2020 Annual Report

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Adjusting Our Sails 2020 Annual Report 2020 Annual Report

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Mission Statement

The mission of the United Methodist Foundation of Louisiana is to be a catalyst that strengthens and preserves our current ministries while meeting the needs of a diverse and rapidly changing society.

Be strong and bold; have no fear or dread of them, because it is the Lord your God who goes before you. He will be with you; he will not fail you or forsake you. Do not fear or be dismayed.

Deuteronomy 31:6,8

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United Methodist Foundation of Louisiana

Letter from t he President

“The pessimist complains about the wind; the optimist expects it to change;

the leader adjusts the sails.”

W

hat a year! The pandemic presented us with a challenge the magnitude of which most of us have not experienced in our lifetimes. An attitude of optimism or pessimism did not have much effect on the outcome. But, leadership did.

Leaders did not necessarily have a title or position, they simply assessed their situation and did something to make it better. Healthcare workers, teachers, stayat-home parents or pastors, they acted on the belief they could make a difference. The best

John Maxwell of them focused on the outcome for others, not just themselves.

Leaders at the Foundation did the same. Adjusting their sails in rising volatility, the investment committee produced outsized returns while following ESG principles.

Addressing new needs, the grants committee funded innovative ideas helping churches adapt to the new normal. Staff became more efficient remotely.

Our 45th year was a challenging one, but we emerged bigger, stronger and better equipped than ever before to be a catalyst that strengthens

2020 Annual Report

and preserves current ministries while meeting the needs of a diverse and rapidly changing society.

The Foundation is adjusting its sails in one other way to best take advantage of the prevailing winds. New leadership is stepping in July 1, 2021. While my 23 years at the Foundation have truly blessed my life, I am excited about the possibilities of how it will bless others in the future.

May God bless and guide you all.

Rob Fairly President/CEO

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Assets Under Management

2020 2015 2010

2005

2000

1995

1980

$272K

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$32M

$83.1M $103.2M $123.5M $145.5M $199.3M

D

espite a global pandemic, a heated presidential election, multiple hurricanes and anything else it seems the world could throw our

way, there were many reasons to be thankful in 2020. Foundation assets grew to nearly $200 million, and our ministries expanded to meet the ever-changing needs of the church.

“The pessimist complains about the wind; the optimist expects it to change;

the leader adjusts the sails.”

John Maxwell

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Leadership Executive Committee

Omer Davis Chair

Rev. Weldon Bares Immediate Past Chair

Sandra Kuykendall Secretary

Mike DeHart Investment Chair

Rev. Michi Head Grants Chair

Bishop Cynthia Fierro Harvey Ex-Officio

Rob Fairly, President/CEO With his financial background and love for the United Methodist Church, Rob was the perfect fit in 1998 for the development officer position at the Foundation. He later moved up the ranks to Executive Vice President in 2005 and to President/CEO in 2006.

The Foundation has experienced substantial growth during Rob’s tenure.

Since 1998, the Foundation has established 285 planned gifts, primarily due to Rob’s efforts. In that span, 90 churches and Conference ministries have received endowment income totaling $5.79 million and 98 other nonprofits have benefited by donor advised gifts, totaling an additional $2.39 million.

Rob is also responsible for the Foundation’s double-tithing policy — to give back 20% to United Methodist ministries through grants and other contributions.

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United Methodist Foundation of Louisiana

Leadership

During the pandemic shutdown, Zoom video conference meetings became the norm. President Rob Fairly, left, and Board Chair Omer Davis, right, participate in an Executive Committee meeting.

Board of Trustees and Committees

Nettles Brown Investment

Dr. Debra Davis Grants

Rev. Doug deGraffenried At Large

Bobby Fahey Investment

Irwin Felps Investment

Dean Harvey Investment

Jarvis Jones Investment

Drew Kennedy Grants

Richard Lewis Investment

Mary Magee Grants

Rev. Ashley McGuire Grants

Rev. Brian Mercer Investment

Troy Searles Investment

2020 Annual Report

Dianne Wilkinson Investment

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Staff Rachel Baio, Director of Accounting

Rachel, who started with the Foundation in 2010, handles the Trust and Accounting operations. She earned a B.S. and an MBA from Southeastern La. University and has over 30 years’ experience in Accounting and Management.

