2019 Annual Report

2019 Annual Report

Ministry in Uncertain Times

Our Mission

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.

Letter from the President Ministry in uncertain times 2019 saw your Foundation investing in Congregational and Transformation ministry, endowment growth for local churches, personal financial education for congregations and church administration best practices.

Investment returns were excellent. Jobs and the economy were finishing a decade of good news. It was easy to feel certain about the future.

Then a cousin of the common cold came into the world and certainty disappeared.

For weeks, the news has been full of statistics about infections, hospitalizations and deaths.

We are told to shelter in place, avoid human contact and try not to join the statistics. It is hard not to react in fear. We are living in uncertain times.

Some of the Bible’s greatest stories come from people acting in uncertain times. Noah built an ark when there was not a cloud in the sky. Aged and barren Sarah accepted the promise of a child when it should not have been possible. Abraham led his son to an altar with no clear way to avoid his sacrifice.

Rob Fairly President/CEO

But Noah, Sarah and Abraham shared something besides uncertainty. Each had the courage to act on their profound trust in God. Renowned ethicist John Kavanaugh once asked Mother Teresa to pray he receive clarity.

She refused, saying “I have never had clarity; what I have always had is trust. So, I will pray that you trust God.” We at the Foundation pray you will trust God. We stand ready to assist you as you courageously act in this challenging time.

“Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him, and he will make your paths straight.”

Proverbs 3:5-6

Board of Trustees

Executive Committee Rev. Weldon Bares, Chair

L. Nettles Brown, Immediate Past Chair Omer Davis, Vice Chair Sandra Kuykendall, Secretary Mike DeHart, Investment Chair Rob Fairly, President

Investments Committee Mike DeHart, Chair L. Nettles Brown Omer Davis Bobby Fahey Irwin Felps

Grants Committee Rev. Michi Head, Chair Debra Davis Drew Kennedy Mary Magee Rev. Ashley McGuire

Dean Harvey Jarvis Jones Sandra Kuykendal

Loans Committee Bobby Fahey, Chair

Richard Lewis

Omer Davis

Sandy O’Brien

Rev. Brian Mercer

Troy Searles Dianne Wilkinson

Rev. Larry Stafford Dianne Wilkinson

“Let the morning bring me word of your unfailing love, for I have put my trust in you. Show me the way I should go, for to you I entrust my life.”

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Psalm 143:8

Leadership

Rev. Weldon Bares, Board of Trustees Chair and President Rob Fairly

Foundation Staff

Rob Fairly President

Rachel Baio Director of Trusts

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Chris Spencer Development Southern Region

Bob Carrell Development Northern Region

Kelly Johannessen Director of Communications

Violet Frost Office Manager

Tracie Wharton Controller

Tamara Bello Accounting Assistant

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Highlights of the Year T

he Foundation’s 2019 Tax Seminars helped clergy and church business administrators prepare income tax returns, review features in the IRS tax code specific to clergy, and explore church financial issues and legal complications.

Rev. Nate Berneking, Director of Finance and Administrative Ministries for the Missouri Annual Conference, presented the seminars in Shreveport and Baton Rouge in February to more than 80 clergy, church administrators and financial staff from around the Conference.

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L to R: Chris Spencer, Rob Fairly and Rev. Nate Berneking pose outside the Conference Center at First UMC of Baton Rouge, where one of the tax seminars was held.

n another educational initiative, Foundation Board Member Dianne Wilkinson and Foundation staff toured the state with “Best Practices for the Church Office� workshops. Over 120 church administrators, secretaries, pastors and volunteers benefited from these free seminars in Slidell, Lake Charles, Ruston and Alexandria, learning about separation of duties, internal controls, audit preparation and more. Dianne is a Certified Church Business Administrator who has served several churches in our Conference.

F Dr. Wybra Price and other attendees listen closely as Dianne Wilkinson reviews best practices for the church office.

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ourteen churches in the Conference continue to benefit from Planned Giving Navigator, an innovative planned giving program to guide churches in our Conference to launch and manage their own planned giving campaigns.

2019 The Foundation underwrites the cost of the subscription for churches, and will reimburse in full after one year if the church decides it wants to discontinue.

The program provides the materials churches need (videos, brochures, website) to educate their congregations about the need for planned giving and how the various types of planned gifts benefit them, their families and their churches.

