Generosity Magazine Fall 2010

T H E

FALL 2010

BAPTIST

FOUNDATI ON

OF

OKLA H O M A

VOLUME FOUR, ISSUE TWO

GENEROSITY Your Foundation

Fall 2010 | Volume 4, Issue 2

P

eople occasionally ask me what it is that I like about serving at the Foundation and I do not have to hesitate in my reply. I have a front row view throughout the year where I witness how Oklahoma Baptists support ministries. Donors who give of their resources to help children have a stable future, churches continue missions, senior adults have safe housing and students have the means to receive a Christian education. Oklahoma Baptists give not to receive accolades but as a commitment to continue the Lord’s work.

New members of the Auguie Henry Society were recently recognized at

A magazine for clients and stakeholders who support The Baptist Foundation of Oklahoma’s mission to promote charitable planned giving and provide financial management for the gifts that strengthen Southern Baptist ministries.

Production

Barros Design Group| Design Layout Bill Pope| Photographer Taprina Milburn| Editor

the 2010 Client Appreciation Dinner.

Pictured with Robert Kellogg are, l to r: Brandon and Becky Wilson, Joe and Kay Henry, Terry Muncy, Kurt and Rudessa Phipps, and E.R. and Jacklyn Cagle.

Send questions/comments to: Editor, Generosity 3800 N. May Avenue Oklahoma City, OK 73112 generosity@bfok.org

Administration

We have the honor each year to recognize our donors at our annual Client Appreciation Dinner. It is an evening to show gratitude to the men and women who are making an impact on Southern Baptist causes in Oklahoma and around the world.

It is also an evening where we welcome new donors into the Auguie Henry Society, named in honor of the Foundation’s first full-time executive treasurer.

Currently the Auguie Henry Society has 550 members, who as a group since 2006, have given in the form of a planned gift or designated as future testamentary gifts more than $42 million for ministry causes.

Our organization provides financial management of these dollars and we often quote amounts, but know that we understand the gifts are not the end but the means. Means to changed lives. In fact, on the pages of this issue of Generosity, you will read about the impact donors’ support has on some very familiar ministries.

Thank you, donors, for supporting Baptist causes through your Foundation.

Robert Kellogg| President & CEO Jim Wilsie| Executive Vice President & CFO Janna Charles| Executive Assistant to the President Dan Allen| Senior Vice President, Donor Services Shryln Treadwell| Senior Vice President, Beneficiary Services Jerry Vaughan| Senior Vice President, Church Services David Depuy| Vice President, Director of Investments Brad Johnson| Vice President, Controller Michael Romero| Vice President and Trust Counsel John Schantz| Vice President, Operations

Area Managers

Curt Gathright| Northwest Area Manager Kathy Lee Hatchett| OKC Metro Area, Estate Stewardship Counselor 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

Supporting Local and International Missions Daughters Honor Parents’ Desire to Give Back

FEATURES

4 8 2 10

8

Making a Difference

Partnering to Promote Baptist Ministries

AHS Member Profile

New Citizens Relish Freedom

Life Together Started in a Cow Pasture Privileged to Serve with Gifts

T HE

BA P TIST

F O U N D A TIO N

O F

FALL 2010

O KLA HO M A

VOLUME FOUR, ISSUE TWO

ON THE COVER Seeds Set an Example.

DEPARTMENTS

13

12

Donor Services

Churches are Largest Recipient of Donors’ Gifts

by Dan Allen, Senior Vice President, Donor Services

Investments

Market Report Keeping Eye on Long Term

by David Depuy, Vice President, Director of Investments

Foundation Staff Giving Back

The Baptist Foundation of Oklahoma

www.bfok.org

Foundation Introduces CBL Term Investments

by Jerry Vaughan, Senior Vice President, Church Services

Generosity

15 17

Church Building Loans & Investment Funds

1

Fulfilling Parents’ Desire to Support Missions Locally and Internationally Bill and Joe Ann Seeds’ daughters Jeannine Tate and

daughters recall that their father believed that “… next to

Suzie Price treasure the life their parents lived and the ex-

the ministry, teaching was the most important job some-

ample they set for them. They lived their lives dedicated

one could do.” Joe Ann trained to be a home economics

to family, active in church life, serving wherever needed

teacher but when Jeannine, their first daughter was born,

and praying daily for missionaries around the world, their

she stayed home to care for her family.

daughters shared.

