“Someone’s sitting in the shade

today because someone planted

a tree a long time ago.” – Warren Buffett

Established 1955 – More than 60 Years of Service“Making Disciples of Jesus Christ by Helping God’s People Pay It Forward”

UnitedMethodistFoundation, Inc.

Reflections from the UMF CEO and President

Rich Bowlin, Chief Executive Officer Clara Wade, UMF Board President

Then one of them, when he saw that he was healed, turned back, praising God

with a loud voice. – Luke 17:15

We live in a world where we’re always pressing forward. But it’s difficult to pinpoint the

trajectory of our organization without looking back to the beginning, when we first set out

on our mission. As your United Methodist Foundation celebrated its 60th anniversary, it’s

only fitting that we now pause and look back to our early days and reflect on what God has

done since 1955.

The organization’s first president, Gurney P. Hood, set the tone and direction of the

Foundation. Subsequent Executive Directors John Dozier, Sidney L. Gulledge, Jr., Douglas L.

Byrd and I. Lynn James employed a variety of strategies. In each instance, God has blessed

their efforts.

Originally, our name was “Methodist Fund,” and was chartered in 1956 to serve as a

managed investment pool and trustee for any agency of the North Carolina Conference, when

requested. That year, from the floor of the North Carolina Annual Conference following the

Report of the World Service & Finance (now known as CF&A), Drury W. Wall moved to amend

the report to require Methodist Fund, Inc., dispose of its tobacco stocks. This motion was

accepted by the committee and became part of the Report. This was a significant statement

for the North Carolina Conference, being in the heart of tobacco country during peak years

of the tobacco industry. No doubt, this was a momentous step toward socially responsible

investment practices at a time when SRI was unheard of.

In 1959, our name was changed to Methodist Foundation, Inc. to reflect a redefined purpose.

Additionally, new funds were being entrusted with the Foundation in response to the

institution of the “Department of Gifts and Wills,” the first of its kind in the country. Through

bold and innovative practices, the Foundation has blazed the trail for others to follow.

Stewardship is a matter of the heart. And we are all stewards whether we know it or not. John

Wesley said “Not how much of my money will I give to God, but how much of God’s money

will I keep for myself.”

Today, the Foundation has grown from a few accounts to nearly a thousand accounts

valued at more than $150,000,000, as of the end of 2015. Hundreds of churches, ministries,

institutions and individuals have trusted the Foundation to manage their legacy gifts in

a way that will support God’s kingdom in perpetuity.

And who can judge the impact on our world these gifts

will make? Only God. To all of the past Foundation Board

members, leaders and staff we say “thank you.” To all of

the donors, whose generous hearts continue to change the

world, we say “thank you.”

Remembering the past, we now look forward. We

continue to strive to cultivate a culture of generosity

within our Conference, such that the causes of our Lord’s

church are furthered by the United Methodist Foundation,

Inc. And so we praise God with a loud voice!

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Growth of Ministry Timeline1955 The Methodist Fund, Inc., was established as an investment committee to purchase and

sell securities for the purpose of investments of permanent funds of the Conference and its agencies. At that time, the assets consisted of three accounts and a total value of $330,000.

1959 The name was changed to Methodist Foundation, Inc., to reflect a redefined purpose and tax-exempt status.

Additionally, new funds were being entrusted with the Foundation, in response to the institution of the “Department of Gifts and Wills,” the first of its kind in the country. Records at that time review total assets under management had grown to $1,171,142.

1969 Assets under management had grown to $3,017,214, inclusive of the Central Fund, Board of Pensions Fund, Minister’s Retirement Fund and several endowment funds for Methodist agencies, in addition to the growing Department of Gifts and Wills fund.

1982 Account records reveal that the Methodist Foundation had broken the 10-million-dollar threshold to $10,149,392 in assets.

1985 The Foundation had grown to 37 accounts, with assets of $13,700,000.

1990 The bylaws were amended to include a name change, from the Methodist Foundation, Inc., to the current name, United Methodist Foundation, Inc.

1999 Assets under management had increased to $68,000,000, with 550 accounts.

2010 By the end of 2010, the United Methodist Foundation managed more than $100,000,000 in 820 accounts belonging to churches, agencies, institutions and ministries of the North Carolina Conference.

2015 60th Anniversary of the United Methodist Foundation. Assets under management exceeded $150,000,000 with 987 accounts.

UnitedMethodistFoundation, Inc.

