President's Report
In an insecure market and economy, God has blessed the Foundation with stability that few could boast. Since the Foundation invests mostly fixed income-producing assets such as bond mutual funds and church bonds, we haven’t been as affected by the downturn as others. But, as Psalm 118:23 says, “The Lord has done this, and it is marvelous in our eyes.” Let us share with you the marvelous things the Lord is doing in the Foundation.
History
The Baptist General Convention of Oregon-Washington (now the Northwest Baptist Convention) authorized the creation of the Northwest Baptist Foundation. On May 4, 1956 final documents were filed with the state of Oregon and the Foundation became a corporation. Since then the Northwest Baptist Foundation has served as the trust agency for the Convention and our churches.
Operations
The Foundation is incorporated under the laws of the State of Oregon as a nonprofit organization. The Foundation provides interim financing for church construction, bond financing services, and scholarships; serves as trustee for various revocable and irrevocable trusts, charitable trusts and endowments; and assists individuals in their estate and financial planning.
Financial
The auditing firm McDonald Jacobs, PC performed the annual audit of the Foundation’s financial statements for 2007. The Foundation has continued to receive an unqualified opinion, meaning that the auditors believe that the financial statements are presented fairly and in compliance with generally accepted accounting principles.
This was the second year of a three-year engagement with this accounting firm. The Board of Directors of the Foundation have requested that the Foundation change auditors every 3 to 5 years, so that we have a fresh look at the financial statements and offer any recommendations on accounting polices and procedures.
The Foundation has shown steady growth, ending 2007 with $39,075,494 in assets under management. 2008 has seen the Foundation’s growth stall with all of the financial turmoil since the beginning of the year. As of August 31, 2008, the Foundation’s assets were $39,059,852.
The total unrestricted net assets of the Foundation were $1,188,647 as of December 31, 2007. This amount represents the Foundation’s reserves, and is more than equal to one year’s budget expenses. This indicates the strength of the Foundation’s current financial condition.
Wills, Trusts, and Personal Care Services
In 2008 we assisted over 254 individuals of our Northwest Baptists in the preparation of wills, trust documents, power of attorneys, or advance directives. We also continue to provide assistance with several individuals and families in need of personal care services. Personal care services can include helping with monthly check writing, acting as power of attorney, or making sure the individual is cared for during their lifetime. We consider this to be assisting individuals with the transition from here to heaven with dignity. Sometimes this is in concert with family members, other times the Foundation is the only involved entity. The Foundation acts as an extension of the local church when we serve in this capacity.
Trust and Estate Management
Managing trusts and estates continues to be a core service that the Foundation provides to Northwest churches and clients. Over 60% of the $39 million in assets managed by the Foundation are in revocable trusts managed on behalf of individuals and churches. And 34% ($13,495,786) of the total is in Charitable Trusts, Endowments or Memorial Funds which provide income to support Baptist ministries, individuals and other charitable causes. In 2008, $395,628 was distributed to charitable causes, including $69,678 to fund scholarships for undergraduate and seminary students.
Church Loans
The Foundation manages the Hyde, Norris, and Moseley Church Loan funds as well as loans for several associations, churches and individuals. As of June 30, 2008, there were 37 outstanding loans from the Church Loan Fund with a current balance owed of $5,676,888.00.
Board of Directors
The Board commended two Board members for their recent years of service to the board: Stephen R. Brewer (2000-2008) pastor of Eastmont Baptist Church in East Wenatchee, Wash. and David L. Heritage (2000-2008), a member of Summitview Baptist Church in Yakima, Wash.
Personnel
The Foundation has been blessed with tremendous talent. In May of 2008 we added Cresida Yaw to assist us with Family Financial Planning. She represents the 7th full-time employee at the Foundation. Cris comes to the Foundation after working for the Northwest Baptist Convention as Administrative Assistant with the Church Health Team. She is currently completing her Masters Degree in Family Financial Planning.
We now have 4 employees that have 10 plus years of service for the Foundation. This type of stability is a very great asset to the Foundation. This allows the Foundation staff to have wonderful relationships with Baptists across our Northwest Convention. We thank all of the staff for the way in which they minister to our Northwest Baptists:
Tom Hixson, 15 years as the President;
Karla Inman, 11 years as Admin Asst/Office Manager;
Robin Smith, 11 years as Bookkeeper;
Clint Overall, 10 years as Legal Counsel & Estate Planner Officer;
Steve Brock, 5 years as Chief Financial Officer;
Heather Wright, 3 years as Admin Asst/ Public Relations; and
Cris Yaw, 6 months as Family Financial Planner.
In addition, the Foundation has been blessed to have three volunteers helping around the office: Pat Fuller, Wayne Fuller, and Anita Wilson. Our full-time staff members have the following credentials: MBA, CFP, JD, & CPA (and 6 notary publics!). Having all of these professionals on staff is indeed a tremendous benefit for the Foundation.
We ask that you would join us in praising our GOD who truly owns it all for the success the Foundation has experienced during the past 53 years. Let the Foundation staff help you Leave a Legacy for future generations. We continue to look forward to many more years of experiencing God’s hand in our ministry.