2014 annual report - virginia baptist foundation, inc. · 2014 annual report 7 in addition, the...

2014 Annual Report

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ON THE COVER

“Praise the Lord. Praise God in His sanctuary.” Psalm 150:1 (NIV) The 2014 annual report celebrates sacrificial gifts from donors, increased distributions to non-profit organizations and strong investment results. This publication acknowledges that all good and perfect gifts come from the Lord and praises Him for His wonderful works.

CREDITS

Cindy Elmore, editorRon Hall, contributing writerGeep Schurman, designer and contributing photographerWorth Higgins & Associates, printer, April 2015

CONTENTS

• INTRODUCTION ............................................................................................................ 1

LEGACY• JOYCE AILSTOCK ......................................................................................................... 2

GRANTS• BOAZ and RUTH .......................................................................................................... 4, 5

• GRANTS and DONOR-ADVISED FUND ................................................ 6 SCHOLARSHIPS• CALEB VASS ..................................................................................................................... 7

• 2014 -15 SCHOLARSHIP RECIPIENTS ........................................................ 8, 9

• CHARITABLE BENEFICIARIES ........................................................................... 10, 11

MONEY MANAGEMENT• FINANCIALS - Contributions, Distributions .................................... 12

• CONSOLIDATED STATEMENTS of FINANCIAL POSITION ASSETS - LIABILITIES and NET ASSETS .................................................. 13

• INVESTMENT PORTFOLIOS EQUITY, BALANCED, FIXED INCOME ....................................................... 14, 15 VBF INVESTMENT PORTFOLIOS and MARKET RETURNS .. 15

• ACCOUNTANT’S REPORT .................................................................................. 16

• TRUSTEES and STAFF ................................................ Inside Back Cover

Ron C. Hall Todd J. Fuller William E. Watson President Vice President Chairman Chief Executive Officer Chief Financial Officer Board of Trustees

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VIRGINIA BAPTIST FOUNDATION

2014 ANNUAL REPORT

Read the pages of this annual report and see what God did in 2014 through His people.

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People Putting God First: Since 1923 this ministry has been about Virginia Baptists and others putting God first through their charitable giving and estate planning.Resources: They have given cash, checks, securities, real estate, collectibles and other assets. They have given these resources through outright gifts, bequests, charitable remainder trusts, gift annuities, donor-advised funds and other devices.Assisting Others: They gave near record contributions and the foundation distributed near record distributions to nearly 400 charitable organizations in 2014. I Can Do Something: They have seized upon the great and timeless truth that they can do something to help somebody else experience God’s love.Stewardship: Their giving typically springs from whole life stewardship. They want to honor God through what He has simply lent to them. Eternity: Their gifts will often continue to support Kingdom ministries until Christ comes again!

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“Lift up your hands in the sanctuary and praise the Lord.” Psalm 134:2 (NIV)


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Faith to Save a Farm and Give It AwayHay bales, a smokehouse and a tool shed symbolize the hard work of Joyce Story Ailstock’s grandparents, parents, three brothers and two sisters. Joyce grew up on a Spotsylvania County farm that was started by her grandparents in 1895. Her distinctly Virginian voice takes the listener back to a time when cooking on a cast iron stove, sitting in the parlor on Sunday, rocking

new babies in a handmade cradle and reading from the family Bible were treasured pastimes. In 1957, when Joyce was only 22-years-old, she performed a feat beyond her years. Her father, who had started a transportation company in Spotsylvania County and Fredericks-burg, made the decision to expand into the Tidewater area in the early 1950s. To do so, he mortgaged the family farm. Unfortunately, the busi-ness failed and led to bankruptcy. As a result, the family’s farm was placed on the auction block. Determined to save the farm, Joyce worked with an attorney to

“I will praise you as long as I live, and in your name I will lift up my hands.” Psalm 63:4 (NIV)

Bearing her mother’s initials, the trunk is one of the many treasures that Joyce gave to her family members.

