Generosity Magazine Spring 2010

T H E

B APTIST

SPRING 2010

FOUNDA TI ON

OF

OKLA H O M A

VOLUME FOUR, ISSUE ONE

GENEROSITY Your Foundation

Spring 2010 | Volume 4, Issue 1

T

his issue follows a winter in which an earthquake caused massive destruction in Haiti, and in our own backyard, an unusually hard winter left many Oklahomans without power for days.

These disasters, both at home and internationally, remind us of the importance of the work of the Baptist General Convention of Oklahoma’s Disaster Relief ministry. Volunteers continue to go to Haiti, on medical missions and to install water well pumps to bring to the Haitians a basic life necessity, clean drinking water. During the last ice storm, Disaster Relief prepared and served 30,000 meals in the areas that lost power and had 16 active chain saw units clearing yards for Oklahomans.

As you will see in an article about Disaster Relief, it takes donations for the group to be able to send volunteers, to pay for fuel and to feed volunteers who tirelessly spend their days helping. Moreover, it takes donors who have a heart for the ministry to provide a consistent stream of income so the ministry can respond during disasters and ultimately have the opportunity to share the love of Christ with people who may not know Him. Another feature in this issue is about Indian Falls Creek and an endowment recently established through the Foundation. As the endowment grows, IFC will be able to provide necessary scholarships and programming for family camp, which ministers to people of all ages.

Finally, we will introduce the Luces. A second marriage for both, they decided to let the Foundation help them with an estate plan, something they see as a gift to their grown children, a gift to ministry for years to come, and a way to be good stewards of what God has given them.

As I read over these stories, I was reminded of two words in the last part of our mission statement, “today” and “tomorrow.”

Estate plans and planned gifts through the Foundation ensure that funds will be available for Baptist ministries today and tomorrow. With continued support, groups like Disaster Relief will be able to care for people in the midst of chaos, and Indian Falls Creek will continue to minister to today’s generation of families as well as tomorrow’s families.

We thank you for making this mission possible.

Robert Kellogg Foundation President & CEO

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 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 Shryln Treadwell| Senior Vice President, Beneficiary Services Jerry Vaughan| Senior Vice President, Foundation Loan Services & Real Estate 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

CONTENTS COVER STORY

2

Earthquakes, Ice Storms, Floods

Helping Ministry Respond to All Disasters

FEATURES

2

4 6

Indian Falls Creek

Endowment Helps Build Better Lives

AHS Member Profile

Considering a Blended Family

4 ON THE COVER

Disaster Relief busy at home and in Haiti.

DEPARTMENTS

8

Church Building Loans & Investment Funds

Like Zaccheus’s Tree, Church Provides Vantage Point

www.bfok.org

Market Report A Time of Recovery

by David Depuy, Vice President, Director of Investments

The Baptist Foundation of Oklahoma

12

Investments

Estate Planning Lessons from a Guitar Legend

by Dan Allen, Senior Vice President, Donor Services

Generosity

10

Donor Services

8

1

The television in Sam Porter’s office is on the weather channel, where a woman warns of an impending

“When they ask us why we do this, we have an ob-

saster Relief director, explains that chain-saw ministry

ligation to God to tell them that it’s the love of God in

volunteers are on call and mobile feeding units are in

our hearts,” he said.

The Baptist Foundation of Oklahoma

weeks.

Generosity

they earn the right to share the Gospel.

snowstorm across the state. Porter, the Oklahoma Di-

place for the state’s second winter blast in less than six

2

Because the ministry meets needs, Porter continued,

The encouraging part of a disaster such as Haiti, one that has elicited a strong emotional response from

As Porter explains what the next few days will look

around the world, is that people give generously to help

like for the ministry, if the storm is as bad as predicted,

the Oklahoma Disaster Relief ministry do its work,

his phone rings. He apologizes, adding that it could be

Porter said.

a call regarding the Haiti earthquake, possibly a green

But if a disaster does not have an emotional affect

light to begin taking Oklahoma Southern Baptist vol-

on the public, donations to Disaster Relief tend to de-

unteers.

cline.

Unlike the encroaching winter storm and aftermath of the international disaster, Porter is calm.

In 2008, the disaster relief team spent two months helping families in the Iowa floods.

