortable around kids and more childlike in the way
dren and then she shared it with others. When you leave
she thought. She was that way with the children she helped
that kind of legacy, you are affecting people’s lives,” Vickie
and with her grandchildren,” he said.
said.
Baptist Home for Girls, Madill Generosity
The mission of the Baptist Home for Girls is to help young girls become godly, virtuous women who reflect Christ’s love for others and to give them hope for the future by providing The campus is six miles south of Madill in a rural setting and serves girls ages six to 18. The home does not receive government funding but relies on the gifts of generous donors. To learn more about the Baptist Home for Girls visit www.obhc.org. www.bfok.org
The Betty Jo Cheshe r Harper trust will he lp the lives of girls at the Ba ptist Home for Girls, (Photo provided by Ok Madill. lahoma Baptist Homes for Children)
The Baptist Foundation of Oklahoma
a Christian home and sharing Christ’s love for them.
3
Financially
to
BOLD
How Women Can Gain Confidence in Uncertain Economic Times When a woman educates herself about financial is-
tributed at your passing, designates a guardianship for
sues and puts an estate plan in place, she moves from
minor children, prepares for possible incapacity issues,
financially boggled to financially bold and gains a new
and includes end-of-life directives. It’s also important
level of confidence, says Kathy Lee Hatchett, the Foun-
to understand that every woman needs an estate plan
dation’s contact for women’s estate planning.
whether she has a very small estate or a large estate.
Many women are concerned about the economic uncertainty. Hatchett addresses some of the concerns
KLH: Women have a strong need for security, espe-
God’s purposes for finances, stewardship, budgeting,
cially in difficult times. Women are typically not risk-
debt, and the importance of life insurance and estate
takers. Therefore, many women tend to be the movers
planning. In the following question and answer seg-
in getting an estate plan in place. Women need to be
ment, Hatchett, Foundation estate planning counselor,
more involved and educated regarding financial issues
explains that when a woman has a plan in place it sat-
and estate planning since, on average, we live longer
isfies her need for security and God’s instruction for
than men do. Statistics show that wives have a greater
stewardship.
chance of serving as caregiver to a sick husband. A plan
The Baptist Foundation of Oklahoma
have one?
Generosity
differently than men?
when she speaks to women’s groups on the subjects of
What is an estate plan and why is it important to
4
Do women approach finances and estate planning
reduces the stress in women’s lives when they have a better grasp of financial issues and have an estate plan
KLH: It’s important to remember that an estate plan is
in place. If they are married, it helps if they work with
more than a will. A will is important but not sufficient.
their husbands in keeping informed about financial is-
An estate plan deals with how you want your estate dis-
sues and are involved in financial decisions.
Kathy Lee Hatchett is a certified estate planner and is available to speak at your next women’s event. Call 405.949.9500 or 800.949.9988.
Life is full of surprises. Having an estate plan helps women to prepare for unexpected events in life. Did you know that an estate plan: • Designates a guardianship for your minor chilWhat does it take to begin an estate plan through the Foundation? KLH: There is usually an initial meeting with a Founda-
dren • Documents how you want health care decisions handled if you become incapacitated
tion representative to organize financial information and
• Includes your instructions for end-of-life medical
discuss the desires she has about the estate. It would be
decisions
wise to bring a list of her financial assets, the amounts of
• Records your wishes for how you want your estate
those assets, and a copy of the deed to any real property or
distributed at your death
mineral interests she owns. This information is forwarded to the attorney of the woman’s choice who will then draft the legal documents and help her execute the documents so she has a legal estate plan in place. What is the benefit of working with the Foundation? KLH: The Foundation reimburses a portion of the woman’s legal fees if she leaves a 10 percent charitable gift, at least half of which must be to a Baptist ministry and can include the Southern Baptist church she attends. Why is it important for a woman to include charitable giving in her estate plan? KLH: God entrusts to each of us His assets. He also instructs us to be good managers of those assets and directs a way to acknowledge that everything is His. Including a stewardship on our part. It is the biggest gift we can give back to our Lord. That is the type of legacy the Lord wants us to leave.
www.bfok.org
abilities (to help you with this, contact the Foundation for a copy of Your Personal Records Organizer or you may download a copy at www.bfok.org Ways to Give/Resource Series). 2. If you are married and your husband manages the family finances, stay informed about those issues and decisions. 3. Think through and write down your wishes for guardianship, incapacity issues, end-of-life medical and asset distribution instructions, and charitable giving plans. Take this list with you to your appointment with a Foundation representative. 4. Learn more about wills and the documents included in the Ways to Give/Women’s Estate Planning section of the Foundation’s website.
