Billy Graham EvanGElistic association
Transcription
Billy Graham EvanGElistic association
Billy Graham Evangelistic Association 2 0 1 1 M i n i s t r y R E P O RT B illy G r a ha m evangeli sti c Associ ati on Dear Friend, Jesus taught His disciples that evangelism is like a sower scattering seed. That seed, He explained, “is the word of God” (Luke 8:11, NIV). The Billy Graham Evangelistic Association (BGEA) is committed to sowing this same seed across our land and around the entire world. Today, through modern advances in communication, God is using this ministry to reach more people with the Good News, in more countries, than ever before. In 2011, we preached “the true message of the gospel” (Colossians 1:5) to the men and women of our generation and to the young people of the next generation, calling them to repentance, forgiveness, and salvation through Jesus Christ. We saw God move in new and amazing ways as He claimed hundreds of thousands of new believers as His own. This ministry report will give you a look at what He did this past year, and we give Him all the praise and glory. “Far be it from [us] to boast except in the cross of our Lord Jesus Christ, by which the world has been crucified to [us], and [we] to the world” (Galatians 6:14, ESV). Thank you for partnering with us as we passionately serve in God’s mission to save the lost. May He richly bless you. Sincerely, Franklin Graham P re s id e n t Franklin Graham proclaims Christ at Rock the Range in Denver, Colorado. 2 2 0 1 1 minis t ry re p ort “This gospel of the kingdom will be preached in the whole world as a testimony to all nations. ” Matthew 24:14, NIV 3 B illy G r a ha m evangeli sti c Associ ati on S owing the seeds of the Gospel around the world has been the very heartbeat of BGEA for more than six decades. Last year, we witnessed the transforming power of Jesus Christ on the move in individual hearts and communities, and even across entire nations. We are humbled by the bountiful harvest the Holy Spirit reaped in 2011 through these ministries and give all glory, honor, and thanks to God. 30,000 NORTH AMERICA 1,700 LITHUANIA 300 300 UNITED KINGDOM 800 WINNIPEG MILWAUKEE 1,100 DENVER 8,700 860 SPAIN JERSEY SHORE 1,500 2,500 LOS ANGELES 3,200 PORTUGAL HAITI 7,500 OTHER CRUSADE OUTREACHES = 1,000 CRUSADES DECISIONS FOR CHRIST 950 MEXICO 95 = 1,000 SEARCH CHARLOTTE FOR JESUS DECISIONS FOR CHRIST = 1,000 MY HOPE DECISIONS FOR CHRIST 17,300 LIBERIA 1,000 LATIN AMERICA 126,200 HAITI 4 2 0 1 1 minis t ry re p ort CRUSADES SEARCH FOR JESUS Festivals, Celebrations, and Associate Evangelist Outreaches Internet Evangelism Ministry 994,000 1,000,000+ IN ATTENDANCE VISITS 83,000 MY HOPE World Evangelism Through Television Project 213,700 DECISIONS FOR CHRIST 139,900* DECISIONS FOR CHRIST DECISIONS FOR CHRIST OTHER BGEA MINISTRIES The Billy Graham Library The Cove Dare to Be a Daniel Christian Life and Witness Course International Film Ministry Rapid Response Team Response Center Television and Radio and more … 86,800 DECISIONS FOR CHRIST 9,000 1,000 MIDDLE EAST EUROPE 1,000 RUSSIA, EUROPE 10,900 THREE UNSPECIFIED SENSITIVE ASIAN COUNTRIES 21,000 PHILIPPINES 24,000 ASIA 940 KENYA 24,430 INDIA 34,000 AFRICA 65,400 1,000 OCEANIA/AUSTRALIA ZAMBIA *The location of 39,900 online inquirers could not be determined due to technical limitations and user privacy settings. 5 B illy G r a ha m evangeli sti c Associ ati on Crusade Ministries Uniting local churches, proclaiming the Gospel worldwide Photo credit: W hen BGEA brings a Festival or Celebration to a city, winning people to Jesus is only the beginning. We want to see new believers nurtured within a church body and given a chance to grow and become true disciples of Christ. Our goals are to strengthen churches and families; impact entire communities with the Good News of the Gospel; and empower Christians to share their faith so that the investment made in each community will continue long after the final service ends. Throughout 2011, God gathered a great harvest of hearts through BGEA Crusade events in cities across America as well as in Europe, Asia, Africa, the Caribbean, and Canada. 2 0 1 1 minis t ry re p ort Franklin Graham shares the Gospel in Hyderabad, India. 7 B illy G r a ha m evangeli sti c Associ ati on Franklin Graham Festivals Thousands of churches partnered with us for Franklin Graham Festivals in 2011 in Port-au-Prince, Haiti; Monrovia, Liberia; Los Angeles, California; Vilnius, Lithuania; and Hyderabad, India—as well as three family/youthoriented Rock events in North America. Franklin proclaimed Jesus Christ as Lord and Savior to a combined audience of more than 573,300 people, and over 32,700 of them responded by professing faith in Him. I n Port-au-Prince, Haiti, Franklin preached the Gospel of Christ to survivors of the historic 2010 earthquake, offering hope and compassion to approximately 80,000 people who had experienced devastation and lost friends and family during the previous year. During the two-day event, Franklin led more than 3,200 inquirers in prayer to receive Christ. Franklin held the three-day All Liberia Life Festival in this West African nation. After he delivered a message of true freedom and restoration offered by Christ to the 91,000 attendees, more than 13,700 Liberians publicly responded to his invitation, with many of them literally running across the field to receive Jesus. More than 600 Hispanic churches throughout the Greater Los Angeles area joined forces for BGEA’s first Festival in Spanish on American soil. The two-day Festival de Esperanza attracted more than 18,700 people. We praise God for the more than 1,500 who made public professions of faith. In the small Baltic nation of Lithuania—where less than 3,000 of its 3 million people attended an evangelical church—28,200 individuals turned out for the three-day Festival in Vilnius, the capital city. After hearing Franklin proclaim the Way, the Truth, and the Life, more than 1,700 inquirers confessed their sin and committed their lives to Christ— including a married couple in their 90s! The Franklin Graham Festival in Hyderabad, India, welcomed more than 289,500 people— including 44,309 who attended via satellite. While there is a general sense of religious tolerance in Hyderabad, converting to Christianity is a major decision for a Hindu or Muslim that usually involves being disowned by family and, in some cases, physical persecution. Confronted with eternal truth, more than 10,200 attendees responded to the invitation for salvation through Jesus Christ. “When the preacher said that Jesus died for people who sin, that God loves me, I was so happy,” said 24-year-old Anjushree, moments after committing her life to Him. “All I ever wanted was to be loved.” Bringing the hope of the Gospel to Port-au-Prince, Haiti India Festival of Hope with Franklin Graham in Chennai, 8 2 0 1 1 minis t ry re p ort Will Graham Celebrations During 2011, Will Graham held outreaches in Kolkata, West Bengal, India; Gangtok, Sikkim, India; Bicol, Philippines; Charlotte, North Carolina; Ocean Grove, New Jersey; Thurrock, United Kingdom; and Nakuru, Kenya. In addition, he spoke during the KidzFest at Rock the Range in Denver, Colorado. The total attendance at the Celebrations and events was more than 168,900, with over 30,400 people responding to the Gospel by making decisions for Christ. T he Will Graham Kolkata (Calcutta) Celebration of Peace in India was held in the city that’s home to the famous Kali Temple, where devotees flock to offer live sacrifices. Will told the estimated 4,800 people who attended of the one true God and His saving grace. More than 830 of them acted upon his invitation to know Jesus and received counseling. Invited by all the churches in the state, Will was welcomed with great joy and enthusiasm by the tribal people in Gangtok, Sikkim, India. During the three-day Celebration, 20,500 people heard the Gospel and 1,900 made decisions to follow Jesus. For the second time, the NBA’s Charlotte Bobcats welcomed Will as the featured speaker following a basketball game at Time Warner Cable Arena. The Bobcats’ seventh annual Faith and Family Night drew a total attendance of 3,500. After hearing Will’s Gospel message, 95 people KidzFest in Denver responded by committing their lives to Christ. During an extended outreach in the Philippines, Will had the opportunity to meet with several 9 B illy G r a ha m evangeli sti c Associ ati on religious and political leaders, including President Benigno Aquino III. During Will’s four-day Bicol Celebration of Hope, more than 97,300 people turned out to hear the Gospel proclaimed. We praise the Lord that approximately 21,000 people responded to Will’s invitation to know Christ by coming forward. A new day dawned on the Jersey Shore as Will presented the Good News in the historic Great Auditorium in Ocean Grove, New Jersey, to audiences totaling more than 13,800 people. When he gave the invitation, 860 professed their decisions to follow Christ. An attendee named Maryann had been praying for 20 years that her husband would come to know Christ. As they were driving home from the Jersey Shore, he revealed, “You know, honey, I prayed that prayer tonight, ... and I meant it. ... I can tell you I’m born again.” Will held a three-day Celebration of Peace in Nakuru, Kenya. From its combined audience of 14,500 people, nearly 940 responded to the Gospel by making a commitment to Jesus. Will was joined on the trip by his wife, Kendra, who spoke to 500 women at a separate rally. Associate Evangelists BGEA Associate Evangelist Robert Cunville continued to focus mainly on India in 2011. During the year, an estimated 147,600 people heard the message of salvation at his Festivals, with more than 11,500 of them making life-changing decisions for Christ. Associate Evangelist Viktor Hamm preached to more than 30,200 people at evangelistic outreach events in Ivanovo, Russia; Bryansk, Russia; and Cologne, Germany (with webcasts to churches in Germany, Israel, and Czech Republic, and other venues). Nearly 1,000 people from various tribes, religious backgrounds, and economic groups made professions of faith at these outreaches. BGEA also continued its partnership with Associate Evangelist RV Brown in 2011. In the United States, he proclaimed the Gospel in almost 80 churches, school assemblies, conferences, Bible studies, youth camps, sports camps, and detention centers. Traveling in Liberia, RV preached the Good News at Festivals; in devotions; to students, committees, and police; on the radio; and more. During the year, the Gospel 10 Responding to the Gospel in Lithuania message reached more than 41,000 people in Liberia and nearly 20,000 in the U.S. Of those, more than 3,600 inquirers in Liberia and nearly 3,000 in the U.S. responded to the invitations by professing Jesus Christ as their Lord and Savior. A Festival of Peace with Associate Evangelist David Ruiz was held in Tampico, Mexico, in 2011. Violence has been rampant in the area due to drug trafficking and the fight amongst the cartels to gain control of the region. With this backdrop, the open-air Festival of Peace was held with the active participation of 80 churches and created such an impact that the governor expressed his gratitude for the Festival. Approximately 10,800 people attended, with more than 950 sharing they had made the decision to follow Jesus Christ. 