“Ironic as it sounds, I feel almost as comfortable in

“Financially, both in the loss of property, farm crops

the middle of a disaster as I do sitting here in my of-

and cost for the Oklahoma disaster teams to respond, it

fice. And I know our volunteers feel the same way,” he

was just as costly as Hurricane Katrina in 2005. But the

said. “All of our volunteers want to rush in and help

nation was not as emotionally moved,” Porter said.

when others want to flee. We realize that we can come

Oklahoma Disaster Relief volunteers are on the

in and make a difference in people’s lives by meeting

scene of every state, national and international disas-

their needs, which is our number one goal.”

ter, Porter said.

During the 2007 ice storm, the Oklahoma Di-

lief groups have funds to

saster Relief chainsaw team helped 3,000 people

spread the word of their

clear their yards of branches and fed 75,000 peo-

need through advertising,

ple. The six weeks cost approximately $35,000.

Disaster Relief relies on

According to Porter, the group receives $50,000 from the Edna McMillan State Missions Offering annually. Aside from the missions offering, disaster relief relies solely on outside donations.

word-of-mouth,

Porter

said.

A donor who wants to help the Disaster Relief

Donations are used during disasters to buy fuel

ministry can create an

and pay for repairs for vehicles used to dispatch

endowment through the

volunteers to disaster sites. They are also used to

Foundation. An endow-

feed the volunteers who are on location. The men

ment provides a ministry

and women sleep in church gymnasiums, fellow-

with a consistent stream

ship halls, and shelters.

of income and the abil-

Volunteers help in a variety of areas: pr eparing and serving hot m eals, chaplaincy, damag e assessment, chainsaw recovery, mud-out debris removal, childcare , showers and laundr y, and water purification.

Volunteer training is offered throughout the year.

Visit www.bgco.or g to find a list of training date s.

Porter has served as director since 1998 and

ity to respond to events

in 12 years, the volunteer base has grown from

as they happen. Donors

300 men to 4,500 men and women. Sessions are

can also leave a planned

held throughout the year to train volunteers in

or estate gift to disaster relief in an “undesignated

the various ministry opportunities. Everyone is

fashion,” which means the funds will be used for

trained in mass feeding.

any disaster that arises.

The Baptist General Convention of Oklahoma

The winter ice storm did hit Oklahoma the

owns a large mobile unit that can feed 20,000

last week of January 2010 as the weather channel

people in one day, and 16 associations own units

predicted. Sixteen chain saw units were activated

that are scattered across Oklahoma that can feed

and volunteers served 30,000 meals to ice storm

3,000 meals a day. There are also 16 chainsaw

victims. Porter took the first group to Haiti in

units.

early February and started one of many efforts to

What may be unknown to some is that Disaster

place water pumps into the hand-dug wells in the

Relief works hand-in-hand with The American

earthquake zone. The ministry will continue to

Red Cross and The Salvation Army. Both orga-

make trips to complete as many as 50 water wells

nizations provide food in bulk, Southern Baptist

and to help rebuild churches in the area.

volunteers prepare it and Red Cross and The Sal-

“Any time there’s a disaster, we always respond.

vation Army serve it from their own mobile feed-

We’re trusting that the Lord will help us cover the

ing units.

expenses,” Porter said.

ing food, that food has been prepared by South-

can help provide consistent funding for Disaster

ern Baptists almost every time,” Porter said. “It’s a

Relief. If you would like to talk to a Foundation

great relationship; we partner together and make

representative about supporting Disaster Relief,

it happen.”

call 800.949.9988.

However, where larger non-profit disaster reAll Disaster Relief photos were taken by Bob Nigh, managing editor of the Messenger. www.bfok.org

The Baptist Foundation of Oklahoma

Your estate gift, planned gift, or endowment

Generosity

“When people see Red Cross vehicles deliver-

3

Indian Falls Creek:

Endowment Helps Build Better Lives

Indian Falls Creek is building a better Indian, said Victor Cope, executive director of IFC.

are involved.

“That’s why we want our churches to load up as many

“We still face many social ills, high alcoholism, unemployment, lack of education,” Cope explained. “If we can add the ingredient of Jesus Christ into our people’s lives, then we believe we can build a better Indian.”