Joyce Ailstock

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handle the financial affairs including securing a mortgage loan. The auction took place on the front lawn of the property. Besides Joyce, there was only one bidder, a representative from the Continental Can Company. So, she was able to miraculously buy back the farm. According to Joyce, “I just knew it had to be saved for the family... Many years later, I knew that it was God providing.” On August 4, 1962, Joyce married her beloved, Everett, and moved to his hometown, Alexandria, where he worked as a firefighter. Although Joyce left the farm, she never really abandoned it because she treasured all the happiness that she had found there. On a regular basis, she traveled back to the farm to visit relatives and eventually became the “maintenance crew,” caring for the property. Just as she stood at the auction to purchased the farm, Joyce has had to rely on the Lord for the courage to place her family farm in the hands of Virginia Baptist Foundation. At the sale of the property, a charitable remainder unitrust will be created and she will

receive a fixed income for the remainder of her life. At her passing, three nonprofits will benefit from the payout of her trust, including VBF’s grant ministry. “This has been a long process and one that I had to give quite a lot of thought to. I had to trust God and have faith that this was the right thing.” Joyce says that she chose to work with Virginia Baptist Foundation because of its strong financial history and sound investment programs. “Not only is it sound, but it is worthy. I don’t know how many organizations render such a wonderful program based on your own financial situation.” Although Joyce feels that the Virginia Baptist Foundation is the right choice, she also recognizes the emotional consequences of her decision. She believes that the most

difficult part of giving away the family farm will be when she drives away from the property for the last time. According to Joyce, “I have had the wonderful opportunity of accessing this for the last 20 years and more seriously the last 10 years. While there are going to be emotions. It’s time. It’s time.” sCindy Elmore

Built in the early 1900s by her grandparents, the house was “home” to Joyce and her five siblings.

A Bible found in her family home symbolizes the faith that Joyce drew upon when deciding to gift the farm.

The farmhouse still stands on the original river rock hewn by

Joyce’s grandfather.

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Relying on the Lord to Rehabilitate a CommunityStepping into the offices of Boaz and Ruth, the essence of the organization is imme-diately communicated and the passion for assisting Highland Park community of Richmond is very apparent. Bea Robinson, the “Director of First Impressions,” imme-diately offers to give the grand tour, which includes two thrift stores, a restaurant created from an early 1900’s

fire station, 15 restored houses, a community garden and a mural symbolizing peace. Founded in 2002, the faith-based nonprofit was named after the bibli-cal characters of Boaz and Ruth. Modeling after the biblical story, the organization believes that everyone is a “Boaz” with gifts and everyone is a “Ruth” with needs. The orga-nization’s founder, Martha Rollins, was determined to make her vision happen in this underserved commu-nity where many of its residents were former inmates. Over the last 14 years, Martha’s vision has been realized by creating dynamic social enterprises that provide on-the-job training and work readiness skills for individuals needing a second chance. Employ-ment is provided in six social enterprises called Life Labs that assist participants in building skills and establishing a foundation of positive work history. Continuing Martha’s vision for the community is often difficult. “We have the capacity to serve folks, but not always the funding,” says

“Let everything that has breath praise the Lord.” Psalm 150:6 (NASB)

Bea Robinson

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2014 ANNUAL REPORT

Megan Rollins, the organization’s recently named CEO. Working to rehabilitate the entire community, Boaz and Ruth also has faced the difficult task of lowering crime. In fact, during the first two years of Boaz and Ruth’s existence, there were nine murders in Highland Park. Located along a four-block section of the Meadowbridge Road commercial corridor, Boaz and Ruth’s six social enterprises are designed to achieve both financial and social return. According to Martha, “We believe that all individuals can choose to shop and dine as part of doing missions. Intentionally shopping and eating outside of our comfort zone, even 10 percent of the time, can move the economic needle toward justice.” The Transition and Job Connection Teams, through a network of supporters and business owners, work one-on-one to establish connections between graduates and potential employers. Seventy-two percent of graduates obtained a job after graduation and 80 percent maintained a job for at least a year. “We are the best program out there to help people get to where they want to be,” says Megan. In addition to job training, Boaz and Ruth helps individuals develop the relational skills, behaviors, understanding and attitudes that are needed to sustain healthy relationships.

To develop and support individuals who are rebuilding their lives, Boaz and Ruth mobilizes a wide variety of paid and volunteer staff, consultants, post graduates, mentors and tutors who become like a family for trainees. According to Megan, “We believe in redemp-tion. We rely on it.” Boaz and Ruth has greatly invested in the community’s future. Earned revenue from the organization’s social enterprises covers one-third of the cost per participant. Just $40 per day is needed to fully fund employment, train-ing and case management for one participant for one year. This is half the cost of re-incarcer-ation, which is approximately $80 per day. Less than 14 percent of Boaz and Ruth graduates with a criminal history have been re-incarcer-ated while The Commonwealth of Virginia has a rate of recidivism of nearly 50 percent. Boaz and Ruth’s leadership firmly believes that their success in Richmond’s Northside is due to the organization’s reliance upon the Lord. “We believe that the faith component of our program is what makes the difference,” says Megan. sCindy Elmore

