2018 Annual Report: St. Paul's Methodist Foundation of Houston

HERE FOR

S T. PAU L’ S M E T H O D I S T F O U N DAT I O N O F H O U S TO N 2 0 1 8 A N N UA L R E P O RT

A F O U N DAT I O N FOR THE CHURCH, THE CITY & THE WORLD

MORE THAN A BUILDING

Brief history of the Foundation

A PLAN FOR THE FUTURE Summary of the new Capital Replacement Fund

COMING HOME St. Paul’s UMC’s support of the SEARCH program

A HELPING HAND Meet Benji Tollett, one of the Foundation’s 2018 scholarship recipients

MUSIC FOR THE SOUL Evensong service and its place in modern worship

T H E F U T U R E I N O U R PA S T

Kerley Endowment for Spiritual Advancement & Understanding

F I N A N C I A L S TAT E M E N T S

GIVING FOR GOOD

Become part of the legacy of generosity

OUR MISSION

CREDITS

St. Paul’s Methodist Foundation of Houston provides ongoing financial

P H OTO G R A P H Y B Y Silvia Lomas Melanie Springer Travis Beck Kelsey Johnson Lauren Anderson Kamil Zelezik

support to St. Paul’s United Methodist Church, its facilities, and its ministries through income received from a permanent endowment fund and provides a vehicle for St. Paul’s congregation to direct personal financial and property assets for future ministry and mission of St. Paul’s.

WRITTEN BY Brad Harmes Kelsey Johnson Amy Taylor

2 0 1 8 BOAR D O F D I REC TO RS CHAIR Tonya Knauth VICE CHAIR David Hull TREASURER John Hawkins S E C R E TA R Y Michael Ragsdale L I F E T I M E D I R E C TO R S Fred Hofheinz James V. Walzel Beth Wiggins D I R E C TO R S Leah Barton Marc Boots Leigh Smith David Vassar Kim Watson Johanna Wolfe Rev. Tommy Williams, Senior Pastor A DV I S O R Y M E M B E R S Ann Killary Finance Chair Darrell Anderson Board of Trustees Chair Brad Harmes Church Council Chair Veronica Pearce Business Manager F O U N D AT I O N S TA F F Rev. Rick Goodrich Executive Director Elisabet Cruz Administrative Assistant 2 0 1 9 B OAR D O F D I REC TO RS CHAIR Johanna Wolfe VICE CHAIR Michael Ragsdale TREASURER John Hawkins S E C R E TA R Y Leah Barton L I F E T I M E D I R E C TO R S John Hawkins Fred Hofheinz James V. Walzel Beth Wiggins D I R E C TO R S Marc Boots Camille Cunningham Bill Maines Andrew Roff Leigh Smith David Vassar Kim Watson Rev. Tommy Williams, Senior Pastor A DV I S O R Y M E M B E R S Ann Killary Finance Chair Josh Vanlandingham Board of Trustees Chair David Gunn Church Council Chair Veronica Pearce Business Administrator F O U N D AT I O N S TA F F Brad Harmes Interim Administrator Elisabet Cruz Administrative Assistant

ere for Good points us to the purposes of St. Paul’s Methodist Foundation of Houston. We’re “here for good” because the Foundation safeguards financial stability for the church’s future. We’re also “here for good” to support St. Paul’s enduring commitment to the common good.

As you read this year’s annual report, we hope the spotlighted stories of impact and transformation will inspire you. We are grateful to each of our donors and appreciate the incredible investments you have made to the Foundation. Your generosity yields a lasting return, far beyond what words, images, or financial statements can convey.

To briefly summarize, the Foundation experienced a year of celebration and transition in 2018: Our robust fund balance reached an all-time high of $20.7 million prior to the year-end market retrenchment. Since then, the Foundation has seen a promising recovery from those market losses, and we remain in a strong financial position.

Internally, we further streamlined our scholarship application and review processes and upgraded our financial recordkeeping to an online platform, allowing real-time access to financial records to our accountant, treasurer, and staff.

Executive Director Rev. Rick Goodrich announced his “second retirement” in June 2018 following an exceptional 40+ years of ministry in various roles within The United Methodist Church. We appreciate longtime St. Paul’s member and volunteer lay leader Brad Harmes agreeing to step in as Interim Administrator of the Foundation as we search for our next Executive Director.

During this transition period, we are even more appreciative of the significant volunteer support provided by the Board of Directors for such crucial tasks as reviewing financial statements, filing the annual tax return, monitoring investment results, assessing student scholarship applications and mission grant applications from non-profit agencies, and determining annual grant allocation amounts.

We express our appreciation to former Board Chair Tonya Knauth, who concluded six years of service last year. We’d also like to recognize John Hawkins, who was recently named the Foundation’s fourth Lifetime Director.

This position acknowledges the exceptional commitment of board members who have supported the Foundation so generously over the years with their time, service, and resources.

Again, we extend our gratitude to all who support St. Paul’s Foundation. Your financial gifts and countless volunteer hours undergird the abiding ministries of St. Paul’s, and we are deeply grateful. Friends, may our prayer be to “continue securely established and steadfast in the faith” Colossians 1:23.