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Dianne Wilkinson held four workshops around the state to help churches with finances.

everal churches around the Conference used the Foundation’s new All Saints Day Resource Guide this year to educate their congregations about leaving legacy gifts while recognizing the saints of the church. The kit provided sample correspondence to the congregation, legacy brochures and sample bulletin insert materials, as well as sermons, hymns and benediction ideas.

“A

n Attitude of Gratitude” was the theme of the Foundation’s 44th Annual Meeting in April. Board members, Cabinet members, pastors from around the Conference and donors joined us in expressing our thanks and appreciation for the privilege of working together for God’s purpose.

The Board of Trustees elected new board members Col. Jarvis Jones, Drew Kennedy, Mary Magee and Rev. Brian Mercer. Rob Fairly recognized outgoing board member Frank Harrison, who had served on the board since 2010 and Dianne Wilkinson, for her “above and beyond” efforts on the Best Practices in the Church Office workshops around the state.

L to R: Past Board Chair Bridger Eglin, Bishop Cynthia Fierro Harvey, Dan Borné and board member Dean Harvey at the Annual Meeting.

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After the business meeting, guests enjoyed the insight and hilarious stories of guest speaker Dan Borné, also known as “The Voice of Tiger Stadium.”

Grants

The Foundation demonstrates its priority for giving by double-tithing its annual gross operating income to various ministries through grants. In 2019, $377,888 was allocated to funding grants. Below are some of the highlights.

T

he Foundation’s largest grant this year benefited the Louisiana Annual Conference’s Congregational Development and Transformation ministry, headed by Dr. Gloria Fowler.

Dr. Gloria Fowler, at right, conducted over 60 workshops on This office works with church transformation and renewal in 2019. churches in all stages of their life cycles, with the goal of growing and strengthening them to enable them to live out their mission of making disciples in their communities. The grant provided for two staff persons to assist Dr. Fowler.

The Congregational Development and Transformation team has worked to expand God’s kingdom in Louisiana with over 60 workshops and hundreds of coaching calls. Their ministry and the following initiatives will continue into 2020: Church Transformation Process, Black Church Vitality, Church Planting and New Places for New People.

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articipants in Dave Ramsey’s Financial Peace University classes at churches in our Conference paid off $445,682 in debt in 2019!

Foundation grants provided an incentive and enhanced the enrollment in the class: Foundation staff presented $333 to each household that completed the course requirements, which is one-third of the emergency fund Dave Ramsey recommends in the class.

Participants at Jefferson UMC of Baton Rouge celebrated the pay off of $71,154 in debt during their Financial Peace University class.

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This year, First UMC of Natchitoches, Jefferson UMC, Munholland UMC, First UMC of Lake Charles, St. John’s UMC and First UMC of Amite offered eight classes among them.

Grants

The grant provides participants an incentive to invest time and effort in the course, which acts as a resource to the church for community outreach and stewardship education.

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n the fall of 2019, the Foundation started an endowment match program, offering churches a “double-yourmoney” match: $5,000 for $5,000 when it establishes an endowment fund. As an added bonus, if the church is enrolled in the planned giving resource program Planned Giving Navigator, the Foundation will double the double: $10,000 for $10,000.

St. Francisville UMC was one of the first churches to take advantage of this offer. The church was celebrating its 175th anniversary in 2019, and Debra Davis, a church member and Foundation board member, began wondering about the church’s next 175 years. She knew of the endowment match program and began asking other members of the church to help raise the $10,000. With one email, she raised over 90% of the goal. Debra’s efforts and the endowment match have furnished an ample start for the church’s endowment fund, which will grow with time and additional contributions.

Due to a church member’s efforts and the endowment match program, the historic and quaint St. Francisville UMC now has a sizable endowment to protect its legacy forever.

Foundation Grants 2019 Recipient Ministry Church Revitalization and Transformation

$127,500

Leadership Development

$70,655

Stewardship & Planned Giving Education

$69,033

Seminary Education

$47,000

Conference-Related Ministry Support

$30,000

Endowment Match Program

$25,000

Campus Ministry

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Amount Awarded

TOTAL AWARDED

$8,700 $377,888

Loans

The Foundation has loaned approximately $36 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 or other strains on a church budget.

