sharing our purpose and commitment

2013
THE ORCHARD FOUNDATION
ANNUAL
REPORT
 A MINISTRY OF THE CHRISTIAN AND MISSIONARY ALLIANCE
THE
PRESIDENT
LETTER FROM
Dear Friends of The Orchard Foundation,
We have had another fruitful year here at Orchard, and we are grateful for God’s
faithfulness and goodness as we help God’s people use the resources He has entrusted
to them to bring Him glory and change lives. We trust that the information in
this year’s Annual Report will be a reflection of our dedicated work and show the
generosity of those we serve.
Historically, The Orchard Foundation has primarily served the needs of The Christian
and Missionary Alliance (C&MA), and we are committed to this purpose. In recent years,
we have also been able to expand our services to other like-minded ministries. Orchard currently serves 24
ministries with their planned giving needs; being able to act as their full-service back office to facilitate giving
tools like Donor Advised Funds, Charitable Gift Annuities, Endowments and much more on their behalf.
We are privileged to serve other ministries in this capacity. By Orchard assuming these roles for them,
they are able to focus on their ministry’s mission without worrying about the detailed work involved
in planned giving programs. God has blessed us in this venture, and we are excited to see our ministry
grow and expand.
Whether we are assisting other ministries, the C&MA or our individual donors, Orchard is committed
to providing the highest quality customer service to all those we serve. Our knowledgeable staff is
here to help find the right giving solution for every charitable giving goal.
Thank you for choosing to use your God-given resources to build God’s Kingdom.
And, thank you for trusting Orchard to facilitate your gifts. We look forward to
continuing to serve you in the years to come.
Please contact us any time with questions, comments or prayer requests.
We would love to hear from you.
Sincerely,
Lawrence L. McCooey, CPA, PFS, CGMA
President
2
A TREE,
symbolizing life and growth, is a fitting
representation of The Orchard Foundation.
Orchard, like a living organism, constantly grows
and adapts to best serve its clients.
THE ORCHARD FOUNDATION
SHARING OUR PURPOSE AND COMMITMENT
A
tree, symbolizing life and growth, is a fitting representation of The Orchard Foundation.
Orchard, like a living organism, constantly grows and adapts to best serve its clients.
Much like the fruit of a tree provides nourishment to those who eat it, Orchard’s services
empower its clients to cultivate their ministries.
COMMITMENT TO EXCELLENCE MEANS:
We will seek to build a team that is prayer-focused, recognizing that without
prayer, we can accomplish nothing. God has called us to be His faithful stewards
and, in turn, guide others in implementing tools and strategies for their own
faithful stewardship.
We will recognize that talent, knowledge, and abilities are vital to our work, so
Orchard will foster a culture of life-long learning where we continually seek to
grow in leadership, technical and relational skills.
We will cultivate healthy relationships as another way to honor God, in order to
share our industry expertise with others.
We will foster a team atmosphere at Orchard by encouraging alignment and
engagement with our mission, vision and core values.
The Orchard Foundation has been equipping ministries and donors with high quality planned
giving tools and resources for nearly 50 years, and we are committed to this calling. John 15:16
says, “You did not choose me, but I chose you and appointed you to go and bear fruit – fruit
that will last.” As we continue to help God’s people use God’s resources to fulfill God’s calling,
we will see lives transformed, His people bearing fruit and God’s kingdom advanced.
LEADERSHIP TEAM
Lawrence L. McCooey Pamela J. Holley
President
VP/COO/CFO
Wanda G. Anderson
General Counsel
Mary H. Harms
Joseph C. Padilla
Director of Accounting VP of Development
and Ministry Services
BOARD OF STEWARDS
David F. Presher, Chair • James A. Good, Vice Chair • Howard L. Atkinson, Treasurer • Nancy D. Cook, Secretary
Linda F. Gould • Mark L. James • Kenneth E. Baldes • Lawrence L. McCooey • Dennis K. Whalen
4
E
ENDOWMENTS
&
THE MARVIN
HELEN FREY
SCH OLAR SHIP ENDOW MENT STORY
M
arvin and Helen Frey began their ministry in
1956 to serve the street kids of Manhattan.
Helen recently described the leap of faith required
to launch a ministry as, “… a scary time. We had
no one to fund our ministry, but we knew this is
what we were called to do. No one was behind us,
except God, but He was enough!”
“THIS ENDOWMENT WILL
PERPETUATE OUR LIFE-LONG
MINISTRY OF SERVING
UNDERPRIVILEGED YOUTH.”
Marvin and Helen served the youth of New York
City for 36 years through their ministry, The
Children’s Fund of New York, and by operating a
Christian camp in upstate New York. Throughout
their years of service, Marvin always emphasized
the importance of higher education to their youth.
He would help kids fill out college applications,
look for financial assistance programs for them
and make sure they kept their grades up.
When Marvin went home to be with the Lord,
Helen sold their Christian camp, but she knew
exactly what to do with the proceeds. Helen
established the Marvin and Helen Frey Scholarship
Endowment with The Orchard Foundation in
2001 as a way to honor Marvin’s life-long passion
for higher education. Their endowment would
give deserving students from the Lower East
Side of New York City the opportunity to pursue
Christian education or vocational training; an
opportunity they might never receive otherwise.