R E V. T O M M Y W I L L I A M S S E N I O R PA S TO R

JOHANNA WOLFE BOARD CHAIR

Special thanks to our 2018 General Fund Contributors: Anonymous Dr. Sol Bobst Dan & Jan Schmieder Ching Wang Davis Platt Jason Ahlgren Linda Foley Donald & Barbara Buckner Dr. Archie Beebe Kevin & Grace Lindberg Pat & Yolanda McCarty Frank Erzinger Harmon Langford Lindsey Fogle Dixie Rodkey Donald Pederson Rev. Richard Goodrich Ashlee Ross Shirley Rose Shan McKinney John & Cindy Munday Keitt Family LTD Partnership The Estate of Dr. John McKee The Estate of Dr. Patricia Nelson The Estate of John Robinson In Memory of Ralph Rice by Jim & Pat Walzel, Debbie & Frank G. Jones, Glenn & Camille Cunningham, Candleligthers Class In Memory of John Robinson by Jim & Beth Wiggins, Kimball & Beverly McMahan In Memory of Rivers Lodge by Debbie & Frank Jones, Betty Bynes In Memory of Suzanne Howze by Marina Avdyukhina In Memory of Ray Evans

by LaFlen Family Trust In Memory of Dr. & Mrs. Chu-lin Wang by Susan & Hsing-Wei Chu In Memory of Eugene Yehle by Richard Yehle In Memory of John McKee by Dorothy Mackey In Memory of David Minter by Jim & Sandy Bankston In Memory of O’Banion Williams by James F. Wiggins

2

In Memory of Warren Pennington by Jim & Pat Walzel In Memory of Nelda Dickerson by Men’s Bible Study In Memory of Dorothy Leffler by Men’s Bible Study In Memory of Al Calloway by Men’s Bible Study In Memory of Kathryn Gerson by Candlelighters Class In Memory of Rolla Long Jr. by Frank & Debbie Jones In Memory of Dr. David Schrum by Kimball & Beverly McMahan In Memory of Fredrica LeMonye by Kimball & Beverly McMahan In Memory of Maxine Negrin by Rob Negrin In Memory of Ladelle Bisel by Kenneth Francis, Jim & Pat Walzel, Candelighters Class, Frank & Debbie Jones In Memory of Virginia Jacobs by Jim & Pat Walzel, Rev. Terry Thompson, Kenneth Francis, Frank & Debbie Jones In Memory of Shirley Enderle by Susie Ragsdale, Jerry Dennis III, William Nail, Thomas Mays III, Geoffrey Connor, Lynn Glazer, Judy Embrey, Sonny & Pat Pearson, Beverly & Kevin Holcomb In Memory of Dr. Niels C. Nielsen Jr.

by Kenneth Francis, Frank & Debbie Jones, Kimball & Beverly McMahan, Glen & Camille Cunningham In Memory of Dr. Erika K. Nielsen by Glen & Camille Cunningham, Kimball & Beverly McMahan In Memory of Manning Ligon by Sharon McGaughey, Teresa Stein, Beth Brown, Candace Kyle, Linda Jones, Bud & Connie Pollon, William Turk

buildi MORE THAN A

he bell tower of St. Paul’s stands tall

of the charter committee, Troy Whitehurst, made the first gift in the amount of $100.

presence. Over the past six

With this modest investment—among many other faithful gifts of memorial contributions and bequests—the Foundation slowly grew during its first two decades, reaching the $100,000 mark in 1969 and $200,000 by 1979.

decades, St. Paul’s Methodist

1980s

above the Museum District, a timeless symbol of God’s

Foundation has increased its capacity to be here for good.

1960s–1970s

St. Paul’s Methodist Foundation of Houston was created in 1960 shortly after the addition of the Jones Building. By that time, St. Paul’s beautiful Sanctuary Building was 30 years old, and senior pastor Dr. Alfred Freeman and lay leaders recognized the importance of ensuring both these buildings would sustain St. Paul’s and its ministries for generations to come. Their vision was to establish a permanent endowment. When the church’s administrative board approved the Foundation’s trust agreement, the chair

S T. P A U L’ S M E T H O D I S T F O U N D AT I O N A N N U A L R E P O R T

Houston in the 1980s experienced rapid employment growth, as well as recession.

The Foundation was developing and maturing too, and church membership grew along with it. When Rev. Dr. K. Wayne Day was appointed senior pastor in 1985, he brought an increased focus on stewardship and financial management. The Foundation Board responded accordingly by expanding its membership, improving account systems, and establishing designated fund categories for building and facilities, landscaping, and music, in addition to the general fund.

The first scholarship was created in 1981 and the first lectureship fund in 1989. In 1987, the board approved the hiring of the Foundation’s first executive director, Susie Ragsdale. In September 1989, the Foundation received its single largest

ing donation to date, establishing the Jim and Pat Walzel Fund. Boosted by this gift, at the end of the decade the Foundation had grown to $1.7 million, and the board set a goal of growing to $7.5 million.

1990s

With added momentum, the Foundation’s growth steadily increased through the creation of new designated funds and scholarships and many generous donations to existing funds. Among these donations came the second largest gift from a trust established

by William “Bill” and May Dickey. Additionally, Maurine Bates, a retired school teacher, made a generous donation to the scholarship fund in 1991, and a bequest from her estate years later resulted in the third largest donation received by the Foundation. The establishment of the Willing Friends Society in 1999 provided additional encouragement for church members to include the Foundation in their planned giving arrangements.

2000s–2010s

Well-established market performance and broadening support from the congregation resulted in the Foundation reaching its $5 million mark in 2000. Just nine years later, the fund exceeded $12 million, and at the end of 2017, it had surpassed $20 million.

