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.