The Baptist Foundation of Oklahoma
gift to His Kingdom in an estate plan is the final act of
1. Begin by making a list of your assets and li-
Generosity
us to be generous givers to Him throughout our lives as
Four Steps to Help You Move From Financially Boggled to Financially Bold:
5
Updating Estate Plan Beneficial to Single Woman ita Geiger first established a will with the
the Foundation to bring her estate plan current. Today, it
Foundation in 1977. In the years that fol-
not only covers how her assets will be distributed to min-
lowed, her parents died, she retired, and
istry causes after her death, but also who will act on her
she became an author.
behalf in healthcare decisions if she were to become inca-
“Things had changed a lot and my financial advisor said we needed to look over everything,” Geiger said.
Generosity
The Baptist Foundation of Oklahoma
She worked with her financial advisor to review retire-
6
pacitated or unable to make financial decisions. Geiger, who is single, documented her directions for end-of-life decisions related to life support and feeding tubes in an Advanced Directive for Healthcare.
ment and life insurance plans to ensure consistency in
“It’s important to update your estate plan periodically.
naming of beneficiaries, and all income sources, includ-
Especially as a single person, it’s important to have in place
ing royalties that she now receives for the books she has
people who will make decisions for you if you cannot make
written.
those decisions for yourself.”
The retired schoolteacher is one of six authors of the Scott Foresman Social Studies series, and she wrote the activities sections for the book Oklahoma: Land of Contrasts published by Clairmont Press. Geiger’s financial planner worked in partnership with
Being a good manager of what has been given to her is important, as is giving back to charitable causes. “When I’m gone, I want my estate to go to causes I feel strongly about. It gives me a comfort knowing my estate will be used for the Baptist causes I support,” she said.
An estate plan provides for your wishes and includes the following basic documents: Last Will and Testament: This document allows for you to tell the probate court how you want your estate to be distributed at your death and whom you want to serve as a guardian for your minor children.
Durable Power of Attorney: This document grants authority to named persons to act on your behalf related to your financial matters or healthcare matters if you become incapacitated.
Advanced Directive for Healthcare: This document allows you to give directions on end-of-life issues related to life support and feeding tubes.
Revocable Trust: This document allows for your estate to be distributed without the necessity of probate if the trust is properly funded. When you are ready to update your estate plan, request from the Foundation the publication, Your Personal Records Organizer. This free resource helps you effectively order and document records that will be important to have with you when you meet with a Foundation representative. Visit our website at www.bfok.org and select Ways to Give/Resource Series to download a copy. Or call 800.949.9988/405.949.9500 to request a copy.
Auguie Henry Society “Auguie Henry Society members may come from varied backgrounds and experiences but they have a common heartbeat to impact Kingdom work by leaving a lasting gift from their estates,” –Robert Kellogg, Foundation President & CEO
Did You Know? cluded a Baptist ministry as a part of their estate plans. Currently, the Auguie Henry Society has 191 members who as a group have named approximately 100 charitable causes in their estate plans. AHS members have given in the form of a planned gift or designated as future testamentary gifts more than $22 million for ministry causes. The Auguie Henry Society is named in honor of Dr. Auguie Henry, the Foundation’s first full-time Executive Secretary-Treasurer. Dr. Henry was dedicated to furthering gifts for Southern Baptist ministries. www.bfok.org
The Baptist Foundation of Oklahoma
The Foundation’s Auguie Henry Society was formed in 2006 to recognize families and individuals who have in-
Generosity
Newest members of the Auguie Henry Society. Pictured with Foundation President Robert Kellogg (back row, second from the left)are: Front row, Ramona Allen, Bennie Peters, Frances Patterson, Fran deCordova, and Randy Cannon. Back row, Del Allen, Kenneth deCordova, and George Cannon.
7
Teaching Others About GENEROSITY by Living with Purpose By Shryln Treadwell Senior Vice President, Beneficiary Services
The Williams had no children. When Fred passed away,
panied by the verse: “…through us your generosity will
he left her two life insurance policies. She set the proceeds
result in thanksgiving to God.” Today, I am thankful for
from one policy aside with the express purpose of paying
Sarah Williams’ generosity.
for her dental and automobile expenses.
In these difficult economic times, it seems that every-
Sarah also has a daily wardrobe routine. She started this
one is cutting back. However, for Sarah, being a good and
routine years ago when she worked, so she could lay out
faithful steward is what comes naturally. Sarah is one of
her clothes the night before. With the “color of the day”
the Foundation’s lifecare trustors. Now at 86, Sarah be-
method, her choices were easier.