“We like to say Mother was our

“They were just regular folks and

first teacher because she was an

they taught us to be inclusive,” Jean-

avid reader, Sunday school teacher,

nine said.

and always up on current events,”

The sisters said that as children

Suzie said. “We grew up watching

they sometimes never knew who

our mother read the daily devotion

would be sitting on the sofa when

out of Royal Service magazine and

they came home.

we prayed for the missionaries over

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The Baptist Foundation of Oklahoma

“If anybody in the community

2

the meal.”

was in trouble or if that person had

In order to share with her chil-

done something that made other

dren her love of reading, Joe Ann

people not want to be around them,

told her children that they could

Mother and Daddy would have

read anything they wanted as long

them in their home. They knew

as they would hand it to her after

they needed their friendship and

they were finished so that she could

their love. They taught us to include people just as they are,” Jeannine said.

Bill and Joe Ann met in college after World War II. They each had served in the military, Bill in the Army

read it and then they would discuss it.

“Needless to say, we probably passed up some interesting books because we didn’t want to offend Mother,” Jeannine said.

and Joe Ann as a WAVE in the Navy. They both graduated

Bill and Joe Ann were members of Southpark Baptist

from Southeastern University. Bill was a life-long educa-

Church, Oklahoma City, and started the telephone min-

tor serving as teacher, principal, and superintendent. His

istry. Joe Ann taught the Sunday school lessons to the

homebound members over the phone and Bill made

through the outreach programs of the Baptist General

home visits and distributed the Sunday school literature.

Convention of Oklahoma and through the International

Bill was a deacon and Joe Ann WMU director.

Mission Board and North American Mission Board.”

The Seeds had been married 57 years when Bill died in

Jeannine is a sixth grade teacher in Richmond, VA,

2003. Joe Ann died in December 2009 after a brief illness.

where she lives. She has a son and a daughter. Suzie and

The couple established their will through the Foundation

her husband Brad, along with their two sons, served as

in the late 1970s after hearing an estate planning presen-

missionaries with the International Mission Board for

tation in church.

eight years in Colombia. Today, Suzie is an elementary

“They learned that if they contributed a portion of their

school counselor in Norman.

estate to Baptist causes at their death that the Foundation

“Our parents loved their family and adored their grand-

would arrange for their will to be written for them (see

children and had a genuine love for the Lord. There was

box below). They thought that was a wonderful idea,” Su-

no pretense; it was real,” Jeannine said.

zie said, “and wanted their money to help local missions

Foundation Donors’ Gifts to Evangelism The Seeds’ gift will help with The Baptist General

es. Many of the people stayed to watch biblically based

Convention of Oklahoma’s Church Planting ministry,

films. The Mivedors believe the relationship they are

as well as support the work of missionaries through the

building will give them the opportunity to eventually

International Mission Board and the North America

present the story of the Gospel.

Mission Board. Since 2000, Foundation donors have

Donations also help NAMB missionary Andrew

given in the form of a planned gift or designated as fu-

Mann, who is a church planter in the South Bronx

ture testamentary gifts $6.8 million to IMB, NAMB, and

neighborhood of Mott Haven. Mott Haven is an area

the BGCO’s Church Planting ministry.

riddled by crime, teen pregnancy, and poverty. Today Mann is the director of Graffiti 2 Community minis-

and Beth Mivedor who live among the mostly Muslim

tries, operating after school, sports and fine arts pro-

Futo Toro people in Dakar, Senegal. A village with no

grams for the children of the area.

The IMB and NAMB stories and photos are used with permis-

generator and began showing the World Cup in July to

sion from both organizations. To read the entire stories, visit our

nearly 1,000 people who came from surrounding villag-

web site for the links to each story at http://bit.ly/b9de38.

The Foundation reimburses a portion of your legal fees if you choose to leave a 10 percent gift to ministries at your death, at least half of which must be left to a Baptist ministry and may include the Southern Baptist church where you worship.

www.bfok.org

The Baptist Foundation of Oklahoma

running water or electricity, the Mivedors secured a

Generosity

Those dollars help IMB missionaries such as Moses

3

Making a Difference

Partnering to Promote Baptist Ministries Foundation donors support many ministries. In fact, in 2009, $6.9 million was distributed to more than 300 charitable causes—from hospitals and seminaries to associations and churches. These donors also support familiar ministries that have touched the lives of many Oklahoma Baptists for several generations—the many ministries of the Baptist General Convention of Oklahoma, Oklahoma Baptist University, Oklahoma Baptist Homes for Children, and Baptist Village Communities.