Since 1947, Oklahoma’s Native American churches, approximately 270 today, attend family camp at Indian Falls

lost people as they can so that we can begin reaching into the homes and families of our people,” he said.

Ralph and Joyce Hamblin both began attending Indian Falls Creek as children. And despite living out of state after they married, the couple and their children returned to Oklahoma in the summers to attend family camp.

Creek for one week each summer. Ten other state con-

“There was always a fellowship there that was unique. It’s

ventions send members as well. Unlike the Falls Creek

still unique,” Ralph Hamblin said. “Falls Creek had a good

General Assembly, IFC is intergenerational, ministering

impact on my life growing up because it introduced me to

to entire families and congregations, from babies to the elderly.

Last summer, 2,500 people attended the one-week event.

Generosity

The Baptist Foundation of Oklahoma

Native Americans are the least

4

Jesus. I went with my mother and

“There’s such urgency for us to see our people saved. We know that it’s the answer to the problems that face our people.”

brothers as a little boy and having the family with you—even the babies, grandfathers, grandmothers, parents—was important.”

evangelized people group na-

Joyce Hamblin said that the

tionwide. Nine out of 10 Native

missionaries and pastors were

Americans do not know Christ, said Dr. Emerson Falls,

good examples for her and that the end of camp each year

president of The Baptist General Convention of Oklaho-

always had an impact on her.

ma.

“Indian Falls Creek is the largest evangelistic gathering of Native Americans in North America,” Dr. Falls said.

Dr. Falls explained that many people who attend Indian

“Before camp broke, all the families, young and old, would gather and pray. Then they would sing hymns in their native language. It always stirred something inside me and brought tears to my eyes.”

Falls Creek feel it represents their heart’s culture, which

Dr. Falls and Cope see the importance of growing the

will always be Native American. Family camp paints a

Indian Falls Creek Baptist Assembly Endowment Fund

picture of how tribes are organized—all family members

recently established through the Foundation. The endow-

ment funds will help pay for the week’s programming and will provide the necessary partial or full scholarships so many families need so that they can attend IFC. “You take a family who is struggling financially and that has three children who want to attend Falls Creek. It’s nearly impossible for them to come up with the money,” said Dr. Falls.

Cope attended Indian Falls Creek in his youth, and has seen many individuals changed in his 15 years as executive director. However, the successes aren’t enough to stave off the fear he has.

“We are serious about strengthening our churches and that’s our whole thrust at family camp. There’s a fear that we are going to lose. Nine out of 10 Indians do not know the Lord,” Cope said. “For us as Indian Christians, it’s a true battle. Many of our people do not want what we have.”

“There’s such urgency for us to see our people saved. people. We know because of what we’ve experienced with Jesus that there is no other way.”

FallsCreek.com. If you would like to consider making an estate gift or planned gift to support the Indian Falls

Department to receive the 2009 Acts 1:8 Award.

This award is given each year to a Native American Association or ministry which has done an extraordinary work of evangelism.

Victor Cope, Executive Director of Indian Falls Creek, shares his encouragement for an initiative started in 2009, the Indian Falls Creek Challenge.

The project, he says, is to restore a vision to the churches, encouraging every Native American congregation nationwide to participate as one to reach native people. Cope says the challenge is important because: • Nine out of 10 Indians do not know about the saving grace of Jesus.

• Many of the Indian churches do not have a pastor and are on the verge of closing.

• The leadership recognizes that they are losing young people and youth.

Indian Falls Creek is challenging each member, congregation, and association nationwide to lead its convention in baptisms and growth this year.

Creek Endowment Fund, contact the Foundation at 800.949.9988.

All Indian Falls Creek photos were taken by Dana Williamson, Messenger associate editor. www.bfok.org

The Baptist Foundation of Oklahoma

To learn more about Indian Falls Creek visit Indian-

General Convention of Oklahoma’s Evangelism

Generosity

We know that it’s the answer to the problems that face our

Indian Falls Creek was selected by the Baptist

5

“With a blended family you need to set in motion what needs to be done in the event of your death so that there isn’t…unsettledness with the children.”