She funded her trust and has lived with purpose, spending very little of it on her living expenses throughout the years.
The Baptist Foundation of Oklahoma
Sarah’s life in her small apartment is ordered and inten-
Generosity
he was stationed in the Philippines.
The Foundation’s mission statement is often accom-
gan her relationship with the Foundation 12 years ago.
8
herself to catch a Navy ship so she could meet Fred when
• She wears blue on Monday; everyone knows that Mondays are blue. • Pink (in the summer) or burgundy (in the winter) on Tuesday • Black, gray, or white on Wednesday
tional. She prays about everything and is grateful for even
• Purple on Thursday, and
the smallest things. With the Foundation’s assistance, she
• Red on Friday
manages her personal and financial matters.
Sarah travels monthly with our lifecare assistant, Lisa
Let me share with you a few things about Sarah…her
Barsaleau, to the Tinker Commissary (they usually go on
discipline, wisdom, and talent in managing the resources
Thursdays, so purple is the only color the folks there have
God has entrusted to her.
ever seen her in). But even at the Commissary, the order
Sarah’s husband, Fred, was a member of the United States Air Force. Once Sarah drove to San Francisco by
in Sarah’s life shines through: • Her grocery list is organized by aisle numbers (bread
is on aisle 2B).
steward and a witness to the grace of God. She is not sav-
• She buys four to six gallons of milk each trip to freeze
ing her money selfishly or cutting back because the nation
until the next trip. You
has fallen on difficult
know, it costs up to 50
times. Sarah is honor-
cents more per gallon at
ing her gifts from God
Buy for Less, Sarah will
and living with pur-
tell you.
pose, to care for her-
• Sarah is also pru-
self, and ultimately to
dent with coupons and
care for those who rely
pays close attention to
on Oklahoma Baptist
such details as which
Homes for Children.
two boxes of raisins will
You know, the more I
yield the greatest value
think about it, it is not
for her “Save $1 off 2”
Sarah and Fred Williams
coupon.
who is helping Sarah,
First Peter 4: 10 says: “As every man hath received the gift, even so minister the same one to another, as good stewards of the manifold grace of God.” Sarah is a good
You’ve Said You’ve Also:
really the Foundation
“I DO”
• Merged your bank accounts
• Notified the Social Security Department • Changed your name on all important documents • Added your spouse to your health insurance
Now it’s time to contact the Foundation about an estate plan. Did you know that the Foundation will reimburse a portion of your legal fees if you leave a 10 percent charitable gift, at least half of which must be to a Baptist ministry and can include the church you attend? Visit www.bfok.org, Ways to Give/Newlywed to learn more about the importance of an estate plan as you begin your life together.
but Sarah who is helping the Foundation. She is teaching us what generosity is really all about.
CHURCH BUILDING LOANS & INVESTMENT FUNDS New Hope Steps Out on Faith
Sitting in the gas station coffee shop, where Highways 48
and 51 cross in Mannford, Pastor Manuel Parker counts as
ship hall, laid flooring, installed bathrooms, and began welcoming visitors.
approximately 14 cars pass per minute. He is encouraged
“It makes us so happy to hear people say that they were
by this number. New Hope Baptist, the church where he is
drawn here because of the love the congregation offers,”
a bi-vocational pastor, recently purchased 3.2 acres across
Kerry Parker said.
the road from the gas station.
Ed Carriger, a deacon, and
“There’s not anywhere else
his wife, Linda, had been out of
New Hope could get more ex-
church a long time when New
posure than this piece of land,”
Hope opened its doors in its
Parker said.
current location.
New Hope has outgrown its
“This is a church that provides
current facility, which before it
comfort and meets needs and if
was a church served as the com-
you come here wanting to work
munity’s flea market, kick boxing studio, and local honky tonk, Old Lake Country Ballroom.
for God, it’s the place,” Ed said.
Hope Members Have Faith: front, left to right: Betty Foster, Linda It’s also a church that has seen Carriger, Kerry Parker, Caleb Parker. Back, left to right: Homer Foster, Ed Carriger, and Pastor Manuel Parker. a lot of growth. When the mem-
“I used to come here and drink and dance before I became a Christian,” Parker said.
bers noticed there was no more room to grow, the congregation began praying about
After he became a Christian, Parker and his wife, Kerry,
a new location. The pastor and deacons found the land
worked with youth at Fisher Baptist Church, Sand Springs,
across the street from the gas station but it was not for sale.
but soon felt that God was leading him to start a church.