The Foundation is honored to collaborate with donors and the ministries they support. Below, the leaders of the four organizations mentioned above share the mission of their ministries and how a donor’s gift helps.

The Baptist General Convention of Oklahoma Dr. Anthony Jordan, Executive Director-Treasurer The Baptist General Convention of Oklahoma staff is involved in day-to-day training, consultation, and investment in the local churches of our state and serves to advance the work of Christ one church at a time.

Our Disaster Relief ministry now has more than 5,000 trained volunteers serving Oklahoma, the nation, and the world. Today BGCO Disaster Relief teams are building concrete block homes in Haiti, and we have had medical teams in Pakistan.

Baptist Collegiate Ministries comprises the single largest expenditure in our Cooperative Program budget and serves 37 campuses across our state. These ministries are light in the midst of darkness.

Perhaps the most notable work of the convention takes place at Falls Creek. This summer 54,000 youth and sponsors registered during the eight weeks of camp. There were 2,032 professions of faith, 1,074 commitments to missions and ministry, and 5,976 total recorded decisions.

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The Baptist Foundation of Oklahoma

Church Planting is one of the principal areas of our work, and it demands significant funds.

4

Oklahoma Baptists plant 50 to 60 churches a year, the largest number of church starts are Hispanic churches.

The Foundation serves as a trust agency for the convention and its affiliates and it takes the lead in estate planning services. This allows the convention to focus on ministry while the Foundation helps our Baptist people prepare estate plans that benefit the local church, the convention, and our affiliates.

It is an efficient approach that benefits everyone.

Oklahoma Baptist University Dr. David Whitlock, President As Oklahoma Baptist University celebrates its Centennial and looks forward to its future, what remains as a guidepost

Donations also mean that the University can continue to improve buildings and programs.

is a commitment to our mission to transform lives by equip-

We know that bricks and mortar and programs are not

ping students to pursue academic excellence, integrate faith

the end; they are the means. The means to an excellent edu-

with all areas of knowledge, engage a diverse world, and live

cation from a Christian worldview with educators who are

worthy of the high calling of God in Christ.

serving Christ through teaching.

Oklahoma Baptists through their donations help make

Foundation donors’ gifts help with these new programs

this commitment possible. Donations through the Founda-

and buildings and will allow us to put more ministers be-

tion mean that more students are able to attend OBU where

hind pulpits, more missionaries on the field, and allows us

they can receive a Christ-centered education that is second-

to produce more musicians, scientists, and educators who

to-none academically. There are students who would not be

have a faith-based approach to life.

able to go to OBU if it were not for donors who invest in their lives.

We are appreciative of our partnership with the Baptist Foundation of Oklahoma; we are all seeking the same thing—to advance God’s Kingdom.

Oklahoma Baptist Homes for Children Tony Kennedy, President I find great joy in our mission of helping children become capable, caring, Christian adults.

In our Journey to 2020 initiative, we are looking at a variety of goals to upgrade facilities and build new cottages. We

From the beginning of OBHC, we have agreed that Chris-

want to improve structural integrity and energy efficiency on

tian people giving their gifts as a way of honoring Christ will

each of our sites. We are looking at new kinds of ministries

provide for this ministry.

for children in additional sites around the state that would

Foundation. Gifts through the Foundation helped to estab-

homa City. Gifts through the Foundation would allow us the

lish and continues to provide for Boys Ranch Town. Foun-

freedom to expand our current ministries and know that we

dation donors’ gifts help provide for the general operation of

would have the resources to provide additional staff.