Megan RollinsCEO, Boaz and Ruth

Sunny Days Thrift Clothing Store

Boaz and Ruth rehabed housing

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In addition, the foundation distributed $20,550 from the John Buford Watson (Bedford) Charitable Trust to the following ministries:• Lott Carey Baptist School in Brewerville, Liberia ($10,550)• Operation Antioch in Beirut, Lebanon ($10,000)

• Churches & Associations $ 156,399• Education $ 66,951• Missions $ 100,450

Distributions $ 323,800

(as of 12 .31. 2014)

• Boaz & Ruth’s Rebuilding Lives Program in Richmond ($7,500) to assist formerly incarcerated individuals with life skills training, mentoring and on-the-job education necessary for re-entry into society.• Eagle Eyrie Conference Center in Lynchburg ($1,500) to help defray the costs of purchasing, packaging and shipping approximately 15,000 meals to the Source of Light Center orphanage in Port-au-Prince, Haiti.• Portsmouth Baptist Association in Suffolk ($2,250) to help defray the cost of PBA’s 2014 Operation Inasmuch Missions Weekend (October 4-5, 2014) in the greater Portsmouth area.• Urban Mountain Adventures in Lynchburg ($3,000) to sponsor approximately 15 inner city youth from Lynchburg during UMA’s Summer Camp 2014.

Virginia Baptist Foundation Awarded Four Matching Challenge Grants in 2014


A donor-advised fund offers an opportunity to create a donor-directed account. As the contributions are invested, future earnings increase the assets in the fund and allow the donors to make dispersals from the account to their favorite charities. A donor-advised fund offers a naming opportunity, flexibility in disbursements, successor elections and immediate tax deductions. Distributions to nonprofit entities from donor-advised funds totaled over $323,000 in 2014.

Healing the SickThe winding road up the mountain to Floyd, Virginia, leads to the office of Dr. Gary Kuiken at PCA Family Physicians where scholarship recipient, Caleb Vass, strengthened his desire to pursue a career in medicine. A graduate of the University of Virginia at Wise, Caleb is a second year medical student at Lincoln Memorial University - DeBusk College of Osteopathic Medicine in Harrogate, Tennessee. According to Dr. Kuiken, “Caleb grew up as my patient and asked if he could shadow me. I allowed him because there are very few family physicians here.” Through this experience, Caleb learned that family medicine is a mission field in its own right. Actively involved in the Baptist Collegiate Ministries while at UVA-Wise, Caleb was able to participate in several mission trips, including working with a medical team in Belize. “Watching doctors work in a third world country at their own expense showed me the true heart of a dedicated doctor.” While in Belize, Caleb witnessed the power of God when the doctors did not have the answers and turned to prayer. “It strengthened my resolve to become part of the healing process. I had a new desire to use my God-given abilities to aid in restoring people to a healthier condition,” he said. Currently, Caleb is completing an osteopathic manipulation fellowship and will begin rotations in the fall. His focus is clear. “Through working with medical missionaries who desire to see people healed physically and spiritually and with family doctors who have close connections with the community, my ultimate goal is to become a Doctor of Osteopathic Medicine and do all that is within my ability to heal the sick, looking to God, the Great Physician.” sCindy Elmore

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“I will bless the Lord at all times; His praise shall continually be in my mouth.” Psalm 34:1 (NASB)

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The Virginia Baptist Foundation awarded scholarships totaling $95,000 to 52 students from Virginia Baptist churches. On Sunday, May 18, 2014, the foundation hosted its seventh annual scholarship recognition ceremony at the Virginia Baptist Resource Center. The recipients represent both public and private educational institutions and have a broad range of academic majors.

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2014-15 VBF SCHOLARSHIP RECIPIENTS

“Ascribe to the Lord the glory due His name; worship the Lord in the splendor of His holiness.” Psalm 29:2 (NIV)

(Seated, left to right) Anna Moxley, Anna Wilson, Abby Freed, Amanda Mayhew, Nadine Moger, Olivia Puckett, Rachel Cook, Jamie Simpkins, Victoria Shorter, Brittany Ratliff, Hannah Hearl and Rachel Owens.