2 0 1 1 minis t ry re p ort Counseling and Follow-up W ith every Festival and outreach, BGEA strives to make sure that people who make decisions for Christ are connected to a local church, where they can grow in their walk with the Lord and begin to share their faith with family and friends. BGEA continued to use the Christian Life and Witness Course in 2011 as a way to help people mature in their faith, learn to share it with others, and make disciples. These courses were held both domestically and internationally in 10 different locations in support of Franklin Graham Festivals and Will Graham Celebrations. Almost 31,000 individuals completed the training, while more than 5,500 trainees realized their own personal need for a relationship with Jesus Christ and committed their lives to Him during the sessions. As a direct result of the training, over 12,000 people volunteered as counselors at Festivals and Celebrations to help inquirers find new life in Christ. “Others, like seed sown on good soil, hear the word, accept it, and produce a crop—some thirty, some sixty, some a hundred times what was sown.” Mark 4:20, NIV 11 B illy G r a ha m evangeli sti c Associ ati on Youth Ministries Reaching the next generation with the Gospel Rock the Range in Denver, Colorado 2 0 1 1 minis t ry re p ort I ntroducing young people to Jesus Christ is not just the responsibility of youth pastors or youth leaders, but the entire church. BGEA is excited about every opportunity we have to take the Good News to kids all over the world, in their local language. If we want to help build Christ’s church for the next generation, we must engage youth with the truth of the Gospel. From concert outreaches and special events to evangelism training for kids, BGEA is touching young people with the eternal hope of Jesus Christ in many different ways and in many different cultures. 13 B illy G r a ha m evangeli sti c Associ ati on Rock the Range in Denver Rock Events Combining strong presentations of the Gospel with modern music from well-known artists and action-packed programs, BGEA’s family-friendly Rock events draw large audiences to lifechanging concerts. T he first region-wide evangelistic Rock outreach of 2011 took place along the shores of Lake Michigan in Milwaukee, Wisconsin. Local pastors and leaders forged new partnerships ahead of Rock the Lakes, praying it would bring unity and the hope of Christ to the city. During the weekend, 26,500 people attended and more than 800 came forward in response to Franklin Graham’s Gospel messages to commit their lives to Christ. Next up, Rock the Range drew a total attendance of 28,200 in Denver, Colorado, where more than 1,100 responded to the Gospel by making decisions for Christ. Coupled with BGEA’s Christian Life and Witness Course held in some Denver-area churches leading up to the 14 event, the number of commitments to Christ totaled more than 1,500. Will Graham, who accompanied his father to Denver, introduced children to Jesus during KidzFest on Saturday morning. From a total attendance of 2,200 people, more than 220 children responded to Will’s invitation by praying with him to receive Jesus Christ into their hearts. Rock the Range also drew a worldwide audience who watched via webcast on the BGEA website. More than 320 people indicated they chose to accept Christ as a result of watching the live video feed. “Come, let us sing for joy to the Lord; let us shout aloud to the Rock of our salvation.” Psalm 95:1, NIV Thanks to the help of 130 local churches, an estimated 10,000 kids and teens gathered in Winnipeg, Manitoba, for Rock the River. The outreach, a partnership with BGEA of Canada, included a morning event for families and an afternoon and evening of music performances for youth. Approximately 11,200 individuals 2 0 1 1 minis t ry re p ort attended, and more than 300 declared they had decided to follow Jesus. Partnering with BGEA’s office in the United Kingdom, Will Graham completed an 18-day visit to the U.K., which culminated with the Rock Thurrock event in east London. He shared a Gospel message that more than 16 percent of the 1,950 people who attended responded to by making decisions for eternity. The Holy Spirit moved in a mighty way as approximately 300 people—mostly youth—gave their lives to Christ. Children’s Evangelism and Discipleship BGEA continued reaching children around the world in 2011 through the specially developed evangelism and discipleship program called The Greatest Journey. This material uses biblical lessons to teach kids how to follow Christ and share Him with others. Dare to be a Daniel Convinced that today’s youth are most influenced by their peers, BGEA confronted the challenge of reaching this generation by creating the Dare to Be a Daniel evangelism training program for tweens (ages 9–14). The curriculum engages and equips young believers to live boldly for Jesus Christ and share the Gospel with their friends and family. M ore churches, Christian camps, and youth groups utilized Dare to Be a Daniel than ever before during 2011, which resulted in a record year for graduates, with more than 7,100 new “Daniels” completing the training. We also praise God that these Daniels led more than 370 people to Christ. One camp director responded, “We have done three camps using Dare to Be a Daniel at Camp Cedar Cliff and were blown away by the results. Our 9- to 14-year-old campers left camp excited and equipped, ready to share their faith in Christ with their friends and family.” Dare to Be a Daniel’s global expansion continued in 2011 as the program’s materials were translated into French, Spanish, and Creole, and the current international English version continued to be used in the United Kingdom and Australia. W e continued to partner with Samaritan’s Purse in 2011 in utilizing The Greatest Journey, the follow-up discipleship program for children who received gift-filled shoe boxes through Operation Christmas Child. The Greatest Journey, which has been translated into 54 languages, reached thousands of kids who decided to participate voluntarily in the 12-lesson Bible study. In 2011, more than 712,200 children enrolled in the program and more than 264,600 children dedicated their lives to Christ through The Greatest Journey. We give thanks to God for His faithfulness and for the opportunity to share in translation and training for this outreach. Taking The Greatest Journey in Cité Soleil, Haiti 15 B illy G r a ha m evangeli sti c Associ ati on My Hope Photo credit: Nationwide outreaches through personal relationships 2 0 1 1 minis t ry re p ort T he World Evangelism Through Television project, My Hope, partners with thousands of churches worldwide to bring friends, family, and neighbors into a relationship with Christ. Believers in those churches pray for people they know who need to hear the Gospel and, after being trained, invite them into their homes to see or hear evangelistic programs prepared by BGEA specifically for that country. After a broadcast, hosts give a short testimony and invite their guests to receive Christ— and an average of two people per home ask Jesus into their hearts and lives. Friends and family gather to watch a My Hope program in Haiti. 17 B illy G r a ha m evangeli sti c Associ ati on In 2011, over 213,700 people in seven countries (including three sensitive nations) recorded decisions to follow Jesus Christ in response to BGEA My Hope projects. In Spain and Portugal, where evangelical Christians number less than 1 percent of the population, churches caught the vision and saw their prayers answered as they welcomed nearly 8,700 new believers in Spain and more than 2,500 in Portugal. A pastor in Spain’s northwest province of Galicia reported, “We have a church of only 20 people. But through My Hope, several people came to Christ, and now six of them are attending church—this has revolutionized us!” Meanwhile, Portuguese pastor Álvaro Ladeira reported, “At Serra da Luz’s small congregation meeting points, 123 guests attended, and from that group 35 accepted Jesus and three rededicated their lives to the Lord. What happened in this neighborhood was extraordinary; we have sowed love and service for a few years. The My Hope project helped us reap the fruits of trustworthy My Hope in Zambia 18 2 0 1 1 minis t ry re p ort “I’m a simple woman with only a seventh-grade education. But I love Jesus and have a zeal for missions. My Hope has trained me to better lead people from darkness to the light.” —Mary, a host who welcomed 61 people to her home relationships which we’ve been building. The population is no longer ashamed of admitting that they’re identified with us.” In Zambia, more than 5,400 churches joined the My Hope project. Using five national languages, Christians reached out to those around them and led almost 65,400 guests in praying to receive Christ. On the last night of the My Hope broadcast, a Kitwe resident named Mary invited 33 people to her home. To her surprise, 61 showed up! The evening concluded with 29 of her guests making decisions for Christ. “I’m a simple woman with only a seventh-grade education,” she said. “But I love Jesus and have a zeal for missions. My Hope has trained me to better lead people from darkness to the light.” My Hope had planned a national outreach in Haiti for 2010, but due to the horrible earthquake, the project shifted to 2011. Battling rough roads and faulty communication, our team worked with 5,374 churches to train more than 57,800 believers. These participants confirmed that more than 126,200 My Hope in Portugal individuals made professions of faith after the broadcasts. In Alcaye, seven trained hosts invited many people to watch the My Hope programs in a Salvation Army church. After hearing the personal testimonies, 17 adults and children made public commitments to follow Christ. My Hope continued using small portable projectors to reach three sensitive countries— Muslim and Buddhist—in Asia and rejoiced as more than 10,900 people prayed to receive Christ in 2011. In one violent country, where Christians are killed nearly every week, four churches formed when 170 people responded to the Gospel and then were baptized. That same kind of harvest is taking place in other areas of this dangerous country. “You are God my Savior, and my hope is in you all day long.” Psalm 25:5, NIV International Film Ministry BGEA partners with national preachers and Bible school students around the world, supplying movies and battery-powered mini-projectors for these film evangelists to use in effective, itinerant ministry. Most showings are in rural areas where people have few opportunities to see a motion picture and are more open to the Gospel message it brings. In 2011, nearly 64,400 people in 35 countries made commitments to Christ after watching a BGEA/World Wide Pictures film. Film evangelism in Asia 19 B illy G r a ha m evangeli sti c Associ ati on Rapid Response Team Sharing the hope and comfort of Jesus Christ in crisis T Sharing the love and comfort of Christ in Windsor, North Carolina Photo credit: he 10th anniversary of 9/11 served as a reminder of the tremendous opportunity for ministry God has given us through the Billy Graham Rapid Response Team (RRT). As a result of the attacks, BGEA developed RRT to recruit qualified volunteers from all over the country, train them in how to care for emotional and spiritual hurt, and deploy them at a moment’s notice in the aftermath of man-made and natural disasters as crisis chaplains. 