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rooted in faith

growing D E2018EAnnual P Report ROOTS


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Have faith in God’s future. Plant seeds.

Purchase fields.

Grow deep roots.

Discern God’s purpose.

Prepare for the journey.

thus storing up for

the treasure of a good

THAT REALLY

so that they may take

1 TIMOTHY 6:19


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themselves

foundation

IS LIFE

hold of the life


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President and Board Chair Letter from the

Dear friends,

Three stories from these areas show how we also help our constituency build

While we are always preparing for the future, 2018 was particularly

using their UMDF loan to fulfill their vision that “everything we own will be in

marked by growing deeper roots, by building capacity toward a Godsized vision for the future church. As an organization that started during

the Great Depression, our very essence is rooted in helping churches thrive in difficult times. During the recession of 2008, we grew while other financial organizations declined because churches and individuals trusted

capacity toward fulfilling the purpose of the church: a congregation who is

productive, missional use”; a Heartspring donor who enacted her faith by opening minds and doors through educational opportunities; and a

courageous pastor from TMF’s Leadership Ministry who is using his call to a ministry

of reconciliation through music to tear down barriers. By leaning forward into

potential not yet met and a vision not yet realized, they give visible witness to

us and our track record.TMF is stronger financially than we have ever been,

their faith in God’s future.

to live into our vision of empowering the purpose of the church by

While we acknowledge the realities facing our church, at TMF we view this as

managing over $650 million in assets, and better prepared than ever before

galvanizing financial resources and courageous leadership to create communities of discernment, purpose, and generosity.

In this report you will read about how we have deepened our financial, social,

and reputational capital to build even greater trust with our constituency and

to more effectively embolden deep change in congregations and the

communities they serve. We expanded our investment and loan reach to the

national level through the United Methodist Development Fund; joined forces with

Heartspring Methodist Foundation; launched our Courageous Leadership Imperative in the South Central Jurisdiction; and began the exploratory phase of our newest service area, Faith Based Social Entrepreneurship.

What roots can we deepen together?

a time of promise, a time to follow Jeremiah’s example. Exiled from the land of

promise and held in captivity in a foreign land, God’s people are convinced all hope

is

lost

when

Jeremiah

begins

to

speak

of

the

future:

“I know the plans I have for you. They are plans for a future with hope. They are plans for restoration and new possibility.” (Jeremiah 29:10-12)

And then he acts on his prophetic words: he returns to his homeland and buys a field. An unwise investment from every perspective, save one. In that field, Jeremiah sees God’s vision. He sees a future of hope.

The church is still the vehicle God has chosen to give witness to a future of hope and the world is crying out for that hope, for a deeper truth than the divisions and

B


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competition and loneliness that define our culture.Whatever God intends for the church to be,

TMF wants to be a part of it and a part of creating it. We are blessed to be part of a community with deep roots, a strong faith in the future and an openness to God's next chapter for us. Time to

take risks and dream big, purchase fields, plant seeds. And in so doing, live life that is really life, full of meaning and purpose.

What fields can we help you purchase? What seeds can we help you plant?

Building capacity

DR. CLAYTON OLIPHINT

Board Chair

TOM LOCKE

President


04.10 2018 AnnualReport.qxp_Layout 1 4/18/19 2:57 PM Page 6

“. . . I know the plans I have

They are plans

FUTURE WITH

They are plans for restoration and new possibility.”

Focus on Purpose Building capacity

Financial resources

Courageous leadership


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for you.

for a

HOPE.

JEREMIAH 29:11

e p

2018 Key Accomplishments

The people of God have always been at our best when we keep our gaze firmly on the future. Whatever form the church of God’s future takes, we know the faith communities we serve will need: financial resources,

courageous leadership and an entrepreneurial spirit to animate their purpose, their practice of a Christian way of life together.

That’s why TMF spent much of 2018 building our

capacity to more effectively provide these essential elements of a vibrant church.

STEWARDING POTENTIAL TOWARD PURPOSE

How does TMF use our edge position to help the church shift tenses from the present to a hopeful, whole future? We focus on the purpose of the church,

not the institution of the church, as we have been doing for many years. And we encourage and support visionary, innovative and creative methods for fulfilling that purpose. As people of faith, we are always in a state of becoming who God has given us the potential to be. TMF’s mission is to empower that becoming by nurturing an environment in which the tools we provide – whether financial resources, courageous leadership formation, or entrepreneurship – are used to help congregations, leaders, and families steward their potential toward becoming, in time, who we have always been in Christ.

FINANCIAL RESOURCES

Entrepreneurial spirit

The more robust our financial integrity the more effectively we are able to provide those resources. TMF’s managed assets at the end of 2018 were approximately $549 million and with the official merger of Heartspring into TMF on January 1, 2019,

are now $650 million. TMF’s transition from

managing agent to controlling agent for the United Methodist Development Fund (UMDF) adds another $121 million in assets. But that increase is only important insofar as it is used to resource the work of the church which is important insofar as the church is missionally focused on changing people who then change the world.

So 2018 was marked by preparing not merely to complete the merger of assets from these two stellar organizations into TMF but to understand their histories and contributions and then meld our cultures in a way that unites us to be even more fruitful in helping our constituents achieve their Godappointed purpose than we could be as single organizations. When the soil is right and the roots go deep, growth happens. Like the church we serve,

God calls us to things we cannot do alone. We are better together.