She attends The Mission Church in Hammond and is a greeter on the Serve Team. She also loves spending time with her two grandchildren.

Tamara Bello, Accounting Assistant

Tamara joined the Foundation in 2002, bringing with her more than 20 years of accounting experience. She earned an A.S. in Accounting from BRCC and was commissioned as a Notary Public in 2011. Tamara is also a certified Master Gardener and a catechist at St. Patrick’s Catholic Church in Baton Rouge for confirmation candidates.

Bob Carrell, Development Officer, North La.

Bob served 23 years in the U.S. Air Force and over three years as a financial planner before joining the Foundation. He assists church leaders, pastors and donors with all Foundation services, with an emphasis on planned giving. He has completed Disciple Classes I through IV through his church, First United Methodist Church, Bossier City.

Violet Frost, Office Manager

Violet is the first person you see when you visit the Foundation office.

She joined the staff in 2012 as the office manager, dealing with day-to-day operations, managing the building and administrative support. A native of Illinois, Violet has lived throughout the states and traveled globally. She is a member of First United Methodist Church of Baton Rouge.

The Foundation staff experienced “smooth sailing” for the most part during the pandemic, alternating working remotely and in the office, to maintain social distancing.

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United Methodist Foundation of Louisiana

Staff

Violet is masked up for pandemic safety, and ready to greet visitors.

Kelly Johannessen, Director of Communications

Kelly joined the staff in 2003 and is responsible for all publications and communications, as well as event planning and website development. She has a B.A. in Journalism from LSU. Kelly serves on the Church Council and Hospitality Committee at First United Methodist Church of Baton Rouge. She is also Louisiana State Chair for the Samford University Parents Association.

Chris Spencer, Development Officer, South La.

Chris earned a B.A. from UNC Chapel Hill and an MBA from the LSU Executive MBA Program. Prior to joining the Foundation in 2017, he served as a small business banker, private banker and regional communications manager during a 24-year career with JPMorgan Chase. He is a member of First United Methodist Church of Baton Rouge, where he is a Sunday School class leader and has served in several other leadership roles, including church council chair.

Tracie Wharton, Controller

Tracie joined the Foundation in 1999 to coordinate the loans and grants programs. In 2001, she assumed the role of Controller. She is a CPA with over 30 years’ experience in banking and finance. A native of Baton Rouge, Tracie is a longtime member of First United Methodist Church of Baton Rouge, where she is a Past President of United Methodist Women and teaches Disciple Bible Study with her husband, Tré.

2020 Annual Report

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2020

in Review

no simple way to describe the year 2020. We heard the words “difficult,” There’s “uncertain” and “challenging” more than we could stand. But the trials and struggles of the year also provided new opportunities and ways to serve.

From Seminars to Webinars We all had to embrace technology more than we may have been comfortable doing, and video conferencing became the norm. Instead of in-person educational offerings, the Foundation created a series of webinars to bring informative speakers to our donors, pastors and church leaders online on a variety of topics:

Rob Fairly hosted each webinar from a makeshift studio in his office.

• Taking the Pulse of the Church.

The Foundation conducted a survey in June, three months into the shutdown, to learn how our churches were faring. Our conclusion? The sky is not falling.

• Annual Campaigns in the Time of COVID-19. Tough times call for adaptation. This webinar by Karl Mattison of the Presbyterian Foundation gave churches new ideas for annual campaigns.

• Aging Parents and Their Financial Affairs. Estate Planning Attorney Rhonda Gabb gave us a lot of takeaways to help our elderly parents, and perhaps ourselves, in getting our financial affairs in order.

• Encouraging Generosity in Tough Times. Many pastors and church leaders were asking, “How can we talk about giving right now?” This webinar presented some steps churches could take to redefine and build generosity.

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• End of Year Giving in a Messed Up Year. This webinar provided inspiration and guidance to get churches started on their end-of-year giving plans.

• Making an Impact in the Digital World of Communications. With so many churches having to initiate online worship services, this webinar showed church leaders how to measure online engagement and make an impact on viewers.

Zoom meetings became a familiar occurrence, and Annual Meeting was no exception.