(Middle row, left to right) Daro Ing, Megan Flanagan, Jordyn Kuzins, Ashley Montalvo Pacheo, Juhee Lee, Carolina Bae, Summer Forehand, Katherine Nelson, Jamie Worley, Christian Rodriguez, Mattie Green, Mary Grace Hankins, Mihh Ha Nguyen.

(Back row, left to right) Thomas Curley, Nicholas McDaniel, Stephen Taylor, Dustin Pegram, Rachel Simon, Natalie Moger, Brandon Hawley, Jackson Miller, Mason Freed, David Mammadli, Zachary Green, Tyler Lemmer and Tanner Cooke.

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CHARITABLE BENEFICIARIESCHURCHES (136) • Amelia Community Church• Antioch Baptist Church• Ash Camp Baptist Church• Belmont Baptist Church• Berea Baptist Church• Bethel Baptist Church• Bethlehem Baptist Church• Beulah Baptist Church• Black Walnut Baptist Church• Blacksburg Baptist Church• Blue River Baptist Church• Boykins Baptist Church• Branch’s Baptist Church• Broadus Memorial Baptist Church• Brookneal Baptist Church• Bruington Baptist Church• Buena Vista Baptist Church• Calvary Baptist Church, Bowling Grenn• Calvary Baptist Church, Charlottesville• Calvary Baptist Church, Emporia• Calvary Baptist Church, Newport News• Calvary Baptist Church, Winchester• Carlisle Avenue Baptist Church• Cedar Bluff Baptist Church• Central Baptist Church, Richmond• Central Hill Baptist Church• Chatham Heights Baptist Church• Chesterfield Baptist Church• Childrey Baptist Church• Churchland Baptist Church• Colonial Heights Baptist Church• Colosse Baptist Church• Columbia Baptist Church• Cool Spring Baptist Church• County Line Baptist Church• Crewe Baptist Church• Crozet Baptist Church• Culpeper Baptist Church• Deer Park Baptist Church• Derbyshire Baptist Church• Effort Baptist Church• Elkhardt Baptist Church• Emmaus Baptist Church• Ephesus Baptist Church• Fairview Baptist Church• Falling River Baptist Church• Fincastle Baptist Church• First Baptist Church, Bluefield• First Baptist Church, Charlottesville• First Baptist Church, Danville• First Baptist Church, Front Royal• First Baptist Church, Gretna• First Baptist Church, Jonesville• First Baptist Church, Newport News• First Baptist Church, Republican Grove• First Baptist Church, Richmond• First Baptist Church, Roanoke• First Baptist Church, South Hill• First Baptist Church, Staunton• First Baptist Church, Waynesboro• First Baptist Church, West Point• Fountain Grove Baptist Church• Four Mile Creek Baptist Church• Fredericksburg Baptist Church• Friendship Baptist Church

• Ginter Park Baptist Church• Glade Spring Baptist Church• Glebe Landing Baptist Church• Glen Allen Baptist Church• Goochland Baptist Church• Goshen Baptist Church• Hardy Central Baptist Church• Holland Baptist Church• Hopewell Baptist Church• Hull’s Memorial Baptist Church• Irvington Baptist Church• King’s Grant Baptist Church• Lakeside Baptist Church• Lebanon Baptist Church• Liberty Baptist Church• Long Branch Baptist Church• Lyndale Baptist Church• Manly Memorial Baptist Church• Marion Baptist Church• Melville Avenue Baptist Church• Menokin Baptist Church• Mentow Baptist Church• Morgans Baptist Church• Mt. Vernon Baptist Church• New Highland Baptist Church• New Prospect Baptist Church• Nomini Baptist Church• North Bedford Baptist Church• North Fork Baptist Church• North Pamunkey Baptist Church• Oakwood Memorial Baptist Church• Orange Baptist Church• Orcutt Baptist Church• Ox Hill Baptist Church• Pine Street Baptist Church• Pocahontas Bassett Baptist Church• Poplar Springs Baptist Church• Providence Baptist Church• Rhoadesville Baptist Church• Ridge Baptist Church• River Road Church, Baptist• Rivermont Baptist Church• Rock Hill Baptist Church• Rocks Baptist Church• Rose Union Baptist Church• Ruckersville Baptist Church• Salem Baptist Church, Sparta• Samuel Harris Memorial Baptist Church• Second Baptist Church, Petersburg• Second Baptist Church, Richmond• Silver Leaf Baptist Church• Skinquarter Baptist Church• Straightstone Baptist Church• Sycamore Baptist Church• Temple Baptist Church• The United Baptist Church• Tomahawk Baptist Church• Union Baptist Church• United Baptist Church• Victoria Baptist Church• Wallers Baptist Church• Warrenton Baptist Church• West End Baptist Church• West Hampton Baptist Church• West Lynchburg Baptist Church• West Side Baptist Church