A Gift to a Blended Family Hank and Jean Luce, Auguie Henry Society members since 2006, encourage their friends in second marriages

“With an implantable cardioverter-defibrillator (ICD)

to consider creating a will or trust as a way to alleviate

and pacemaker, he’s able to have an active life,” Jean said.

stress that can occur between blended families.

Generosity

The Baptist Foundation of Oklahoma

The couple married 15 years ago, a second marriage for

6

heart problems, including congestive heart failure.

In 2004, Hank and Jean contacted the Foundation to begin their estate plan.

both. Between them, they have five grown children. The

“We started to do some serious thinking. Also, a few

couple sees their estate plan as an act of stewardship but

years earlier one of my dearest friends, whose husband

also a gift to each other and to their blended family.

died in an accident in his early 40s, did not have an es-

“With a blended family you need to set in motion what

tate plan and she experienced tumultuous decisions of life

needs to be done in the event of your death so that there

support for him and a financial avalanche to take care of

isn’t conflict or unsettledness with the children,” Hank

after his death,” Jean said.

said. “We don’t know when the Lord is coming, but he

A Foundation representative visited with the Luces in

calls us to be good stewards of all that He has given to

their home and answered questions about a living will,

us.”

durable power of attorney, last will and testament, and a

Hank had a heart attack in 1993, at the age of 48, as

trust. At that time, Hank and Jean also named a successor

a result of a damaged heart. He continued to experience

trustee who will handle all financial matters if they ever

a serious health decline and was diagnosed with several

become mentally or physically unable to make decisions

on their own. An attorney finalized all the documents and

tell my friends to not let cost delay them in taking care of

because the Luces left a gift to a Southern Baptist minis-

health and financial decisions. The cost is next to noth-

try, the Foundation reimbursed a portion of the legal fees

ing and the Foundation will take the time to walk you

they incurred.

through everything.”

“We don’t have mega-assets or finances but we want to be good stewards of what we do have,” Jean said. “And I

To learn more about creating a will or trust with the Foundation, call 800.949.9988 or visit www.bfok.org.

Auguie Henry Society members since 2006 The Foundation reimburses a portion of your legal fees if you choose to leave a 10 percent charitable gift in your will or trust 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. To see a partial list of Southern Baptist causes Foundation donors give to visit, www.bfok.org/southern-baptist-causes.

CHURCH BUILDING LOANS & INVESTMENT FUNDS Like Zaccheus’s Tree, Church Provides Vantage Point of Christ Pastor Rick Frie has spent much of his 40 years in min-

istry helping churches overcome growth plateaus.

The funds that the congregation raised and money re-

ceived from the sale of their building were placed in a

That’s why when he came in view of a call to First Bap-

Church Funds Management account with the Founda-

tist Church, Jenks, Okla., he was upfront about what he

tion. Recently, First Jenks took out a $6 million Church

saw as a need for the church.

Building Loan with the Foundation to complete its 80,000

“The church was landlocked and Sunday school atten-

square foot building that is a two-story lodge design, in-

dance averaged 150. I said that if they were to call me as

cluding an open foyer with a fireplace, café, children’s

a pastor, they were also calling for the church to relocate

worship area, Sunday school classes, offices, and large

someday,” he said.

sanctuary.

In the seven years Frie has served as

Frie said that seeking a loan with the

pastor, the church has experienced steady

Foundation was a priority because the in-

growth and today runs more than 500 in

terest paid on a loan goes back into min-

Sunday school. The church added a sec-

istry

ond Sunday school and worship service.

“The Foundation comes alongside

“Most of our growth has been in young

churches to help them accomplish their

families; our preschool department has

vision and to help reach people,” Frie

just exploded,” Frie said.

said. “For us, there’s never been a moment

Three years ago, acknowledging the

that we thought about going to a bank to

need for expansion, the church voted to

take out this loan. If you are going to be

buy 28 acres a few miles south of their

in debt, why not help other churches and

current 45,000 square foot building. They

ministries? The money we pay in interest

bought the property for $930,000 and the

Pastor Rick Frie

congregation was challenged to pay it off in 12 months,

me, that’s powerful.”

