We’ve a
storyto
tell
2016 annual report
2016 annual report Table of Contents
donor story cherÍ ben-iesau charitable remainder trust
Cherí used a rental house to fund a CRT. She no longer worries about tenants, property taxes or insurance payments, didn’t pay capital gains on recaptured depreciation, enjoyed a substantial tax deduction, locked in 7% income and provided for the future of the Children’s Home.
President’s Message.................................................................................3 2016 Donors............................................................................................4-5 How Will You Write Your Story?.....................................................6-7 The Third Testament...............................................................................8 2016 Quick Facts........................................................................................9 Year in Review..................................................................................... 10-11 Balance Sheet...........................................................................................12 Statement of Activities..........................................................................13 Loan Portfolio............................................................................................14 Leadership..................................................................................................15 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.
2
united methodist foundation of louisiana
Presiden't's Message We’ve a story to tell . . .
S
tories or narratives have been shared in every culture as a means of entertainment, education, cultural preservation and instilling moral values. Stories, in the form of parables, were the key teaching tool of our Lord and Savior, Jesus Christ. We continue to tell stories today. In the following pages you will, of course, read the story of the Foundation’s activities in 2016. More importantly—and much more inspiring—you will read the stories of real people who are leaving a legacy. Leaving a legacy is not optional. All of us do it. The question is, what kind of legacy will we leave? The good news is we can fashion those stories based on what we did, what we admired in others and what we wished we had done. Planned giving allows us to pass on the values we hold dear, inspire and encourage others and to make a difference. We can be part of a conversation 100 years from now that will be prompted by something we did, said, taught or exemplified. All because we acted today to leave a legacy. How will you impact the future? What legacy do you plan to leave? Let us help you tell your story to future generations.
2016 annual report
rob fairly president/ceo
3
2016 Donors John and julie Benton The Bentons established an Endowment to continue their support of the Art Enrichment Program and educational field trips for students of the Howard School after their lifetimes. The school is a state-licensed alternative school on the campus of Louisiana Methodist Children’s Home in Ruston, Louisiana. donald Clayton Don grew up across the street from Lake Arthur UMC. He still remembers his boyhood pastor leaning over the pulpit and asking him and a couple of his buddies in the back pew about leaving a legacy in their community. He credits the church with instilling fundamental values in his life. His Endowment is to be used in matching fashion to make sure the church can have a full time pastor, money for youth activities and a “Rainy Day” fund for unforeseen repairs.
4
united methodist foundation of louisiana
2016 Donors john and bye Evans The Evans had no heirs and left instructions that a significant portion of their estate be used to establish an Endowment to benefit a scholarship program and other designated ministries of their church, NorthPoint UMC. Patricia habeeb Muehlemann Patty grew up in Old Metairie and has gone to Munholland UMC “forever.� She was even married there. After her husband Paul died, she wanted to help make sure the church would be there in the future to serve others as it had served her and Paul. The money from the Endowment is to take care of facility maintenance needs, in order to allow more of the members’ financial gifts to be used in ministry. marvin and willa Roof Long time members of First UMC Baton Rouge, Marvin and Willa used a Charitable Gift Annuity to lock in annual income of 6.3% on the face value of their gift and ultimately establish a permanent fund to benefit their church.
2016 annual report
5
How will you write your story?
M
any United Methodists like to leave a gift to their church because they care about causes that are important in their lives. LIFE INCOME gifts Life income gifts such as a Charitable Gift Annuity or a Charitable Remainder Trust or Unitrust, provide: • an income stream for your life (or a loved one’s) • an income tax deduction • and the joy of supporting your favorite ministry. Charitable Remainder Unitrust Marcus Wren gave timber cutting rights from his land to the Foundation. After a generous tax deduction, he is receiving income for the rest of his days and relishes the knowledge he will later support First UMC of Minden forever.