As the fund continues to mature, the overall impact of the Foundation expands. A portion of the fund’s earnings are distributed to scholarships, lectureships, and community grants. However, as a permanent endowment, the St. Paul’s Foundation never neglects its primary purpose: to care for the ongoing maintenance of the church’s buildings and facilities. By alleviating year-to-year maintenance issues, in effect the Foundation frees up the members’ tithed dollars to go directly to the church’s ministries and missional endeavors. In fact, the Foundation provides a substantial and reliable funding stream for St. Paul’s by underwriting approximately 15 percent of the church’s annual operating budget.

And beyond…

One of the forward-thinking strategies of the Foundation in recent years involves provisions for large capital expenses.

Current Foundation support for the church’s maintenance costs does not include the replacement of aging equipment and infrastructure. As a result, major capital expenditures have historically been funded through periodic capital campaigns, such as the current Revive project. Recognizing that deferring routine replacement of infrastructure ultimately

leads to higher costs when a capital campaign is undertaken, the Foundation Board of Directors established the Capital Replacement Fund in 2016 (read more on page 5). It operates based on an allocation formula that redirects a percentage of funds that would normally go to the church for annual maintenance. The fund has been allowed time for growth before any grants are dispersed from it in 2020. This strategy will strengthen St. Paul’s infrastructure capacity for years to come.

Moving into the future, the Foundation will continue to rely upon the generosity of St. Paul’s members. The Foundation averages more than $300,000 in new contributions each year. These gifts come from nearly 100 members as memorial remembrances of loved ones, honorary contributions in recognition of individuals, and bequests to specific designated funds or the general fund. Contributions range from under $50 to well over $200,000. No matter the size, each gift creates a ripple effect, broadening the impactful ministry of St. Paul’s as “a cathedral for the city.” Learn more about ways to give to the Foundation on page 16.

S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

3

future A PLAN FOR THE

e

S U P P O R T F O R S T. PA U L’ S

FUND DISTRIBUTION

CAPITAL REPLACEMENT FUND

80% S T. PA U L’ S U M C Y E A R LY E X P E N D I T U R E S

EXPENDITURES FUNDED

BY F O U N D AT I O N

15%

nfrastructure is an essential part of St. Paul’s vibrant ministries.

That’s why over half the Foundation’s funds are dedicated to facilities and building maintenance.

In recent years, the Foundation’s annual grant of over $600,000 to the church’s operating budget represents 80 percent of grant funds awarded. The remaining 20 percent of grant funds are allocated for scholarships, lectureships, missions, and outreach. More than 15 percent of the church’s yearly expenditures, including a significant portion of the church’s ongoing maintenance costs, are funded by Foundation dollars.

While the Foundation’s support covers most maintenance costs, major capital expenditures to replace aging equipment and infrastructure are typically funded through periodic capital campaigns such as the Revive project.

Deferring maintenance and routine replacement of capital infrastructure components ultimately leads to higher costs when a capital campaign is eventually undertaken. The Board of Trustees

ANNUAL $600,000+ G R A N T TO C H U R C H ’ S O P E R AT I N G B U D G E T

10%

B U I L D I N G A N D FA C I L I T I E S F U N D G R A N T A L LO C AT I O N H E L D F O R R E PA I R A N D R E P L A C E M E N T B E YO N D REGULAR MAINTENANCE

20%

G R A N T S A L LO C AT E D FOR SCHOLARSHIPS, LECTURESHIPS, AND OUTREACH

has oversight of the physical assets of the church including the repair and replacement of capital equipment that is subjected to wear and tear over its useful life. The Trustees have few funds available for repair and replacement of aging equipment beyond the limited maintenance funds in the church’s annual operating budget. Typically, the cost of an urgent capital equipment replacement must be funded through emergency fundraising.

Recognizing this gap in the church’s long-term funding plans, the Foundation Board of Directors established the Capital Replacement Fund in 2016 by initially allocating 5 percent of the annual grant funds available from the Building and Facilities Fund be set aside for future expenses related to major repairs and/or capital replacement projects. The amount set aside from the Building and Facilities Fund increased to 10 percent in 2018 with a year end balance of $108,780.

No grant allocations were planned during the initial years of the Capital Replacement Fund to allow for growth.

Starting in 2020 grant allocations will be available to the Trustees upon approval by the Foundation Board of Directors to respond to infrastructure repair and replacement needs beyond the scope of the annual operating budget expenses. These allocations are intended for maintenance that cannot wait for funding from a future capital improvement campaign.

The Capital Replacement Fund is not an endowed fund subject to the annual allocation formula, but rather a repository for future capital equipment repair and replacement. As such, the Foundation Board may grant any portion of the Capital Replacement Fund balance to assist with expenses of Trustee-approved major repairs or capital equipment replacement.