• Westhampton Baptist Church• Westover Baptist Church• Woodberry Hills Baptist Church• Woodland Heights Baptist Church• Zoar Baptist Church

MISSION AGENCIES (29)• Appomattox Baptist Association• Augusta Baptist Association• Baptist Collegiate Ministries• Baptist Joint Committee for Religious Freedom• Baptist World Alliance• Camp Piankatank• Concord Baptist Association• Cooperative Baptist Fellowship• Crossroads Camp and Conference Center• Dover Baptist Association• Eagle Eyrie Baptist Conference Center• Goshen Baptist Association• HopeTree Family Services• International Mission Board• Lakewood Manor• Lebanon Baptist Association• Lynchburg Baptist Association• Natural Bridge Baptist Association• New Lebanon Baptist Association• North American Mission Board• Northstar Church Network• Petersburg Baptist Association• Richmond Baptist Association• The Religious Herald• Virginia Baptist Foundation, Inc.• Virginia Baptist Historical Society• Virginia Baptist Homes, Inc.• Virginia Baptist Mission Board• Woman’s Missionary Union of Virginia

OTHER (56)• ACCA Endowment Fund• American Bible Society• American Cancer Society• American Diabetes Association• American Red Cross• Americans United for Separation of Church and State• Augusta Regional Free Clinic• Baptist Temple Church Endowment Fund• Billy Graham Evangelistic Association• Centra Health Foundation• Centra Southside Burkeville Medical• Children’s Bible Ministries of Va., Inc.• Children’s Home Society of Virginia• Children’s Hospital• Christian Training for the Retarded• Church of the Nazarene• Connie Maxwell Children’s Home• County of Stafford• Crewe Volunteer Fire Department• Crewe-Burkeville Christmas Mother• Culpeper County Library• Culpeper Regional Hospital• Eastover Baptist Assembly• Edmarc Hospice for Children• Emily Green Shores

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2014 ANNUAL REPORT

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• Endowment Fund at River Road• Friends of the Library• Good News Mission, Inc.• Guidestone Financial Resources• Lakewood Manor Endowment Fund• Liberty Christian Church• Masonic Home of Virginia• Nottoway County Emergency Squad• Oasis Social Ministry• Patrick Henry Boys & Girls Homes• Pine Valley Camp• Pleasant View Homes, Inc.• Rock Hill Baptist Church Cemetery• Salvation Army - Crewe-Burkeville• Sheltering Arms - Richmond• Shriners Hospitals for Children• St. Mark’s United Methodist Church• Stateline Baptist Assembly, Inc.• Tabernacle Child Care Center• The Cameron Foundation• The College of William & Mary Foundation• The Hermitage at Cedarfield• Tidewater Teacher’s Music Forum• United Methodist Foundation, Inc.• VBF Endowment Fund• VBF Grant Fund• VBF Scholarship Fund• Virginia Tech Foundation, Inc.• Virginia United Methodist Homes, Inc.• World Literature Crusade• World Vision, International

SCHOOLS (64)• Bluefield College• Oak Hill Academy• Appalachian State University• Averett University• Baptist Collegiate Ministries• Baptist Theological Seminary at Richmond• Baylor University• Berea College• Bridgewater College• California University of Pennsylvania• Carson-Newman College• Christopher Newport University• Clear Creek Baptist Bible College• Concord University• Dabney S. Lancaster Community College• Drury University• Duke University School of Divinity• East Carolina University• East Tennessee State University• Fork Union Military Academy• Gardner-Webb University• George Mason University• Georgetown College• Gordon-Conwell Theological Seminary• Hargrave Military Academy• James Madison University• Jefferson College of Health Sciences• John Leland Center for Theological Studies• Lado International College• Le Tourneau University

• Liberty University• Lincoln Memorial University• Longwood University• Lynchburg College• Midwest Seminary of Bible Theology• Midwestern Baptist Theological Seminary• New Orleans Baptist Theological Seminary• North Carolina State University• Northern Virginia University College• Ouachita Baptist University• Patrick Henry Community College• Paul D. Camp Community College• Radford University• Randolph Macon College• Regent University• Southern Baptist Theological Seminary• Southeastern Baptist Theological Seminary• Southwestern Baptist Theological Seminary• Stetson University• Strayer University• The College of William & Mary• Tidewater Community College• Union Presbyterian Seminary• University of Mary Washington• University of Miami• University of North Carolina• University of Richmond• University of Virginia• Virginia Commonwealth University• Virginia Highlands Community College• Virginia Intermont College• Virginia Polytechnic Institute• Wake Forest University• Wytheville Community College

