Northwest Baptist Foundation

VANCOUVER, WASH. - The Northwest Baptist Foundation held its semi-annual Board of Directors meeting at the Northwest Baptist Center in Vancouver, Wash. on March 6 and 7, 2008.

Tom Hixson, President, reported to the Board that the Foundation’s assets under management as of December 31, 2007 totaled $39,075,494, representing a 16.01% or $5,391,516 increase over year end 2006. The increase was attributable to general market gains as well as many new trust accounts being created.

The assets of the Foundation by fund classifications are:

            Endowment Funds                $ 8,002,236                20.48%
            Church Loan Funds               $     991,974                2.54%
            Charitable/Life Income           $ 6,109,633                15.63%
            Revocable Trusts                   $23,852,014                61.04%
            Operating Fund                      $     119,637                0.31%

Hixson also reported that distributions from trusts and estates to Baptist causes and other charitable beneficiaries were $433,054.68 for 2007. Additionally, over $1,160,000 dollars was received by the Foundation in new gifts. These gifts will be distributed to churches, the convention, scholarships for students attending the Pacific Northwest Campus of GGBTS, and various Northwest and global ministries.

Upon recommendation of the Church Loan Committee, the board approved the following loans:

First Baptist Church - Monroe, WA               $1,200,000      New Building Project
Safe Family Ministries - Chehalis, WA          $693,750         Purchase existing facility
                        Total                                                    $1,893,750

Hixson reported that as of December 31, 2007 the Foundation had $4,430,149 in church loans to Baptist churches. In addition, the Foundation has approved over $20,000,000 in current church loans in its over 50 year history.

The Investment Committee reviewed the assets of the Church Loan Pool, Charitable Gift Annuity Reserves, and the Endowment Pool as of December 31, 2007 and determined that the mix of assets was in compliance with the Board’s guidelines. The committee also reviewed the 2007 investment returns for the various mutual funds, managed funds, and investment pools used by the Foundation.

The staff reported to the Board on the Washington gift annuity audit that was performed in January 2008. The State of Washington randomly selects institutions to audit each year; their goal is to audit each institution offering gift annuities once every five years. The Foundation has yet to receive the results of the audit. The Foundation remains in compliance with the laws and regulations for gift annuities in Oregon, Washington, and Idaho.

In addition, the Foundation approved the purchase of a note receivable for Anchor Baptist Church of Seattle, secured by their former property for $1,200,000.

The Promotion, Development, and Education Committee recommended the following scholarship awards which were then approved by the Board:

A. Golden Gate Baptist Theological Seminary, Pacific Northwest Campus awards:

            10 awards of $3,698.00 and 2 awards of $1,849.00 each

            Total GGTBS, PNWC                                                            $40,678.00

Once again, the board was able to award each scholarship recipient a full-tuition scholarship plus an additional amount for books.

B. Asian Theological Institute $ 5,000.00

In addition to the scholarships for seminary students at the GGBTS, Pacific Northwest Campus, the board also gave $5,000.00 to the Asian Theological Institute to award to their students. The Asian Theological Institute is one of the many Contextualized Leadership Development (CLD) Centers authorized by Golden Gate Baptist Theological Seminary.

C.        Undergraduates:
            20 awards of $1,100.00 each                                                             $22,000.00
One award of $500.00                                                                         $500.00
Six awards of $250.00 each                                                                $1,500.00

Total Awards for the 2006 -2007 year                                                           $69,678.00

The Board approved a recommendation that $1,592.84 in income generated by the Miller Memorial Fund be distributed to Safe Family Ministries, a home for women and children, a ministry supported by Dayspring Baptist Church in Chehalis, Wash and the Southwest Washington Baptist Association.

Steve Brock reported that the 2007 audit was progressing in a satisfactory manner. The Foundation is continuing to use the audit firm MacDonald Jacobs of Portland, OR. This is the second year of a three-year agreement. The Board adopted a policy several years ago to change auditing firms every 3 to 5 years to reduce the potential risk of complacency in an audit and have a fresh look at the Foundation’s assets and policies. Steve Brock provided a draft of the financial statements to the Board for their review.

Steve Brock also reported to the Board that the Foundation continues to be in compliance with the Evangelical Council for Financial Accountability (ECFA). ECFA ensures that the Foundation maintains its high standards of accounting. It is a form of accreditation similar to schools and colleges.

The Foundation is blessed by the addition of new board members this March. Keith Evans, President of the Northwest Baptist Convention, replaced Tim Crownover in the role of Ex Officio. Bill Crews moved from board member to Ex Officio upon being hired as the Executive Director of the convention in November. Regular rotation of board members left two open positions in addition to the position made open by Dr. Crews. New board members are James Anderson, of Maple Valley, Wash. member at Trinity Baptist Church, Renton, WA; Victor Bartruff, of Aurora, Ore., member at Creekside Bible Church, Wilsonville, OR; and Lorraine Shelby, of Richland, Wash., member of Richland Baptist Church, Richland, WA The Foundation is always thankful to have such professionals, both in ministry and secular occupation, who give sacrificially of their time to the work of the Foundation.

The next meeting of the Board of Directors is August 1st and 2nd in Vancouver, Wash.

Published in the March, 2007 edition of the NW Witness:

VANCOUVER - Northwest Baptist Foundation directors heard reports of record-breaking increases in assets at their semi-annual meeting March 2-3 at the Northwest Baptist Center in Vancouver, Wash.

Foundation officials reported general market gains and new trust accounts launched the agency's asset total past the $34 million mark, a gain of $6.6 million (24.2 percent) over 2005 totals.

The Foundation also reported distributions from trusts, estates, and other charitable beneficiaries totaled nearly $508,000 for 2006.

New gifts of over $1.1 million received by the Foundation will be distributed to churches, the Northwest Baptist Convention, scholarships for students and various Northwest and global ministries.

Directors also approved loans of more than $3 million for churches in building or expansion projects in the Northwest. They include: $2 million loan to First Baptist Church in Longview, Wash., for new building construction; $600,00 to Chestnut Street Baptist Church, Ellensburg, Wash., for building expansion; $300,000 to Chinese Southern Baptist Church, Seattle, Wash., for a new education building; $110,000 to First Baptist Church, Beaverton, Ore., for purchasing adjacent land; $30,000 to The Church at Kelly Creek, Gresham, Ore., for a "special purpose loan."

Foundation president, Tom Hixson, reported that at year's end, the agency had over $6.6 million in Baptist church loans. He noted the Foundation has approved almost $20 million in current church loans in its 50 year history.

Directors approved nine scholarships totaling $30,330 to students attending the Pacific Northwest Campus of Golden Gate Seminary. The scholarships amount to full-tuition for the selected students, plus amounts for books; a first for the Foundation. Directors also approved 18 awards totaling $20,880 for under-graduate students.

The board also approved a resolution that will distribute interest income derived from the sale of church property located in Ocean Park, Wash., with 50 percent to be sent to Southwest Washington Baptist Association, and the balance to be divided between the Northwest Baptist Convention and the Foundation. The property was given to the Foundation in 2006 by a congregation that desired assets of the church to be protected for Southern Baptist work in the Northwest.

NWBF staff informed the board of progress in securing a line-of-credit with several banking organizations to aid in short-term cash needs should several large draw requests come simultaneously.

The board adopted a resolution honoring Steve Fulton for years of service to the NWBF, after his announcement of retirement and relocation to Iowa.

The Foundation is preparing for the first on-site visit by the Evangelical Council for Financial Accountability (ECFA), which assists member non-profit agencies in maintaining high standards of financial accountability.