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United Methodist Foundation OverviewThe United Methodist Foundation, Inc., provides a variety of services for our constituents across the North Carolina Conference. Our clients consist of United Methodist churches, agencies and institutions. Additioningly, we serve the needs of individuals who seek assistance in making gifts to benefit these churches, agencies and institutions.We provide leadership training and resources for clergy and lay leadership, particularly in the areas that interface with church finances both in the acquisition of and distribution of funds intended for ministry. Your United Methodist Foundation has four primary pillars of ministry focus. • Stewardship Education and Resources • Planned Giving Education and Endowment Development Support • Real Estate Foundation – Transforming Property into Ministry • Fund Management of Church Funds and EndowmentsThese ministries are provided through the professional support of our staff, our Board of Directors and partnerships throughout the North Carolina Conference.

Celebration of Benchmarks Achieved in 2015• 38 New Accounts Opened Totaling $2,625,490• New Deposits Within Existing Accounts $2,781,218• Launched New UMF Website• Created New Database System for Tracking Unit Holder Information• Established New Web-Based Accounting Application• Employed New Accounting Team• Updated Inner Office Technology and Infrastructure

New Initiatives Planned• Monthly Statements Available Online• Robust UMF Real Estate Foundation Emphasis• Increased User-Friendly, Interactive Web Presence

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Stewardship MinistriesGenerosity Comes From Different Pockets:

Three primary giving sources support the mission and ministries of our churches

• Year-Round Stewardship Gifts • Capital Gifts• Planned Gifts

Though these three areas of giving opportunities are very different in purpose, the inspiration for generosity that undergirds these three areas is very similar in nature.

Year-round stewardship addresses the need of the giver to give from ordinary income as an integral part of one’s faith walk. Being strategic in teaching and encouraging the discipline of year-round stewardship is just as vital as prayer, worship, communion and Christian fellowship in the life of the church.

Your United Methodist Foundation works in specific ways to help churches embrace the practice of year-round stewardship education.

• Conference and district-wide stewardship training events for clergy and lay leadership• New Consecration Sunday Leader Training • Available listing of certified New Consecration Sunday Leaders• Partnership in conference-wide stewardship initiatives• Stewardship resources and UMF staff support for church stewardship committees

Your Foundation recommends “tried and tested” stewardship resources, as well as some new publications to help churches begin or revitalize year-round stewardship education and programming.

http://umf-nc.org/stewardship-solutions/

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The United Methodist Foundation offers step-by-step information and assistance to individuals who are thinking ahead to make gifts beyond their lifetimes. Our staff is uniquely equipped to partner with donors (and with their estate planning professionals, if needed) to create gift plans that not only provide for the desired ministry, but also for themselves and their families through “Life Income Gifts.” The United Methodist Foundation offers support for the following life income gift vehicles:

• Charitable Gift Annuities • Charitable Remainder Trusts • Charitable Lead Trustshttp://umf-nc.org/planned-giving-consulting-services/

Planned Giving EducationWhat is planned giving?

It is the act of preparing to leave a legacy gift to benefit the church or other United Methodist institutions or a ministry that has meant so much to so many. Your Foundation is able to provide customized seminars and educational events for large or small groups and for all ages and stages in life, regarding the many ways gifts can be made to benefit these ministries through legacy giving. Some gifting vehicles might include: • Donor Advised Funds • IRA Distributions • Appreciated Stock • Bequests • Designated Beneficiary of a Life Insurance Policy, an IRA or other Retirement Plan

http://umf-nc.org/planned-giving-education/

To help you understand more specific examples of planned gifts, browse through the UMF website, www.umf-nc.org, under UMF Services for Churches and Individuals. Helpful planned giving links include: • Planning Your Legacy – UMF Home Page • Create a Named Endowment • What to Give • How To Give • Donor Stories • Christian Wills Guide • Calculate Your Own Plan • Wills and Bequests • Sample Bequest Language

http://umflegacy.org/

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Endowment Development Support Preparing for Legacy Gifts

It’s not a matter of “if,” someone chooses to leave a gift to your church, it’s “when.” Someday an estate gift will be left to benefit your church or a ministry within your church. Being a good steward means being prepared for such generosity.“How?,” you might ask. The answer is to begin an Endowment Ministry. A general endowment is simply a customized document that churches and United Methodist institutions create to receive estate gifts. These gifts, invested well, will grow to fund ministries in perpetuity for future generations. Distributions from endowments generate funds for unbudgeted items, such as capital improvements, mission, scholarship and special needs. The United Methodist Foundation will work with churches on a step-by-step process to customize a general endowment according to the The United Methodist Book of Discipline.But we don’t just leave you there….

http://umf-nc.org/endowment-development/

A Church Tells Its Story

West End United Methodist Church, located in a small, rural town 10 miles west of Pinehurst, decided in 2014 to develop an endowment fund program. A small Endowment Development Fund Committee was formed, and quickly turned to the United Methodist Foundation for assistance. A UMF staff member came to our church to discuss how to organize, develop and implement an endowment program. It was the first of many meetings with the UMF, who provided counsel and assistance by phone, e-mail, review of our various draft documents and then, follow-up.