OBHC services and the funds for the education and leader-

I’m encouraged by the ways we serve children to help

ship experiences for our boys and girls, including a number

them grow and excel and that we are able to unashamedly

of scholarships. Gifts help operate the Pregnancy Hope Cen-

share the grace of God with them. And I am grateful for the

ters, a ministry that is celebrating its 25th year.

staff God has called to come and commit their lives as missionaries to children.

www.bfok.org

The Baptist Foundation of Oklahoma

serve families that are at a distance from Tulsa and Okla-

Generosity

Some of the earliest gifts to OBHC came through the

5

Baptist Village Communities Dr. Bill Pierce, President The mission of Baptist Village Communities is to honor God by providing quality living and compassionate health care in a Christian environment. We believe that a person never outgrows the call of God to serve. We serve God with those we serve.

We are sharing the good news of Jesus Christ and helping to meet needs of senior adults every day in villages, neighborhoods, homes through our Baptist Home Health Care and over 100 senior living communities through our LINC (Loving, Inspiring, Nurturing, Caring) ministry. Baptist Village Communities serves more than 6,000 people each week through these ministries.

Gifts from Foundation donors enable us to do this. Donations help support the Larry and Edwine Adams Assistance Fund. The fund serves those who do not have sufficient resources to live in our communities. Most of those we serve are widows and many are the widows of pastors. Donors have also enabled BVC to purchase medical equipment to help meet needs, and a generous gift enabled the purchase of a bus or van for every community.

We often serve individuals and families during very difficult times in their lives and we understand our ministry to be one in which we serve God, serve

one

another, and serve together. Aging services is perhaps the last area peo-

ple

think of when giving gifts. It is a growing area of need as people age and as

these

numbers grow. BVC is working to shape the future of aging services.

We are praying that God will lead people to join us in serving these

Generosity

The Baptist Foundation of Oklahoma

who have given so much to us.

6

Learn more about how to leave a year-end gift to a ministry you love. Visit our web site at www.bfok.org or call 1.800.949.9988.

people

Auguie Henry Society New Citizens Relish Their Freedom Stan and Mary Phang, Foundation estate planning cli-

for each other, study the Word together, encourage one

ents and new Auguie Henry Society members, made the

another, laugh and grow together. We are strong in our

decision for their children’s future and education to move

walk with Christ because of our church family.

their family to the United States with the intention of becoming citizens of the United States.

“There is a sweet fellowship that words cannot describe and the world cannot give us; a little taste of heaven, I

Generosity

The Baptist Foundation of Oklahoma

“It took us five years to get a

8

should say.”

green card and then another five

The couple began thinking

years before we could apply for

about the importance of naming

citizenship,” Stan said.

guardians for their children and

Stan became a citizen in Janu-

wanted to know more about estate

ary, 2010, and Mary received her

planning from the Foundation.

citizenship in February, 2010. “It’s

Mary remembered reading in the

unexplainable how happy, excited

Messenger an article about a fam-

and relieved we are,” Stan said.

ily that created a revocable living

Their

church,

First

Baptist

Church, Broken Arrow, has become like family to the couple and their children, the Phangs said.

trust through the Foundation.

“It caught our attention because it said that the Foundation helps out with the legal fee requirement if you give to

“We are truly brothers and sisters in Christ. Just like

the church or a Baptist ministry,” Mary said. “We wanted

in our natural family, the more we spend time with our

to give to our church anyway so we contacted Dan Al-

church family, the closer we get,” Mary said. “We pray

len.”

Allen, Foundation senior vice president of donor services, helped the Phangs, in conjunction with their attorney, begin and finalize the estate planning process.

“We would recommend the Foundation to our church

family should have an estate plan in place—especially if you have children. It gives you peace of mind.”

To learn more about the Foundation’s estate planning services, visit www.bfok.org or call 800.949.9988.

friends and have been telling others,” Mary said. “Every Dr. Auguie Henry, the Foundation’s first full-time executive treasurer from 1949-1967, had the conviction that Oklahoma Baptists were able to provide the necessary endowment and funds to help Baptist agencies, institutions, and ministries.

In honor of Dr. Auguie Henry and his dedication to furthering gifts for Southern Baptist ministries, the Foundation formed the Auguie Henry Society in 2006. The Auguie Henry Society recognizes those families who have taken an additional step of stewardship by including a gift to their favorite Baptist ministry as part of their estate plans.

Currently the Auguie Henry Society has 550 members, who as a group since 2006, have given in the form of a planned gift or designated as future testamentary gifts more than $42 million for ministry causes.

Life Together

Started in a Cow Pasture

“This is a special day for us,” says Philip Brehm. “It’s our wedding anniversary.”

