2023 Annual Review

Leadership

What a year! We celebrated the retirement of two longtime, beloved leaders over the summer: Executive Director Tom Wilson and Board President Robert Ives. I assumed the Executive role and Dr. LaVerne Lewis was elected as our new Board President. The Foundation may be under new leadership, but our mission hasn’t changed: we’re here to support the long-term financial health of faith communities. We’re in a strong position to do so. I hope you’ll enjoy reading our first-ever ESG report, checking out our year-end returns, and imagining how we might continue to partner with your church in the future.

With joy,

2023 Board Of Directors

BOARD MEMBERS

Chris Bafus
Pastor Buddy Gharring
Mike Hartwig
Rev. Chuck Hindman
Coyote Marie Hunter-Ripper
Robert Ives, Esq.
Nik Halladay

Darrell Lowe
Cynthia MacLeod
Rev. Ron Myers
Rev. Lynn Rabenstein
Rev. Erika Spaet
Rev. John Watts
Em Rigler, Esq.

EX OFFICIO

Bishop Cedrick Bridgeforth
Brant Henshaw
Candace Clarke

EMERITUS

William Haden

ESG Report

Environment

175.53 metric tons of Carbon emissions

Supporting the Low-Carbon Transition

$125K in loan funding approved for solar projects
$82K in loan funding approved for energy-efficient HVAC systems
coming in 2024: participation in the PNW conference’s Heat Pump Fund and Solar for All program

3% secondary, which includes: power, postage, office supplies, telephone and internet service, furniture, insurance, and bank service charges.

Social

5 Staff Members

80% women
20% clergy
new for 2023: pay transparency
coming in 2024: regular wellness surveys, increased health benefits

Responding to the Bishop’s M.I.L.E.

$215K in loan funding approved for affordable housing predevelopment
$626K invested in affordable housing nationwide through Wespath’s Positive Social Purpose Lending Program

Governance

The Foundation undertakes a full audit every year, and also reports to the Office of the Insurance Commissioner.

21 Board Members

42% women
28% clergy
coming in 2024: representation from all four states we serve

6 Standing Committees

Executive
Loan
Investment
new for 2023:
- Bylaws/Policy
- Board Development
- Grants/Scholarships

Portfolio performance

**Diversified Conservative**
1YR 3YR 5YR 10YR
13.42% 0.53% 6.81% 5.05%

**Diversified Moderate**
1YR 3YR 5YR 10YR
14.09% 0.51% 7.48% 5.24%

**Diversified Aggressive**
1YR 3YR 5YR 10YR
16.99% 1.28% 9.34% 6.51%

Our flagship diversified portfolios are comprised of funds managed by Wespath, the investment subsidiary of the United Methodist Church. They avoid investments in alcohol, tobacco, pornography, gambling, weapons, and private prisons. They engage companies and policymakers through formal requests, proxy voting, and shareholder resolutions. And they invest in things that make the world a better place: affordable housing, low-carbon energy solutions, and firms owned by women and minorities. At the close of 2023, 59% of our assets under management were held in these diversified portfolios.

**Fossil Free Conservative**
1YR 3YR 5YR
15.26% 1.86% 7.13%

**Fossil Free Moderate**
1YR 3YR 5YR
17.70% 3.47% 8.87%

**Fossil Free Aggressive**
1YR 3YR 5YR
19.11% 4.01% 9.45%

These fossil free portfolios were constructed in 2017. They share the same ethical screens as our diversified portfolios, and go a step further by also excluding Palestinian conflict companies and companies with fossil fuel reserves used for energy purposes. Wespath uses a combination of active and passive management in the funds that comprise these portfolios, which held 26% of our assets under management at the close of 2023.

Featured

Our Stable Value Portfolio’s goal is to provide high liquidity and minimal market fluctuation for “rainy day” funds. The portfolio consists of short to intermediate term laddered CDs, government notes, and secured loans. The loans are made to churches and agencies within our connection, and the interest paid on these loans contributes to the porfolio’s returns. Foundation staff have managed these funds for 30 years. Note: the Stable Value Portfolio produced lower than usual returns in 2021/22 due to historically low interest rates. Returns are improving with the rise of interest rates in 2023/24.

Stable Value

2023 2022 2021 2020
3.45% 0.47% 0.19% 1.93%

Consolidated Statements of Financial Position

As of December 31, 2023 & 2022:

*Audited 2022 financials are available upon request. Audited 2023 financials will be available after their publication in mid-2024.

Services we offer

FINANCIAL MANAGEMENT

Our faith guides our decisions and leads us to socially responsible and ethically sound funds that reflect the values of our team and the ministries we work with. In partnership with Wespath, we manage endowments, long-term investments, and reserve funds on behalf of churches, camps, conferences, and agencies.

LOANS

We help churches fulfill their missions by offering low-hassle, below-market-rate term loans for capital improvements, plus bridge loans for special projects like affordable housing. Interest paid on church loans goes back into our faith community, supporting churches that have invested rainy-day funds with us.

Term loan interest: WSJ Prime - 0.5%
Bridge loan interest: WSJ Prime + 1.5%

ENDOWMENT CONSULTATION

We share and inspire stories of generosity and are committed to the lasting legacy of our clients and their congregations. We assist with endowment policies, procedures, and promotion.

STOCK GIFT PROGRAM

We accept, liquidate, and pass through gifts of stock on behalf of faith communities, making tax-wise giving accessible for all donors.

PLANNED GIVING EDUCATION

We help guide people of faith in preparing a plan to provide for the ministries they love. We teach workshops, create materials, and work one-on-one with major donors upon request.