DONOR-ADVISED FUNDS (83)• Baptist Fellowship of Angier• Baptist Joint Committee for Religious Liberty• Baptist Theological Seminary of Richmond• Baylor University• Baptist Collegiate Ministry at Virginia Tech• Bethlehem United Methodist Church• Beulah Baptist Church, Lynchburg• Billy Graham Evangilistic Association• Blacksburg Baptist Church• Bluefield College• Bon Air Baptist Church• Bonsack Baptist Church• Bowling Green Volunteer Fire Department• Bridgewater Baptist Church• Broadus Memorial Baptist Church• Brugh-Simmons Cemetery• Baptist World Alliance• Camp Alkulana• Caroline Care Group• Central Virginia Community College• Chesterfield Baptist Church• Children’s Hospital Foundation• Christopher Newport University Education Foundation

• Church Hill Activities & Tutoring• College Hill Baptist Church• Concord Baptist Association• Cooperative Baptist Fellowship• Cooperative Baptist Fellowship - Global• Covington Baptist Church• Derbyshire Baptist Church• East Tennessee State University• Eastern Star Home of Virginia, Inc.• FAITH “Fighting Cancer” in Montgomery County• Fine Arts in Rockbridge• First Baptist Church, Mocksville, NC • First Baptist Church of Gretna• Friends of Nazareth• Gayton Baptist Church• George Mason University• George Washington National Masonic Memorial• Gideons International• Glen Allen Baptist Church• God’s Bible School and College• Hillsdale College• HopeTree Family Services• International Mission Board• Interserve USA• Iowa State University• Light for the City, Inc.• Love Wins Ministries• Main Street Baptist Church, Emporia• Masonic Home of Virginia, Inc.• North Carolina State College of Veterinary Medicine• New Tribes Mission• North American Mission Board• Oak Hill Academy• Occoneechee Council, Boy Scouts of America• Paralyzed Veterans of America• Petersburg Baptist Association• Piankatank Camp & Conference Center• Poplar Springs Baptist Church• Radford University Baptist Collegiate Ministry Alumni Association• Richmond Police Foundation• Ridge Road Baptist Church• Rose-Hulman Institute of Technology• Salem Baptist Church, Sparta• Salvation Army• Samaritan’s Purse• Sandston Baptist Church• Shriners Hospitals for Children• Southampton Baptist Church• The Country Day School• Union Mission of Roanoke Rapids• Univeristy of Miami• Virginia Baptist Committed• Virginia Baptist Foundation• Virginia Baptist Historical Society• Virginia Baptist Mission Board • Virginia Baptist Mission Board - More Than Nets• Virginia Tech• Virginia Tech Foundation• Wounded Warrior Project• Wycliffe Bible Translators

2014 ANNUAL REPORT

MONEY MANAGEMENT

DISTRIBUTIONS(as of 12.31.2014)

• Churches & Associations 44.88% $ 2,928,278 • Missions (VBMB, IMB, NAMB, etc.) 20.10% $ 1,311,061 • Individuals 13.10% $ 854,943• Retirement & Children’s Homes 4.31% $ 281,418 • Scholarships & Educational Institutions 17.61% $ 1,148,281

$ 6,523,981

CONTRIBUTIONS(as of 12.31.2014)

• Agency Funds 88.98% $ 7,690,213 • CR Unitrusts & Annuity Trusts 2.22% $ 191,563• Permanently Restricted Funds 2.62% $ 226,051• Temporarily Restricted Funds 4.51% $ 389,994• Unrestricted Funds 1.67% $ 144,346

$ 8,642,167

FINANCIALS


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Virginia Baptist Foundation invests and disburses funds for Virginia Baptist churches and other non-profit organizations. Adhering to prudent investment policies, the foundation has enjoyed a long history of excellent per-formance. Working with Vanguard, the foundation strives to grow investments over a long period of time while seeking the most cost-effective approach to fund management. Currently, the foundation manages over 800

accounts totaling over $122 million. Offering three portfolios, certificates of deposit and money market options, the foundation pro-vides clients with a diversified range of investment options. Whether a church or organization has an endowment, building, cemetery, memorial, scholarship or other special funds, the foundation can assist in the establishment, management and promotion of these funds.