2 0 1 1 minis t ry re p ort During 2011, tragedies struck frequently and hard, and our team brought prayer, encouragement, and the love of Christ to survivors, first-responders, and local pastors and churches in devastated communities. B GEA deployed 244 chaplains to 20 disaster locations, including Japan following the historic earthquake and tsunami. RRT also continued serving in Haiti in the lingering aftermath of the 2010 earthquake. By year-end, the chaplains had assisted more than 133,600 victims and personally prayed with over 33,400 individuals. We give all thanks and praise to God for the thousands of people comforted in Jesus’ Name and for the more than 2,170 who responded to our chaplains’ invitations to know Christ. RRT continued to grow in 2011 by training and equipping more than 3,700 individuals through 23 U.S. training sessions last year. BGEA also provided biblically based grief and crisis training to church leaders in Japan, who continue to teach this material throughout their nation. In addition to creating a team in Australia, RRT worked with BGEA’s international counterparts (in Australia, Canada, and the United Kingdom) to train over 900 individuals at 22 sites. “He heals the brokenhearted and binds up their wounds.” Psalm 147:3, NIV BGEA also teamed with RRT–United Kingdom and RRT-Canada to deploy 14 chaplains to five disaster locations. Their chaplains assisted more than 5,900 victims and personally prayed with over 1,400 individuals, including eight who committed their lives to Christ. Franklin Graham prays with tornado victims in Joplin, Missouri. 21 B illy G r a ha m evangeli sti c Associ ati on The Billy Graham Library a journey of faith U sing state-of-the-art exhibits that have drawn more than half a million visitors since 2007, the Billy Graham Library shared the Gospel message with a growing audience last year. More than 160,000 people visited the Library in 2011—approximately 30,000 more than had visited any year prior. Christmas at the Billy Graham Library 22 “Come and see what God has done: he is awesome in his deeds.” Psalm 66:5, ESV 2 0 1 1 minis t ry re p ort Throughout 2011, the Library welcomed diverse audiences by hosting several special events. A Louis Zamperini book signing featured the Olympic star and World War II hero whose life story—and life-changing encounter with Billy Graham—is told in the No. 1 best-seller Unbroken. The Gaither Tent Revival Homecoming taping showcased more than 140 of Gospel music’s leading artists. The Library’s annual events included the fourth Bikers With Boxes and Christmas at the Library, which alone drew more than 53,000 guests. We also featured special exhibits such as “Ruth Bell Graham: The Heart of a Missionary”; “A Legacy of Literature: The Writings of Billy and Ruth Graham”; and “The Bible in China: A History of Hope and Transformation.” O f the many thousands of guests who toured the Library’s Journey of Faith experience in 2011, almost 2,100 indicated they had responded to the presentation of the Gospel by deciding to follow Jesus Christ. During one four-day stretch, approximately 400 public school students from York, South Carolina, were bused in for Library tours as part of an elective Bible education course taught outside the school. As the tours concluded, 140 of the fifth- through eighth-grade students made commitments to Christ. On another occasion, a 12-year-old named Kristin visited the Library with a group of family and friends. “She came out of the final theater with tears running down her face,” a trained volunteer reported. “I asked her if she had just invited Christ into her life, and she said, ‘Yes.’ We invited her and her family into the prayer room, and when we did, the entire extended family and friends came and knelt around Kristin. After we prayed with Kristin, one of the them passed a cross pin to Kristin’s dad, and he pinned it on his daughter. We rejoiced with Kristin and welcomed her into the family of God. The whole family, friends, and prayer team applauded and rejoiced, hugging each other as they went on their way.” “When 400 public school students were bused in to tour the Billy Graham Library, 140 of them made commitments to Christ.” Field trip to the Library 23 B illy G r a ha m evangeli sti c Associ ati on The Billy Graham Training Center at The Cove Presenting the Word of God in its fullness “Come, let us go up to the mountain of the 24 Lord, … that he may teach us his ways and that we may walk in his paths.” ISaiah 2:3, ESV 2 0 1 1 minis t ry re p ort S ince 1988, The Cove has sown the seeds of God’s Word by following the guiding principles set forth by Billy and Ruth Graham—focusing on biblical instruction, inspiration, intercession, and impact in an environment where participants can experience retreat, rest, relaxation, and renewal. During 2011, more than 24,100 Cove attendees participated in 313 life-changing Seminar, Guest Group, and Personal Spiritual Retreat ministry events, while the Chatlos Memorial Chapel welcomed over 44,900 visitors. Nine seminar webcast sessions with various speakers were transmitted live to more than 8,000 remote viewers in 102 countries. W hile The Cove’s primary mission is to equip believers through God’s Word for evangelism and discipleship, we praise Him for the visitors who hear the Gospel and respond on this mountain. During 2011, there were almost 2,000 decisions for Christ documented. “I surrender myself totally to God, trusting Him and His purpose for my life, submitting to His control,” responded one Cove guest. Another explained, “I came weary and war-torn and heard the surgically precise remedy for my condition. Hallelujah! I’m back from the edge.” After hearing renowned leaders (such as Erwin Lutzer, pictured right), guests often break into small groups on the Training Center’s scenic deck (left). 25 B illy G r a ha m evangeli sti c Associ ati on Internet & Media Reaching people every day right where they are F or six decades, BGEA has pursued innovative ways to sow the seeds of the Gospel through new technology. While the message remains the same, today we are using more tools than ever to spread the Good News. Through the Internet and multimedia outlets, we are taking our greatest steps toward reaching every language on earth with the Gospel. 26 2 0 1 1 minis t ry re p ort Internet People from more than 200 countries and territories accounted for more than 4 million visits to BGEA’s ministry websites in 2011— up 19 percent from a year earlier. Whether watching a live stream from a Franklin Graham Festival, reading updates from one of our My Hope countries, or viewing photos of a Rapid Response Team crisis deployment, Web users were always a click away from the Gospel at BillyGraham.org. This is true of each of BGEA’s major websites, including GrahamFestivals.org, BillyGrahamLibrary.org, and TheCove.org. Almost 1,400 visitors made commitments to Christ. I Right now, thousands online are searching for God, whether at home (left) or on the go (right). n addition to reaching those who are seeking a relationship with God, BGEA used digital outreach to encourage Christians and help them grow in their faith. Spiritual help, daily devotions, and tools for sharing one’s faith were among the most popular online content. “I watched a BGEA broadcast online,” wrote one site visitor from Asia. “I was stirred up to preach to my whole world. God bless you abundantly.” And a grateful reader named Nana responded to Billy Graham’s online devotionals, writing, “I am every day encouraged by [your] daily devotion. I am always eager to read it to know what God has for me.” As technology becomes more mobile, BGEA’s digital reach continues to grow. Mobile versions of BillyGraham.org were made available on all major portable devices—and new BGEA apps for iPhones, iPads, and Android devices were downloaded by approximately 80,000 people around the world last year. Social networking was an essential and growing part of our online influence. By the end of 2011, 1.7 million people were following at least one BGEA ministry on Facebook or Twitter—and BGEA videos were watched more than 3.1 million times on YouTube. 27 B illy G r a ha m evangeli sti c Associ ati on Search for jesus BGEA ’s online Gospel outreach took a quantum leap in 2011 with the launch of PeaceWithGod.net, part of our new Search for Jesus Internet ministry. Each day, millions of people look for hope by taking their spiritual questions to the Internet. Now, when individuals enter phrases like “God, do You exist?” “Does anyone care?” or “I need peace” in popular When a 28-year-old Nigerian man found PeaceWithGod.net, he wrote, “I know I’m a sinner asking for God’s mercy and forgiveness of my sins. I want to know and serve God better. I want Him to come into my life and dwell.” Having indicated his prayerful decision for Christ, he added, “I want to be in His presence all the days of my life.” An online inquirer from Tennessee discovered PeaceWithGod.net, prayed to accept Christ, connected with a church, and now spends time daily in the Bible and in family devotions. More than 2,000 people responded to BGEA’s call for Web-based volunteers. Trained Christians will pray with inquirers and introduce them to local churches as Search for Jesus expands into other countries and languages to reach as many as possible with the Good News. BGEA invited believers everywhere to visit our interactive site, SearchforJesus.net, to see real-time decisions for Christ being made around the world through the Search for Jesus ministry. Television and Video search engines, links to PeaceWithGod.net direct them to real hope through compelling Gospel presentations. By year’s end, the site had drawn more than 1 million people, with over 139,900 of them indicating they had committed their lives to Jesus Christ during their visit. We gave these new believers access to online discipleship materials. Since the Internet evangelism project is about more than just reaching people, BGEA will soon be connecting inquirers to local churches so they can cultivate their personal relationships with Christ. “May God be gracious to us and bless us and make his face shine on us—so that your ways may be known on earth, your salvation among all nations.” Psalm 67:1–2, NIV 28 BGEA produced more than 500 TV programs, website features, and ministry videos during 2011. We produced seven new episodes of the nationally televised Always Good News, a monthly half-hour program which vividly portrays the power of the Gospel at work in people’s lives worldwide and reveals the breadth of our ministries. Always Good News aired throughout the year on predominantly Christian cable networks and select local affiliates. TBN , the world’s largest Christian TV network, aired a total of 57 updated Billy Graham Classics sermon programs during 2011. In addition to being broadcast three times each week on TBN, by year-end, the Classics began airing twice a week on The Church Channel. BGEA extended the ministry’s reach by streaming select episodes on demand through 2 0 1 1 minis t ry re p ort the launch of BillyGraham.org/Classics. BGEA’s 38 North American volunteer phone centers and website continue to see many decisions for Christ C alls received are primarily from listeners of BGEA’s radio broadcasts and viewers of TV’s Always Good News and the Billy Graham Classics. Response Center representatives prayed with more than 50,000 callers, including 650 people who made decisions for Christ. Working in tandem with the Response Center, BGEA’s Christian Guidance ministry provides discipleship materials to inquirers and corresponds with thousands of longtime friends and supporters who seek information about our ministries and resources. During 2011, God graced Christian Guidance with the opportunity to respond to more than 95,000 letters and emails and pray for the thousands of spiritual needs shared with the team each week. through these historic broadcasts. During the year, BGEA’s