The assistance provided by the Foundation was invaluable to our Endowment Committee. One particular bit of advice we found very important was to constantly keep the congregation informed and involved in the Endowment program. The resources, experience, constant support and encouragement by the Foundation staff was obvious and freely provided. Coupled with the opportunity to have the Foundation manage the endowment funds, this provided a seamless process of experience and assistance from start to finish. Our church deposited our first endowment bequest with the United Methodist Foundation in October 2015. – West End Endowment Committee Testimonial

Promoting Your Endowment Ministry

Your Foundation can provide resources to help churches promote their endowments through a five-year planned giving program, designed to increase awareness within the congregation of the many ways to include the church in the estate planning process. We are able to tailor resources to fit the needs of any church, urban, rural, large or small. Some of these resources include planned giving seminars, leadership training, brochure templates and marketing strategies to promote your endowment all year long.

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umf-nc.org/umf-real-estate-foundation/

Real Estate Foundation, Inc.Many churches’ members own real estate property they would like to give to the church, both during their lifetimes and/or through estate gifts. Your United Methodist Foundation is uniquely equipped to assist churches to receive such gifts and turn them into liquid assets or endowments to fund ministry well into the future. The UMF Real Estate Foundation, Inc., a separate organization within your United Methodist Foundation, was established for that distinct purpose.

Established in 2009, the UMF Real Estate Foundation, Inc., provides donors a means of making real estate gifts to benefit ministry of local congregations, agencies and institutions affiliated with the North Carolina Conference of The United Methodist Church. It is governed by a Board of Directors, all of whom are United Methodists. They include real estate professionals and real estate attorneys.

The Articles of Incorporation allow the Foundation to receive all types of real estate gifts, such as: • Personal homes – houses, duplexes, condominiums • Commercial properties • Rental properties – single family, duplexes, condominiums, apartment buildings • Farmland • Timberland • Lots • Undeveloped land

The UMF Real Estate Foundation, Inc., works with donors to develop gifting instruments to be managed by the United Methodist Foundation to fulfill the donors’ desires to support specific ministries of the Church.

Turning Real Estate Into Ministry One such gift occurred in 2014, when a donor contacted the Foundation with a proposal to give a parcel of land he owned in a commercial development. The donor was retiring and wished to divest himself of this property. His desire was that the proceeds would be placed into three permanent endowments: one, in memory of his mother to benefit his church’s youth ministry that was important to her, another for conference-wide mission initiatives and the third for the work of the United Methodist Foundation.

The Real Estate Foundation staff inspected the property, received an appraisal and worked with the donor’s attorney to prepare the legal documents for transfer of the property to the Real

Estate Foundation, Inc. The UMF prepared a draft of the permanent endowment documents for the donor’s attorney to review. Before the end of the year, the property had been transferred to the UMF and the donor received an income tax deduction for his gift, which made him very happy. The property was then listed with a commercial realtor. At the sale of the property, the net proceeds will be used as the donor has directed and will be placed in the three permanent endowments to fund mission and ministry – until the end of time.

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The Progression of a Legacy: Millbrook UMCHerbert B. Ruffin was born on October 31, 1898. William McKinley was president and the world moved at a much slower pace. During his lifetime, Ruffin was part-owner and manager of Capital Printing Company in downtown Raleigh. The 1940 Census revealed much of his lifestyle; an average work week was 60 hours, 52 weeks a year, with an annual income of $2,000. He owned a home on “Louisburg Road” valued at $500 in 1940. Maps today reveal that area of land to be where Capital Blvd. merges with Highway 401, also known as “Mini City.”

Ruffin worshipped and served at what was then a small church located on the corner of Old Wake Forest Road and Millbrook Drive in Raleigh, Millbrook Methodist Church. Only a limited few now remember Ruffin as more than just a businessman and steward of growing assets. He was a faithful servant of Jesus Christ, revealed through his leadership at Millbrook UMC, where he served as a trustee for many years. In October of 1988, Ruffin passed away at the age of 90, but the gift he left behind forever changed the trajectory of his beloved church.

At Ruffin’s death, his entire estate, which by 1988 had become quite substantial, was left to five charities, each receiving 20 percent of all he owned. Millbrook UMC was one of those charities and received gifts valued at nearly $750,000. Wisely, the church formed an Endowment Committee to oversee its use and decided to invest the funds with the United Methodist Foundation.