6
Charitable Gift Annuity Mary Frances Wier, a 90-year-old widow, was a tither. When she learned she could triple her income from CDs with a Gift Annuity, she tripled her pledge to University UMC in Baton Rouge. She has joined the church triumphant and now her gift loyally supports her church like she did.
GIFTS OF REAL ESTATE Real estate can be used to fund a life income plan or to gift your residence while continuing to live there, receiving a tax deduction and providing for your church. Dr. Ronald Pryer gave his office building to fund a trust after he retired. He avoided capital gains tax, received a tax deduction, income for life, and now his gift supports ministries at his church, First UMC of Pineville, forever.
united methodist foundation of louisiana
RETIREMENT PLAN GIFTS Often our largest asset, qualified retirement plans (such as an IRA, 401(k), Keogh, etc.), are the most tax-efficient way to make a gift. While children or other heirs face taxes of up to 70%, your church will receive 100% of your gift. Retirement plan gifts are simple. Just update your beneficiary clause to include your church. You control the assets as long as you need them. Leave the rest of your assets to your heirs who will receive a “step up” in tax basis. Life Insurance is another asset controlled by a beneficiary clause. Just add your church as a beneficiary to your policy.
A GIFT IN YOUR WILL Weldon Bares, senior pastor of First United Methodist Church in Lake Charles, appreciates the blessings he’s received from each of the 5 churches he has served. His will provides for each of those 5 churches, his seminary, Asbury and the United Methodist Foundation of Louisiana, where he currently serves as vice-chair of the board.
2016 annual report
donor story Bill and Kathy Hunt charitable remainder unitrust
Bill and Kathy Hunt used shares of a closely held corporation to fund a CRT. This allowed new owners to buy in over time. The Hunts received income for life, a current income tax deduction and provided a gift for their church, First UMC of Monroe.
7
The Third Testament recognition society Sue Alves* Carol and George Anding Rev. & Mrs. Joseph Awotwi Robert and Patsy Barnes* Dr. Emile J. Bernard, Jr.* Dick and Fran* Boisture Wilson H. Brent* Elizabeth Breiter* Mrs. Charles Cadwallader* Bessie Cage Mark Callender Dr. & Mrs. Alonzo Campbell Dr.* & Mrs. James J. Caraway Frank & Carol* Carney Robert Carrell Nancy Mikell Carruth* Miss A. B. Clark Mr.* & Mrs. John O. Clay Bill and Cooky Coffey Helen T. and Herbert Cole Louise Conner* Elette Cooper* Vallan Corbett Don and Glennell Cottrill Tom* and Wilma Crosby Leroy* and Dr. Anita Crump Phil and Rev. Jan Curwick Bill and Debra Davis
Frances B. Davis Omer and Marybeth Davis Merlin and Eleanor Duke Betty Eady Dr. & Mrs.* Antonio Edwards John & Bye Evans* Mr. & Mrs. Rob Fairly Marilyn Farrar Mr. & Mrs. Arthur Faulk Jerry G. Fischer Mary Fontenot Dr. & Mrs. W. Ralph Ford Nick and Elaine Fry Marcia Wren Gater* Liz and Pendery Gibbens Toni D. Gilboy Mr. & Mrs. Wayne Gilmore* Francine Groves Boyd Dr.* & Mrs. Robert Haacker Joyce D. Hannibal* Haynes and Barbara Harkey* Dr. & Mrs.* Robert E. Harrison Anthony J. Heitz Bill and Ledrine Hickey Bobby Hill Gloria Hood Bishop & Mrs. Bill Hutchinson G. W. James, Jr.