2014 ANNUAL REPORT13

CONSOLIDATED STATEMENTS

of FINANCIAL POSITION

(December 31, 2014 and 2013)

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ASSETS 2014 2013Assets: Cash and cash equivalents - unrestricted $ 187,071 $ 38,978 Cash and cash equivalents - restricted 11,593,724 8,912,202

11,780,795 8,951,180

Investment in securities 109,694,960 104,526,935 Investment in real estate 295,006 657,055 Other receivables 274,555 179,402 Prepaid expenses 31,256 52,402 Cash value of life insurance 128,431 114,188 Property and equipment - net 107,765 117,068

Total Assets $ 122,312,768 $ 114,598,230

LIABILITIES and NET ASSETS Liabilities: Accounts payable and accrued liabilities $ 323,744 $ 290,851 Annuity and split-interest trust obligations 2,976,061 3,048,422 Agency accounts 64,673,584 57,715,948

Total Liabilities 67,973,389 61,055,241

Net Assets: Unrestricted 1,654,596 1,917,472 Temporarily restricted 28,058,110 27,165,024 Permanently restricted 24,626,673 24,460,493

Total Net Assets 54,339,379 53,542,989

Total Liabilities and Net Assets $ 122,312,768 $ 114,598,230


BALANCED(as of 12.31.2014)

• Cash 3.49%• US Large-Cap Value Equity 7.48%• US Large-Core Equity 2.55%• US Large-Cap Growth Equity 9.78%• US Mid-Cap Equity 9.25%• US Small-Cap Equity 3.46%• Non-US Developed Equity 23.30%• Non-US Emerging Equity 3.99%• US Investment Grade Bonds 23.83%• US High-Yield Bonds 0.23%• Non-US Bonds 5.28%• Other 7.36%

EQUITY(as of 12.31.2014)

• Cash 1.77%• US Large-Cap Value Equity 11.91%• US Large-Cap Core Equity 4.06%• US Large-Cap Growth Equity 14.62%• US Mid-Cap Equity 14.16%• US Small-Cap Equity 4.93%• Non-US Developed Equity 39.89%• Non-US Emerging Equity 6.84%• Other 1.82%

INVESTMENT PORTFOLIOS

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2014 ANNUAL REPORT15

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2014 ANNUAL REPORT

FIXED INCOME(as of 12.31.2014)

• Fixed Income- Bond Market Index 24.00%

• Fixed Income - Intermediate -Term Investment Grade 18.00%

• Fixed Income - Short Term Investment Grade 24.00%

• Fixed Income - International Bond Index 24.00%

• Fixed Income - Short Term Inflation Protected Securities Index 10.00%

VBF PORTFOLIO AND MARKET RETURNS(as of 12.31.2014)

1 Yr. 3 Yr. 5 Yr. 10 Yr.VBF Equity Portfolio 5.47% 16.02% 11.65% 7.17%VBF Equity Benchmark1 6.36% 15.59% 11.37% 7.02% VBF Balanced Portfolio 5.81% 11.68% 9.50% 6.78% VBF Balanced Benchmark2 6.75% 11.22% 9.28% 6.60% VBF Fixed Income Portfolio 4.96% 3.12% 4.67% 4.76% VBF Fixed Income Benchmark3 5.71% 2.63% 4.45% 4.71%

DOW 10.04% 16.29% 14.22% 7.91%

S&P 500 13.69% 20.41% 15.45% 7.67% NASDAQ 14.75% 23.60% 17.19% 9.15% Barclays US Aggregate Bond 5.97% 2.66% 4.45% 4.71% FTSE Global All Cap Ex US -3.12% 9.81% 5.21% 6.05% FTSE Emerging Markets 1.55% 4.95% 2.34% 9.27%Dow Jones US Select REIT 32.00% 16.10% 16.99% 8.13% Dow Jones Global Ex US Select REIT 12.81% 16.29% 11.56% 0.00%Citigroup 1-Month CD 0.16% 0.17% 0.19% 1.80% Citigroup 3-Month Treasury Bill 0.03% 0.05% 0.07% 1.46%

INVESTMENT PORTFOLIOS (continued)

1 Benchmark is 48% Spliced Total Stock Market Index ~ 48% Spliced Total Int’l ~ 4% REIT Spliced Index since 09/30/2014; 55.2% Spliced Total Stock Market Index, 36.8% Spliced Total Intermational Stock Index, 8% Spliced REIT Index since 5/31/2000.

