SAMARITAN’S PURSE

Consolidated Financial Statements

and Supplemental Schedules

December 31, 2014

(with Independent Auditors’ Report thereon)

SAMARITAN’S PURSE

Mission Statement

Samaritan’s Purse is a nondenominational evangelical Christian organization providing spiritual and physical aid to hurting people around the world. Since 1970, Samaritan’s Purse has helped meet needs of people who are victims of war, poverty, natural disasters, disease, and famine with the purpose of sharing God’s love through His Son, Jesus Christ. The organization serves the church worldwide to promote the Gospel of the Lord Jesus Christ.

SAMARITAN’S PURSE

Table of Contents

December 31, 2014

Page(s)

Independent Auditors’ Report ............................................................................ 1-2 Consolidated Statement of Financial Position ....................................................... 3 Consolidated Statement of Activities ..................................................................... 4 Consolidated Statement of Cash Flows ................................................................ 5 Notes to Consolidated Financial Statements ................................................... 6-16 Supplemental Schedules: Schedule of Functional Expenses Information ................................................. 17 Schedule of Ministry Expenses Information ..................................................... 18

1

Independent Auditors’ Report

To the Board of Directors Samaritan’s Purse

Report on Consolidated Financial Statements We have audited the accompanying consolidated financial statements of Samaritan’s Purse (the “Ministry”), which comprise the consolidated statement of financial position as of December 31, 2014, and the related consolidated statements of activities and cash flows for the year then ended. The prior year summarized comparative information has been derived from the Ministry’s 2013 consolidated financial statements and, in our report dated March 20, 2014, we expressed an unqualified opinion on those consolidated financial statements. Management’s Responsibility for the Consolidated Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

2

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Ministry as of December 31, 2014, and the results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The supplemental information referred to in the table of contents is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates to the underlying accounts and other records used to prepare the consolidated financial statements. The supplemental information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information is fairly stated in all material respects in relation to the consolidated financial statements taken as a whole. Charlotte, North Carolina April 14, 2015

3

SAMARITAN’S PURSE Consolidated Statement of Financial Position

December 31, 2014 (With Comparative Totals for 2013)

Assets 2014 2013

Current assets:Cash and cash equivalents:

Available for ministries 26,769,966$ 10,917,370$ Held for donor-restricted ministry purposes 99,597,233 48,458,474

Investments:Available for ministries 48,006,729 42,707,011 Held for donor-restricted ministry purposes - 43,157,590 Planned giving program 6,542,359 6,366,795

Grants receivable 11,045,940 5,116,612 Other current assets 8,592,653 6,311,316 Inventories 27,664,939 40,785,014

Total current assets 228,219,819 203,820,182 Noncurrent assets:

Planned giving program investments 22,531,061 20,058,455 Other noncurrent assets 655,417 649,786 Property and equipment, net of accumulated depreciation 95,306,225 84,816,920

Total noncurrent assets 118,492,703 105,525,161

Total assets 346,712,522$ 309,345,343$

Liabilities and Net Assets

Current liabilities:Accounts payable - suppliers 15,154,572$ 14,723,117$ Accrued expenses 8,317,315 2,994,980 Current portion of planned giving program obligations 6,542,359 6,366,795

Total current liabilities 30,014,246 24,084,892 Noncurrent liabilities:

Planned giving program obligations 12,134,719 11,787,788

Total noncurrent liabilities 12,134,719 11,787,788

Total liabilities 42,148,965 35,872,680 Net assets:

Unrestricted:Designated by governing board 5,922,542 5,436,657 Represented by property and equipment 95,306,225 84,816,920 General 80,679,269 52,759,772

Total unrestricted 181,908,036 143,013,349 Temporarily restricted 122,655,521 130,459,314

Total net assets 304,563,557 273,472,663

Total liabilities and net assets 346,712,522$ 309,345,343$

See accompanying notes.

4

SAMARITAN’S PURSE Consolidated Statement of Activities

For the Year Ended December 31, 2014 (With Comparative Totals for 2013)

2014 2013

Temporarily

Unrestricted Restricted Total Total

Support and revenue:

Contributions 113,259,408$ 199,593,979$ 312,853,387$ 264,583,273$

Contributed goods and services 16,470,407 186,938,046 203,408,453 203,725,018

Investment income 1,601,041 13,860 1,614,901 3,051,708

Change in value of annuities and trusts 201,340 17,132 218,472 182,002

Other income 2,234,394 86,545 2,320,939 1,783,004

Total support and revenue 133,766,590 386,649,562 520,416,152 473,325,005

Reclassifications:

Assessment against restricted

contributions 10,147,677 (10,147,677) - -

Satisfaction of program and

property restrictions 384,305,678 (384,305,678) - -

Total reclassifications 394,453,355 (394,453,355) - -

Expenses:

Ministry expenses:

Emergency relief 72,405,243 - 72,405,243 53,764,456

Community development ministry 40,783,545 - 40,783,545 39,221,381

Medical ministry 38,252,161 - 38,252,161 31,772,587

Children's ministry-Operation

Christmas Child 247,858,338 - 247,858,338 198,557,142

Children's ministry-other 6,412,990 - 6,412,990 7,110,738

Christian education 26,271,230 - 26,271,230 28,677,302

Miscellaneous ministry 843,300 - 843,300 919,574

Other ministry services 1,881,618 - 1,881,618 2,181,708

Total ministry expenses 434,708,425 - 434,708,425 362,204,888

Supporting activities:

Fund raising 33,521,836 - 33,521,836 32,074,493

General and administrative 21,094,997 - 21,094,997 19,786,587

Total expenses 489,325,258 - 489,325,258 414,065,968

Increase (decrease) in net assets 38,894,687 (7,803,793) 31,090,894 59,259,037

Net assets at beginning of year 143,013,349 130,459,314 273,472,663 214,213,626

Net assets at end of year 181,908,036$ 122,655,521$ 304,563,557$ 273,472,663$

See accompanying notes.