Jerry and Margaret Johnson Walt & Betty Joiner Ed and Pat Kneipp Sandra Kuykendall Dr. and Mrs. Chapman Lee Rev. & Mrs. William Mayo* Frank & Kathy McArthur William M. McCutcheon Jim and Bonnie McDaniel Mary McDaniel Rev. Lee & Marcia McKinzie Mark McMurry Genny & Dude Middlebrooks Mrs. Marjorie Miller* Margaret D. Milnor Dr. Arthur Moles Roger and Marcia Moser Patty Habeeb Muehlemann Geraldine Kirkland Myers* Nelia Myrhaugen* Sydney and Gail Nelson Robert and Helen Nix Mr. and Mrs. Bill Oglesby* Jack & Jane Omohundro* Joel* and Kathleen Ory Dr. Jason C. Owen* William & Dianna Penney Wynona E. Peters
Rev. & Mrs. Robert L. Peyton* Ray & Judge Rosemary Pillow Dr. & Mrs. Ronald Pryer* Tinye S. Ragan* Henry & Lupe R. Ramos Ken and Bobbie* Reed Dr. & Mrs. Michael Reeves Paul & Barbara Reger* Robert S. Reich* Dr. & Mrs. Carl E. Rhoads Dianne and William* Rhoads Joyce Williams Robinson Marvin & Willa Roof Betty Rowell Nancy and Richard See* Jane Sherman* William Simmons* Jim and Honie Smith Shelby L. Smith Rev. & Mrs. Rex Squyres* Rev. & Mrs. Larry Stafford Walter G. Strong, Jr.* Crit and Allie Stubblefield* Rev. & Mrs. Darryl Tate Byrum Teekell M. Agnes Titkemeyer Earl and Daisy Turner* John Tyner
* deceased
8
united methodist foundation of louisiana
Robert and Myrna Walker Theodore Weber Kay and Marvin White Paul and Joanne* White Rev. Fred and Ann Wideman Gerald* and Marlene Wilcox Marcus and Gay* Wren Rev. Spencer Wren* James E. Wyche, Jr.*
donor story john tyner Charitable uniTrust
John gets income for the rest of his life, then his two grandchildren receive income for 20 years, then Broadmoor UMC of Baton Rouge is supported in perpetuity.
2016 Quick Facts $149,717,490
$22,882,469
$12,228,886
Assets under management
endowments
new dollars contributed by donors or churches
market value of all gift annuities, CRTs and life estates under administration
$3,026,356
$1,495,098
$856,389
$324,200
market value of donor advised funds
donated to create new charitable gift annuities & endowments to benefit UM churches and agencies
payouts made to charitable gift annuitants and trust holders
20% of our income was allocated to fund grants
2016 annual report
$5,793,557
9
2016 in Review LOUISIANA DISASTER RESPONSE The Foundation was pleased to donate two crew cab trucks, to assist in the rebuilding of areas devastated by the Flood of 2016. Rev. Bob Deich, aka “The Disaster Pastor� explained that one of the trucks would be used for flood recovery and rebuild, and the second one for hauling trailers of supplies where needed. Advanced Pastoral Leadership Four young Louisiana pastors began a five-year training course in the fall to develop their potential for fruitful leadership. Those selected for these Foundation sponsorships through the Advanced Pastoral Leadership program are: Rev. Colleen Bookter, University UMC, Baton Rouge; Rev. Andrew Sutton, First UMC, Lafayette; Rev. Marissa Teauseau, First UMC, Alexandria; and Rev. Max Zehner, Rayne Memorial UMC, New Orleans. Horizons Stewardship Academy In April, the Foundation sent 15 lay leaders and pastors to a fourday generosity event, Horizons Stewardship Academy in Dallas. Then in September, held a one-day version in Ruston. Both events received rave reviews and participants looked forward to using what they learned in their churches. Topics included fundraising principles, planned giving and endowments and stewardship. 10
planned giving navigator The Foundation sponsored 11 churches from around the state to participate in Planned Giving Navigator, a program to guide them in launching their own planned giving campaigns. The churches are: Broadmoor UMC, Baton Rouge; Broadmoor UMC, Shreveport; First UMC, Denham Springs; First UMC, DeRidder; First UMC, Monroe; First UMC, Natchitoches; First UMC, Pineville; First UMC, Slidell; Henning Memorial UMC, Sulphur; Noel Memorial UMC, Shreveport; and Trinity UMC, Ruston. Each church invested a portion of the annual cost, which the Foundation will reimburse upon completion of the program. celebrating 40 years The Foundation celebrated 40 years of service at its annual meeting and luncheon in April where Nettles Brown was installed as the new chair of the board. New board members, Rev. Hadley Edwards, Chris Spencer and Dianne Wilkinson were also elected. investing in a new generation of christ-followers Interns and staff from the Wesley Foundation at the University of Louisiana Monroe were awarded a matching grant to attend Catalyst Leadership Conference in Atlanta, a fully immersive and creative event where they interacted with thousands of fellow nextgeneration leaders.