Over the past 12 years, seventeen scholarships
have been awarded to deserving students. Among
the recipients have been former gang members,
orphans and an inner-city pastor’s son. The Frey
Endowment has touched the lives of many, and
Helen, who just celebrated her 90th birthday, has
no plans of slowing down. “This endowment
will perpetuate our life-long ministry of serving
underprivileged youth. When I hear from
recipients that they are the first in their family to
go to college, and know that this endowment is the
reason for that, I am overjoyed and I know Marvin
would be too.”
Endowments are just one of the many instruments
available through The Orchard Foundation. We
are honored to help our donors, like Helen, fulfill
life-long charitable giving goals. The Marvin and
Helen Frey Scholarship Endowment demonstrates
Orchard’s purpose – to help God’s people use
God’s resources to fulfill God’s calling. We look
forward to continuing to serve you as we further
God’s Kingdom together.
5
A
FUNDS
DISTRIBUTED
by The Orchard Foundation were used to
support Alliance relief efforts around the world,
international missionaries, local churches
and much more.
3
ANNUITIES
CHARITABLE GIFT
C
haritable Gift Annuities (CGAs) continue to
be one of our most popular tools for donors.
CGAs allow donors to support their favorite
ministries and receive a reliable income source
for life. With a manageable minimum of $10,000,
attractive annuity rates, and the ability to support
ministries of their choosing, many people are using
this solution to help meet their charitable goals.
world’s 50 percent illiterate population. This
enormous task is accomplished through generous
donors like Margie Long.
Margie has been a long-time supporter of Faith
Comes By Hearing, and recently established a
CGA through The Orchard Foundation.
The Orchard Foundation has never missed an
annuity payment, and our qualified staff is dedicated
to providing our annuitants with high quality service.
The Orchard Foundation is unique in the fact that
we are licensed to issue or administer CGAs in 48
states, which means we can serve many donors and
ministries, regardless of where they are located.
“This gift annuity is something I can do
to take care of my future financial needs
in my old age, and realize my heart’s
dream to invest in the Kingdom. I support
Faith Comes By Hearing with my annuity
because I believe in their purpose of
getting God’s Word out to fulfill the
Great Commission. I bought Bible tapes
for my children years ago, and since
then, I have this feeling deep in my heart
that I am to support this type of ministry.
While I can’t go out and physically do
what the Faith Comes By Hearing staff
does every day, I can help support them
in other ways. My only interest is that we
In the 2013 fiscal year, in addition to serving more
than 600 individual annuitants, we also assisted 24
ministry partners with their CGA programs. Funds
distributed by The Orchard Foundation were used
to support Alliance relief efforts around the world,
international missionaries, local churches and
much more. One of our ministry partners, Faith
Comes By Hearing, is committed to reaching the
nations with the Word of God in audio, offering
the Bible in a format that will connect with the
7
fulfill the Great Commission, and this is
my way of doing just that.”
We are honored to assist annuitants like Margie
and our many ministry partners. By providing a
wide range of charitable giving tools, backed by
a commitment to quality customer service, The
Orchard Foundation is able to find the right giving
solution to meet the goals of the individuals and
organizations we serve.
CHARITABLE
DISTRIBUTIONS
“I have become all things to all men so that by all possible means I might save
some. I do all this for the sake of the gospel, that I may share in its blessings.”
– I Corinthians 9:22b-23
T
he Orchard Foundation has been privileged to assist donors in
giving to many types of ministry efforts so that together—by all
means possible—we reach the world with the gospel of Jesus Christ.
Through education, student ministries and camps, we are reaching
young people and families for Christ. Physical needs are being met in
the name and love of Jesus through relief and development work as well
as retirement and healthcare services. Various forms of media are being
used to reach people who might not otherwise hear the Good News.
And, the Kingdom is advancing at home and all around the world through the work and giving of our
partner donors and ministries.
Nearly $6 million was distributed to The Christian and Missionary Alliance and other Kingdom
ministries through The Orchard Foundation in the 2013 fiscal year. Distributions included gifts from
trusts, charitable gift annuities, donor advised funds, and various other gift planning tools managed by
Orchard. We also processed gifts of stock, estate and numerous other gifts. Thank you for playing a
vital part in the spreading of the gospel through your generous giving.
2% 4%
3%
4%
42%
40%
1%
2012-2013
CHARITABLE DISTRIBUTIONS
Camps
Education
Media Ministries
Other Domestic Ministries
Overseas Missions & Church Planting
Relief and Development
Retirement & Healthcare
Student Ministries
US Churches & Denominations
$82,3562%
$ 225,611 4%
$ 167,325 3%
$ 234,439 4%
$ 2,399,270 40%
$
46,784 1%
$ 187,233 3%
$
82,716 1%
$ 2,516,355 42%
Total
$ 5,942,089 100%
3% 1%
8
S
N E A R LY $ 6 M I L L I O N
was distributed to The Christian and Missionary Alliance and other
Kingdom ministries through The Orchard Foundation in the 2013 fiscal year.