United Methodist Development Fund

The Methodist General Conference of 1960 established the Methodist Investment Fund with a mere $100,000. Today, UMDF is an organization that not only offers loans to churches and investment opportunities, but also has used a significant portion of their net revenue to support the work of the church globally through the United Methodist General Board of Global Ministries.

TMF successfully managed UMDF throughout 2017 and during 2018 began preparing to transition from managing agent to controlling agent beginning

January 1, 2019. We recruited new board members, discussed the possibility of a leadership ministry


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Key Accomplishments continued

platform on a national scale, and developed a much-needed marketing plan. We began telling the compelling stories of UMDF borrowers, like the one in this report, and not only received enormous gratitude from them but have been inspired by their welcoming communities of grace and ministries of compassion and mercy.

As TMF looks to the future, we believe UMDF has incredible scalability and strong potential for building additional foundation partnerships. While we plan to leverage this capacity and steward UMDF’s overall potential, we will also remember UMDF’s rich history and maintain UMDF’s greatest strengths, including its commitment to providing loans to financially qualified, ethnically diverse congregations, because we believe these foundational strengths have made UMDF what it is today – a trusted organization that continually invests in God’s work in the world.

Heartspring The idea of starting a conference foundation began with the charitable desires of one man who dreamed of helping all Methodist churches in the Texas Conference. Devout Methodist and longtime member of Trinity UMC in Beaumont, Texas, Rupert Conrad ‘Rudy’ Williams worked with then-Bishop Finus Crutchfield to bring the vision of a conference foundation to fruition.

At the end of the first year of operation the Foundation consisted of one staff member and $1.4 million under management. At the end of 2018, Heartspring had seven full-time staff members, $86 million under management, and distributed more than $1 million a year into the operations of churches and ministries within the Texas Conference.

2018 marked the 40-year anniversary of Heartspring’s faithful service to the Texas

Conference. Following months of conversation and due diligence, Heartspring became a part of TMF on January 1, 2019. Similar to a congregation, TMF and Heartspring staff worked together throughout 2018 to discover how our backgrounds, experience, practices, gifts and talents, overlap and inform one another and how we could most effectively use them to invest in the best possible outcomes to shape the future God is calling us to.

COURAGEOUS LEADERSHIP

In addition to financial resources, the church needs courageous leaders to live into a fruitful

future. In cooperation with the South Central Jurisdiction (SCJ) foundations and with support from the Lilly Endowment, TMF’s Leadership Ministry initiated the Courageous Leadership Imperative (CLI), a learning network for courageous leaders.

Courageous leadership

The Imperative

In order to be relevant and vital in a radically changed culture and mission field characterized by individualism and diversity, the church needs young, diverse leaders who are not content to maintain. These leaders are credentialed by the church but resist the gravitational pull of the institution of the church by constantly realigning institutional forces and resources with fulfilling the dynamic purpose of the church. They have the courage to help the church stand to the full height of the gospel in a dramatically changing, emerging landscape in which the church, after decades of being comfortably in the mainstream, is now being pushed to the margins of American life.

How does TMF’s Leadership Ministry accelerate courageous leadership? First, we recruit leaders, at every level of the church, who are deeply committed to the United Methodist movement but are not overly invested in its current norms and structures. Then we connect as broad a diversity of those leaders as possible together in conversations and environments that inspire experimentation and learning; risk-taking and innovation; adaptive capacity and resilience; community and relationships.

Financial resources Entrepreneurial spirit


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The synergy of these diverse leaders is creating what Gil Rendle calls “quiet courage.” This is the kind of courage necessary for reaching

out to, participating with, and engaging 21st century disciples in transformative work and for persevering until deep dynamic change can become the institutional norm.

To launch this movement, on October 8-10, 2018, in St. Louis, we hosted a 48-hour, high-energy experience with 122 courageous leaders from throughout the SCJ, plus bishops and foundation directors. This gathering created networks among leaders, inspired innovation, expanded imagination for the possible, and emboldened courage. Beginning in April 2019, CLI’s cohorts offer two tracks of courageous leaders: those who lead local churches and those who lead non-traditional faith communities. The cohorts will experience learning gatherings three times a year and will also meet together for cross-learning and networking.


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“How do we honor

we came from and

HONOR WHERE are called to GIL RENDLE


04.10 2018 AnnualReport.qxp_Layout 1 4/11/19 12:38 PM Page 11

where

also

WE

go?”

Faith Based Social Entrepreneurship

Key Accomplishments

TMF has been preparing for this new service area for many years. It evolved out of our commitment several years ago to the dual goals of helping the church improve its work with the “affiliated” (those comfortable in a congregational setting) and create new places of grace for those who are “unaffiliated” with the traditional church. Beginning with the Forum on Wesleyan Potential in 2015, TMF has continued conversations and research about how millennials and others are creating community outside the church. Mixed Ecology of Church – the idea that the church manifests its witness through a variety of spiritual communities – has become a key topic of Leadership Ministry’s learning agenda. TMF’s Grants Ministry is partnering with initiatives that are creatively connecting with the unaffiliated and improving their communities. Examples include Houston re:Vision that is transforming young lives while helping to reform the juvenile justice system and CitySquare in Dallas that enlists and supports the gifts of those it serves to solve systemic problems of poverty. Additionally, we draw on our Wesleyan heritage of Christian Social Innovation. John Wesley was not so much creating a church as he was creating a society through