The Hinton couple, both in their 90s, met 67 years ago in a cow pasture, as Philip tells the story.

“It’s true; I’m not making that up. We were playing a baseball game. I didn’t know who she was at the time, but I was going to find out. And, you see 67 years later that I did.”

“People flocked to us when they learned we were giving out aspirin, like it was precious stuff,” she added.

Philip and the other men worked on a church and put together pews.

“The church’s preacher didn’t speak English, but pointed

“I wasn’t out, and we’ve argued about that ever since,”

speak it, but appreciated it,” Philip said.

they married in Calumet, Oklahoma. The couple moved to Hinton in 1957, where they still live, and immediately became involved in church at First, Hinton, both teaching in the junior high departments for many years.

The Baptist Foundation of Oklahoma

counted out aspirin for the people of the community.

to the pews and patted his heart and laughed. He couldn’t

Four years after Madeline made that infamous call,

Generosity

Madeline sanded desks, cooked for the volunteers, and

Madeline called Philip out on first base. he said.

10

of ways.

As much as the Brehms have given of their time, they’ve also been faithful in giving of their money to support their church.

“Giving is so important to us because we’ve been so blessed,” Madeline said.

“When we set up our will sometime back, we wondered

“We’ve been fortunate that we haven’t made a lot of

what to do since we didn’t have kids,” Philip said. “That’s

moves, but when we did, church made it easy to adjust to;

when I talked with the Foundation and set up our wills to

it just starts your week off better,” Madeline said.

give to our church through the Foundation, that it would

They spent most of their six decades together farming

be best and used to do God’s work.”

1,000 acres of wheat and tending to 500 head of cattle. On

Despite the disputed call in the baseball game years ago,

the weekends Philip and a group of men volunteered their

the Brehms have worked in harmony on the farm, in their

free time to build and renovate churches across the state

church, and volunteering. They also have worked a lot of

and in Missouri. Madeline traveled with Philip when she

puzzles together. One they’ve just begun sits on the card

could.

table in their living room.

In 1990, Madeline accompanied her husband and other volunteers to El Salvador, where they served in a variety

“That’s how we are going to celebrate our anniversary, by putting this puzzle together,” Philip said.

Mission Minded

eyeglass ministry. Two hundred people professed Christ

Several Foundation employees traveled far, and not so far, to minister to youth, families, and individuals, meeting basic needs while sharing the Gospel.

as Savior, Kersh said.

There was one moment in particular that stands out for Kersh. Several of the teenage girls met a young girl named Stephanie, who had been lingering outside of the church.

Ministering at “I met her and learned that she was 17 years old and Home and in Missis- the mother of a five-month-old. She was pregnant with sippi her second child. I also found out that her husband ofEvery

sum-

mer for the last 26 years, Sue Clifton has spent one week of her summer cooking for students at Falls Creek. She is a volunteer youth worker for Lakeside Baptist Church of Mannford and says that her week serving is an experience she eagerly awaits each summer.

“It is the most awesome week, spending time with teenagers, sharing in their lives, feeding them, and getting to worship with them and the thousands of others that are at camp,” she said.

Clifton, secretary at the Foundation’s Tulsa office, also traveled in April with church members to Lakeshore, Mississippi. There, they helped Lakeshore Baptist Church, which hosts a distribution center for clothing, household goods and food for people in the area who are rebuilding their lives nearly five years after Hurricane Katrina hit.

“Katrina destroyed the area, but not the spirit of the people or the church,” Clifton said.

knew she needed to hear how much Jesus loved her and her family.”

Stephanie prayed with Kersh to receive Christ.

“What she did next is how we should all react when we have experienced a life changing event. She wanted to share it,” he said.

She returned later with her husband who also prayed to receive Christ.

“It was a great day for the Kingdom of God,” Kersh said.

“It was a great day for a young Brazilian family.”

Peru Mike Romero, Foundation Vice President and Trust Counsel, along with his wife Laura, spent a week in July in Huancayo, Peru with five other members of Council Road Baptist Church.

The team participated in a medical clinic, worked in the

Brazil Paul Kersh, the Foundation’s Southwest Area Manager and bi-vocational pastor of Legacy Family

ten would beat her,” Kersh said. “As I heard her story, I

Church,

Ed-

mond, has taken many mission trips to Brazil. This summer, however, he was accompanied by 19 men, women, and children from his church on a trip to Seara, Brazil.