Special thanks to our 2018 Building & Facilities Fund Contributors: Gwen Kuntz John & Cindy Munday Adam Khoshghadam & Neda Rabinejadganji

JAMES & ROSANN HOOKS ENDOWMENT Carol Wiener

The Hawkins Family Foundation

In Memory of Jimmie Richardson by Rosann Hooks

WALZEL DIRECTOR’S CHALLENGE

In Memory of Betty Reinhard by Rosann Hooks

Jim & Beth Wiggins

In Honor of Phyllis Brockermeyer by Carol Wiener

CAPITAL REPLACEMENT FUNDS Rev. Richard Goodrich

In Honor of Darrell David by Rosann Hooks In Honor of Wendy Harris by Rosann Hooks In Honor of Londa Wright by Rosann Hooks

S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

5

home COMING

A PLAN FOR THE

Special thanks to our 2018 Mission & Outreach Fund Contributors: MISSION FUND Charles Foster Shan McKinney Lindsay Espejel MISSION TO CHILDREN The Hawkins Family Foundation HOUSTON POVERTY OUTREACH Rev. Tommy Williams Leah Barton & David Kim New Braunfels Area Community Foundation In Memory of Craig Rogers by Ashlee Ross

6

WILSON & NORA BOOTS FUND Dorothy Burge & Vic Driscoll Sharon Ainswoth Richard Graham Jr. In Honor of Robert & Virginia Stevenson by Donald Kirby In Honor of Jack & Jane Middleton by Donald Kirby In Honor of Wilson & Nora Boots by Donald Kirby SENIOR CITIZENS FUND In Memory of Shirley Enderle by Doug & Judy Moss In Memory of Emma Siggins by Will & Gaby Siggins

hese are the heartfelt words of a SEARCH

Homeless Services client as he settled into his new home after years of homelessness: “God is good, and God bless all SEARCH has done for me. They believed in me. Thank you so much.”

SEARCH has been serving the needs of our homeless neighbors for 30 years. Its doors opened in1989 as a day center offering meals, showers, laundry service, and a temporary respite from the harsh conditions of life on the streets. A few years later, SEARCH opened its preschool, the House of Tiny Treasures, so clients would have a safe, loving, and nurturing place to bring their children during the day while they sought employment or attended classes to further their education. Today, SEARCH has

S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

evolved to become one of Houston’s leading organizations working toward ending homelessness by helping individuals obtain housing, increase their level of income, and gain access to ongoing health care.

In 2010, Houston was ranked as one of the top 10 cities in America with the highest homeless population. City officials responded to this harsh realization by creating The Way Home, an integrated approach utilizing the city’s best homeless service providers and public agencies to address this growing issue. SEARCH is a leading organization in The Way Home.

As a result of their combined efforts, homelessness has decreased by 51 percent since 2011.

St. Paul’s has been a partnering congregation with SEARCH since its beginning and continues to be actively engaged today. Last year SEARCH launched a new program called Coming Home to help counter the isolation and disorientation their clients often experience as they adjust

to their new housing. Coming Home is a 24week program designed to create community through a shared meal between SEARCH participants and members of the greater community. They needed a space to host this exciting new program and St. Paul’s eagerly stepped up.

It has been a gift to everyone involved as they share conversation and open themselves up to one another. One participant shared at the end of the 24 weeks, “You have restored my self-esteem and dignity, my courage, faith and belief in life.”

Because I believe charity begins at home, back in 2013 we established the Houston Poverty Outreach Fund to be administered through St. Paul’s Foundation. At the time, I could have given directly to a charity’s annual fund drive as a one-time gift.

However, the point in donating to the Foundation is to

We are currently in the second round of Coming Home with even more participants and volunteers. It continues to be a tremendous blessing to all involved.

create a perpetual endowment for giving potential that

St. Paul’s Foundation’s support of Coming Home is just one of the many ways we continue to resource SEARCH in moving the needle toward ending homelessness in our city.

to alleviate poverty in Houston. SEARCH Homeless

extends well into the future. Every year the earnings of this fund are used to support organizations that work Services is one of those vital local organizations.

- Fred Hofheinz, Foundation Lifetime Director

S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

7

hand A HELPING

d

enji Tollett has a calling: “Help other people at all times.”

He knew that it was God’s plan for him to go to college, but he also knew that this time, he would be the one needing a little help. St. Paul’s Methodist Foundation awarded Benji a scholarship, filling the gap so Benji could focus more on school.

“It’s been amazing to not have to worry about how I’m going to make it. It feels so good to have a community backing me up in what I’m doing, and I’m so thankful,” Benji says.

Benji has been a part of the St. Paul’s UMC family as long as he can remember—from preschool to acolyting, youth groups to mission trips. It’s his second home.

It was on a St. Paul’s UMC mission trip to Palestine, Texas, that he discovered his calling. Benji helped construct a wheelchair ramp and realized he could help people through his passion. Today, he’s attending The University of Texas at Austin, pursuing a degree in chemical engineering. He hopes to continue using his natural problemsolving talent in his career.

As Benji forges his path in the world, he’s taken the values that St. Paul’s UMC has built up in him.

“Learning acceptance and forgiveness and grace—it’s been so helpful to have these as my foundation going into the world.”

St. Paul’s is a community that makes him feel loved and wanted. He concludes, “Thank you. It’s honestly made all the difference in where I could go and what I could do. It’s very helpful in life and makes me feel loved.”

The Foundation awarded $80,475 in college scholarships in 2018.

Special thanks to our 2018 Scholarship Fund Contributors: ANDERSON SCHOLARSHIP FUND In Memory of Manning Ligon by Larry Walters

SWICKHEIMERMAYS SCHOLARSHIP FUND Thomas Mays III

In Memory of Fredrica Lanford Lake by Larry Walters

ST. PAUL’S FOUNDATION SCHOLARSHIP FUND

In Honor of Weir and Candace Kyle by Larry Walters

Adam Khoshghadam and Neda Rabinejadganji

WILLIAMSON SCHOLARSHIP FUND Rev. B.T. Williamson Rev. Richard Goodrich HILLER SCHOLARSHIP FUND Don Lamm

S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

9

Special thanks to our 2018 Music Fund Contributors: MUSIC FUND Lee and Emily Bond

the ways that we connect with God, and

Brian Garrison

at St. Paul’s UMC, one of

In Memory of Emma Siggins by Will & Gaby Siggins

our favorite worship

In Memory of John Robinson

by Susan O’ Brien, Sonny & Pat Pearson, Jim & Pat Walzel

services is Evensong.