call centers handled approximately 18,000 spiritual inquiries, with more than 8,000 of these calls resulting in decisions for Christ. Three Festivals were streamed live to reach a much larger audience. Total estimated online viewership was 29,000. Through these webcasts, more than 800 online viewers around the world made commitments to Christ. In addition, the L.A. Festival de Esperanza was broadcast live on TBN’s Spanish affiliate network, giving millions of homes in over 25 countries across Central and South America the opportunity to hear the Gospel. Response Center & Christian Guidance People looking for spiritual answers and simple words of comfort can call BGEA’s Response Center and speak one-onone with trained representatives who share the love of Christ through God’s Word. Whether fielding prayer requests, leading people to salvation, or answering questions about outreach events, compassionate operators responded to more than 216,000 calls and emails in 2011. Decision Magazine During 2011, Decision magazine continued to inspire and challenge readers in more than 80 countries around the world by blending evangelism, discipleship, and stories of transformed lives in its vibrant publication. Decision printed more than 3.2 million copies last year, an average of over 295,000 per month. BGEA sent about 18,700 copies each month to prison chaplains, at no charge, for distribution in more than 29 B illy G r a ha m evangeli sti c Associ ati on 265 correctional facilities. In addition, hundreds of blind and sight-impaired people receive Decision either in Braille or on audiotape, and more than 62,000 subscribers receive Decision’s email devotional each week. Decision’s digital edition, available at a reduced subscription price, features rich content such as audio and video, in addition to what appears in the print edition. “T his is my first year subscribing to Decision magazine,” wrote a reader from Pennsylvania, “and it has greatly touched my life. I am looking forward to sharing this particular [issue] since many of the articles fit right in with what we have been discussing in the family connect group I lead.” We praise God for reports like this one from a reader in Oklahoma: “I was really depressed, and I was reading the first page … about temptation and overcoming it. … Then I read the sinner’s prayer and prayed that God would forgive my sins. And I am rejoicing and am a new person.” 30 Radio & Blue Ridge Broadcasting Did you know that each week, 92 percent of America’s population listens to a radio? Or that 74 percent does so every day? Internationally, percentages are often higher. That’s why radio remains a uniquely effective way to reach people with the Good News of Jesus Christ. B y the end of 2011, 601 stations were airing BGEA’s weekly program, The Hour of Decision—a 15 percent increase in two years. Decision Minute benefited from similar increases as well. Satellite radio listeners received hope through these programs and the Billy Graham Classics every Sunday on SiriusXM. Globally, The Hour of Decision and Decision Minute were recorded in the world’s four most widely spoken languages, giving listeners on every continent an opportunity to hear the Gospel. Internet’s role as an audio source continued to grow in 2011, and BGEA created the Billy Graham Audio Archives—1,673 messages from 60 years of Billy Graham’s ministry, all available for listening on demand at BillyGraham.org. Blue Ridge Broadcasting, BGEA’s listenersupported radio ministry, continued to proclaim Christ’s love through Bible teaching and Christian music. Last year, our flagship station, 106.9 the Light, served more than 377,000 listeners each week. Furthermore, 106.9 the Light reached approximately 146,000 people attending its sponsored events, responded personally to over 9,500 prayer requests, and connected with more than 48,000 fans on Facebook and 32,000 others through phone apps. Blue Ridge Broadcasting continued to hear many stories of changed lives, and it’s our prayer that God will be glorified in all of them. “My uncle is in prison, and he’s come to the Lord,” wrote a man named James. “He listens to you all the time, and I listen as well and love the music. [Jesus is] changing my life and my family’s life. Thank you.” The radio ministry welcomed over 180 commitments to Christ. 2 0 1 1 minis t ry re p ort “I’m grateful that I have lived long enough to see these things happening. God says in the Bible, ‘Ask me, and I will make the nations your inheritance’ (Psalm 2:8, NIV). Some refer to that as God’s own prayer request. He wants every nation to turn to Him. Join me in continuing to ask Him. ” —Billy Graham 31 B illy G r a ha m evangeli sti c Associ ati on Board of Directors 2011 George E. Battle, Jr. David P. Bruce Billy Graham Melvin F. Graham s President & Owner Graham Enterprises Charlotte, North Carolina Elected 2001 Wm. Franklin Graham, III s First Vice Chairman, President & Chief Executive Officer Billy Graham Evangelistic Association President & Chief Executive Officer Samaritan’s Purse—U.S.A. Boone, North Carolina Elected 1979 Wm. Franklin Graham, IV J. Frank Harrison, III Herbert P. Hess s l Greg Laurie Anne Graham Lotz Denton Lotz Hon. Stephen E. Merrill l Former Governor of New Hampshire Chairman, Bingham Consulting at Bingham McCutchen LLP Boston, Massachusetts Elected 1997 Charles O. Morgan, Jr. s l William B. Pauls s Chairman The Pauls Corporation Denver, Colorado Elected 1997 C. William Pollard s l Paul T. Saber s President and Chief Executive Officer Manna Development Group Encinitas, California Elected 2006 President Cornerstone University Grand Rapids, Michigan Elected 1999 Bishop AME Zion Church Davidson, North Carolina Elected 2003 Chairman & Chief Executive Officer Coca-Cola Bottling Co. Consolidated Charlotte, North Carolina Elected 2002 Attorney Miami, Florida Elected 1983 Executive Assistant to Billy Graham Montreat, North Carolina Elected 2002 President Emeritus North American Management Group Boston, Massachusetts Elected 1979 Evangelist & Chairman Billy Graham Evangelistic Association Montreat, North Carolina Elected 1950 Senior Pastor Harvest Christian Fellowship Riverside, California Elected 1994 Chairman Emeritus The ServiceMaster Company Memphis, Tennessee Elected 1986 President AnGeL Ministries Raleigh, North Carolina Elected 1994 General Secretary Emeritus Baptist World Alliance Forestdale, Massachusetts Elected 1999 Joseph M. Stowell, III s The Billy Graham Evangelistic Association exists to support and extend the evangelistic calling and ministries of Billy Graham and Franklin Graham by proclaiming the Gospel of the Lord Jesus Christ to all we can by every effective means available to us and by equipping others to do the same. 32 Executive Director Billy Graham Training Center at The Cove Asheville, North Carolina Elected 2005 KEY: s Executive l Audit Committee Committee 2 0 1 1 minis t ry re p ort board members emer i t i Clifford B. Barrows George F. Bennett Wallace E. Berg David L. Burnham Michael E. Haynes C. Howard Kast Graeme M. Keith Ruth Shanahan Elected 1950 Emeritus 2000 Elected 1973 Emeritus 1999 Elected 1987 Emeritus 2002 Elected 1987 Emeritus 1999 Elected 1973 Emeritus 1997 Elected 1990 Emeritus 2008 off i cers Richard G. Capen, Jr. Elected 1985 Emeritus 1998 Elected 1990 Emeritus 2009 Melvin L. Cheatham Elected 1997 Emeritus 2008 Elected 1992 Emeritus 2010 B oard Comm i ttee C ha i rpersons Billy Graham Chairman Joel B. Aarsvold Secretary C. William Pollard Executive Committee Wm. Franklin Graham, III First Vice Chairman William B. Pauls Treasurer Charles O. Morgan, Jr. Audit Committee Clifford B. Barrows Vice Chairman Graeme M. Keith Assistant Treasurer C. William Pollard Compensation Committee C. William Pollard Chairman of Executive Committee Graeme M. Keith Development Committee J. Frank Harrison, III Field Ministry Committee William B. Pauls Finance Committee Billy Graham Nominating Committee Sterling W. Huston Graham Center Liaison Committee Herbert P. Hess Retirement Plan Committee Stephen E. Merrill Insurance Committee IN MEMORY IN MEMORY Guy Martin, 1921–2012 Member of BGEA Board of Directors 1967–1999 Marjorie Ruth Gieser, 1938–2011 Member of BGEA Board of Directors 1992–2011 From an early age, Guy Martin had an interest in automobiles, which eventually led to him owning Oldsmobile and Honda franchises. From 1992 to 1996, he served as President of the Greater Los Angeles Automobile Dealers Association. Mr. Martin and his wife, Marion, were members of First Presbyterian Church of Hollywood. His commitment to further the Gospel of Jesus Christ led him to serve on the boards of several Christian organizations, including the Billy Graham Evangelistic Association from 1967 to 1999. He continued to serve as an emeritus board member until his death in January 2012. Herbert P. Hess Investment Committee Marjorie Ruth Gieser was a prolific liturgical artist. She graduated from Wheaton College where she met her husband, Dr. Richard G. Gieser. They lived in Wheaton, Illinois, for 45 years. In 1976, Mrs. Gieser received her Master of Fine Arts from the School of Art Institute in Chicago. An artist of various media, she found her calling in the creation of art used to augment worship in services. Various churches in the Chicago area and numerous churches around the world use her work. Mrs. Gieser accompanied her husband on frequent medical mission trips and brightened hospital wards in India, Bolivia, and Mongolia with colorful murals she painted. Mrs. Gieser served on the Board of Directors of the Billy Graham Evangelistic Association from 1992 to 2011. 33 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS Report of Independent Auditors The Board of Directors Billy Graham Evangelistic Association We have audited the accompanying consolidated statement of financial position of Billy Graham Evangelistic Association and Affiliated Organizations (collectively referred to as the Organization) as of December 31, 2011, and the related consolidated statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Organization’s management. Our responsibility is to express an opinion on these financial statements based on our audit. As described in Note 1, the prior year’s summarized comparative information was derived from the Organization’s 2010 financial statements and, in our report dated March 21, 2011, we expressed an unqualified opinion on those statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the 2011 financial statements referred to above present fairly, in all material respects, the consolidated financial position of Billy Graham Evangelistic Association and Affiliated Organizations as of December 31, 2011 and the consolidated changes in its net assets and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. . Charlotte, North Carolina March 19, 2012 34 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS 2 0 1 1 minis t ry re p ort Consolidated Statement of Financial Position As of December 31, 2011 and 2010 2011 2010 Assets Cash and cash equivalents $ 18,833,013 Accounts receivable, net $ 16,269,196 822,272 933,128 Pledges and other contributions receivable, net 4,671,521 3,297,761 Inventories 895,341 932,361 Prepaid expenses and other current assets 1,290,340 817,225 23,948,670 24,813,488 75,720,213 81,685,602 Property and equipment, net of accumulated depreciation Investments: Investments functioning as endowments Other long-term investments Deferred giving program 135,844,119 133,849,471 92,886,570 235,324,767 234,046,214 790,041 852,682 7,553,968 7,310,173 91,926,680 Other assets Total assets $ 335,783,691 $ 341,397,986 