The impact of Ruffin’s generosity has funded diverse projects, from paving the church parking lot to purchasing high-tech audio/visual equipment for an ever-growing contemporary worship service. Members and visitors alike have been and continue to be touched by his generosity. From 1998 through 2015, the Ruffin Endowment distributed $712,231 in funding to benefit Millbrook UMC. By the end of 2015, the account value was nearly $875,000. Since 1998, five new accounts have been gifted by others to fund endowments for new ministries following Ruffin’s example.

In God’s economy, the power of Ruffin’s gift will continue in perpetuity and the blessings of this gift will be felt for generations to come. Andy Stanley once said “the value of a life is measured by how much of it is given away.” During his lifetime, Ruffin served the Lord. After his death, he continues to serve the Lord through Millbrook UMC and beyond.

Leaving a Legacy“I’ve been a member of this church for more than forty years, and in God’s eyes I’m a grandfather to more than just my own. I’ve taken care of my own children with my will, but I realized I also need to provide for the children of the church. So I want to divide my estate to leave a part to the church as if the church were one of my children.”

Excerpt from a donor story from Five Practices of Fruitful Congregations by Bishop Robert Schnase. Copyright 2008 Abingdon Press, an imprint of The United Methodist

Publishing House. Used with permission. All rights reserved.

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Fund ManagementYour UMF investment

objectives include:

• Balancing risk with competitive rates of return

• Competitively low administrative costs

• Socially responsible investing according to The Book of Discipline of The United Methodist Church • Multiple investment fund options

• Financial oversight of the UMF Investment Committee

• Utilization of outside financial consulting services*

http://umf-nc.org/fund-management/

Your United Methodist Foundation has been empowered for 60 years by the generosity of those who came before us. Endowment funds fuel the future by providing for opportunities for growth and mission in perpetuity. Had it not been for the foresight of those who planted the seeds of these early endowed funds, many United Methodist churches and ministries in this conference and beyond would not be where they are today – thriving and transforming lives in and throughout the world. In the same way, our gifts will help tomorrow’s United Methodists face their future with greater security and hope.

In 2015, your UMF was blessed to provide the following distributions:

• Managed Church Funds for local church expenses ........................................................... $5,741,116

• Managed Endowment Funds for mission and other restricted purposes .......................$1,875,698

History of UMF Assets Under Management

20151955

19591969

19821985

19992003

20042005

20062007

20082009

20102011

20122013

20140

160,000,000

140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

*Outside financial consulting services provide additional expertise and oversight in the management of UMF Funds.

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This report was designed by the United Methodist Foundation, Inc., to benefit United Methodist churches and other United Methodist organizations of the North Carolina Conference by providing information that encourages growth in ministries.

Gifts of SecuritiesDid you know that the UMF helps individuals donate securities to churches and other United Methodist ministries? It also helps churches process the receiving of donated gifts of securities. The UMF can liquidate securities at no cost to our unit holders. We then forward the funds to the churches or ministries as directed by the donor. For gifts of Mutual Funds, please call the UMF first to determine if they are eligible for gifting through our office. Learn more on our website at http://umf-nc.org/stock-liquidation-service

Bequest LanguageDid you know the UMF website has bequest language to help you support your church or UM ministry through your will, living trust or codicil? One significant benefit of making a gift by bequest is that it allows you to continue to use the property during your lifetime and later gift it through your estate plan. To learn more about bequest language go to our planned giving section of our website at http://umflegacy.org/

Set Up an Account with UMF OnlineDid you know your church can set up an account with the UMF directly from our website? Existing unit holders can also make certain changes to their account agreements online. You can even establish an electronic transfer directly to your account. To learn more about becoming a unit holder or making changes to your account, go to our website at http://umf-nc.org/unit-holder/

Socially Responsible Investments Did you know the UMF follows the guidelines of the Social Principles of the UM Book of Discipline with your investment dollars and strives to make a positive impact, both locally and nationwide? Through Socially Responsible Investing the United Methodist Foundation helps you care for God’s Creation. http://umf-nc.org/socially-responsible-investing/

Donor Advised FundsDid you know that Donor Advised Funds are one of the best ways to pass on philanthropic values to the next generation? Consider setting up a Donor Advised Fund (DAF) with the UMF as a way to help your children and grandchildren participate in making decisions where financial gifts can be directed each year from the DAF. You can leave a legacy of generosity that will live on through your children and grandchildren. http://umflegacy.org

Did You Know?

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UnitedMethodistFoundation, Inc.

700 Waterfield Ridge Place • Garner, NC 275291-800-555-4718 • www.umf-nc.org

From Five Practices of Fruitful Congregations by Bishop Robert SchnaseCopyright 2008 Abingdon Press, an imprint of The United Methodist Publishing House. Used with permission. All rights reserved.

Those who practice

Extravagant Generosity

have a God-given vision and

faith to plant seeds for trees

whose shade they will never see.