CBF trusts and endowments increase more than 100 percent in 10 years – California Southern Baptist Convention

CBF trusts and endowments increase more than 100 percent in 10 years

Published Apr 01, 2013

FRESNO – The president of California Baptist Foundation reported the organization’s “primary function is managing dollars for Kingdom purposes” and noted an increase in charitable trusts and endowments of more than 100 percent over the past 10 years.

Philip Kell, president of the Foundation, in a report to directors during their winter meeting Feb. 15, said charitable trusts rose from $18.9 million in 2002 to $34.1 million in 2012, or an 80 percent increase. During the same time period, endowments rose $13.4 million to $33.1 million, a 146 percent increase.

“In reality though, the amount we manage is not as important as the amount we distribute to ministry,” Kell said. “Remember, we exist to raise and manage resources so we can distribute dollars to California Southern Baptist ministries.”

He reported that during the past 10 years, distributions increased from just over $600,000 to more than $3 million in 2011 and $2.85 million in 2012.

Noting “it is no secret to anyone” that the Foundation has been dealing with difficult days because of the economy, Kell added, “We’ve had seven years of plenty from 2002 to 2008, and we have now endured four of the seven years of famine. I do believe it will take about three more years for us to fully rebound from the impact of the Great Recession.”

Kell affirmed the “good news” that “God is at work on our behalf, supplying our needs.”

Directors approved a revised 2013 budget with an increase of $330,000 due to recent gifts to the Foundation. Ernest Ong, chief financial officer, said there is an additional $138,000 in expenditures across several areas leaving more than $209,000 in net income for the year.

He noted the new budget calls for revenue of $2,015,000, with expenditures totaling $1,806,000.

Directors were also informed that the more than $40 million Church Capital Fund, which defaulted in 2011, had been restructured through the courts, giving the Foundation 10 years to pay investors their initial principle amount plus 3 percent earnings.

Doug Heffner, lending services division manager for the Foundation and president of the Church Capital Fund, noted that soon after the restructuring was approved $4.7 million was paid to investors, with nearly $1 million more scheduled for payment by the end of the first quarter of 2013.

Heffner also said $1 million currently is available to loan to California Southern Baptist congregations for a variety of uses and projects.

Kell told directors, “We are still in the process of restructuring to become the trusted operating foundation for California Southern Baptist congregations and their members.”

Directors are scheduled to meet May 17-18 in Fresno.