continued

Christian community. He encouraged early Methodists not merely to give to the church, but to lead lives of generosity in which giving to the church for the sake of its mission is a natural consequence. Being a good steward meant not simply taking care of and improving our world, it meant creating new possibilities for our world. So Methodists built universities, hospitals, and orphanages. Wesley “societies” launched experiments in publishing, economic development, and prison reform. How can TMF’s Faith Based Social Entrepreneurship reinvigorate our Wesleyan heritage and meld it with our learning, experience and resources to encourage faithinspired innovations in the social sector? How can we take advantage of the movement away from faith as a monolithic institution to faith as a way of life? How can we embrace our faith's history of social activism and live into what the gospel is calling us to do? Currently, we are exploring these questions. What is TMF’s next step and best role in this arena? Funder? Equity partner? Business consultant? Incubator? Encourager and conversation partner? We do not know the answers yet but believe that bringing a spirit of entrepreneurship and social innovation alongside a deeply rooted, open and generous faith has enormous potential for creating the newness God intends.

Financial resources Courageous leadership Entrepreneurial spirit


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McKendree UMC was looking for a partnership

Located in downtown Washington D.C., the needs of their mission field were great, but the church’s exceptional vision was greater. “Our church is on the move,” Pastor David Hall proclaimed. “We are addressing capital needs, so everything we own will be in productive, missional use.”

The church needed to repair a dysfunctional heating system in their educational building, so they could start using the space for outreach ministries such as food and clothing distribution, daycare, counseling services, and music lessons for local children. Their goal to enhance the facilities’ productivity was far more reaching than this, however. In light of D.C.’s affordable housing shortage, they wanted to renovate four homes they owned so three local families would have a safe, reasonably priced place to live and students serving on mission would have a place to stay. Additionally, they wanted to be a pioneer in water conservation, serving as an example of how organizations could conserve water, reduce their water bills, and reduce their rain tax. McKendree took their vision to commercial lenders, but Pastor Hall was not satisfied with the church’s options. “I felt the banks wanted too much as security. They were overreaching.” As they searched for a lender, Pastor Hall did not know The United Methodist Development Fund (UMDF) even existed. When his wife told him UMDF was a United Methodist organization that offered loans and investment opportunities to churches, he decided to learn more. What he discovered was the exact partnership his church needed.

“Banks have no interest in people coming to know

Christ. UMDF is different. They are committed to helping churches grow,” Pastor Hall noted. “UMDF saw us as a unit of giving and service in the community.”

“It was hard not to see McKendree as a unit of giving and service, when you consider all they were doing, particularly with affordable housing and childcare,” recalled David McCaskill, TMF senior vice president for loans and UMDF senior vice president of financial services and

treasurer. “When we are reviewing loan applications, these are the kinds of ministry ideas that stand out. These are the ones you know will make a difference, if they simply have the right partnership in place and we believed UMDF was the perfect fit.”

After the application process was successful with UMDF, McKendree got to work making the improvements they knew they needed to serve their community more effectively and the results have been stunning. The loan substantially increased their income, by allowing them to start a daycare center and renovate three rental houses. They added $18,500 a month to their budget by simply being good stewards of their facilities and providing affordable housing. With this extra income, McKendree UMC has not only been able to pour resources into their own ministries, but they have been able to assist other local churches as well. When it comes to evaluating this partnership, Pastor Hall says it best – “UMDF has unlocked our potential. It is

the best thing that has happened to this church in a long time.”

Missional outreach

“Christ

ON


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has no body now but yours.

no hands, no feet

After two years of managing the operations of UMDF, TMF took ownership of the organization on January 1, 2019. This story illustrates the positive outcomes we are proud to be a part of and will continue to empower, both within TMF and UMDF.

EARTH BUT YOURS.� TERESA OF AVILA


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Why We Give

by Melva D. Christian

My mother, Alyce Louise Hudson Christian, was born in Louisiana and grew up in a house built on land that her great-grandparents, Charles and Louise Williams, bought for their children shortly after slavery ended. There was a railroad line leading to Houston right behind the house, and hungry hoboes routinely jumped off the train and knocked on the family’s back door. As a small child, Mom dutifully helped her grandmother make sandwiches for the men. Once she inquired why they were helping the men and her grandmother replied, “Puddin,’ didn’t you hear the man say he was hungry? He doesn’t have anything, and we

have enough to share.” From that experience, Mom learned to use her blessings to bless others. Three generations lived in the house in Louisiana, just as three generations lived in the two-bedroom house my mother bought in Houston. Three generations lived in my house, too, with Mom caring for my daughter, Kema, picking her up from school, treating her to smoothies, and teaching her, while I worked. That teaching included a lesson she learned long ago. One day on their way home during a typical Houston downpour, Mom noticed a woman and her young child waiting for a bus in the rain. She pulled over, honked her horn, and instructed Kema to

"rooted and built up in Christ,

strengthened in the faith as you were taught,

thankfulness.”