Aldersgate UMC, Slidell Amite UMC, Amite Asbury UMC, Lafayette Bethany UMC, New Orleans Camp Istrouma Caney Conference Center Carpenters Chapel UMC, Prairieville Faithful UMC, St. Amant First Grace UMC, New Orleans First Street UMC, New Orleans First UMC, Alexandria First UMC, Baton Rouge First UMC, Bossier City First UMC, Crowley First UMC, Denham Springs First UMC, Houma First UMC, Lafayette First UMC, Plaquemine First UMC, Slidell Grace Community UMC, Shreveport

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Gretna UMC, Gretna Hartzell Mt. Zion UMC, New Orleans Haughton UMC, Haughton Henning Memorial UMC, Sulphur Hurst UMC, Plaquemine Jefferson UMC, Baton Rouge MacDonell Children’s Services, Houma Newman UMC, Alexandria The Well UMC, Ponchatoula Pearl River UMC, Pearl River Shady Grove UMC, Mansfield St. Charles UMC, Destrehan St. John’s UMC, Baton Rouge Shalom Zone Community University UMC, Baton Rouge University UMC, Lake Charles UMC of the Covenant, Lafayette Wesley UMC, Baton Rouge Wesley UMC, Sulphur UMC Learning Center, Houma

First UMC of Baton Rouge purchased a new organ and renovated the sanctuary using funds from a capital campaign and a Foundation loan. The organ and new sanctuary provide top-of-the-line acoustic sound that includes a new hearing loop, allowing those using hearing aids to hear through their devices. The church also doubled its wheelchair accessible seating and added an elevator for easy entrance to worship.

Quick Facts ASSETS UNDER MANAGEMENT

$184,123,694

PLANNED GIFTS SINCE 1975

$30,000,000

ACTIVE CHARITABLE GIFT ANNUITIES & ENDOWMENTS

$1,298,017

2019 DISTRIBUTIONS TO CHURCHES FROM ENDOWED GIFTS

$415,912

2019 PAYOUTS MADE TO CHARITABLE GIFT ANNUITANTS AND TRUST HOLDERS

$405,502

2019 GRANT FUNDING

$377,888

2019 INVESTMENT RETURNS Y-T-D BALANCED FUND 20.57% IMPACT FUND 29.64%

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LA ENDOWMENT FUND

16.50%

“And we know that in all things God works for the good of those who love him, who have been called according to his purpose.”

Romans 8:28

Planned Giving A

planned gift is any major gift made as part of a donor’s overall financial or estate plan. Also called legacy giving, it allows donors to make larger gifts than they could make from ordinary income.

There are many types of planned gifts, and each one has characteristics that help donors satisfy their philanthropic goals, as well as benefit themselves and ministry.

YOUR GIFT

Bequest

YOUR GOAL • Maintain control of your assets during life • Make a gift to church at your death • Receive fixed income for life

• Avoid capital gains tax on Charitable the sale of your appreciated Gift Annuity property • Receive a charitable income tax deduction now • Use appreciated property without paying capital gains tax

Charitable Remainder • Enjoy regular income for life or a term of years Trust (CRT) • Receive a charitable deduction now

• Maintain control of the account or policy during life

Beneficiary Designation • Make a gift to your church at your death

Life Estate Reserved

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• Remain in your home for life • Receive a charitable income tax deduction now

HOW IT WORKS

YOUR BENEFITS

Designate a United Methodist church or institution as the beneficiary of your asset by will, trust or other instrument.

• Control and use your property during your lifetime.

Transfer your cash or appreciated property to the Foundation in exchange for our promise to pay you fixed income (with rates based on your age) for the rest of your life.

• Fixed income for life

Transfer your cash or appreciated property to fund a trust. The trust sells your property tax-free and provides you with income for life or a term of years.

Designate your church as the beneficiary of an insurance policy, bank account or retirement account.

Donate house or property to the Foundation but retain the right to use it during your life.

• Estate tax charitable deduction • Partial bypass of capital gain • Possible tax-free payments • Charitable tax deduction • Income for life or a term of years • Possible income growth over time • Avoidance of capital gains tax • Charitable tax deduction • Easy to do; simply contact your account or policy holder •You can change it any time •Keeps your gift private until you want the beneficiary to know • Lifetime use of property • Charitable tax deduction

“Let this be written for a future generation, that a people not yet created may praise the Lord.”