which they did. The church began its Lighting a Legacy

Frie said his congregation’s vision is that God will use

Campaign to raise $3.5 million over a three year period

their new facility to draw families and individuals who

to help pay for the construction of the new $10 million

need a safe place, one where with Jesus they can be real

building. In one year, the church has raised $1.6 million.

and work through the struggles all people have, resulting

Generosity

The Baptist Foundation of Oklahoma

Jenks Public Schools purchased

8

goes to help advance God’s Kingdom. To

in victory in their lives.

the church’s current building for

“I love the story of Zacch-

$3 million and has allowed the

eus and how out of curiosity

church to stay until their current

to see Jesus he climbed into a

building is completed, which Frie

tree, one that God had planted

estimates will be in July 2010.

and watered. Because of that

“Our church family has really

tree, Zaccheus was provided a

stepped out in faith and raised

vantage point that helped him

money even during a bad econo-

Architect’s Drawing

come to know Christ.

my,” Frie said. “We did not have one single ‘no’ vote when

“That’s the vision we have for our new building—that

we voted to move. We’ve really watched God do things

it will be the place where they will have the vantage point

that were almost impossible.”

that helps them know Christ,” he said.

FOUNDATION STAFF NEWS

BRAD JOHNSON, Vice President, Controller. Brad served as a CPA for Finley & Cook, PLLC, Shawnee, for four and a half years in the assurance services department and served as senior auditor for the last two years. His auditing experience includes a variety of industries: banking, manufacturing, non-profit, and benefit plans.

He received a Bachelor of Professional Accountancy degree in 2005 from OBU. He and his wife, Stephanie, live in Edmond and are members of Quail Springs Baptist Church.

BROOKE MOWERY, Investment Officer. Brooke graduated from OBU in 2009 with a Bachelor of Business Administration degree in finance. She played varsity tennis for OBU, was in Delta Mu Delta Business Honor Society, was an Academic All-American, and served on the Business Student Advisory Council. She plans to pursue a master’s degree and take the CFA exam.

BECKY WILSON, File Librarian. Becky works for the Foundation part-time.

She is pursuing a business administration degree from Mid-America Christian University. She and her husband, Brandon, have two children, Grace and Avery.

They are members of Graceway Baptist Church and teach College and Career Sunday school class.

TOBY HASKELL GATHRIGHT, son of Curt and Kenna Gathright, was born February 13, 2010. Curt is the Foundation’s Northwest Area Manager. The Gathrights also have an 18-month-old daughter, Molly.

ALIZABETH HOPE KERSH, daughter of Paul and Angela Kersh, was born April 12, 2010. Paul is the Foundation’s Southwest Area Manager. The Kershes have two other children, Will and Makenna.

DONOR SERVICES Estate Planning Lessons from Guitar Legend Jimi Hendrix

By Dan Allen Senior Vice President, Donor Services It has been almost 40 years since guitar virtuoso Jimi

ple of what can happen if you fail to take a basic steward-

Hendrix died. Hendrix taught himself to play on a $5

ship step of signing a will. A will does much more than

acoustic guitar at age 13. He is still considered by many

just express our wishes for who will receive our financial

to be the best guitarist of all time despite having released

assets. It allows the parents of young children to pick the

just three albums during his lifetime.

family members or friends who will be guardian of young

As successful as Hendrix was musically he was equally

children in the event of the parent’s death. Without your

unsuccessful at planning his estate. As recent as 2004,

clear direction in the form of a will you open the possibil-

Hendrix’s estate was still being litigated in California’s probate courts due to a decade’s long family feud over control of his assets. Hendrix was survived by his father Al and his brother Leon.

Hen-

drix maintained a close relationship with his brother throughout his life. However, neither Leon nor his family inherited any of Hendrix’s estate. In fact all of his estimated $80 million estate was awarded to a woman he barely knew.

ity of litigation between

The will is one of the most important documents you can own. Think of planning a will as securing the financial future for you and your family.

The benefits of a having a will: • You can express your values to your heirs • Care for your heirs according to their needs • Make a gift to the Baptist ministries that have meant so much to you and your family.

When should I update my will?

• Births • Marriage or divorce • Death or incapacity of a named beneficiary in your will • Changes in your personal net worth • Change of your needs or your beneficiaries’ needs • Change of residence

Generosity

The Baptist Foundation of Oklahoma

The reason for this un-

10

usual outcome: Jimi Hendrix died without a will.

family members.