United Methodist Foundation of Louisiana

A year like no ot her

• Maximizing Your Church’s Website for E-Giving. Richard Rogers of Horizon Stewardship, Inc. provided guidance and helpful tools to help churches optimize the effectiveness of their websites for electronic giving.

• Using Email to Engage Your Congregation. Church leaders learned how to use the easiest and most costeffective way — email — to its fullest potential to engage congregations.

• Enhancing Church Communication Using Video. With such a focus on communications this year, this webinar on video tips was a useful resource for church leaders offering virtual gatherings for the first time.

Annual Meeting The 2020 Annual Meeting was also held via video conference this year. While we missed the cameraderie and a good meal, it was a productive meeting.

Board Chair Rev. Weldon Bares installed Omer Davis as the new Board Chair, and Rev. Doug deGraffenried was elected to the Board of Trustees.

President Rob Fairly acknowledged and thanked Rev. Larry Stafford for his years of service as he rotated off the Board and recognized Dr. Debra Davis for her “above and beyond the call of duty” service over the year. Debra lent her expertise in leadership facilitation to help implement the Nonprofit Clergy Leadership Program for selected pastors.

2020 Annual Report

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Grants

T

he challenges of 2020 presented unique opportunities to make a difficult year better for our United Methodist community. The Foundation demonstrates its priority for giving by double-tithing its annual gross operating income to various ministries within the Annual Conference. Below are some of the highlights:

Congregational Development & Transformation This year’s largest grant supported a host of initiatives of the Congregational Development & Transformation Office of the La. Annual Conference, including: • Associate Director and Program Coordinator salaries • Five new church plants and their weekly coaching sessions • Digital church worship training.

Unique Times Call for “Unique Ministry” Grants

Churches across the state were thrust into the world of online worship and virtual meetings to maintain social distances when COVID-19 hit, and the Foundation stepped in to assist with the transition.

The Foundation’s Grant Committee, led by Rev. Michi Head, awarded 50 grants to 44 churches, totaling about $105,000 for “unique ministry.”

The majority of churches used the money to purchase equipment to implement online worship services, but other creative uses for the grants included the: • Drive-up food pantry • Kids’ Bible study online • Virtual college guidance counseling • Materials for face masks.

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Gretna UMC used a Foundation grant to implement online worship services for their congregation.

New Church Endowments Created The Foundation continued its $5,000 endowment match program this year, creating an opportunity to increase funds for ministry.

In addition to the $5K match, the Foundation doubled the match to $10K if the church enrolled in the Planned Giving Navigator education program.

Those creating endowments this year were: St. Pauls UMC, Monroe

Camphor UMC, Baton Rouge

Grand Cane UMC

NSU Wesley Fnd.

St. Luke Simpson, Lake Charles

Broadmoor UMC, Shreveport

First UMC, Lake Charles

New Life Community UMC, Luling

United Methodist Foundation of Louisiana

Challenges provide opportunity Recipient Ministry

Amount Awarded

Church Revitalization & Transformation

$131,400

Clergy Leadership Development

$88,666

Endowment Match Program

$75,000

Unique Ministry for Churches

$104,492

Stewardship and Planned Giving Education

$36,947

Seminary Scholarships

$36,700

La. Methodist Children’s Home

$20,000

Youth Leader Intern Program at St. John’s UMC

$18,712

Total Grant Money Awarded in 2020

$511,917

A Longstanding Commitment to Clergy Leadership The Foundation sponsored eight pastors in a new leadership curriculum at Dakota Wesleyan University, the Nonprofit Church Leadership Program. This yearlong course is designed to increase pastors’ capacity and confidence to be effective church leaders and administrators. These pastors will emerge from the program with 21 hours toward an MBA. Pastors participating in the program include:

Rev. Mark Goins

Rev. Allison Sikes

Rev. Ronnie Southall

Rev. Ashley McGuire

Rev. Leslie Stephens

2020 Annual Report

Rev. Lamar Oliver

Rev. Drew Sutton

Rev. Lane Winn

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Responding to need t hrough Grants Disaster Recovery Response Hurricane Laura made landfall on August 27 in Cameron Parish as a Category 4 storm, shredding Lake Charles and the surrounding areas. Just six weeks later, Tropical Storm Delta swept through the area and added insult to injury.