However, when the congregation approached the owner,
Fisher Baptist was supportive and helped the Parkers, who initially started New Hope in the Lion’s Club Bingo
he was willing to sell it. They then contacted The Baptist Foundation of Oklahoma for a loan to buy the land.
Hall, hauling a heavy lectern and hymnals out of the back
“Every time we’ve stepped out in faith we’ve grown,”
of their truck every Sunday morning. The church grew
Parker said. “How are we going to build this church? I
until children and senior adults shared the same Sunday
don’t know, but God will come through.”
school class. The woman who owned Lake Country Ballroom, which had since closed, also had accepted Christ. She approached Parker and said, “I want you to buy this building. I’ve been praying that it would become a
Generosity
The Baptist Foundation of Oklahoma
church.”
10
The Parkers told her they could not even afford the utilities. She put her arm around Parker and said, “Manuel. How big is your God?” he recalled. That was 14 years ago. The New Hope congregation, which is made up of members from five surrounding communities and school systems, moved into the ballroom and put up walls for Sunday School classes, created a sanctuary and a fellow-
Did You Know? All interest paid on a Church Building Loan through the Foundation is distributed to Kingdom causes. Interest paid on loans through the Foundation is distributed to more than 100 Baptist causes every year. In a typical year, in excess of $2 million in interest is earned from Church Building Loans and helps various charitable organizations in the state, across the nation and around the world. To learn more about the Church Building Loan program, visit the Foundation’s new website at www.bfok.org, or call Jerry Vaughan at 800.949.9988 or 405.949.9500.
DONOR SERVICES
Stable Income in an Unstable Economy A Case for the Charitable Gift Annuity By Dan Allen Senior Vice President, Donor Services Economic bad news – it’s everywhere. Even if you were
percent which was down from 3.10 percent in February
inclined to avoid it, for your own sanity’s sake, it is almost
2007 and 4.80 percent for the same time in 2006. Over a
impossible to do. It is there when you turn on the tele-
two year period this is a 46 percent drop in income for the
vision, radio or pick up a newspaper. Friends and fam-
average CD investor. Faced with these challenges, many
ily seem to talk about it at casual gatherings. You know
seniors are establishing charitable gift annuities with a
things are tight when Entertainment Tonight is reporting that coupon clipping is the new chic. Even the previously infrequent
business
news consumer has been introduced to a
“In light of all this bad economic news, the last thing you would want to consider is a new charitable giving arrangement – right? Not if that arrangement paid you a stable predictable income for the rest of your life.”
new lexicon of finan-
portion of their investment portfolio. A charitable gift annuity is a contract between you and the underwriting charity. It is a hybrid arrangement that is part annuity contract and part charitable gift.
cial terms such as mortgage-backed securities, subprime
In exchange for an irrevocable transfer of cash or market-
lending, credit default swaps, foreclosure, bailout, reces-
able securities in the amount you choose you receive five
sion, depression (both kinds), and stimulus package. I
primary benefits.
knew that economic news had become pervasive last
Five Benefits of a Charitable Gift Annuity:
week when while driving my 13 year old son to school
1. You receive an income for life.
he knew what the acronym TARP was referring to when
2. A portion of the payout is tax free to you.
mentioned on a radio news report.
3. You get a charitable income tax deduction the year
In light of all this bad economic news, the last thing you would want to consider is a new charitable giving arrangement – right? Not if that arrangement paid you a stable
you establish the gift annuity. 4. You avoid part of the capital gains taxes if you fund your gift annuity with appreciated securities.
predictable income for the rest of your life. That is exactly
5. The Southern Baptist ministries of your choice
what a charitable gift annuity does. In this economy peo-
receive the benefit of your gift at your death.
is not their home or 401(k) but their income. Protecting
But until it does, financial solutions to help us weather
that asset has become priority for most working age adults.
the uncertain times can be found in some unanticipated
Seniors, however, do not always have much control over
places. Giving money to your favorite Southern Baptist
the consistency of their income. In an economy where
ministries, through a charitable gift annuity, might be just
market values and yields are both on a downward trend it
the arrangement you need to provide stable income in an
is often difficult to maintain previous year’s levels of rev-
unstable economy. To learn more about charitable gift
enue. At the time of writing this column, the national
annuities consult your professional advisors and contact
average for a one year certificate of deposit (CD) was 2.22
us at www.bfok.org or at 800.949.9988.
www.bfok.org
The Baptist Foundation of Oklahoma
Eventually our economy will return to good health. Generosity
ple are realizing that their single greatest financial asset
11
INVESTMENTS Market Report
David Depuy Vice President, Director of Investments
The Credit Crisis of 2008
The U.S. equity market suffered its worst decline since
are uneasy lending to one another, let alone businesses
1931, as the S&P 500 shed 37 percent and the Russell 2000
needing additional capital to function normally. It is the
fell 33.8 percent. Foreign markets fared even worse, as
lack of credit, or in some cases the high cost of credit, that
the MSCI EAFE index lost 43.4% and emerging markets
is fueling the current market downturn.
plummeted 53.3 percent. Commodities were especially hard hit as they declined 35.7 percent.