and overflowing with

COLOSSIANS 2:7


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hand the lady an umbrella. Kema did as instructed then asked why she had given her umbrella away to a complete stranger. “Puddin’ Puddin,’” Mom said, “the lady didn’t have an umbrella, and I had two.” For most of her life, my mom supported several churches. She joined with other teachers at the Houston Independent School District to sew clothes for students who came to school in tatters. During summers, she volunteered to teach in the Alpha Kappa Alpha sorority’s Life-Long Learning program. As the head of the Lucy Brown Shoe Fund, she bought shoes for area school children with donations from our United Methodist Women’s unit. Mom selflessly set up funds honoring her mother and many others including her mentor Rosa Ann Cobb, the former administrator of Sager Brown, then an orphanage and now a supply depot for the United Methodist Committee on Relief (UMCOR). In 1985, she established the Hazel J. Hudson Memorial

Scholarship to honor her mother, through Heartspring Methodist Foundation. She went on to endow two additional scholarships, all of which have helped some 50 students go to college. Mom always said, “Lord, just help me to help somebody else” and that is exactly how she lived.

Heartspring Methodist Foundation officially became a part of TMF on January 1, 2019. Heartspring's work with this faithful donor is one of many examples of the commonality in our work and mission to build a culture of purpose and generosity in the church.

As an educator and faithful Christian, she fervently believed the church and education formed individuals

who then shaped communities. Creating the scholarships was a way to open whole new worlds up to others. She vividly remembered the struggle her family had putting her through college, where she earned a degree with a double major in biology and chemistry. The scholarships were a way of honoring the memory of those who helped her by helping to steward the potential of others. During her last days, I stayed with Mom at the hospital. She was past the point of talking then, but she could still communicate in writing, so I would ask how she felt. She usually wrote, “Good.” When I asked if she needed me to do anything, she once sassily scribbled, “You can let me sleep.” The last time she had the strength to write, she wouldn’t let go of the pen. I asked if she had anything else she wanted me to know. She wrote, “I love you and James and Kema and Andy and Jason and Jana.” Her last gift, love. I know there might come a day when the scholarship funds Mom set aside are too small to make a dent in tuition, but I also know the extraordinary gift of generosity she learned from her family and passed down to us will remain forever.

Stewarding potential


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Singing a New Church into Being

TMF’s Leadership Ministry seeks to “accelerate courageous leadership” in the church. But what does real life courageous ministry look like in a real life messy, imperfect congregation?

deacon at Asbury Theological Seminary and completed his candidacy in the Texas Conference while serving at St. Luke’s UMC in College Station.

Though he would not describe himself as “courageous,” Rev. DeAndre Johnson, pastor of

Johnson felt God leading him to do the hard work of reconciliation at Westbury UMC in

music and worship life at Christ Church in Sugar

Land, Texas, calls forth a type of leadership that unites a deep faithful vision, grounded in the gospel, with the skills and persistence necessary to live out his God-sized calling “to a ministry of reconciliation through music.” “It takes deep, hard work to focus attention outside of ourselves – because it requires great vulnerability – and hard questions evaluating our own participation in systems that keep people out. Not until we address that part of who we are, can we truly offer the gospel,” Johnson observed. Raised in Shreveport, Louisiana, Johnson attended Centenary College, a United Methodist liberal arts school. While participating in the Church Careers vocational discernment program (now Christian Leadership Center), he felt the tug of the church. Others saw his gifts for pastoral ministry and raised money to send him to seminary. He commuted to Perkins in Dallas, earning a Master’s degree in sacred music. He took additional course work for ordination as a

Deep discernment

southwest Houston where he helped shape the congregation and their African refugee neighbors into a new community. After responding to an invitation to join the staff from Tommy Williams, then senior pastor at Westbury, Johnson spent 6-1/2 years there as pastor of worship and music during a time of tremendous ferment. The congregation stepped out of their comfort zone to build an intentional Christian community with their African neighbors transitioning to life in America. The experience at Westbury was life-changing, and the congregation has continued its vital ministry to break down barriers and build deep relationships with their African neighbors, but Johnson chose to venture forward in faith toward another challenge. “I felt I had done what God called me to do at Westbury and wanted to help Christ Church UMC in Sugar Land move toward greater reconciliation,” Johnson explained. Johnson knew both the opportunities and challenges for reconciliation were immense when he moved there in July 2017. The congregation

is making an effort to gather a more diverse body, and they have fertile ground for that endeavor. “Sugar Land is the most diverse suburb in the most diverse city in the most diverse county in the country,” described Johnson. In addition to racial diversity, with the Asian-American population almost equal to Anglo Americans, the community has a large concentration of practicing Muslims creating a sometimes fraught and other times mutually respectful coexistence of Islam alongside Christianity. The congregation, however, is far from diverse. So how do you discern and articulate a call to welcome strangers and shape a congregation into a grace-filled, outwardly-focused living sign of “the body of Christ” in the midst of a relentlessly anti-communal culture? According to Johnson, his experience as a member of TMF’s Worship Leaders learning

community, led by John Thornburg, vice president of area staff, has been a source of learning, strength, and encouragement. “I learned quite a bit from Brother Thornburg – not least of which is that we are what we

sing. And that what we sing can be a powerful instrument for claiming God’s vision for us,” said Johnson. “Music helps us articulate what we are while challenging us to what we are called to be. Being intentional about finding and selecting


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“what we sing can be a

POWERFUL

instrument for claiming God’s vision for us.”