The Foundation offered assistance with: • The purchase and delivery of clean-up equipment and staff help • Monetary donations to disaster relief • Support from NAUMF for $10,000, matched by the Louisiana Foundation • Disaster recovery loans to churches with no to low interest for rebuilding.

L to R: Bishop Cynthia Fierro Harvey, Rev. Andy Goff and Foundation staff member Chris Spencer stop work for a minute to snap a photo at Maplewood UMC in Sulphur. The church’s fellowship hall fared badly in the storm.

Foundation Sponsors Clergy for APL Five Louisiana pastors were selected to participate in the next Advancing Pastoral Leadership (APL) class, starting in early 2021.

Rev. Katie Black

Rev. Austin Rinehart

Rev. Jessica Lowe

Rev. Fernie Rivera

Rev. Ali Young

The five-year intensive program assists emerging leaders who have at least 30 years of potential remaining service to the church in developing their capacity for fruitful leadership.

It is designed to teach clergy strategic and intentional leadership, improve their skills for preaching and cultivate congregational generosity.

The Foundation has sponsored 21 clergy since 2012 for this beneficial program.

“Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”

II Corinthians 9:6-8

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United Methodist Foundation of Louisiana

Financial Peace University Dave Ramsey’s Financial Peace University helps people manage their money God’s way. The class teaches participants how to pay off debt, budget, save money and give generously.

The Foundation encourages churches in our Conference to offer the course to their communities by offering a $333 per household award to those who graduate from this life-changing course.

Since 2018, the Foundation has paid $104.8K in incentive grant money to 315 households from 18 churches graduating from the class. Total household debt paid off by those participants during their respective class periods was $948,100.

Amount Saved During Course

Church

Households

Debt Paid Off During Course

Asbury/St Matthew, New Orleans

16

$24,431

$ 8,883

Aurora UMC, New Orleans

15

$72,413

$35,915

Blackwater UMC, Baker

10

$83,900

$52,000

First UMC, Lake Charles

13

$100,000

$41,600

Jefferson UMC, Baton Rouge

17

$111,000

$27,115

Munholland UMC, Metairie

23

$62,800

$42,145

St. Francisville UMC

13

$71,865

$47,419

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$526,409

$255,077

Total 2020

Methodist Children’s Home of Southeast Louisiana The Foundation has a lengthy relationship with the Louisiana Methodist Children’s Home and has supported its growth for many years.

The Foundation has committed to donate $100,000 to assist with the building of the Children’s Home’s new 126-acre home near Loranger, La. A flurry of activity surrounds the groundbreaking area of the new Children’s Home of Southeast La., where Phase II of construction began in July.

The grant will be used for Phase II construction of the residential and administrative facilities, which is expected to be completed in 2021.

2020 Annual Report

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Planned Giving

T

hrough all the upheaval of 2020, these donors still found a way to create a legacy for ministries they cherish.

Charitable Gift Annuities established at the Foundation allowed Rev. Weldon Bares and Marianne Hebert to use planned giving to increase their income for life and support their favorite ministries, forever!

By making these plans, Weldon and Marianne will receive many benefits, such as: • An income stream for life, a portion of which may be tax-free • A tax deduction the year the gift is made • A reduction or avoidance of capital gains tax liability • The ability to support their favorite United Methodist ministries after their lifetimes, forever.

T hank you for leaving a legacy!

Rev. Weldon Bares made a planned gift this year by transferring shares of stock, which the Foundation sold to create a Charitable Gift Annuity.

Weldon will receive income from the gift for the rest of his life, and it will ultimately benefit First United Methodist Church of Lake Charles, where he is currently senior pastor.

Marianne Hebert was planning her retirement from social work when she discovered that Charitable Gift Annuities could help increase her income.

After Marianne’s lifetime, her planned gift will support the spiritual formation program at her church, University United Methodist Church of Baton Rouge, forever.

He is before all things, and in Him all things hold together.

Colossians 1:17

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United Methodist Foundation of Louisiana

Loans

A

record number of hurricanes hit

our state in 2020. The Foundation offered damaged churches no-to-low interest loans to buy supplies, pay for repairs or meet insurance deductibles in the process of disaster recovery.

These deposit-secured loans accrued no interest for the first 90 days, and only 2% interest for 12 months thereafter. The loans offered cash flow relief for many churches.