Any comprehensive estate plan should include more than a will.

A durable power-ofattorney allows you to name the persons that will take care of you and your property if you become incapacitated. A living will allows you to decide how you would want end of life medical situations handled so that your family is not burdened with

making

these

choices for you.

The fact is, Hendrix’s

lack of planning isn’t that unusual. Seven out of 10 Ameri-

The woman, Janie, was the young daughter of Al Hen-

cans die without a will. And although most of us do not

drix’s second wife. He adopted Janie in 1968. According

have an $80 million estate to worry about, not having a

to California state law Jimi Hendrix’s estate was awarded

will would have the same affect on what assets we do have

to his father. Leon asserted that Janie coerced Al to re-

as it has had on Hendrix’s estate. We would forfeit our

move Leon and his family from his will late in his life. Ac-

wishes to protect our health and financial decisions dur-

cusations and threats continued back and forth in court

ing an illness, provide for our families financially after our

for years.

death, and support the ministries that are important to

Jimi Hendrix’s family experience is an extreme exam-

us.

INVESTMENTS Market Report David Depuy Vice President, Director of Investments

A Time of Recovery

After looking over the performance of 2009 and the first

most of the continued recovery of some economic sectors

quarter of this year, 2010 seems to be moving out of what

of the market. During the first quarter, the Foundation’s

is now labeled the “Great Recession.”

diversified portfolio of stocks, bonds, alternative assets

Exports increased eight consecutive months until January and February, when they declined slightly due to diffi-

and cash grew by 3.98 percent finishing with the one-year performance to 26.16 percent.

cult winter weather conditions. The labor market is slowly

The challenges of 2009 provided a time of recovery and

improving, but not yet creating enough jobs to decrease

a chance for companies to reset their expectations. While

the unemployment rate. How-

the economy continued to

ever, optimism still prevails as retail sales surprisingly

GDP*

2008 2009

-1.3 2.6

improved during January and grew by 5.39 percent during the first quarter of 2010 bringing the index’s one-year performance to 49.75 percent. Similarly, the Barclay’s

The Baptist Foundation of Oklahoma Generosity

tious. The Federal Reserve

2.7

CPI*

0.1

provided much of the sta-

-2.00

10.0 7.4 0.00

2.00

4.00

6.00

8.00

GDP* - unadjusted for inflation GDP* - December to December percent change

Aggregate Bond Index, for-

12

of 2009 and the beginning of 2010, we must still be cau-

Unemployment (December)

February. The S&P 500 index

stabilize in the fourth quarter

10.00

bilization with temporary measures that will have to be reversed in the future. And although we are confident that the Federal Reserve will

merly the Lehman Brothers Aggregate Bond Index, in-

move prudently to keep inflation in check in an attempt to

creased 1.78 percent during the first quarter bringing the

avoid another recession, it’s a situation to watch carefully.

index to 7.70 percent for the previous one-year. From the

The latest unemployment report revealed the 9.7 per-

March 2009 bottom to the end of the year, the S&P 500

cent unemployment rate constant through February,

index rallied 76.59 percent. Even so, the index remains

while consumer spending was down slightly from Janu-

23.67 percent below its all-time high, set in 2007.

ary. Clearly, a high unemployment rate will have a mate-

Considering the many changes in the structure of the

rial impact on keeping prices low in the near term. There

economy over the past eighteen months, we feel it is the

is still a possibility for inflation in the future, but probably

appropriate time to re-evaluate the Foundation’s strategic

not until the unemployment rate falls back to normal lev-

allocation targets. As we mentioned in our last article, we

els. This graph shows the relationship between GDP, CPI,

will migrate back to the targets set for our endowment

and unemployment during December 2008 and 2009.

portfolio, as we have been underweight to equities since

The GDP and CPI numbers in the chart show the year

the start of the recession. The Foundation’s investment

over year percentage change. The unemployment num-

committee consistently monitors investment allocations

bers are as of December for both years.

and strives to reach our annualized target return of 8.00 percent after all fees over a five-year average. This rebalancing allows us to position the portfolio to make the

If you have any questions about Foundation investments, please contact us at 800.949.9988.