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“We can no longer

of

BUT MUST LIVE


04.10 2018 AnnualReport.qxp_Layout 1 4/11/19 12:39 PM Page 19

Singing a New Church into Being continued

hymns that will help my congregation, my particular context, inform what we are thinking and praying about in our discernment of where God is leading us is crucial. It helps us continue the conversation in meaningful ways. I have an opportunity to sing a new church into being.”

Another important lesson Johnson garnered from the group was his need for covenant accountability. “We all know how contextual the work of deep discernment is, but to move forward with integrity, to dream, innovate, and discern what the next, right steps are, whatever your context, leaders need covenant accountability to sustain them over time. Engaging with others of similar minds and work, sharing best practices and how we manage life in general is crucial to leading God’s people to be God’s people,” Johnson continued.

“The mission of the church requires bold leadership. We can no longer play it safe for the sake of personal security but must live the risk-taking leadership that the spirit demands – not reckless, but discerned, measured, so that we can be faithful to what God has called us to do and be. Leaders need covenant accountability that calls us not just to the current church but to the larger church in a life-affirming, inspiring, creative way,” Johnson concluded. Courage is woven into every part of Rev. DeAndre Johnson’s story. Not content to preserve the past, no matter how vital that past is, he follows a living God. Through his ministry of reconciliation he finds ways to testify to the overwhelming power of unity in Christ, to the truth that we belong to one another and to the God who created us. And that the church can be the place where that unity is given full expression. “When we sing together, all the barriers come down and we remember who we are, together, because God has reconciled not just you and me but the whole world to God, through Christ,” he continued. “Worship is the place when we see most clearly and tangibly that reconciliation.”

play it safe for the sake

personal security,

THE RISK-TAKING LEADERSHIP THE SPIRIT DEMANDS.” Covenant accountability We belong to God.


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2018 Year in Review

A message of hope from restricted endowments, $660,000 from TMF operations, and $23,000 in individual and on-line gifts. We awarded approximately $118,000 for Hurricane Harvey victims. The Grants Committee of the TMF Board of Directors determines distribution decisions for the discretionary funds. In 2018, grant funds were distributed as follows: ➢ 40% to outreach ministries and evangelism targeting systemic change ➢ 37% to ministries which systemically benefit families living in poverty

TMF ended 2018 with a deeper understanding of what it means to be faithful to the future of the church. The significance of the following developments, activities, and financial reporting is in how they reflect the many congregations, leaders, families, individuals, and organizations we are privileged to work with who are building their capacity and stewarding their potential toward realizing God’s vision for the future.

FINANCIAL n

n

n

n

n

As of December 31, 2018, total assets under management by TMF were approximately $549 million.Unaudited total assets at the end of March were approximately $650 million. Our Methodist Loan Fund ended the year at $333.6 million. Methodist Loan Fund investments support TMF’s loan program which currently funds 442 loans to United Methodist churches and agencies. Our loan balance ended 2018 at $324.1 million.

➢ 15% for scholarships

➢ 8% for Hurricane Harvey relief n

Our Undesignated Endowment grew to $38.4 million and is a prime example of our attention to steadily strengthening our financial integrity, which has never been stronger. The relationship between our loan portfolio and our endowment continues to exceed guidelines established by our board. Additionally, this endowment growth diversifies and enhances our operating income stream by generating additional revenue for operations. Not included in the amount above, endowment dedicated to our Leadership Ministry now totals an additional $7.4 million.

TMF’s Grants Ministry carefully selects grant recipients for their capacity to enable systemic change by connecting human and financial capital in the diverse communities that constitute our mission field. We invest in strong leaders and teams with a clear purpose and demonstrable outcomes. We support them not only with funding, but with other resources, relationships, and encouragement customized to their unique needs for achieving positive outcomes for their constituents. During 2018, the TMF Grants Ministry awarded $1.5 million in support of 35 churches and not-for-profits. Of that total, an estimated $804,000 came

n

n

TMF’s ongoing capacity building is inextricably linked to our partnerships with individuals and families and a commitment to help implement their philanthropic goals. In 2018, TMF received $2.7 million in gifts and pledges including $1.6 million in support of TMF ministries. Guided by the philanthropic motivations of our donors, TMF partnered with a broad spectrum of churches and not-for-profits across Texas and New Mexico enhancing their capacity to lead change in their respective communities. Highlighting the year was a TMF boardinitiated $100,000 challenge grant to support Leadership Ministry. TMF met both conditions – a financial goal of $380,000 and 100% board participation – for unlocking the $100,000 challenge grant, resulting in $480,000 directly invested into individuals called to lead our faith. As described in more detail above, TMF’s Grants Ministry, funded through a combination of endowed funds, new gifts, and TMF operating support, distributed more than $1.5 million to 35 organizations. TMF distributed approximately $1 million from permanent endowments, predominantly to United Methodist causes in Texas. Operations and Heartspring staff worked together to identify the best technology for our merged workforce. All service area needs were considered, and new software systems and applications are now being implemented. The goal was to provide more effective and efficient processes with an updated look and feel for end users.