2 Benchmark is 28% Spliced Total Stock Market Index ~ 38% Spliced Barclays US Agg Float-Adj Ix ~ 28% Spliced Total Int’l Stock Index ~ 6% REIT Spliced Index since 09/30/2014; 36% Spliced Total Stock Market Index, 35% Spliced Barclays US Aggregate Float-Adjusted Index, 24% Spliced Total International Stock Index, 5% REIT Spliced Index since 5/31/2000.

3 Benchmark is 66% Spliced Barclays US Agg Float-Adj Ix ~ 24% Barclays GA ex-USD FIAj RIC CplxHgd ~ 10% Barclays U.S. 0-5 Year TIPS Index since 09/30/2014; 100% Spliced Barclays US Agg Float-Adj Ix since 05/31/2000.

The VBF Portfolio performance data shown represents the past performance of current (2014) investment managers and not the actual historical performance.

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ACCOUNTANT’S REPORT

A complete copy of the auditor’s report is available upon request. E-mail Cindy Elmore, Director of Development, [email protected].

REPORT OF INDEPENDENT ACCOUNTANTS

The Officers and Board MembersVirginia Baptist Foundation, Inc.Richmond, Virginia

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of the Virginia Baptist Foundation, Inc. and Subsidiaries (collectively, the “Foundation”), which comprise the consolidated statements of financial position as of December 31, 2014 and 2013, and the related consolidated statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Virginia Baptist Foundation, Inc. and Subsidiaries as of December 31, 2014 and 2013, and the changes in their net assets and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States.

March 2? , 2015Glen Allen, Virginia

Certified PublicAccountants & Consultants4401 Dominion Boulevard, 2nd FloorGlen Allen, VA 23060T:804.747.0000 F:804.747.3632www.keitercpa.com

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2014 ANNUAL REPORT

2014 Virginia Baptist Foundation Board of Trustees

Robert E. Carden, Richmond Beverley E. Dalton, Altavista* David J. Fairchild, Richmond Janet C. Garrett, Henrico Jon C. Hatfield, Chester Jason N. Kimlick, Franklin

E. L. Rash, Jr., LynchburgMark S. Ross, MarionRobert L. Smythers, BlacksburgRobert G. Thompson, RichmondWilliam E. Watson, FarmvilleNancy G. Wren, Chesapeake

2014 Committees

Virginia Baptist Foundation StaffRonald C. Hall, President and CEOTodd J. Fuller, Vice President and CFOCindy R. Elmore, Director of DevelopmentWendy M. Reynolds, Account ManagerJanet C. Bess, Accounting ClerkDonna K. Clune, Office Manager

Administrative Beverley E. Dalton, Altavista Jon C. Hatfield, Chester Robert G. Thompson, Richmond*William E. Watson, Farmville

Investment Robert E. Carden, Manakin-Sabot David J. Fairchild, Richmond Jason N. Kimlick, Franklin*E. L. Rash, Jr., Lynchburg

Scholarship Janet C. Garrett, Richmond Mark S. Ross, Marion*Robert L. Smythers, Blacksburg Nancy G. Wren, Suffolk

Development Stuart K. Lane, Lynchburg Ashley S. McHaney, Gladys Robert L. Smythers, Blacksburg Jeffrey B. Ukrop, Richmond William E. Watson, Farmville*Nancy G. Wren, Chesapeake

NOTE: *Asterisk Denotes Chair

Virginia Baptist Foundation2828 Emerywood ParkwayHenrico, Virginia 23294

804.672.8862 or 800.868.2464FAX 804.672.3747www.vbfinc.org

Since 1927, the foundation has been a beneficiary of Cooperative Program/Missions support.

OUR MISSIONEncouraging and Strengthening Christian Stewardship

OUR MINISTRYThe foundation partners with Virginia Baptist donors,

churches, schools, institutions and agencies to accomplish its mission by:

• Encouraging Christian stewardship and philanthropy;• Assisting in the preparation of charitable wills with donor-selected allied professionals;• Managing funds for irrevocable trusts, endowments, scholarships, cemeteries and other special funds;• Conducting charitable planned giving educational programs;• Awarding scholarships and grants;• Demonstrating transparency, accountability and efficiency.

2014 annual report - virginia baptist foundation, inc. · 2014 annual report 7 in addition, the...

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