2017 ANNUAL REPORT

Leading the Way in Fiduciary Care

What We’ve Accomplished

The past year was another record setting one for the Mid-Atlantic United Methodist Foundation, continuing our 10-year trend of year over year successive growth. The Foundation connected with more churches than ever to provide investment services and connected to more people than ever to provide stewardship education and generosity counsel. What did not change was our long standing mission of providing more financial resources for mission, ministry and generosity in the local church.

With a record number of churches choosing to partner with our investments, the Mid-Atlantic United Methodist Foundation took important steps to become independently recognized as a “Certified Fiduciary.” This achievement was certified by the Center for Fiduciary Excellence, an independent global assessment and certification organization. The Foundation was the first faith community foundation ever to be awarded this high honor. We are planning ways to assist churches and agencies in developing fiduciary best practices for the management of God gifted resources. Highlights from our year include:

• Established the new Academy for Church Finance stewardship program.

• Conducted three sessions of the Financial Leadership Academy for Clergy.

• Provided educational programming to the Bishops, cabinet members and other church leaders.

• Addressed 42 opportunities for improvement of our policies and procedures during the CEFEX Fiduciary Audit.

• Renegotiated all our Investment and Financial Service provider contracts.

• Partnered with Discipleship Ministries, the General Board of Higher Education and Ministry, National Association of United Methodist Foundations, and the Lilly Family Foundation on a grant to address clergy financial literacy.

Jack BrooksExecutive Director

400churches invest with MAUMF

As our assets grow, so do the number of churches we serve. Nearly half of our churches have invested with assets from $10,000-$150,000; we do not just serve the needs of larger churches. It is important to point out that we make our consulting and education available to clergy and laity across all churches in all the annual conferences we serve, not just churches who invest with us.

$100assets under managementMILLION+

From $27 million in 2007, to nearly $100 million under management at the end of 2017, the Mid-Atlantic United Methodist Foundation has demonstrated solid and steady growth. This growth reflects the confidence churches have in our investment approach. Churches also appreciate that they gain much more than investment services with MAUMF. We are a partner that understands and operates according to United Methodist values. We exist to help their ministry thrive, so our work extends well beyond financial investments.

Thomas BlackPresident of the Board

2017 MINISTRY FUNDING DISTRIBUTIONS

$9.5MILLION

The grants the Foundation distributes according to each church’s investment needs and goals continue to grow as well. We do not just function as a long-term investment vehicle, we help churches achieve the whole range of short and long-term goals, from capital campaigns to small improvements, ministry funding and much more. Here are just a few grant highlights from 2017:

• Through the generosity of Vivian Otto, we were able to support three church projects for a District in the Baltimore-Washington Annual Conference.

• The Rena Evan Scholarship Fund provided four scholarships to students in the Peninsula-Delaware Annual Conference.

• The Foundation provided consultation, investment services and donor support for the Eastern Pennsylvania annual conference’s $3.8 million dollar capital campaign.

The Foundation staff has hosted or attended more than 150 meetings and events over the last year involving more than 3,500 United Methodists. These range from small group meetings to help churches improve their giving and learn about investment options, to addressing full congregations and our more formal educational offerings. Our investment in stewardship education has grown to $150,000 in 2017, funding the Financial Leadership Academy (for clergy) and the establishment of the Academy for Church Finance where clergy and laity work together on financial change. We provided content rich sessions for the Baltimore-Washington Annual Conference meeting, the Eastern Pennsylvania Conference “Planting the Seeds” event and multiple district and local area programs centering on generosity throughout the Annual Conferences we serve.

Additionally, we provided more online education programs through the development of web-based planned giving resources at www.maumflegacy.org and our main website www.midatlanticfoundation.org. Our planned giving expertise helped generous donors establish individual planned gifts that will benefit others for generations to come.

3,500PERSONAL CONNECTIONS

Where We’re Headed

While many organizations would be satisfied with 10 years of record growth, our board and staff ask, “What big thing is God calling us to do next.” We have a commitment to be an exemplary, safe and secure investment fiduciary partner for our churches. We will further enhance our education offerings centering on faith, incorporating best practices and new approaches to address the need to effectively fund mission and ministry. Our board of directors and staff are dedicated to a bright future as we work through our new three year Strategic Plan and further cast a vision to the horizon for the next 10 years of continued growth.

We understand the need to establish even more ways to connect with church volunteers through the use of conference calls, webinars, video programs and classroom education. These new ways to deliver education and share knowledge must incorporate the latest concepts, ideas and approaches to address the ever changing needs of funding ministry.

In the Face of Change, Your Assets Are Secure

The vision of the Foundation’s future includes being prepared for potential changes in the structure of the United Methodist Church. The assets on deposit are your church’s assets to hold and we take instructions only from your church’s designated representatives.

Headquarters: P.O. Box 820

Valley Forge, PA 19482-0820Telephone: 484-762-8211

Fax: 610-666-9093MidAtlanticFoundation.org

A Faith Community Foundation serving The United Methodist Church: Eastern Pennsylvania, Peninsula-Delaware and the Baltimore-Washington Conferences.

Excerpted from the Mid-Atlantic United Methodist Foundation Year-End December 2017 Audited Financial Statement produced by Mingus, Gutowski & Company, LLP.

2017 2016ASSETS Cash $ 299,354 $ 124,602 Management fees receivable 155,299 129,626 Accounts receivable 6,054 5,662 Investments 3,980,257 3,709,847 Client deposits – managed accounts 95,266,383 78,959,125

TOTAL ASSETS $ 99,707,347 $ 82,928,862

LIABILITIES Accounts payable $ 69,866 $ 22,265 Accrued liability 6,459 – Client liability – managed accounts 95,266,383 78,959,125 Annuities payable 402,913 429,064

TOTAL LIABILITIES 95,745,621 79,410,454

NET ASSETS Unrestricted 3,046,485 2,861,367 Temporarily restricted 572,842 339,577 Permanently restricted 342,399 317,464

TOTAL NET ASSETS 3,961,726 3,518,408

TOTAL LIABILITIES AND NET ASSETS $ 99,707,347 $ 82,928,862

MID-ATLANTIC UNITED METHODIST FOUNDATION, INC.STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2017 AND 2016