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in hope

“the plowman ought to plow

AND THE THRESHER TO THRESH IN HOPE

of sharing his crop.” 1 CORINTHIANS 9:10


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2018 Year in Review continued

LEADERSHIP n

During 2018 more than 400 leaders engaged with TMF’s Leadership Ministry, which offers a period of connection that fosters discovery, learning, courage, and innovation. Some of these conversations take the form of on-going peer groups and others as stand-alone conversations around an adaptive issue. During 2018, TMF hosted 14 peer-learning groups, involving over

275 clergy and lay leaders from across Texas and New Mexico as well as drawing from the other conferences of the South Central Jurisdiction (SCJ) and beyond. TMF remains deeply committed to creating space for leaders to discover, explore, question and learn with peers so that they might expand their capacity to lead in a time of deep change. In 2018, TMF launched the Courageous Leadership Imperative (CLI), funded in part by a $1 million grant from the Lilly Endowment as a part of their Thriving in Ministry initiative. CLI seeks to gather courageous leaders from throughout the SCJ for the sake of networking these leaders, strengthening their leadership, and building on their capacity for courage, resilience, adaptive leadership, learning agility and innovation. To launch this movement, TMF hosted a 48-hour, high-energy experience with 122 courageous leaders from throughout the SCJ. Launch 1.0 was October 8-10, 2018, in St. Louis. The Launch Community continues to meet quarterly online for sharing of ideas, stories, encouragement and resources. The next phase of CLI sees the introduction of two cohorts of courageous leaders with their first gathering in April of 2019. As TMF continues to work tirelessly to help strengthen the church we know today, we are also committed to helping the church live into a future which undoubtedly requires deep change and a new kind of leadership.

n

The Area Representatives team built capacity in 2018 by: welcoming Mark Woodward, a new colleague to the team, coming to TMF as part of the unification with Heartspring; providing strategic discernment services in eight churches following the model put forth by Gil Rendle and Alice Mann in their book, Holy Conversations; introducing a new one-day discernment workshop called Holy Excavations for churches who know they do not have a compelling vision or defined outcomes, but desire to dip their toes in the water of what a fuller discernment process might be like; facilitating over 500 conversations of many kinds, most often related to matters of non-profit governance and the creation of discipleship pathways; offering local church consults on best practices for stewardship, and on the exercise of year-round stewardship work, sometimes in a single church, and sometimes in clusters of churches; providing our end-of-life stewardship workshop called Putting Your House in Order in 48 churches, encouraging people to think about how they want their generosity and their values to follow them in their deaths; sponsoring two webinars designed for Wesley Foundation directors and other campus ministry leaders on how to underwrite their ministries; engaging 55 churches in exploratory conversations about creating or enhancing their legacy giving; responding to our President’s priorities to engage in ‘personal generosity conversations,’ in which we begin by asking someone, “I notice that you are very generous. Who taught you to be generous?” and to invite more individual investors to invest in the Methodist Loan Fund.

Preparing for God s future.


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STAFFING n

During 2018, TMF staff wished Godspeed to Teri Fichera, director of event planning since 2013, as she transitioned from TMF to full-time employment with her husband’s company. While here, Teri worked tirelessly to plan and execute events that were exceptionally welcoming and engaging. No detail was too small for her attention and no concept was too large for her creative spirit to bring to life. TMF welcomed Debbie Hilliard as she stepped into Teri’s shoes and took on additional responsibilities as well, acting as our new event planner and senior administrative assistant to the area representatives. This meant we also said goodbye to Joyce Russell, senior administrative assistant for area staff since 2001. We wish her well in her retirement and are grateful for her dedicated service. TMF welcomed several new faces this year, including Heartspring employees. C. J. Taylor was the president of Heartspring Methodist Foundation and we are thankful he is now serving as TMF’s executive director for Texas Conference activities. Dorena Moore is our vice president of operations; Cheryl Westbrook is one of our loan officers; Mark Woodward is one of our senior area representatives for the Texas Conference; Krystol Wheeler is our director of strategic initiatives; Edgar Vallarta is our senior accountant; and Sarah Rich is our administrative assistant for the Houston office. Additionally, we welcomed Maggie Johnson, Leadership Ministry assistant; Paulette Morris, senior administrative assistant for the executive department and general counsel; and Sandra Murphy-Hamilton, loan funder/closer/analyst. Recently joining TMF, is Jordan Baucum as director of Faith Based Social Entrepreneurship, our newest service area.


04.10 2018 AnnualReport.qxp_Layout 1 4/11/19 12:40 PM Page 24

I HAVE GREAT FAITH IN A SEED.

“Though I don’t believe that a plant will spring up where no seed has been,

Convince me that you have a seed there,

and I am prepared to expect wonders.” HENRY DAVID THOREAU


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2018 Financials

TOTAL 2018

FUNDS OWNED

LIFE INCOME FUND

ENDOWMENT FUND

FUNDS MANAGED FOR INVESTORS

CASH AND CASH EQUIVALENTS

8,010,090

448,447

73,872

425,998

7,061,773

ACCRUED INTEREST RECEIVABLE

1,291,080

145,745

10,567

88,467

1,046,301

ASSETS

CONSULTING FEES RECEIVABLE LOANS BOND FUNDS STOCKS CERTIFICATES OF DEPOSIT

7,700

7,700

-

-

-

338,586,234

11,879,818

3,086,204

18,306,988

305,313,224

3,201,024

-

29,017

567

3,171,440

189,164,889

33,045,635

11,033,175

66,030,585

79,055,494

4,731,000

-

42,886

838

4,687,276

LAND AND BUILDINGS

314,434

314,332

1

101

-

OIL AND GAS INTERESTS

487,185

100

482,218

1,867

3,000

54,105

-

-

54,105

-

OTHER INVESTMENTS FIXED ASSETS, NET

2,563,602

2,563,602

-

-

-

INTANGIBLE ASSETS

403,894

-

-

-

-

PREPAID EXPENSES

576,243

238,340

337,903

-

-

$549,391,480

$49,047,613

$15,095,843

$84,909,516

$400,338,508

1,349,615

46,753

455,396

490,688

TOTAL LIABILITIES AND NET ASSETS LIABILITIES:

DISTRIBUTIONS, GRANTS AND ACCOUNTS PAYABLE DEFERRED REVENUE

159,982

159,982

-

-

-

DEFERRED GRANT REVENUE

920,000

920,000

-

-

-

LINE OF CREDIT NOTE PAYABLE FUNDS MANAGED FOR INVESTORS FUNDS HELD AS AGENT TOTAL LIABILITIES NET ASSETS

2,342,452

TOTAL

3,338,000

117,751

31,539

187,751

3,000,959

18,750,000

661,423

177,158

1,054,622

16,856,797

379,990,064

-

-

-

379,990,064

71,155,351

-

14,738,260

56,417,091

-

476,655,849

3,208,771

14,993,710

58,114,860

400,338,508

72,735,631

45,838,842

102,133

26,794,656

-

$549,391,480

$49,047,613

$15,095,843

$84,909,516

$400,338,508

T M F S C H E D U L E O F S E L E C T E D F I N A N C I A L D ATA F O R E A C H O F

AT YEAR END:

THE SEVEN YEARS IN THE PERIOD ENDED DECEMBER 31, 2018

2012

2013

2014

2015

2016

2017

2018

FUNDS MANAGED FOR INVESTORS

326,374,476

319,980,087

393,454,064

389,012,350

387,592,620

388,908,779

379,990,064

LOANS

325,359,350

327,256,864

332,804,892

324,696,565

359,417,473

356,735,137

338,586,234

OTHER SECURITIES

86,024,802

92,080,540

153,758,360

159,664,643

155,772,482

192,950,676

197,096,913

OPERATING AND MEMORIAL NET ASSETS

23,531,390

27,451,359

29,928,607

32,008,453

34,648,404

38,707,384

38,385,751

4,197,890

4,687,298

5,652,360

5,819,173

7,131,045

8,161,157

7,453,091

TMF LEADERSHIP MINISTRY

PERMANENT GIFTS (FOUNDATION TRUSTEE) 71,918,876 TOTAL ASSETS

$419,390,976

81,824,737

92,574,608

94,420,215

103,877,933

135,965,143

129,050,589

$425,941,318

$510,478,159

$505,052,287

$524,934,382

$569,124,565

$549,391,480


TMF Board of Directors

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Dr. Clayton Oliphint, Board Chair Teresa Keese, Chair-Elect Tom Toevs, Secretary

CENTRAL TEXAS CONFERENCE Dr. Chris Hayes Dr. Leah Hidde-Gregory Henry Joyner Dr. Dale Knobel Bishop J. Michael Lowry* Wesley Millican Robert Rork** Hiram Smith**

NEW MEXICO CONFERENCE Bishop W. Earl Bledsoe* John Goodwin Dr. Eduardo Rivera Sid Strebeck Tom Toevs

NORTH TEXAS CONFERENCE James Adams* Patricia Deal Robert Dupuy Dr. William Green Larry Haynes Joseph Holmes Rev. Jeff Lust Rev. Katherine Glaze Lyle Bishop Michael McKee Dr. Clayton Oliphint Dr. Owen Ross Dr. Andrew Stoker Gail Utter Kelvin Walker] Julie Yarbrough Kathryn Yeager

NORTHWEST TEXAS CONFERENCE Bishop W. Earl Bledsoe* Dr. Craig Curry Judge Ron Enns Dr. James Hunt Bynum Miers**

RIO TEXAS CONFERENCE James Cox** Dr. Daniel Flores Rev. Thelma Flores Rev. Scott Heare James Hornbuckle Teresa Keese Rev. Laura Merrill Judge Henry Santana Bishop Robert Schnase* Robert Scott** Robert Sunderland** Amy Shaw Thomas

TEXAS CONFERENCE Reginald Clemons John Esquivel Gene Graham Dr. Donald House Rock Houstoun Thomasine Johnson Bishop Scott Jones* Rev. Morris Matthis Dr. Thomas Pace, III Dr. Matt Russell Rev. Sharon Sabom Dr. Ron Swain Rev. Deborah Vaughn James Walzel Rev. Jim Welch Rev. Richard White *Advisory ** Emeritus

“the world is our

PARISH.” JOHN WESLEY


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President’s Advisory Council Glenn Andrew Kerrville