2,385,598 Liabilities and net assets Liabilities: Accounts payable $ 2,503,051 Accrued expenses $ 2,688,502 2,753,580 Deferred revenue 1,032,194 927,843 Deferred giving program 71,139,808 73,075,310 Total liabilities 77,246,102 79,259,784 Net assets: Unrestricted: Designated by governing board 129,536,291 127,671,631 Represented by property and equipment 75,720,213 81,685,602 General 27,646,083 29,166,223 232,902,587 238,523,456 Total unrestricted net assets Temporarily restricted 15,299,546 13,537,741 Permanently restricted 10,335,456 10,077,005 Total net assets 258,537,589 Total liabilities and net assets 335,783,691 $ 262,138,202 $ 341,397,986 35 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS Consolidated Statement of Activities For the year ended December 31, 2011 (with Summarized Totals for 2010) 2011 TemporarilyPermanently UnrestrictedRestricted Restricted Operating activities Support and revenue: Contributions Billy Graham Training Center $ 65,402,355 4,760,994 $ 15,987,119 – $ 316,856 – Decision magazine and other evangelistic materials 1,464,098 – – Other income 4,893,691 – – Net assets released from restrictions 17,824,729 (17,824,729) – Total support and revenue 94,345,867 (1,837,610) 316,856 Operating expenses: Ministry expenses: Evangelistic crusades 21,851,689 My Hope, World Evangelism Through Television 8,228,972 – – – – – Radio, television, and film 9,729,229 – Print and Internet 9,251,074 – – Billy Graham Library 5,993,906 – – Billy Graham Training Center 11,281,413 – – Evangelism training 907,943 – – Dare to Be a Daniel 598,156 – – Rapid Response Team and World Emergency Fund 1,260,486 – – Decision Magazine 3,017,143 – – – SearchforJesus.Net 1,214,599 – Other evangelistic ministry 3,712,008 – – Total ministry expenses 77,046,618 – – Support activities: Fund-raising 6,453,836 – – General and administrative 10,510,588 – – 94,011,042 – – Change in net assets from operations 334,825 (1,837,610) 316,856 49,238 Total operating expenses Nonoperating activities Investment income 2,671,809 534,606 Net gain (loss) on sale of fixed assets (26,721) – – Realized gains on sale of investments 1,390,087 156,053 495 Unrealized investment gains (losses) (2,841,451) (399,604) 2,871 Change in value of annuities and trusts (7,149,418) 3,308,360 (111,009) Total non-operating activities (5,955,694) 3,599,415 (58,405) Change in net assets (5,620,869) 1,761,805 258,451 Net assets at beginning of year Net assets at end of year 36 238,523,456 $ 232,902,587 $ 13,537,741 15,299,546 10,077,005 $ 10,335,456 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS Total $ 2010 Total 81,706,330 $ 2011 OPERATING SUPPORT AND revenue 80,919,516 4,760,994 4,767,130 1,464,098 1,660,166 3,945,564 4,893,691 – – 92,825,113 91,292,376 21,851,689 15,790,986 8,228,972 6,616,844 2 0 1 1 minis t ry re p ort 9,729,229 11,142,795 Contributions, 88.0% 9,251,074 11,551,166 5,993,906 5,675,461 Billy Graham Training Center, 5.1% 11,281,413 10,038,405 907,943 2,592,457 598,156 357,050 1,260,486 676,742 3,017,143 3,105,117 1,214,599 – 3,712,008 4,112,666 77,046,618 71,659,689 6,453,836 5,418,293 10,510,588 10,271,976 94,011,042 87,349,958 (1,185,929) 3,942,418 4,263,912 3,255,653 (26,721) 1,359 1,546,635 2,685,979 (3,238,184) 6,089,547 (3,952,067) (3,595,111) (2,414,684) 9,445,686 (3,600,613) 13,388,104 262,138,202 248,750,098 $ 258,537,589 $ 262,138,202 Decision magazine & other evangelistic materials, 1.6% Other income, 5.3% 2011 OPERATING expenses Ministry expenses, 81.9% Fund-raising, 6.9% General and administrative, 11.2% 37 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS Consolidated Statement of Cash Flows For the Year Ended December 31, 2011 and 2010 2011 2010 Operating activities Change in net assets $ (3,600,613) $ 13,388,104 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization expense 7,449,387 7,299,508 Realized gains on sale of investments (1,546,635) (2,685,979) Unrealized (gains) losses on investments 3,238,184 (6,089,547) Actuarial adjustment on annuity obligations 1,536,784 3,627,783 Donations of real estate and mortgage deeds receivable Net losses on sale of fixed assets and donated real estate Changes in operating assets and liabilities: (182,165) (163,589) (15,916) (3,674) (Increase) Decrease in receivables, net of allowances (1,262,904) 18,582 (Increase) in inventories, prepaid expenses and other current assets (436,095) (60,254) Increase (Decrease) in accounts payable, accrued expenses and deferred revenue (78,180) 338,757 Net cash provided by operating activities 5,101,847 15,669,691 Investing activities Maturities of investments 1,245,329 4,517,782 Proceeds from sales of investments functioning as endowments 115,544,508 167,963,429 Purchase of investments functioning as endowments (119,648,388) (179,640,525) Purchases of fixed assets (1,473,310) (4,632,071) (Additions) reductions to other assets (64,639) Net increase in deferred giving program assets (3,061,915) Proceeds from the sale of fixed assets and donated real estate Net cash used in investing activities 1,889,600 132,509 (7,325,906) (4,351,690) 198,790 (14,054,685) Financing activities Proceeds from deferred giving program contracts 6,215,983 2,890,403 Payments of deferred giving program contracts (6,555,741) (4,393,042) Net cash used in financing activities (339,758) (1,502,639) Increase (Decrease) in cash and cash equivalents (2,563,817) 112,367 Cash and cash equivalents at beginning of year 18,833,013 18,720,646 Cash and cash equivalents at end of year 16,269,196 18,833,013 $ $ To see the complete version of the Billy Graham Evangelistic Association 2010 audited financial statements, please go to BillyGraham.org/Financial. 38 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS 2 0 1 1 minis t ry re p ort Notes to Consolidated Financial Statements December 31, 2011 1. Significant Accounting Policies Description of Ministry The mission of the Billy Graham Evangelistic Association (the Association) is to support and extend the evangelistic calling and ministries of Billy Graham and Franklin Graham by proclaiming the Gospel of the Lord Jesus Christ to all we can by every effective means available to us and by equipping others to do the same. Support is received primarily through contributions and deferred giving programs. Principles of Consolidation The consolidated financial statements include the Association and the following other affiliates: Blue Ridge Broadcasting Corporation; Graham Fund for Evangelism; BGEA Pte. Ltd.; and Organizacao R.E.B.G. Brasil. In accordance with United States generally accepted accounting principles pertaining to consolidation, management annually evaluates which entities should be consolidated for financial statement presentation purposes. The affiliated organizations strengthen the ministries of the Association and share the same goals and purposes. All significant intercompany accounts and transactions have been eliminated. The assets and the liabilities of BGEA Pte. Ltd. and Organizacao R.E.B.G. Brasil are translated at current exchange rates, while income and expense items are translated at average exchange rates prevailing during the year. For the years ending December 31, 2011 and 2010, the foreign exchange translation loss of $4,776 and $31,449 respectively, is included in the consolidated statement of activities. The financial statements include certain summarized prior year comparative information in total but not by net asset classification. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States. Accordingly, such information should be read in conjunction with the Organization’s financial statements for the year ended December 31, 2010, from which the summarized information was derived. Reclassifications Certain amounts in the 2010 financial statements have been reclassified to conform to the 2011 financial statement presentation. Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with a maturity of three months or less. For the purposes of the statement of cash flows, cash and cash equivalents included in investments functioning as endowment and investments in the deferred giving program are not considered cash and cash equivalents. Inventories Inventories are products for sale stated at average cost. Property and Equipment Land is stated at cost. Buildings, improvements, and equipment are stated at cost less accumulated depreciation. Depreciation of buildings, improvements, and equipment is calculated using the straight-line 39 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS method over their estimated useful lives. Costs of new facilities and improvements are capitalized, while maintenance and repairs are charged to expense in the period incurred. Collections The Association’s collections are made up of artifacts of historical significance to the ministry. The collections were gifted, donated, or on loan and are not recognized as assets on the statement of financial position or as contributions on the statement of activities. Investments Investments in equity securities with readily determinable fair values and all debt securities are recorded at fair value based upon quoted market prices. Other investments (such as real property) are reported at fair value measured on a non-recurring basis. Donated investments without a readily determinable fair value are stated at a nominal value. Investment income or loss (including gains and losses on investments, interest, and dividends) is included in the change in unrestricted net assets unless the income or loss is restricted by the donor. Investment income is recorded net of investment expenses. For the years ended December 31, 2011 and 2010, investment expenses were $636,639 and $435,404, respectively. Realized gains or losses on investments are determined by comparison of specific cost of acquisition to proceeds at the time of disposal. Unrealized gains or losses are calculated by comparing cost to market values at the statement of financial position date. Deferred Giving Program The Association has a fully funded program whereby deferred gifts can be made through gift annuity and trust participation. All gift annuity fund assets are held in trust by a bank and managed by investment management companies. Various state laws require that the Association maintain segregated accounts with assets equal in amount to the actuarial reserve necessary to pay the annuities plus an additional reserve. Some state laws also establish specific investment regulations related to the manner in which the assets are invested. Trust assets are held and managed by the Association. The Association records assets received in the deferred giving program at their fair value and records the liabilities incurred. The initial liability is recorded at the present value of payments to be made under annuity and irrevocable trust agreements over the term of the agreements, usually the beneficiaries’ life expectancy. For annuities, the present value calculation used a 3.0% discount rate in 2011 and 3.25% in 2010. For trusts, the present value calculation used a discount rate of 1.4% in 2011 and 2.6% in 2010. Revaluations of expected future payments to beneficiaries based on changes in life expectancy are calculated using the Annuity 2000 mortality table for annuities and the 2000CM mortality table for trusts as well as other actuarial assumptions and are recorded as a change in value of annuities and trusts in the statement of activities. Effective for the fiscal year ended December 31, 2009, the Association has voluntarily elected under U.S. generally accepted accounting principles pertaining to financial instruments