In Memory of Bettye Adams by Art & Donna Adair In Memory of Olga K. Schroder by Lee Magness In Memory of E & J Shannon by Patricia Needleman In Memory of Phil & Susan Shannon

by Patricia Needleman In Honor of Johann Niklaus Schroder by Lee Magness In Honor of Nancy Curry by St. Paul’s Children Music Ministry In Honor of Richard & Velma Davis

by Cheryl Davis

10

usic is one of

Rooted in a rich, 500-year history and based on ancient monastic services, Evensong is a beloved musical tradition held daily in English cathedrals. During Evensong, the weaving of words, music, and silence evoke in us a reverent spirit of worship. The liturgy traces its origin to the daily rites of the medieval church.

Through the support of the Foundation, Evensong services are held monthly at St. Paul’s. Evensong is a multi-generational experience with St. Paul’s Choir, Choral Scholars, Treble Choir, and RSCM Choirs all participating on rotation. The Evensong tradition is cherished by many, including St. Paul’s Director of Music Christopher Betts, who grew up in the United Kingdom and sang at Litchfield Cathedral as a young chorister.

S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

“Evensong nourishes a different part of our spirit,” Betts says. “Just offering the opportunity to be centered in music and prayer—that’s what it’s all about.”

While Sunday morning worship is vibrant and engaging, Evensong is designed to foster individual and corporate contemplation, with each service structured to allow both music and scripture to wash over congregants—to allow for a physical and emotional space to sit in the beauty of God’s creation and make a spiritual connection.

Betts embraces the timelessness of Evensong. Connecting the past with the present, Evensong is a meaningful experience that is both rich in tradition and relevant to a modern world.

“Because the ritual has nurtured countless people for hundreds of years, it moves us in a way that isn’t contemporary—it speaks to the soul across generations. Evensong always reaches our spirituality. It doesn’t respond to the culture. It speaks to the spirit, and it’s a place to find your center in today’s turmoil.”

s

soul MUSIC FOR THE

Special thanks to our 2018 Spiritual Formation & Lectureship Fund Contributors:

past OUR FUTURE IN OUR

ith her zest

for learning and spiritual insight, Holly Hudley is in good company at St. Paul’s.

In November 2018, Holly attended “The Future Is Calling Us to Greatness,” a weekend lecture series funded by the Kerley Endowment for Spiritual Advancement and Understanding. It is among five lectureship funds currently administered through the St. Paul’s Foundation.

Speaking to a sold-out audience of over 300 people, guest lecturer Rev. Michael Dowd delivered dynamic multimedia presentations about the convergence of science, inspiration, and sustainability.

Reflecting on the experience, Holly was struck by Rev. Dowd’s explanation of what it means to be “pro-future.” She shares: I kept thinking of starlings taking flight. They fly in intricately coordinated, swooping patterns called murmurations… each starling takes

12

care of seven starlings to its left and seven starlings to its right. In this way, all starlings in a flock are accounted for and all are engaged in a mutually protective dance. I related this to Dowd talking about seven generations forward and back. We look to our ancestors and ask for wisdom and guidance. We live in the now with a mind toward our descendants, in wonderment of what they’d like us to give. I loved his analogy of the Trinity as the interconnection of the Past, Present, and Future. The entire past is present here, as is the entire future. It is here. Now. It is not Other than this.

Rev. Dowd’s visit left Holly and other attendees with much to consider and act upon through the expansion of spiritual and intellectual horizons.

Certainly, St. Paul’s UMC and the broader community value these periodic opportunities for study, dialogue, and action. Gifts made to the Foundation over the years have enabled St. Paul’s to host esteemed writers and thinkers like Rev. Dowd, one of many lecturers who spark conversation around fascinating spiritual subject matter and the most engaging social issues of our time.

S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

KERLEY ENDOWMENT FOR SPIRITUAL ADVANCEMENT & UNDERSTANDING

PEARSON LECTURE SERIES FOR INTERFAITH UNDERSTANDING

Donald & Barbara Buckner

In Memory of Shirley Enderle by David & Kristi Schott

James & Mary Winn Donald & Kathryn Pederson Lillian Bean German Cura James Pool Thomas Oldham In Memory of Mickey Restrepo by Men’s Bible Study

Sonny and Pat Pearson

In Memory of Rivers Lodge by Sonny & Pat Pearson In Memory of John McKee by Sonny & Pat Pearson In Honor of Sonny & Pat Pearson by Jane Ann Bickham OTHER OUTREACH MINISTERS’ CONTINUING EDUCATION FUND Anonymous

Endowed Lectureships The Craven-Wilson Lectureship Fund was established by Evie Jo Wilson in 1989 for the purpose of an annual lectureship during the season of Lent. Guest lecturers are chosen from a field of outstanding world and national religious leaders.

Members of the Ordinary Life class established the Kerley Endowment for Spiritual Advancement and Understanding in 2008 as a namesake to Rev. Dr. Bill Kerley.

Grants underwrite educational activities and programs that are enriching to the spiritual journey.