Georgianne Hewett Georgetown

Robbie Ausley Austin

Ellen Key Athens

Laura Armstrong Albuquerque

Ron Barger Plano

Sandy Jobe Dallas

Charles King Amarillo

Tray Black Dallas

Dr. Bill Marr College Station

Dan Chaney Athens

Dr. Tom McHorse Austin

Jay Brim Austin

Kathleen Chaney Athens

Dale Cherry Rockwall

Deborah Clark Henrietta

Linda Marr College Station

Gerald Meinecke Dallas

Neil Moseley Dallas

Dr. Oscar Page Sherman

Sunday Coffman Sugar Land

Mary Percifield Alvarado

Kaycee Crisp Austin

Peggy Roe Houston

Calvert Collins-Bratton Dallas

John Curry Pampa

Michael Dorff McKinney

Mike Fenton Waxahachie

Hal Peterson Austin

Jeff Roper Colleyville

Kim Simpson Arlington

Donna TeBrink Albuquerque

Allison Fogle Fort Worth

Suzanne Vachon Friendswood

Andy Hernendez Montgomery

Rev. Alison Young Meadows Place

Douglas Fogle Fort Worth

Abel Vega, Jr. San Antonio

Foundation of faith


04.10 2018 AnnualReport.qxp_Layout 1 4/11/19 12:41 PM Page 28

TMF Staff

AREA REPRESENTATIVES

FOUNDATION RELATIONS

JOHN THORNBURG

JUSTIN GOULD

Vice President of Area Staff MELVIN AMERSON Senior Area Representative, Resource Specialist RICHARD EDWARDS Senior Area Representative, Northwest Texas Conference DEBBIE HILLIARD Senior Administrative Assistant and Event Planner JOHN MOLLET Senior Area Representative, Central Texas Conference CAROL MONTGOMERY Senior Area Representative, North Texas Conference SCOTT SHARP Senior Area Representative, New Mexico Conference TOM STANTON Senior Area Representative, Rio Texas Conference and General Counsel LEAH TAYLOR Senior Area Representative, Texas Conference MARK WOODWARD Senior Area Representative, Texas Conference

COMMUNICATIONS

Vice President of Communications LEIA DANIELLE WILLIAMS Director of Communications PATTI SIMMONS

EXECUTIVE

President CURTIS VICK Executive Vice President C. J. TAYLOR Executive Director, Texas Conference Activities LAURA FUQUA Executive Administrative Assistant and Corporate Secretary PAULETTE MORRIS Senior Administrative Assistant for Executive/General Counsel KRYSTOL WHEELER Director of Strategic Initiatives TOM LOCKE

Vice President of Foundation Relations CANDY GROSS Foundation Relations Representative KARYL SEIBERT Director of Donor Services Administration CHARLES SMITH Foundation Relations Representative

GRANTS MINISTRY

Director of Grants Ministry PATTI GLANZER Grants Associate JACKI LAMMERT

LEADERSHIP MINISTRY

Leadership Formation LISA GREENWOOD Vice President of Leadership Ministry MAGGIE JOHNSON Administrative Assistant JANET KLOSTERBOER Senior Administrative Assistant BISHOP JANICE RIGGLE HUIE

METHODIST LOAN FUND SERVICES

Senior Vice President of MLF Services ROBERT HOPPE Vice President of Loans and Real Estate SARA BELTRAN Assistant Vice President of Investor Services PAULA SINI Assistant Vice President of Loans VIRGINIA ADDINGTON Loan and Investor Services Assistant RANDI FORREST Investor Services Assistant JENNY KING Loan Funder/Closer/Analyst SAUNDRA MURPHY-HAMILTON Loan Funder/Closer/Analyst CHERYL WESTBROOK Loan Officer DAVID MCCASKILL


04.10 2018 AnnualReport.qxp_Layout 1 4/11/19 12:42 PM Page 29

Top right: TMF staff at Tom Locke’s 30th anniversary celebration

OPERATIONS

Vice President of Operations GERRY SCHOENING Assistant Vice President, Controller PATSY WILSON Assistant Vice President, Human Resources LAURA CASTILLO Office Operations Administrative Assistant LINDA PARNELL Receptionist SUSAN PUHAR Process Improvement Analyst SARAH RICH Administrative Assistant SONIA RILEY Office Manager and Accounting Assistant EDGAR VALLARTA Senior Accountant NATHAN VAN ALLEN Records Specialist/Process and Procedure Writer BARBARA WARREN Accounting Assistant CINDY WARREN Director of Database and IT DORENA MOORE

OFFICERS

President CURTIS VICK Executive Vice President CANDY GROSS Senior Vice President DAVID MCCASKILL Senior Vice President JUSTIN GOULD Vice President LISA GREENWOOD Vice President ROBERT HOPPE Vice President DORENA MOORE Vice President PATTI SIMMONS Vice President TOM STANTON Vice President JOHN THORNBURG Vice President SARA BELTRAN Assistant Vice President GERRY SCHOENING Assistant Vice President PAULA SINI Assistant Vice President PATSY WILSON Assistant Vice President TOM LOCKE


04.10 2018 AnnualReport.qxp_Layout 1 4/16/19 4:23 PM Page 30

OUR PURPOSE IS TO EMPOWER THE CHURCH IN THE

ACHIEVEMENT OF HER GOD-APPOINTED MISSIONS.

“. . . I know the plans I have

They are plans for a CORE VALUES Servanthood Integrity

Competence

FUTURE WITH

They are plans for restoration and new JEREMIAH 29:11


04.10 2018 AnnualReport.qxp_Layout 1 4/16/19 4:17 PM Page 31

for you.

HOPE. possibility.�


04.10 2018 AnnualReport.qxp_Layout 1 4/11/19 12:42 PM Page 32

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