The good news is that a recovery period typically follows a recession as shown in the chart of historical S&P
The bond market did fare a little better as the return
500 returns. Today, by most measures, stock prices glob-
of the Barclay’s (formerly Lehman Brothers) U.S. Govern-
ally are cheap. At the beginning of the year, stocks were
ment Credit Index was positive by 5.7 percent. However,
selling for 14 times normalized earnings, a 35 percent de-
Treasury bonds make
cline from December
up approximately 45
2007 and 15 percent
percent of this index and performed very well relative to cor-
the Fed Funds target range of between zero and 0.25 percent as
Recessionary Periods
eral Reserve lowering
War II average. Additionally, companies
29.1%
‘00-’03
porate bonds. This is a result of the Fed-
below the post-World
‘07- ?
have tightened their belts, reducing costs that will eventually
18.8%
‘90-’91
lead to a recovery in profit margins for
51.8%
‘80-’83
those who are able to
well as a general flight to quality as investors
survive the current market cycle. In pre-
32.0%
‘72-’75
were looking for the safety that Treasury bonds
historically
vious severe reces0%
10%
20%
30%
12 Month Return Following Trough
Generosity
The Baptist Foundation of Oklahoma
provide.
12
40%
50%
60%
sions, profit margins recovered
rapidly.
It is hard to predict
Global financial markets were shaken to their core be-
what the market will do in the short-term. But if history
ginning in September, and the markets have witnessed
repeats itself, the next few years could lead to impressive
the demise of some of the oldest and largest players in the
returns.
financial world.
Rest assured that at the Foundation, we combine mul-
The continuing concern to the broader economy is the
tiple asset classes into a diversified combination as we
reduction in credit availability. Credit is necessary for
strive to build a long-term portfolio to weather all types
businesses to maintain day-to-day operations and invest
of markets. If you have any questions about Foundation
in new operations. A credit lock-up could turn this from
investments, please contact us at 800.949.9988.
a moderate recession to one far more severe. The banks
PREDICTABLE INCOME Consider a charitable gift arrangement that pays you a stable, predictable income for the rest of your life.
Benefits of a Charitable Gift Annuity • You receive an income for life. • A portion of the payout is tax free to you. • You receive a charitable income tax deduction the year you establish the gift annuity.
• You avoid part of the capital gains taxes if you fund your gift annuity with appreciated securities.
• The Southern Baptist ministries of your choice receive the benefit of your gift at your death.
Call the Foundation for your payout rate
Master of Business Administration Degree from OBU’s International Graduate School and participated in the inaugural graduation ceremony on Sept. 27, 2008. She was one of two summa cum laude graduates in the class. Shryln, who joined the Foundation in 1986, also presented a speech to her fellow students at graduation. SUZIE PAUL, Donor Services Administrative Assistant, has completed, with a 4.0 GPA, her Associate in Applied Science Degree, Paralegal Studies. Suzie came to work at the Foundation in 1999. EILEEN ATKINS, receptionist, retired from the Foundation on February 25, 2009. She was recognized for her 14 years of service at a retirement luncheon where, as a Foundation tradition, each staff member gave Eileen one silver dollar for every year they had worked with her. The Foundation’s Tulsa staff recently moved into their new location at 6309 E. 102nd Street, Suite A, Tulsa, Oklahoma, 74137. An open house is expected in late spring.
The Baptist Foundation of Oklahoma
www.bfok.org
SHRYLN TREADWELL, Senior Vice President, Beneficiary Services, received her
Generosity
FOUNDATION STAFF NEWS
800.949.9988 | www.bfok.org | 405.949.9500
13
Non-Profit U.S. Postage
PAID
No. 1489 Okla. City, Ok
3800 North May. Ave. Oklahoma City, OK 73112
Save Ministry Dollars To reduce expenses, we will soon stop mailing beneficiary statements to our institutional clients. If you do not currently subscribe to online statements, we may contact you to secure your e-mail address.
THANK YOU for making this move. It will help the Foundation to
If you would like to receive statements online, please call
increase distributions to ministry
405.949.9500 or e-mail Meagan
causes!
Stoltzfus, mstoltzfus@bfok.org