The Dr. John L. and Mary Lou Margrave Lectureship Fund brings renowned speakers to St. Paul’s UMC to lecture in the areas of Christian faith formation, spirituality and literature, and other related topics that further the vision

and mission of the church. The fund was set up in 2015 by the Margraves’ children to honor their parents’ love of Christian education.

Following the death of Rev. Dr. J. Robert Nelson in 2004, his family and friends established the Nelson Lectures on Interfaith and Ecumenical Solutions for Peace.

This endowed lectureship advances the awareness of and participation in peacemaking efforts initiated by people of faith.

The Pearson Lecture Series for Interfaith Understanding was established in 2006 by Pat and Sonny Pearson to foster understanding and respect among Jewish, Christian, and Muslim faith communities.

financial S TAT E M E N T S

S TAT E M E N T O F A C T I V I T I E S : 2 0 1 6 – 2 0 1 8

2016

2017

2018

REVENUE Contributions

$285,377

$279,036

$343,283

Investment, Return, Net

1,072,133

2,790,803

(966,964)

$1,357,510

$3,069,839

($632,682)

T O TA L R E V E N U E

Net assets are stated at fair market value and include unrealized gains and losses on investments.

EXPENSES GRANTS

St. Paul’s UMC

608,000

607,361

634,490

Scholarships

84,278

81,988

80,475

Spiritual Formation & Lectureships

9,850

2,444

7,758

General Missions

9,095

9,564

11,203

Missions to Children & Youth

10,120

10,068

10,613

Local Missions

19,006

24,636

30,630

Global Missions

15,966

15,330

12,897

4,403

4,281

4,375

911

-

-

Senior Citizens Outreach Pastoral Care

T O TA L G R A N T S M A D E 761,629 755,672 792,441 O P E R AT I N G E X P E N S E S

25,988

32,397

CHANGES IN NET ASSETS

569,893

2,288,797

(1,448,520)

17,731,151

18,301,044

20,589,841

BEGINNING OF YEAR

Net Assets

END OF YEAR

The Foundation’s financial statements are audited annually by an independent public accounting firm. Audited financial statements for 2017 are available upon request. The audit of the 2018 financial statements is not yet complete.

The Foundation’s investments are managed by Vanguard Asset Management, Valley Forge, PA. Detailed financial records are available.

787,617 782,042 824,838

T O TA L E X P E N S E S

Net Assets

25,370

The balances reflected in Life Insurance and Partnership interests are considered unrestricted funds.

Since its first year in 1960, the Foundation has fulfilled all IRS requirements as a 501(c)3 organization. The Foundation annually files an IRS Form 990.

$18,301,044 $20,589,841 $19,141,322 S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

13

SUMMARY OF ASSETS

2017 2018

GENERAL FUNDS

2017 2018

M I S S I O N TO C H I L D R E N & YO U T H

(Unrestricted) Mission to Children & Youth $7,316 General $1,964,089 $1,755,161 Mission to Children Fund 244,691 Ray Jarl 221,411 201,087 TOTAL MISSION TO CHILDREN & YOUTH $252,007 Helen & David W. Light Jr. 44,585 40,496 Marr-Carlisle Memorial 32,947 29,923 LO C A L M I S S I O N S Ann W. Young 536,692 487,427 Local Missions Fund $7,428 Sue Moers 65,467 59,457 Houston Poverty Outreach Fund 813,290 Bankston Fund 139,444 126,754 TOTAL LOCAL MISSIONS $820,718 Carolyn Beatty General Fund 78,464 71,281 Wanda & John Martin 808,811 735,242 G LO B A L M I S S I O N S Florence & George Jordan 29,050 26,483 Global Missions Fund $7,250 Dr. Homer & Margaret Leifeste Fund 75,554 69,706 Mission for Latin America 7,825 TOTAL GENERAL FUNDS $3,996,514 $3,603,017 Wilson & Nora Boots Mission Fund 288,351

B U I L D I N G & FA C I L I T I E S F U N D S Building & Facilities Elizabeth S. & Clyde Lilly Ella & W. W. Fondren Curtis C. “Pop” Gunn Latimer & Kathryn Murfee Fund Bertha & W.K. Sanders Pat & Jim Walzel Jesse H. & Mary Gibbs Jones Sanctuary Fund W. P. Dickey James E. & Rosann F. Hooks Orien & Lucile Van Dyke Henrietta Davis Reese Memorial Fund Walzel Directors’ Challenge William & Mary Elizabeth Shirley Gordon & Ruth Rouse John Fellers Memorial John Winn McKee Bldg & Facilities Fund Maxine Fantini Capital Replacement Fund

$823,568 115,024 399,971 63,782 1,710,163 135,826 326,696 467,727 1,190,616 108,212 302,087 34,492 2,370,428 32,793 2,153,376 67,314 129,397 0 66,638

$806,949 104,469 363,266 57,928 1,553,221 123,362 296,715 424,803 1,081,353 107,956 274,365 31,327 2,158,061 29,784 1,955,760 61,137 315,085 41,682 108,780

TOTAL BUILDING & FACILITIES FUNDS $10,498,111 $9,896,003

L A N D S C A P I N G F U N D S Landscaping Pat & Jim Walzel TOTAL LANDSCAPING FUNDS

$26,595 661,693

$24,143 600,668

$688,287

$624,811

M U S I C F U N D S Music Pat & Jim Walzel Puckett Music Scholars Fund TOTAL MUSIC FUNDS