T H E O R C H A R D F O U N D AT I O N
has been serving the charitable giving needs of our clients for nearly 50 years.
5
ASSETS
UNDER MANAGEMENT
T
he Orchard Foundation has been serving the charitable giving needs of our clients for nearly 50 years.
With many combined years of industry experience, our knowledgeable staff provides customized
service to all those looking for a unique blend of planned giving tools as well as quality asset management.
As a full-service provider, we are honored to serve our donors and partner ministries. As of June 30, 2013,
Orchard was managing more than $51.8 million for donors and charitable ministries.
Institutional Reserve Funds provide asset management solutions for Christian ministries.
Charitable Gift Annuities benefit donors through regular income payment for life and tax
savings; charities benefit through remainder gifts.
C
haritable Remainder Trusts produce income and tax advantages
for donors, as well as facilitate future charitable giving.
Endowment Agreements provide funding for ministries today and
financial planning for the future.
Other Trusts protect and manage assets to accomplish specific
personal and charitable goals.
D
onor Advised Funds are now America’s most popular tool for easy
charitable giving and dual tax advantages.
Terminations Pending are funds from the above instruments, which
are in the process of being distributed to ministry.
By utilizing these giving instruments, our donors are able to meet their specific financial goals and make eternal
investments in Kingdom ministry. Our ministry partners enjoy the benefits of a full-service foundation, allowing
Orchard to handle all their back office administration needs so they can focus on their ministry’s mission.
2012-2013 MARKET VALUE OF
4% 1%
ASSETS UNDER MANAGEMENT
Assets Under ManagementMarket Value
9%
27%
17%
17%
25%
% to Total
Institutional Reserve Funds
Charitable Gift Annuities
Charitable Remainder Trusts
Endowment Agreements
Other Trusts
Donor Advised Funds
Terminations Pending
$ 13,971,193
$ 12,821,329 $ 9,048,120 $ 9,410,306 $ 4,438,933 $ 1,887,978 $
281,222 27%
25%
17%
17%
9%
4%
1%
Total
$ 51,859,081 100%
11
THE
YEAR ENDED JUNE 30, 2013
ORCHARD FOUNDATION
STATEMENT OF FINANCIAL POSITION BY FUND
Operating
Fund
Trust
Fund
Annuity
Fund
Eliminating
Entries
Total
Assets
Cash and cash equivalents
Long-term investments
Other assets
$
159,196
472,411
881,420
$
Total assets
4,886,699
34,124,740
114,088
$
$
1,513,027
$
33,210
61,002
1,767,744
11,779,693
82,340
$
$
39,125,527
$
13,629,777
$
$
214,125
11,746,925
$
808,447
$
-
$
6,813,639
46,376,844
287,080
(790,768)
$
53,477,563
(790,768)
$
265,014
11,807,927
11,748,755
26,842,908
(790,768)
Liabilities and Net Assets
Accounts payable and accrued liabilities
Due to Denomination consolidated entities
Annuities payable
Trust agreements held for others
11,748,755
26,842,908
Total liabilities
Net assets
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets
$
94,212
38,803,958
12,557,202
1,267,592
151,223
2,583
223,161
95,825
1,072,575
1,418,815
321,569
1,072,575
1,513,027
$
39,125,527
$
(790,768)
50,664,604
2,342,750
374,384
95,825
-
13,629,777
$
2,812,959
(790,768)
$
53,477,563
STATEMENT OF ACTIVITIES BY FUND
Operating Fund
Temporarily
Unrestricted
Restricted
Annuity Fund
Trust Fund
Temporarily
Restricted
Unrestricted
Permanently
Restricted
Unrestricted
Total
Revenues, Gains and Other Support
Contributions
Other revenues
Net assets released from restriction
Total revenues, gains and other support
$
1,759,105
1,359,477
52,490
3,171,072
$
1,146
$
513,328
3,686
(52,490)
(51,344)
517,014
-
513,328
513,328
$
23,194
$
-
23,194
$
78,760
316,351
$
-
395,111
2,352,339
1,702,708
4,055,047
-
78,760
78,760
1,468,694
2,294,466
3,763,160
Expenses and Distributions
Expenses
Distributions (1)
Total expenses
Change in Net Assets
Net Assets, Beginning of Year
Net Assets, End of Year
1,468,694
1,702,378
3,171,072
1,267,592
$
1,267,592
$
-
(51,344)
3,686
23,194
202,567
(1,103)
199,967
151,223
$
2,583
$
223,161
95,825
$
95,825
(1) Distributions line only includes distributions to C&MA consolidated entities per generally accepted accounting principles reporting requirements.
The complete audited financial report for The Orchard Foundation is available upon request by calling toll free (888) 689-6300.
The Orchard Foundation
8595 Explorer Drive, Colorado Springs, CO 80920
[email protected] • www.theorchard.org
$
316,351
291,887
756,224
2,521,072
1,072,575
$
2,812,959