united methodist foundation of louisiana
“Words are not enough to express the thanks we have for the United Methodist Foundation of Louisiana and one of their many expressions of support for the mission of disaster response ministry.” -Rev. Bob Deich with Bob Carrell, Foundation Staff
Rob Fairly (l) and Rev. Joseph Awotwi (r) at the 2016 Annual Meeting, celebrating the Foundation’s 40th anniversary.
While attending the Catalyst Conference in Atlanta, Director Alan Johnson, Shawna Johnson, Asst. Director Kristi Gadwa, Tray Washington and Joshua Hanna stop to take a “selfie.”
2016 annual report
2016 Advancing Pastoral Leadership participants, clockwise from top left: Rev. Colleen Bookter, Rev. Andrew Sutton, Rev. Marissa Teauseau and Rev. Max Zehner
Lay leaders and pastors attending the Horizons Stewardship Academy in Dallas are L to R (front): Mary Magee, Rev. Sonya Lars, Rev. Kotosha Griffin, Rev. Dr. Elenora Cushenberry, Rev. Rachel McConnell-Switzer. L to R (back): Rev. Robert Johnson, Rev. Bertrand Griffin II, Paul Warner, Rev. Joseph Awotwi, Rev. Ray Varnado and Rev. Ellen Alston.
11
Balance Sheet December 31, 2016
donor story A.B. Clark charitable gift annuity
Cash & Cash Equivalents Accounts Receivable Accrued Interest Receivable Prepaid Expenses Cash Value, Life Insurance U.S. Government Obligations Corporate Obligations Global Obligations Corporate Stocks Alternative Investments Mortgages Receivable Loss Loan Reserve Real Estate Property & Equipment, Net
ASSETS
TOTAL ASSETS
$8,251,025 4,580 283,306 25,911 27,505 20,427,718 34,490,174 4,273,756 64,014,312 7,967,618 8,877,946 (400,000) 1,461,245 12,397
$149,717,493
LIABILITIES & NET ASSETS A.B. used proceeds from U.S. Savings Bonds to fund several Charitable Gift Annuities, locking in a blended income rate of 8% for life, and supporting her three favorite United Methodist ministries forever.
LIABILITIES Accounts Payable Amounts Held for Others Liabilities Under Unitrust Agreements Liabilities Under Gift Annuities & Reserves TOTAL LIABILITIES DEFERRED REVENUE NET ASSETS Unrestricted Temporarily Restricted Permanently Restricted TOTAL NET ASSETS
TOTAL LIABILITIES & NET ASSETS
1212
united methodist foundation of louisiana
$3,905 113,910,644 1,700,459 1,708,690 117,323,698 367,502 5,728,866 11,159,955 15,137,472 32,026,293
$149,717,493
Statement of Activities December 31, 2016 Temporarily Permanently SUPPORT AND REVENUE Unrestricted Restricted Restricted Total Contributions and Bequests $52,239 $501,012 $1,398,941 $1,952,192 Interest and Dividends 634,715 360,789 638,642 1,634,146 Realized Gain 661 0 0 661 Management and Consulting Fees 594,488 0 0 594,488 Net Assets Released From Restrictions 279,272 (257,186) (22,086) 0 Unrealized Market Gain 76,912 164,654 291,892 533,458 Change in Value Split Interest Agreements 2,718 117,995 120,713 TOTAL 1,638,287 771,987 2,425,384 4,835,658 EXPENSES Beneficiary Distributions 0 425,137 856,389 1,281,526 Grants & Gifts 199,598 0 0 199,598 Operating 1,082,043 1,082,043 Gift Annuity Reserve 0 0 Realized Market Loss 41,955 66,385 108,340 TOTAL 1,281,641 467,092 922,774 2,671,507 Changes in Net Assets 356,646 304,895 1,502,610 2,164,151
donor story shelby smith endowment fund
Every time a friend or family member passes away, Shelby donates to an endowment fund to support the Wesley Center. He honors those lives and builds support for the conference center.