$87,049 331,373 82,483

$83,317 300,844 74,889

$500,905

$459,050

S E N I O R C I T I Z E N S F U N D Senior Citizens

$101,642

$92,425

TOTAL GLOBAL MISSIONS

$303,425

$6,645 227,431 $234,076

$6,747 746,134 $752,881

$6,588 7,107 263,292 $276,987

PA S T O R A L C A R E Terry Thompson Pastoral Care Fund

$158,954

$151,223

SPIRITUAL FORMATION & LECTURESHIP FUNDS Labyrinth/Spiritual Formation Fund J. Robert Nelson Lectures on Peace Pearson Interfaith Lectureship Kerley Lectureship Craven-Wilson Lectureship Ministers’ Continuing Education Fund John & Mary Lou Margrave Lectureship Fund

$41,250 76,444 78,365 154,716 83,366 47,968 30,448

$39,244 72,726 74,779 145,557 79,311 63,633 28,967

TOTAL SPIRITUAL FORM. & LECT. FUNDS $512,557

$504,218

SCHOLARSHIP FUNDS St. Pauls Foundation $112,783 Bankston Good Samaritan 26,127 Edith Dissinger 87,758 Charles Hiller 136,041 Alberta Baines 86,091 Carolyn & Alfred H. Freeman 40,741 Wood-Young-Washburn-Wilson Scholarship Fd 73,189 Barbara & William Grisham 25,580 R. C. & Paris Blair 25,186 Zane Ann Tigett Scholarship Fund 89,964 Anderson Music 51,674 Bates Family Scholarship 790,440 Robert L. Clark Scholarship 212,619 Swickheimer-Mays Scholarship 39,007 Ellena P. & Robert H. Dickerson Scholarship 333,749 Jay & Renna Williamson Scholarship 40,211 Sadler Bible Class 33,797 Kurt & Tara Arnold Scholarship 64,807 Eula Bakkar Scholarship Fund 35,984 TOTAL SCHOLARSHIP FUNDS

$102,491 23,763 83,468 124,558 78,414 37,005 65,023 23,239 22,877 85,589 47,140 717,707 202,278 35,673 304,675 41,620 32,154 59,280 32,695

$2,305,747 $2,119,650

G E N E R A L M I S S I O N S

14

General Missions Fund Louise Cook Missions Fund Carole Driscoll Memorial Fund Carolyn Beatty Mission Fund

$38,097 36,045 162,654 82,035

$35,428 32,741 150,246 74,535

TOTAL GENERAL MISSIONS

$318,830

$292,949

S T. P A U L’ S M E T H O D I S T F O U N D AT I O N A N N U A L R E P O R T

LIFE INSURANCE & PARTNERSHIPS Mervin Miller Life Insurance Keitt Family Ltd Partnership 1% Sanford Family Ltd Partnership 1%

$91,503 27,180 13,461

$93,390 27,180 13,461

TOTAL LIFE INSURANCE & PARTNERSHIPS $132,144

$134,031

F I N A N C I A L S U M M A R Y : I N C E P T I O N -T O - D AT E YEARS

CONTRIBUTIONS

GAINS (LOSSES) NET OF EXPENSES

LESS GRANTS TO ST. PAUL’S

LESS G R A N TS F OR SCHOLARSHIPS

LESS OTHER GRANTS

CHANGE IN VALUE OF ENDOWMENT

ENDING VALUE OF ENDOWMENT

$250

$8,300

$107,401

$107,401

T H E F O U N D AT I O N ’ S F I R S T 5 0 Y E A R S A R E S H O W N B Y D E C A D E S

1960–1969

$99,566

$20,235

$3,850

1970–1979

114,896

76,920

48,250

-

33,028

110,538

$217,939

1980–1989

1,483,720

412,373

344,245

38,223

40,790

1,472,835

$1,690,774

1990–1999

2,365,006

1,920,753

1,011,698

133,818

40,503

3,099,740

$4,790,514

2000–2009

7,637,602

3,565,608

2,806,500

455,799

151,422

7,789,489

$12,580,003

1,470,946

448,521

64,150

16,788

1,191,987

$13,771,990

RECENT PERIODS

2010

250,500

2011

125,010

23,552

543,856

69,600

5,265

(470,159)

$13,301,831

2012

234,000

1,582,215

538,842

68,950

27,331

1,181,092

$14,482,923

2013

506,750

2,289,341

547,254

60,725

28,103

2,160,009

$16,642,932

2014

1,268,725

1,014,277

575,434

70,380

35,205

1,601,983

$18,244,915

2015

298,616

(58,731)

617,680

82,250

53,719

(513,764)

$17,731,151

2016

285,377

1,046,145

608,000

84,278

69,351

569,893

$18,301,044

2017

279,036

2,765,433

607,361

81,988

66,323

2,288,797

$20,589,841 $19,141,322

2018 2010–2018 TOTAL

343,283

(999,361)

634,490

80,475

77,476

(1,448,520)

3,591,297

9,133,817

5,121,438

662,796

379,561

6,561,319

$15,292,087

$15,129,706

$9,335,981

$1,290,886

$653,604

$19,141,322

S T . P A U L’ S M E T H O D I S T F O U N D A T I O N A N N U A L R E P O R T

15

good GIVING FOR

GIVING TO THE FOUNDATION ENSURES ST. PAUL’S WILL BE A BLESSING TO HOUSTON FOR GENERATIONS TO COME Consider how you will leave a lasting legacy at St. Paul’s UMC, and complete the enclosed card to begin a conversation on making an impact in this church and community.