the fair value option for valuing all liabilities associated with the irrevocable trust agreements and annuity agreements. It is believed that this will improve the clarity and consistency of the valuation of these liabilities. The contribution portion is recognized as income at the time the agreement is executed. Revocable trust agreements are recorded as a liability until the agreement becomes irrevocable or the assets are distributed, at which time the contribution revenue is recognized. The Association is also named as a beneficiary in revocable trusts and wills that are not managed by the 40 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS 2 0 1 1 minis t ry re p ort Association. These assets are not included in the statement of financial position, as the Association’s share of these assets cannot be determined. Deferred Revenue The subscription price of Decision magazine is charged to unearned subscriptions when received and is amortized to income over an 11-month period. Advertising Costs The Association expenses advertising costs as incurred. For the years ending December 31, 2011 and 2010, advertising costs totaling approximately $3,545,000 and $2,367,000, respectively, related primarily to television airtime to promote airing of evangelistic telecasts, evangelistic crusades, and literature and materials. Allocation of Joint Costs Certain expenditures of the Association and affiliates (including radio and television, direct mail, and postage) relate to both ministry and fund-raising. The allocation of these joint costs is based on estimates of the content, audience, and purpose of these expenditures. Total joint costs and respective allocations are as follows: 2011 Ministry $ 26,406,558 Fund-raising General and administrative 2010 $ 29,145,662 3,207,246 3,651,914 6,624,192 5,399,263 $ 36,682,664 $ 37,752,171 Income Taxes The Association and U.S. affiliated organizations are exempt from federal income taxes, and contributions to them are deductible as charitable contributions under Internal Revenue Code Section 170. The Internal Revenue Service has issued determination letters to the Association and exempt affiliated organizations stating that they qualify for tax-exempt status under Internal Revenue Code Section 501(c)(3). The Internal Revenue Service has also issued rulings stating that they will not be treated as private foundations within the meaning of Internal Revenue Code Sections 509(a)(1), 509(a)(2), and 509(a)(3). As required by U.S. generally accepted accounting principles pertaining to uncertain tax positions, the Organization records a liability for any tax position taken that is beneficial to the Organization, including any related interest and penalties, when it is more likely than not the position taken by management will be overturned by a taxing authority upon examination. Management believes there are no such positions as of December 31, 2011 and 2010, and, accordingly, no liability has been accrued. Net Asset Classifications The Association interprets the Uniform Prudent Management of Institutional Funds Act underlying net asset classification of donor restricted assets as follows: Permanently restricted net assets include contributions that donors have specified must be maintained in perpetuity, and, if directed, a portion of investment returns based on instructions in the gift instrument. Temporarily restricted net assets are comprised of funds that are restricted by donors for specific purposes or time periods. Temporarily restricted net assets also include investment returns from permanently restricted assets until those amounts are appropriated for spending in accordance with donor restrictions. 41 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS Unrestricted net assets represent funds that are fully available, at the discretion of management and the Board of Directors, for the Association to utilize in any of its programs or supporting services. Temporarily Restricted Contributions The Association records contributions as temporarily restricted if they are received with donor stipulations that limit their use either through purpose or time restrictions. When donor restrictions expire, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. The Board of Directors has established a policy that up to 10 percent of all donor-restricted contributions for a specific project may be used for administering the gift, if needed. Accounting for Long-Lived Assets The Association records losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Association did not record impairment for 2011 or 2010. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 2. Pledges and Contributions Receivable The Association received pledges to support the construction of the Billy Graham Library. The Association has also received unrestricted contribution commitments that are recorded as receivables. Unconditional pledges and other contributions receivable expected to be received within one year are reported at net realizable value. Those expected to be collected in more than one year are reported at the net present value of their estimated future cash flows. The discount on these amounts is computed using a credit risk adjusted interest rate at the date of the pledge or contribution notification. Amortization of the discount is included in contribution revenue. At December 31, 2011 and 2010, the net receivable value of pledges for construction of the library is $415,034 and $534,632 respectively. Other contributions receivable is $4,256,487 and $2,763,129 at December 31, 2011 and 2010, respectively. Pledges and contributions receivable consists of the following: 20112010 Unconditional promises to give $ Less unamortized discount 5,031,771 $ 3,664,952 31,040 31,040 5,000,7313,633,912 Less allowance for uncollectible pledges 329,210 336,151 Net pledges and other contributions receivable $ 4,671,521 $ 3,297,761 4,496,239 $ 3,046,381 535,532 618,571 Amounts due in: Less than one year One to five years 42 $ $ 5,031,771 $3,664,952 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS 2 0 1 1 minis t ry re p ort 3. Property and Equipment A summary of property and equipment and related accumulated depreciation at December 31, 2011 and 2010 is as follows: 20112010 Land and improvements $ 16,740,441 $ 16,725,080 Buildings and improvements: Billy Graham Training Center 31,919,246 31,831,402 Billy Graham Library 17,885,505 17,869,645 Headquarters and other 37,530,723 37,530,723 Equipment, furniture, and fixtures 48,520,095 47,756,860 Total 152,596,010151,713,710 Less accumulated depreciation 76,884,173 70,036,484 75,711,837 81,677,226 Construction in progress Net property and equipment 8,376 $ 75,720,213 8,376 $ 81,685,602 4. Investments Investments are composed of the following: 20112010 Equities $ Fixed income and credit 66,422,986 $ 49,062,985 110,365,290 128,196,207 Other 58,536,49156,787,022 Total investments $ 235,324,767 $ 234,046,214 The following table reflects investments with unrealized losses at December 31, 2011. The table segregates investments that have been in a sustained unrealized loss position for less than 12 months from those that have been in a sustained unrealized loss position for 12 months or greater. Sustained loss of: Description of securities Equities Less than 12 months Fair Value Unrealized Losses Fair Value Total Unrealized Losses Fair Value Unrealized Losses $ 39,271,740$2,711,082$2,131,078$ 166,074$ 41,402,818$2,877,156 Fixed income4,946,370 96,6544,069,069 other14,113,751 469,180 Total 12 months or greater – 59,427 9,015,439 156,081 –14,113,751 469,180 $ 58,331,861$3,276,916$6,200,147$ 225,501$ 64,532,008$3,502,417 43 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS 5. Deferred Giving Program The assets and liabilities in the deferred giving program are as follows: 20112010 Assets Gift annuity fund $ 54,076,126 LiabilitiesAssets $ 41,326,594 $ 50,846,300 Liabilities $ 39,474,470 Irrevocable trusts 13,674,092 10,313,631 14,695,109 10,955,510 Endowment fund 4,838,319 161,440 4,874,489 174,658 Revocable trusts Total 72,588,537 51,801,665 70,415,898 50,604,638 19,338,143 22,470,672 22,470,672 19,338,143 $ 91,926,680 $ 71,139,808$ 92,886,570$ 73,075,310 The gift annuity fund liability includes an actuarial reserve for the annuity payments of $41,321,581 and $39,466,026 for 2011 and 2010 respectively. 6. Fair Value Measurements of Assets and Liabilities The Association follows the provisions of generally accepted accounting principles for financial assets and liabilities measured at fair value. This statement requires fair value measurements be classified and disclosed in one of the following three categories (“Fair Value Hierarchy”): Level 1: Financial instruments with unadjusted, quoted prices listed on active market exchanges. Level 2: Financial instruments valued using inputs that include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Financial instruments that are not actively traded on a market exchange and require using significant unobservable inputs in determining fair value. The following table summarizes the valuation of the Association’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2011, based on the level of input utilized to measure fair value: Measurement at fair value on a recurring basis: Fair value measurements at 12/31/2011 using: Description Level 1 Level 2 Level 3 Equities: U.S. equity $ – Developed international equity $ 17,075,336 – – Emerging markets – 18,214,119 – Mutual funds 15,577,303 – – – – Other 7,850,158 $ 7,298,900 382,035 Fixed income and credit: U.S. government 49,640,436 6,004,804 – Corporate –20,836,574 – Govt. mortgage backed securities – 17,227,774 – Bond funds 6,314,737 5,965,574 – Other 4,375,391 – – Other: Cash and cash equivalents 16,047,796 – – Real asset funds 5,729,719 25,055,497 – Other Total investments—recurring basis Deferred giving liabilities 44 357,686 486,046 $ 123,350,597 $ 3,284,424 $101,089,288 $ $ $ 9,048,359 – – 51,640,224 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS 2 0 1 1 minis t ry re p ort Gift annuity and irrevocable trust liabilities are considered valued at Level 3 because some of the factors used in valuation, most significantly the discount rate, are not easily observable in similar instruments in an active market. Deferred Giving Liabilities Beginning balance liabilities $ 50,429,980 Increases in liabilities due to issuance of new agreements Payments to beneficiaries Actuarial adjustments Ending balance of liabilities 6,215,983 (6,542,522) 1,536,784 $ 51,640,224 Measurement at fair value on a non-recurring basis: Fair value measurements at 12/31/2011 using: Description Level 1 Level 2 Level 3 Total Gains (Losses) Investments: Equity–other Other–real estate $ Other – $ – 25,135 $ – 10,254,768 – $ – - – - 604,979 – Total investments— non-recurring basis Deferred giving liabilities $ – $ 10,279,903 $ 604,979 $ – $ – $ 7,005,361 $ – $ – Other investments valued utilizing Level 3 inputs on a non-recurring basis include interest in a family partnership and a note receivable. These investments are categorized as Level 3 because of limited or no observable market data. These investments were initially recorded at fair market value based on market appraisals at the time of gift. The Association has not observed any evidence of impairment. For investments in entities that calculate net asset value or its equivalent whose fair value is not readily determinable, the following table provides information about the relative liquidity of these investments. The fair values of these investments have been estimated using net asset value per share of the investments, unless noted. Management is not aware of any factors that would impact net asset value as of December 31, 2011. Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Equity funds (a) $7,298,900 None Monthly 60 days Emerging market funds (b) $18,214,119 None Monthly 10–30 days Bond fund (c) $5,965,574 None Monthly 10 days Real asset funds (d) $12,790,557 None Monthly 8 days Real asset funds (e) $11,432,711 None Quarterly 45 days (a) This U.S. based strategy invests in equities that can grow their dividends over time through a combination of earnings growth and increasing payout ratio. An initial lock up period of 1 year expired in early 2012. Depending on the date a redemption notice is given, it could take up to approximately 90 days to redeem funds from this class. 45 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS (b) This class provides broad exposure to emerging markets through the use of two managers. One manager provides a concentrated, conservative strategy that focuses on bottom-up stock selection of quality companies in emerging markets. The second strategy manager invests exclusively in long-only closed-end emerging market funds rather than individual stocks. Depending on the date a redemption notice is given, it could take up to approximately 40-60 days to redeem funds from this class. (c) This class invests in sovereign (country) debt across developed nations. The active investment process focuses on identifying “Investment Value” at each important level: country, currency, sector, and duration. Depending on the date a redemption notice is given, it could take up to approximately 40 days to redeem funds from this class. (d) The strategy for this class passively allocated and rebalances capital to active portfolios with the following types of investments: Energy Equities, Metals and Mining Equities, TIPS, and Commodities. The strategic weights are established to provide investors an optimal mix to the component real asset markets. Depending on the date a redemption notice is given, it could take up to approximately 38 days to redeem funds from this class. (e) The strategy for this class consists of three underlying funds. The first fund, representing approximately 80% of the class invests tactically based on macro themes and has a significant “inflation hedging” component. The second fund, representing approximately 20% of the class, which is comprised of strategic allocations to the manager’s hedge funds. The last fund allows up to approximately 10% of the strategy and is invested in distressed securities. Depending on the date a redemption notice is given, it could take up to approximately 135 days to redeem funds from this class. 7. Endowment Funds Board-Designated Endowments The Association’s Board of Directors has designated a portion of unrestricted net assets as funds functioning as endowments. Separate funds have been established for the Billy Graham Library Endowment Fund, the Billy Graham Training Center (The Cove Charitable Trust Fund), the future ministries fund, and the Graham Fund for Evangelism The purpose of the Billy Graham Library Endowment is to provide an ongoing and perpetual source of funding for the operations, maintenance and long-term improvements of the Library located in Charlotte, North Carolina. It is the desire of the Board of Directors that there should never be an admission fee to the Library so that all can hear or experience the Gospel of Jesus Christ. This primary objective, as well as the investment objective of preserving and protecting the fund’s assets, will be accomplished by focusing on the conservation of principal and long-term growth of capital and income. This is generally achieved by investing in a diversified portfolio of high quality securities. Expenditures from the fund have been based upon a 5% spending plan using a three year rolling average of fund assets. For 2011 and 2010, the Board decided not to spend any of the income from the endowment fund in order for the endowment to grow because, at current levels, the Library Endowment does not have sufficient funding. The purpose of The Cove Charitable Trust Fund is to provide an ongoing source of funding for supporting, maintaining, and improving the facilities and ministry at the Billy Graham Training Center at The Cove. The primary investment objective of this fund is to preserve and protect assets by focusing on conservation of principal and long-term growth of capital and income. This objective is generally attained by investing in a diversified portfolio of high quality securities. Expenditures from the fund have been based upon a 5% spending plan using a three-year rolling average of fund assets. Funds were not withdrawn in 2011 or 2010 in order to preserve principal. The purpose of the future ministries fund is to provide a source of funding for continuing and growing ministry activities through special evangelistic projects and to provide for operating cash flow needs of the Association. The primary 46 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS 2 0 1 1 minis t ry re p ort investment objective of the future ministries fund is to preserve and protect the assets by focusing on conservation of principal and adequate liquidity to meet ministry needs. This objective is generally attained by investing in a portfolio of high quality securities. Expenditures from the future ministries fund are determined by the Board in order to meet ministry needs and projects. Funds were not withdrawn in 2011 or 2010 in order to preserve principal. The purpose of the Graham Fund for Evangelism has been to provide an ongoing source of funding for supporting, maintaining, and improving the facilities and ministry at the Graham Center at Wheaton College. In 2011 and 2010, the support for the Graham Center at Wheaton College was provided from BGEA’s general fund. The Graham Fund for Evangelism is being maintained with a minimal balance for potential future evangelistic purposes. The primary investment objective of the fund is to preserve and protect its assets by focusing on conservation of principal. This objective is generally attained by investing in a portfolio of high quality securities. Donor-Restricted Endowments At December 31, 2011, the Association’s donor-restricted endowment funds consist of 28 individual funds established for a variety of purposes. In addition, the Association has established a Library Endowment Fund to receive permanently restricted donor gifts to support the ongoing operations of the Billy Graham Library. The Association has also received permanently restricted donor gifts as part of irrevocable trust and annuity gifts. The investment policy for donor-restricted endowment funds that limit distributions to net income has a primary objective to produce current income. This objective is currently achieved by primarily investing conservatively in fixed income securities and cash and short-term investments. The investment policy for funds with a spending rule has a primary objective to produce total return to at least equal the amount of the stated distribution. This objective is currently attained by investing in a diversified portfolio of high quality securities. Endowment net asset composition by type of fund as of December 31, 2011: Temporarily Restricted Unrestricted Board-designated endowment funds $ 129,536,291 $ Donor-restricted endowment funds Total funds (36,306) $ 129,499,985 $ Permanently Restricted – $ Total –$ 129,536,291 957,983 10,335,456 11,257,133 957,983 $ 10,335,456 $140,793,424 47 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS Changes in endowment net assets for the fiscal year ended December 31, 2011: Temporarily Restricted Unrestricted Permanently Restricted Total Endowment net assets, beginning of year $ 127,657,180 $ 1,072,888 $ 10,077,005 $ 138,807,073 Investment return: Investment income 1,071,395 182,094 49,238 Realized and unrealized gains (1,824,831) (125,506) 3,367 (1,946,970) Total investment return (753,436) 56,588 52,605 (644,243) Contributions – – 316,856 316,856 Change in value of annuities & trusts – 13,217 (111,010) Other income 62,031 – – 62,031 Satisfaction of purpose 56,536 (184,710) – (128,174) – – (105,527) – – 1,302,727 (97,793) Amounts appropriated for expenditure (105,527) Other changes: Transfers to create boarddesignated endowments 2,583,201 2,583,201 Endowment net assets, end of year $ 129,499,985 $ 957,983 $ 10,335,456 $ 140,793,424 8. Net Assets Unrestricted Net Assets Designated by Governing Board Unrestricted net assets designated by the Board were as follows: 20112010 Billy Graham Library Endowment Fund $ 61,380,565 The Cove Charitable Trust Fund 59,947,775 59,806,276 $ 59,706,866 Future ministries fund 8,178,650 8,139,068 Graham Fund for Evangelism 29,301 19,421 $ 129,536,291 $ 127,671,631 The Billy Graham Library is an ongoing evangelistic Crusade. In 2011 over 160,000 visited the Billy Graham Library having the opportunity to hear the Gospel message with more than 1,100 people making first time decisions for Christ. The purpose of the Library Endowment Fund is to ensure that the operation, maintenance and ongoing upkeep are done in such a way that all visitors are welcome to experience an ongoing Crusade free of charge. At current levels, the Library Endowment does not have sufficient funding; hence in 2011 and in 2010, the Association did not spend out of the endowment. 48 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS 2 0 1 1 minis t ry re p ort Temporarily Restricted Net Assets Temporarily restricted net assets are available for the following purposes: 20112010 Donor-designated contributions $ 11,118,331 $ 8,855,630 Irrevocable trusts 3,223,232 3,609,223 Term endowment fund 550,405 572,365 284,586 321,180 122,992 179,343 Portion of perpetual endowment funds subject to a time restriction under UPMIFA Without purpose restriction With purpose restriction $ 15,299,546 $13,537,741 The donor-designated contributions primarily represent funds restricted for the Billy Graham Library, military outreach, and the World Emergency Fund. The irrevocable trusts are restricted by time for the Association. Permanently Restricted Net Assets Permanently restricted net assets are held as follows: 20112010 $ 5,755,460 Endowment fund Library endowment 4,001,381 4,001,382 Irrevocable trusts 128,246 127,870 Gift annuity 143,421 192,293 $ 6,062,408 $10,335,456 $ 10,077,005 9. Other Assets A promissory note of $3,000,000 was issued in 2006 related to the sale of the Cove Camp property. The note plus accrued interest at 5.5% compounded annually was due in full at December 20, 2008. In 2008, the note was extended and $1,000,000 plus interest was paid. The balance of $2,000,000 plus accrued interest was paid in full on January 4, 2010. During 2009, the Association contracted with a captive insurance company to obtain coverage for workers’ compensation, general liability, property, and automobile liability insurance. The Association owns a non-controlling share of the common stock of the captive insurance company and is accounting for this asset under the cost method of investment accounting. The cost of this asset was $296,800 and is included in other assets. During 2009, the Association received an interest in a licensing agreement. The intangible asset was valued at $636,402, with amortization expense of $127,280 in 2011 and 2010. 