Participants led Vacation Bible School for local children, built a chapel for a local Baptist church, and hosted an eyeglass ministry. The team shared the Gospel during the

fields and visited with families in the villages of Chuquitambo and Pazos. They also participated in a house church service and children’s Bible study. Laura Romero read Bible stories to the children in Spanish.

One evening that stood out for Mike and Laura included smores around a bonfire and the night sky.

“Apparently, there isn’t a Spanish word for ‘marshmallow’ so the folks there were enjoying trying to say the word ‘marshmallow,’” Mike said. “Since there is so little light at night, the stars are magnificent. Our team leader used the stars to transition into a Gospel presentation in which several committed their lives to Christ.”

CHURCH BUILDING LOANS & INVESTMENT FUNDS Foundation Introduces CBL Term Investments

By Jerry Vaughan Senior Vice President, Church Services The Foundation’s Church Building Loan Investment

This means the church’s money can begin working imme-

Fund has become the investment of choice for many Bap-

diately, not only for the church, but for the churches look-

tist churches across the state of Oklahoma. And for good

ing to borrow money from the Foundation for expansion

reason. The CBLIF has traditionally paid above market

of their ministries. It is truly a win-win combination…

rates

on

de-

posits in the fund and has provided a way for

churches

to invest in the ministries

of

great rates and

“This new format will give investors the flexibility they desire in structuring deposits that will meet their needs in an ever changing financial world.”

providing

for

the expansion of ministry.

“C h i s h o l m Heights Baptist Church wants

other churches

to be good a

by providing funds the Foundation can loan through its

steward of its money. We believe we have a responsibility

Church Building Loan Program. And none of that is go-

to support Southern Baptist churches,” said Scott Badgett,

ing to change.

associate pastor of discipleship. “With the new CBL Term

But, the investment structure of the CBLIF is go-

Investments we can do both. Yes, we are strong support-

ing to change. Effective January 1, 2011, the Foundation

ers of the Cooperative Program, but this is another way in

will offer CBL Term Investments with four investment op-

which we can help other churches grow.”

tions from which to choose. Along with the existing monthly

option,

there will now be an option to invest for six months, one year and two years.

And the rates offered will continue

If

One Month Term Investment Six Month Term Investment One Year Term Investment Two Year Term Investment

you

would

like to learn more about our new investment options through the CBL Term Investments, call the Foundation today to see how your money can work for you and other church-

can be earned on

es. For more information you may visit our website at www.bfok.org or

new format will give investors the flexibility they desire in

email at churchfundsmanagement@bfok.org.

structuring deposits that will meet their needs in an ever changing financial world.

A new account can be opened anytime during the month during normal business hours of the Foundation. www.bfok.org

Past performance does not guarantee future results. The CBL Term Investments invest exclusively in the debt of Southern Baptist entities with current income as its lone objective.

The Baptist Foundation of Oklahoma

traditional bank CD’s and money market accounts. This

Generosity

to be better than

13

DONOR SERVICES

Churches are Largest Recipient of Donors’ Gifts

By Dan Allen Senior Vice President, Donor Services I am seeing a growing number of families make the

gift today that was completely unexpected. What mission

decision to include a gift to charity in their estate plans.

opportunities or outreach efforts could be done that were

Most of us naturally, and rightly, assume that our estates

previously impossible due to budget constraints?

will go to our children.

However, if

we have supported ministries

dur-

ing our lifetimes with cash gifts why

This impact is be-

“Last year 26 percent or $4.85 million of these funds were specifically left to benefit the will maker’s local Baptist church.”

wouldn’t we want to

ing driven by modest estates.

The

average family that will leave an estate gift this year to their local church

extend that beyond our lifetimes by making a tithe gift at

has an estate less than $300,000. That includes the value

our death?

of life insurance and retirement plan accounts.