Psalm 102:18

In Memoriam W

ithin the last year, the Foundation lost several friends whose gifts have now come to fruition.

Because of their vision and generosity, these saints will support their churches and favorite ministries forever, even though their lives on Earth have ended.

Kathleen Ory

Hon. Rosemary Pillow

Kathleen and Joel Ory established a Life Estate Gift with the Foundation in 1999. At that time, they donated their home to the Foundation, but retained the right to use it until the end of both of their lives. Joel passed away in 2011. When Kathleen died in 2019, the Foundation sold the home and the proceeds were invested. Income from that gift will support First UMC of Baton Rouge, their home church, forever.

Hon. Rosemary Pillow was a member of Broadmoor UMC of Baton Rouge, and served as a Baton Rouge City Court Judge.

She also served as Chair of the Foundation’s Board of Trustees from 2002-2004. She left a bequest in her will to continue the work of the Foundation.

John Tyner, a longtime member of Broadmoor UMC of Baton Rouge and past Foundation board member, created a 13 Charitable Remainder Unitrust in 2011.

John Tyner

Marcus Wren

John enjoyed the income from that gift until his life ended in 2019. His grandchildren will receive income for 20 years; then the trust income will benefit John’s church in perpetuity.

Marcus and Gay Wren established a Charitable Remainder Unitrust and several Charitable Gift Annuities from the sale of timber on their land near Minden, Louisiana.

Gay died in 2011, and income from these gifts continued to pay Marcus, who served as Foundation Board Chair from 1991 to 1994.

He died in early 2020. The income from these gifts will now support the Wrens’ home church, First UMC of Minden, and other UMC ministries, forever.

For more information on establishing a planned gift and choosing the right one for your circumstances, contact the Foundation. We can illustrate how a planned gift can meet your philanthropic goals, as well as be a benefit to you and your favorite ministries.

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

$4,952,265 27,216 225,298 39,110 169,910,966 419,159 7,189,457 59,691 1,236,244 64,288 $184,123,694

Liabilities & Net Assets

LIABILITIES

Accounts Payable Amounts Held for Others Liabilities Under Unitrust Agreements Liabilities Under Gift Annuities & Reserves

TOTAL LIABILITIES

NET ASSETS

Without donor restrictions:

Undesignated Designated: Grant appropriations Excess on Income Fund designated for future use Total designated

Total net assets without donor restrictions With donor restrictions

TOTAL NET ASSETS

TOTAL LIABILITIES & NET ASSETS

Year ended 12/31/19

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$6,394 139,519,125 1,780,252 1,396,051 142,701,822

5,427,698 1,397,632 429,908 1,827,540 7,255,238 34,166,634 41,421,872

$184,123,694

Statement of Activities Without Donor Restrictions

With Donor Restrictions

Total

SUPPORT AND REVENUE

Contributions and Bequests $45,779 $1,298,017 $1,343,796 Interest and Dividends 575,272 662,223 1,237,495 Management and Consulting Fees 721,215 - 721,215 Total support and revenue prior to release from restrictions 1,342,266 1,960,240 3,302,506 Net Assets Released From Restrictions 283,293 (283,293) -

Total support and revenue 1,625,559 1,676,947 3,302,506

EXPENSES Program services Charitable Trusts, Annuities & Endowments - 1,646,110 1,646,110 Grants & Gifts 377,888 - 360,572 Total program services 377,888 1,646,110 2,006,682 Support services Management and general 1,395,107 - 1,412,383 Total expenses 1,772,995 1,646,110 3,419,065

Other changes: Change in value - split interest agreements (27,908) (27,908) Unrealized Gain on Investments 1,623,692 5,389,019 7,012,711 Realized Market Loss (98,529) (1,015,464) (1,113,993) Total other changes 1,525,163 4,345,647) (5,870,810) Changes in Net Assets

Net Assets, Beginning of Year Net Assets, End of Year

1,377,767

4,376,484

5,754,251

5,877,474 $7,255,241

29,790,150 $34,166,634

35,667,624 $41,421,875

Year ended 12/31/19

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Contact Info 225.346.1535 information@umf.org www.umf.org 8337 Jefferson Hwy., Baton Rouge, LA 70809