10. Retirement Plans The Association has a 401(k) retirement plan. Employer contributions are 3% of each participant’s eligible salary with a matching provision whereby the employer may match the employee’s contributions up to an additional 3% of the participant’s salary. The plan includes a provision whereby the Board of Directors can approve additional contributions of up to 2%. The additional 2% discretionary contribution was not approved for 2011 or 2010. The Association and its affiliates recorded expense of $1,499,335 for the year ended December 31, 2011, and $1,489,399 for the year ended December 31, 2010. In addition, the Association has deferred compensation plans. No deferred compensation expense was incurred in 2011 or 2010. Deferred compensation liabilities of $82,639 and $77,961 existed at December 31, 2011, and 2010, respectively, and are included in accrued expenses. 49 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS 11. Self-Insurance Program The Association maintains a self-insurance program for hospitalization, medical, and dental coverage for its employees. The Association limits its losses through the use of stop loss policies from a re-insurer. Specific individual losses for claims were limited to $80,000 for 2011 and 2010. At December 31, 2011 and 2010, the estimated liability for these claims approximated $730,000 and $898,000, respectively, and is included in accrued expenses. 12. Concentration of Credit Risk The Association places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage for up to $250,000 for substantially all depository accounts. The Association has deposits at various banks in excess of the amounts covered by federal depositary insurance. 13. Related Party Transactions The Association partners with local organizations to host domestic evangelistic crusades. In conjunction with these activities, the Association received designated contributions for these events totaling $232,394 and $118,762 in 2011 and 2010, respectively. As of December 31, 2011 and 2010, the Association had accounts receivable totaling $33,027 and $66,457, respectively, from the local organizations. For the year ending December 31, 2011 and 2010, the Association provided funding to the local organizations totaling $814,307 and $122,395, respectively. The Association has entered into “Affiliate Ministry Agreements” with Billy Graham Evangelistic Association of Australia, Billy Graham Evangelistic Association of Canada, Billy Graham Evangelistic Association – Bangalore, Billy Graham Evangelistic Association, Ltd., and Vozrozhdeniye (the International Affiliates) to further the global ministry of the Billy Graham Evangelistic Association. The Association does not control the board of directors of these organizations. For the years ending December 31, 2011 and 2010, the International Affiliates reimbursed the Association $179,390 and $150,938, respectively, for various ministry projects. In 2011, a $50,000 grant was given to BGEA of Australia for Rapid Response Team training. As of December 31, 2011 and 2010, the Association had accounts receivable totaling $14,469 and $37,026, respectively, from the International Affiliates. Following is un-audited summary financial information for the International Affiliates which are controlled by independent boards of directors: As of December 31, 2011, and for the year then ended Total Total Total AssetsLiabilities Net Assets BGEA of Australia (in Australian $’s) $ 186,059 $ 86,829 $ 99,230 $ 285,217 BGEA of Canada (in Canadian $’s) $ 9,025,324 $ 393,217 $ 8,632,107 $ 5,465,765 $ 4,368,398 RS12,979,875 RS12,426,144 289,677 £411,222 BGEA–Bangalore 3/31/2011 (in Rupees)RS 5,638,135 RS BGEA Ltd. 3/31/2011 (in Pounds) £194,793 £ Vozrozhdeniye (in Rubles) Руб 3 ,298,000 Greschenke Der Hoffnung (in Euros) € 1,008,500 50 Total Total RevenueExpenses 31,476RS 5,606,659 9,451 $ 336,092 £185,342 £ Руб 2,476,000 Руб 822,000 Руб 6,618,000 Руб 6,666,000 € € € €725,013 33,807 974,693 861,075 B i l l y Gr a ha m e va n ge li sti c Associ ati on AN D AFFILIATE D ORGANI Z ATIONS 2 0 1 1 minis t ry re p ort The First Vice Chairman, President, and Chief Executive Officer of the Association is the Chief Executive Officer of Samaritan’s Purse. Samaritan’s Purse is controlled by an independent board of directors, though the two ministries share certain board members. To gain efficiencies over administrative services supporting their individual ministries, the Association and Samaritan’s Purse entered into a shared services agreement to provide a meaningful structure for regulating and overseeing the shared services and expenses. In accordance with the provisions of the agreements, the Association reimbursed Samaritan’s Purse $1,404,698 in 2011 and $1,638,147 in 2010 and Samaritan’s Purse reimbursed the Association $934,628 in 2011 and $736,762 in 2010. Accounts receivable and accounts payable from Samaritan’s Purse are $62,870 and $323,215, respectively, as of December 31, 2011, and $503,452 and $148,459 in 2010. The Association received and forwarded contributions totaling $192,821 in 2011 and $380,483 in 2010 to Samaritan’s Purse designated for support of their ministry activities. Samaritan’s Purse received and forwarded contributions totaling $104,414 in 2011 and $71,512 in 2010 to the Association designated for support of the Association’s ministry activities. The Association received from Samaritan’s Purse cash grants totaling $82,725 in 2011 and $455,148 in 2010 and in-kind contributions valued at $245,823 in 2011 and $397,219 in 2010 for various ministry projects. The Association made in-kind contributions valued at $7,325 in 2011 and $26,000 in 2010. Following is un-audited summary financial information as of December 31, 2011, for Samaritan’s Purse, which is controlled by an independent board of directors: total assets, $280,781,752; total liabilities, $30,709,926; total net assets, $250,071,826; total revenues, $398,716,635; and total expenses, $363,540,960. Other evangelistic ministry includes contributions given to like ministries approved by the Board of Directors annually. Contributions of $500,000 in 2011 and 2010 were given to Wheaton College and $60,000 in 2011 and 2010 to GordonConwell Theological Seminary. The Association shares several common board members with these institutions but does not control the board of directors of either organization. Contributions of $25,000 in 2011 and $50,000 in 2010 were given to East Gates International for ministry in Asia. The president of East Gates International is the brother of the Chief Executive Officer. A contribution of $25,000 was given in 2011 to Ruth Graham and Friends and an in-kind contribution valued at $66,440 in 2010. The founder and Chairman of Ruth Graham and Friends is the sister of the Chief Executive Officer. 14. Commitments and Subsequent Events The Association has evaluated subsequent events through March 19, 2012, in connection with the preparation of these financial statements which is the date the financial statements were available to be issued. Blue Ridge Broadcasting, a subsidiary of the Association, executed a contract for the purchase of a radio signal located in Norris, Tennessee. The purchase will close after the FCC approves the sale. Blue Ridge Broadcasting paid $60,000 on January 3, 2012 pursuant to this contract and will pay the remaining $565,000 after the sale is approved. Blue Ridge Broadcasting entered into a lease on February 6, 2012 for the use of the signal until FCC approval which is anticipated in April of 2012. At that time, Blue Ridge Broadcasting will take ownership of the related assets. 51 B illy G r a ha m evangeli sti c Associ ati on AN D A F F ILIATED ORGANI Z ATIONS 15. Schedule of Functional Expenses For year ending December 31, 2011 Ministry Expenses Grants and scholarships $ Salaries and wages 1,425,952 General and Administrative Fundraising $ 21,567,473 – $ 2,791,438 – Total $ 1,425,952 5,199,299 29,558,210 Employee benefits 5,920,581 745,497 1,456,053 8,122,131 Payroll taxes 1,444,171 182,370 366,440 1,992,981 Legal and professional services 1,895,154 57,594 595,771 2,548,519 Contract labor 4,872,995 67,360 23,004 4,963,359 Supplies 1,038,893 61,919 179,694 1,280,776 Telecommunications 906,104 81,440 210,273 1,197,817 Postage and mailing 2,741,297 600,479 98,696 3,440,472 Buildings and equipment 2,729,463 99,180 783,869 3,612,512 Printing 1,908,811 320,649 47,857 2,277,317 Travel 6,866,602 491,048 148,132 7,505,782 Program ministry and events 13,402,853 389,065 67,432 13,859,350 Broadcasting and production 3,407,447 287,393 32,796 3,727,636 Miscellaneous 782,594 42,130 224,117 1,048,841 Depreciation and amortization 6,136,228 236,274 1,076,885 7,449,387 Total expenses $ 77,046,618 $ 6,453,836 $ 10,510,588 $ 94,011,042 For year ending December 31, 2010 Ministry Expenses Grants and scholarships $ Salaries and wages 1,163,524 General and Administrative Fundraising $ 21,620,911 – $ 2,558,552 – Total $ 1,163,524 5,380,329 29,559,792 Employee benefits 5,982,580 612,108 1,469,274 8,063,962 Payroll taxes 1,644,236 170,237 375,530 2,190,003 Legal and professional services 2,511,877 36,269 604,214 3,152,360 Contract labor 3,510,386 38,941 22,475 3,571,802 Supplies 1,143,709 54,091 179,073 1,376,873 Telecommunications 1,060,746 75,848 206,165 1,342,759 Postage and mailing 2,964,671 450,602 92,979 3,508,252 Buildings and equipment 3,040,194 72,805 684,964 3,797,963 Printing 1,841,529 261,359 39,110 2,141,998 Travel 5,957,582 364,405 131,547 6,453,534 Program ministry and events 9,910,993 308,884 95,372 9,595,249 Broadcasting and production 2,852,938 196,505 34,434 3,083,877 Miscellaneous 864,531 36,059 147,912 1,048,502 Depreciation and amortization 6,309,282 181,628 808,598 7,299,508 Total expenses 52 $ 71,659,689 $ 5,418,293 $ 10,271,976 $ 87,349,958 2 0 1 1 minis t ry re p ort What We Believe The Billy Graham Evangelistic Association believes the Bible to be the infallible Word of God, that it is His holy and inspired Word, and that it is of supreme and final authority • In one God, eternally existing in three persons —Father, Son, and Holy Spirit • Jesus Christ was conceived by the Holy Spirit, born of the Virgin Mary • He led a sinless life, took on Himself all our sins, died and rose again, and is seated at the right hand of the Father as our mediator and advocate • That all men everywhere are lost and face the judgment of God, and need to come to a saving knowledge of Jesus Christ through His shed blood on the cross • That Christ rose from the dead and is coming soon • In holy Christian living, and that we must have concern for the hurts and social needs of our fellowmen • We must dedicate ourselves anew to the service of our Lord and to His authority over our lives • In using every modern means of communication available to us to spread the Gospel of Jesus Christ throughout the world. Always Good News. 53 B illy G r a ha m evangeli sti c Associ ati on For the second consecutive year, the Billy Graham Library—as well as BGEA’s headquarters—received an Energy Star commendation in 2011 for superior energy performance and a commitment to using resources responsibly. Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy. Scripture quotations marked NIV are taken from the Holy Bible, New International Version, NIV. ©1973, 1978, 1984, 2011 by Biblica, Inc. Used by permission of Zondervan. All rights reserved worldwide. Scripture quotations marked ESV are from The Holy Bible, English Standard Version, ©2001 by Crossway Bibles, a publishing ministry of Good News Publishers. Used by permission. All rights reserved. BGEA is a charter member of the Evangelical Council for Financial Accountability (ECFA). Always Good News. 1 Billy Graham Parkway, Charlotte, NC 28201-0001 Telephone: 1-877-247-2426 (1-877-2GRAHAM) | Website: BillyGraham.org 5 4 BGEA ©2012 51742