Local Congregations a Prime Beneficiary

Outright vs. Endowment

Each year between 250 and 300 families will complete

Many of the families leaving estate gifts to their church

an estate plan that includes a future gift to their favorite

are using an endowment fund. An estate gift is most like-

Baptist ministries. The donors document in their wills or

ly the largest one time gift any of us will make and some

revocable living trusts what ministries will receive the ben-

families want to make sure that the gift has a long lasting

efit of these funds. Over the last several years the largest

impact on their church. Gone are the days when endowments were used only by

nor’s local Baptist church.

wealthy families to benefit

In 2009 alone, Oklahoma

large institutions. Congre-

Baptists established gifts

gations large and small are

in their estate plans worth

receiving endowment gifts

an estimated $18.6 mil-

from modest size estates.

lion. Last year 26 percent

These donors have the de-

or $4.85 million of these

sire to insure that their gift

funds were specifically left

provides income to further

to benefit the will maker’s

ministry for generations.

local Baptist church.

a gift to a Baptist ministry, including your local church, we can assist you and your attorney to update an existing

In future years, these churches will have the ability to

estate plan or get your first plan put in place. Please visit

expand their ministry through missions, evangelism and

us at www.bfok.org and click the “Begin Your Estate Plan

outreach as they receive estate gifts from former mem-

Now” link in the upper right hand portion of the home

bers. Imagine if your church received a $50,000 estate

page or simply call us at 1-800-949-9988.

www.bfok.org

The Baptist Foundation of Oklahoma

Impact on Ministry

If you have a desire to leave

Generosity

category has been the do-

15

16

Generosity

The Baptist Foundation of Oklahoma

INVESTMENTS Market Report

David Depuy Vice President, Director of Investments

Keeping Eye on Long Term

After a solid performance through the first quarter of

folio performance was 4.0 percent and -5.8 percent for

2010, the S&P 500 has seen its fair share of volatility. The

the 2nd quarter. A positive third quarter performance of

S&P 500 ended the second quarter at -11.4 percent. How-

6.8 percent brought the year-to-date performance of the

ever, the third quarter again showed a rebound as the S&P

portfolio for 2010 to a positive 4.6 percent.

reported a positive 11.3 percent which improved the year-

The experience of the recent market is a good reminder

to-date performance January through September 2010 to

to stay focused on the endowment portfolio’s investment

3.9 percent. This slightly positive performance year-to-

objectives. It is extremely important to remember to keep

date would normally imply a boring market, but the eq-

our eyes on the long term rather than the day-to-day fluc-

uity markets have been anything but boring. The Barclay’s

tuations of the short term market. The recent volatility has

Aggregate Bond Index, on the other hand, has remained

provided a very attractive opportunity to invest because

steadily positive for the first, second and third quarters,

many potential investments are priced below fair value

bringing the index to positive 7.9 percent as of September

and have greater potential for outsized returns. Even with

30, 2010.

the volatility in the market and the slow growth in the

Amid the equity market volatility, our endowment portfolio is moving increas-

economy, it is important to note that we are still making progress in achieving the

Historical rates of the federal

ingly closer to the strategic

9.00%

target allocation from an

8.00%

ment for the ministries that

overweight to bonds. The

7.00%

it helps to support.

Foundation’s

investment

6.00%

There is still much dis-

committee also recently

5.00%

cussion about the direc-

approved a new strategic

4.00%

tion of the economy in the

target allocation that increased the private equity component of the portfolio. The additional alloca-

goal of growing the endow-

3.00%

future. Much of that dis-

2.00%

cussion revolves around

1.00% 0.00%

the actions of the Federal 1990

1995

2000

tion will be funded from

2005

Present

Reserve. During periods of economic slowdown,

The funding will be gradual and will occur over the next

to stimulate the economy and promote growth. The cur-

few years. Increasing the private equity component of the

rent rate is between 0 and .25 percent, which as shown on

portfolio provides several opportunities and benefits for

the provided chart, is at a historical low. We have every

the endowment portfolio as a whole. Not only will this

confidence that the Federal Reserve will move forward

strategic measure provide increased diversification ben-

prudently and keep inflation in check while attempting to

efits, but with patience and time, it also has the ability to

avoid the possibility of another recession.

provide returns greater than the equity market over the long-term. For the 1st quarter 2010, the endowment port-

www.bfok.org

If you have any questions about Foundation investments, please contact us at 1.800.949.9988.

The Baptist Foundation of Oklahoma

the Federal Reserve lowers the Fed Funds Rate as a way Generosity

slight decreases to the fixed income or debt allocations.

17

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