Net Assets, Beginning of Year 5,372,220 10,855,060 13,634,862 29,862,142 Net Assets, End of Year $5,728,866 $11,159,955 $15,137,472 $32,026,293
2016 annual report
13
Loan Portfolio
T
he Foundation assists churches in determining a safe debt level and developing a financial plan to support ministry. Amite UMC Asbury UMC, Lafayette Bethany UMC, New Orleans Boynton UMC, Gretna Camp Istrouma Caney Conference Center, Minden Carpenter’s Chapel UMC, Prairieville Cooper’s Chapel, Loranger Faith Crossing UMC, Walker First Street P.W. UMC, New Orleans First UMC, Alexandria First UMC, Bossier City First UMC, Crowley First UMC, Ponchatoula First UMC, Slidell First UMC, Thibodaux Hartzell Mt. Zion UMC, Slidell Haughton UMC Henning Memorial UMC, Sulphur Jefferson UMC, Baton Rouge
14
Charging no points or origination fees when churches need loans, the Foundation is the “friendliest” lender in town.
Lakeview UMC, Shreveport Luling UMC MacDonell Children’s Services, Houma New Orleans District Northwood UMC, Lafayette Patterson UMC Pearl River UMC Shady Grove UMC, Mansfield Squyres UMC, Ragley St. Charles UMC, Destrehan St. John’s UMC, Baton Rouge St. Luke Simpson UMC, Lake Charles St. Mark’s UMC, Monroe Shalom Zone, New Orleans The Well UMC, Ponchatoula University UMC, Baton Rouge UMC Learning Center, Houma UMC of the Covenant, Lafayette Wesley UMC, Baton Rouge Wesley UMC, Sulphur
donor story marjorie miller life estate gift
Marjorie Miller was the librarian at Southeastern Louisiana University and lived in the house her father built with lumber he milled himself. Her life estate gift of the house allowed her to continue to live there. She loved the immediate income tax deduction and the legacy she left to her church, First UMC of Hammond.
united methodist foundation of louisiana
Leadership Executive committee
L. Nettles Brown Chair Board of Trustees
Rev. Weldon Bares Vice-Chair
Rev. Joseph Awotwi Immediate Past Chair
Sandra Kuykendall Secretary
Mae Belton Grants Chair
Omer Davis At-Large
Michael DeHart Investment Chair
Rob Fairly President
Investment Committee
grants Committee
loans Committee
office staff
Mike Dehart, Chair L. Nettles Brown Omer Davis Irwin Felps Frank Harrison, Jr. Dean Harvey Sandra Kuykendall Richard Lewis Alice Prophit Rev. Jan H. Curwick, ex-officio
Mae Belton, Chair Rev. Joseph Awotwi Rev. Jan H. Curwick Rev. Hadley Edwards Rev. Michi Head Chris Spencer
Omer Davis, Chair Rev. Larry Stafford Dianne Wilkinson
Rachel Baio Director of Trusts Tamara Bello Accounting Assistant Bob Carrell North Louisiana Representative Violet Frost Office Manager/Receptionist Kelly Johannessen Director of Communications Tracie Wharton Controller
2016 annual report
15
What story will you write? 8337 jefferson hwy baton rouge, louisiana 70809 www.umf.org