The Foundation has loaned $37 million since its first church loan in 1993. These loans are made to churches and other ministries within the Louisiana Annual Conference to address the needs for: • Expansion or improvement of worship facilities • Unexpected repairs • Other strains on a church budget.

2020 Loan Port folio Amite UMC, Amite

Haughton UMC, Haughton

Asbury UMC, Lafayette

Henning Memorial UMC, Sulphur

Bethany UMC, New Orleans

Hurst UMC, Plaquemine

Camp Istrouma

Jefferson UMC, Baton Rouge

Caney Conference Center

MacDonell Children’s Services

Carpenter’s Chapel, Prairieville

Newman UMC, Alexandria

Clanton Chapel, Dulac

Pearl River UMC, Pearl River

Faithful UMC Parsonage, St. Amant

Shady Grove UMC, Mansfield

First Street PW, New Orleans

St. Charles UMC, Destrehan

First UMC, Alexandria

St. John’s UMC, Baton Rouge

First UMC, Baton Rouge

Shalom Zone Community

First UMC, Bossier City

University UMC, Baton Rouge

First UMC, Denham Springs

University UMC, Lake Charles

First UMC, Houma

UMC of the Covenant, Lafayette

First UMC, Plaquemine

Wesley UMC, Baton Rouge

First UMC, Slidell

Wesley UMC, Sulphur

Grace Community, Shreveport

UMC Learning Center, Houma

Hartzell Mt. Zion, Slidell

Total 2020 Portfolio: 2020 Annual Report

$6,613,157 17

Balance Sheet ASSETS

Cash & Cash Equivalents Accounts Receivable Accrued Interest Receivable Prepaid Expenses Investments at FMV Other Real Estate Mortgages Receivable, net Cash Surrender Value of Life Insurance Real Estate held in Trusts Property & Equipment, Net

TOTAL ASSETS

$6,355,839 3,516 196,547 26,027 185,117,883 0 6,308,015 63,960 1,236,246 42,832 $199,350,865

LIABILITIES & NET ASSETS

LIABILITIES

Accounts Payable $3,503 Amounts Held for Others 151,322,361 Liabilities Under Unitrust Agreements 2,003,282 Liabilities Under Gift Annuities & Reserves 1,321,442

TOTAL LIABILITIES 154,650,588

NET ASSETS

Without donor restrictions:

Undesignated 6,868,105 Designated Grant appropriations 1,104,059 Excess on Income Fund designated for future use 390,543 Total designated 1,494,602

Total net assets without donor restrictions

With donor restrictions

8,362,707 36,337,571

TOTAL NET ASSETS

44,700,278

TOTAL LIABILITIES & NET ASSETS

$199,350,866

Year ended 12/31/20

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United Methodist Foundation of Louisiana

Statement of Activities

Without Donor Restrictions

With Donor Restrictions

Total

SUPPORT AND REVENUE

Contributions and Bequests $193,653 $1,629,712 $1,823,365 Interest and Dividends 496,764 672,773 1,169,537 Management and Consulting Fees 758,910 - 758,910 Total support and revenue prior to release from restrictions 1,449,327 2,302,485 3,751,812

Net Assets Released From Restrictions 281,037 (281,037)

Total support and revenue 1,730,364 2,021,448 3,751,812

EXPENSES Program services: Charitable Trusts, Annuities and Endowments - 2,199,735 2,199,735 Grants & Gifts 511,917 - 511,917 Total program services 511,917 2,199,735 2,711,652 Support services: Management and general 1,367,755 - 1,367,755

Total expenses 1,879,672 2,199,735 4,079,407

Other changes: Change in value - split interest agreements (173,407) (173,407) Unrealized Gain on Investments 1,109,274 2,273,077 3,382,351 Realized Market Gain 147,500 249,554 397,054 Total other changes 1,256,774 2,349,224 3,605,998

Changes in Net Assets 1,107,466 2,170,937 3,278,403 Net Assets, Beginning of Year Net Assets, End of Year

7,255,241 $8,362,707

34,166,634 41,421,875 $36,337,571 $44,700,278

Year ended 12/31/20 2020 Annual Report

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United Methodist Foundation of Louisiana 8337 Jefferson Hwy., Baton Rouge, LA 70809

www.umf.org