CASH GIFTS

M A R K E TA B L E SECURITIES

ANNUITIES

B E C O M E PA R T O F T H E LEGACY OF GENEROSITY All donors are advised to consult with their tax attorney or accountant prior to making commitments. Donors may choose to name the Foundation as a beneficiary of certain assets from these sources:

• Bequests from Wills or Trusts • Retirement Accounts • Charitable Gift Annuities

• Charitable Remainder Trusts • Life Insurance • Donor-Advised Fund or Private Foundation

W AY S T O G I V E

PLANNED GIVING

The Foundation welcomes gifts of cash, marketable securities, and annuities at any time. Many donors make a one-time gift in honor or memory of someone or to recognize a significant milestone. Donors can designate gifts for any purpose or ministry within the church. Should a donor prefer to remain anonymous, the Foundation is committed to honoring such requests.

Approximately 35% of Foundation contributions are from wills and other instruments of estate planning.

GIVE TO AN EXISTING FUND Donation of any amount

Give toward a specific fund or simply give an undesignated gift to the General Fund.

SET UP A NEW FUND Min. donation of $25,000

Establish a new permanent fund for a purpose of your choosing.

SET UP A NEW SCHOLARSHIP Min. donation of $10,000

Create a named scholarship to support students pursuing higher education.

We first visited St. Paul’s as freshmen chemical engineering students at Rice University in late August 1998. Whether it was hearing the choir sing O for a Thousand Tongues

WILLING FRIENDS The Willing Friends Society is a communion of individuals who have included the St. Paul’s Methodist Foundation of Houston or St. Paul’s UMC in their estate plans. The current Willing Friends have expressed a desire to recognize St. Paul’s through future gift commitments in a variety of forms, including wills, trusts, gift annuities, and life insurance benefits. We are grateful for their gifts to the Foundation and the church.

to Sing as the processional that day, or the architecture, or the welcoming members of the

Special thanks to our Willing Friends

congregation, we both knew this would be our

ANONYMOUS (8)

RICHARD FREEMAN

church home. St. Paul’s would be the site of our

DOROTHY ASHBY

SARI FREY

JIM ASHBY

BECKY FULLER

ALICE ATKINSON

BOB FULLER

URVINE ATKINSON

DEE STEVENS GOFF

16 years, we were blessed to have our children

MARCI BAKER

GREG GRANT

baptized here and call it our church home

MIKE BAKER

LYNN GRAY

away from home. As we thought about estate

LINDA BALDRIDGE

W. L . GRAY

planning, we felt called to include St. Paul’s

VIC BALDRIDGE

ANN GUNN

REV. JIM BANKSTON

LARRY GUNN

wedding four years later, and while we lived overseas and in California for most of the next

in our plans. By doing so, we can help leave a legacy for the generations that the church will

SANDY BANKSTON

be a home to after us.

PRISCILLA BROWN DOROTHY BURGE BILL BURHANS KELLY BURHANS PEGGY CASKEY THOMAS CASKEY CAROL CHERRY JOANN COLLIER JOSEPHINE CRAIN CAMILLE CUNNINGHAM GLENN CUNNINGHAM MEL DAILEY MORITZA DAY MARY DIX VIC DRISCOLL LISA EMMITE-BAKER BOBBIE FELLERS

RENEE HAWKINS JOHN HAWKINS ROSANN HOOKS DAVID HULL STORMY HULL DEBBIE JONES FRANK JONES RICHARD KEITT BABS ROBERTS-KEITT

CHRIS POWERS HEATHER POWERS KATHRYN PRIEST SYLVIA RACHFORD HENRY RACHFORD, JR. SUSIE RAGSDALE BECKY REEVES HUGH REEVES KEITH REEVES NORMA ROADY DIXIE RODKEY SCOTT RODKEY CHARLES SANDERS RACY SANFORD LYNN SCHROTH GEORGE SCHROTH RICK SHANKS JEAN SNYDER JOAN SPAW

BILL KING

RICHARD SPAW

KAREN KREVALIS

DAVID SYER

MARTIN KREVALIS

HARLEY TRIPP

HARMON LANGFORD

MARTHA TRIPP

RON MARR TOM MAYS DAWNA MENGES TOM MENGES LINDA MEYER

CARY WELSH DAVID WELSH CAROL WIENER BETH WIGGINS JIM WIGGINS

MERVIN MILLER

REV. GAIL WILLIFORD

MARTI NELSON

AMBER YORK

ANALISA FRAZIER

RAN NISBETT

BYRON YORK

KYLE FRAZIER

PAT PEARSON

LOIS MARIE FREEMAN

SONNY PEARSON

PAUL FISHER ELIZABETH FORDHAM

– Heather & Chris Powers, Willing Friends

BRAD HARMES

FRANCES PENNINGTON

NON-PROFIT ORG. U.S. POSTAGE PAID Houston, Texas Permit No. 7701

5501 Main Street l Houston, TX 77004 (713) 528-0527 l www.stpaulshouston.org

Address service requested

ive for good. Your generosity has a lasting impact on the church and the transforming work made possible by grants from St. Paul’s Methodist Foundation of Houston. We invite you to explore Here for Good, the Foundation’s 2018 Annual Report, to learn how your continued support is enabling world-changing work to be done in Houston and across the globe.

F O R M O R E I N F O R M AT I O N MAILING ADDRESS

St. Paul’s Methodist Foundation of Houston 5501 Main Street Houston, Texas 77004 PHONE EMAIL

(713) 528-0527 foundation@stpaulshouston.org

stpaulshouston.org/foundation