5

SAMARITAN’S PURSE Consolidated Statement of Cash Flows For the Year Ended December 31, 2014

(With Comparative Totals for 2013)

2014 2013

Cash flows from operating activities:

Increase in net assets 31,090,894$ 59,259,037$

Adjustments to reconcile increase in net assets to

net cash provided by operating activities:

Depreciation 11,679,410 9,051,143

(Gain) loss on disposition of property (58,981) 156,364

(Gain) loss on sale of investments (1,553,887) 88,933

Property and equipment contributions received (2,977,183) (210,343)

Contributions of other assets received and held for sale (1,844,425) (210,357)

Adjustment of planned giving obligations 1,401,366 1,314,118

Unrealized (gain) loss on investments 11,984 (2,917,968)

(Increase) in value of other assets (5,631) (34,482)

Net change in:

Grants receivable (5,929,328) (4,159,525)

Assets held by field operations - 5,191,041

Other assets (436,912) (1,527,603)

Inventories 13,120,075 (28,023,075)

Accounts payable-suppliers 431,455 2,790,101

Accrued expenses 5,322,335 1,825,447

Net cash provided by operating activities 50,251,172 42,592,831

Cash flows from investing activities:

Proceeds from sale of property and equipment 366,000 166,400

Proceeds from sale of investments 64,756,083 101,807,443

Purchase of investments (26,251,850) (132,908,837)

Increase in planned giving program assets (1,752,628) (180,991)

Capital expenditures (19,498,551) (28,832,430)

Net cash provided (used) by investing activities 17,619,054 (59,948,415)

Cash flows from financing activities:

Decrease in funds held on behalf of affiliates - (624,774)

Proceeds from planned giving program contracts 856,842 73,095

Payments of planned giving program contracts (1,735,713) (1,709,677)

Net cash used by financing activities (878,871) (2,261,356)

Net increase (decrease) in cash and cash equivalents 66,991,355 (19,616,940)

Cash and cash equivalents - beginning of year 59,375,844 78,992,784

Cash and cash equivalents - end of year 126,367,199$ 59,375,844$

See accompanying notes.

6

SAMARITAN’S PURSE

Notes to Consolidated Financial Statements December 31, 2014

(With Comparative Totals for 2013)

1. Description of Ministry and Summary of Significant Accounting Policies Ministry – Samaritan’s Purse (the “Ministry”) is incorporated as a nonprofit organization under

the laws of North Carolina. The Ministry is a nondenominational evangelical Christian organization providing spiritual and physical aid to hurting people around the world. Since 1970, the Ministry has helped meet needs of people who are victims of war, poverty, natural disasters, disease, and famine with the purpose of sharing God’s love through His Son, Jesus Christ. The organization serves the church worldwide to promote the Gospel of the Lord Jesus Christ.

Basis of Presentation – Financial statement presentation follows accounting principles

generally accepted in the United States of America (“GAAP”) pertaining to Financial Statements of Nonprofit Organizations. Under Financial Statements of Nonprofit Organizations, the Ministry is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Principles of Consolidation – The consolidated financial statements include the accounts of

the Ministry and its interrelated organizations, Samaritan’s Purse (Kenya), Samaritan's Purse (Sri Lanka), and Ippan Shadan Houjin Samaritan’s Purse (Japan). The accounts of Emmanuel Group, a wholly owned title holding corporation formed in 2004 under Section 501(c)(2) of the Internal Revenue Code, are also included in the consolidated financial statements. Emmanuel Group has no operations or activities other than holding title. All interorganization transactions and account balances are eliminated upon consolidation.

Use of Estimates – The preparation of the consolidated financial statements in conformity with

GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents – Cash and cash equivalents include investments in highly liquid

debt instruments with an original maturity of three months or less when purchased. The Board approved an investment policy for the operating fund that maintains adequate cash flow with preservation of principal and liquidity as the primary investment objectives with maximization of earnings as a secondary objective.

Investments – Investments in equity securities with readily determinable fair values and all debt

securities are measured at fair value. Investment income or loss (including gains and losses on investments, interest, and dividends) is included in the increase in net assets.

Investment income is recorded net of investment expenses. For the years ended December 31,

2014 and 2013, investment expenses were $150,799 and $149,695, 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 consolidated statement of financial position date.

7

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued Planned Giving Program – The Ministry has a fully-funded program whereby donors may

contribute through gift annuities and charitable remainder trusts. Assets equal to the present value of payment liabilities, plus an additional reserve, are held in segregated trust accounts by a bank or brokerage firm and are managed by professional investment advisors. The Ministry complies with state laws regulating gift annuities and trusts.

The Ministry records planned gift assets at their fair value. Liabilities are recorded at the present

value of projected payments, usually for beneficiaries’ lives using a 6% discount rate, the Annuity 2000 mortality table and other actuarial assumptions. Changes in value of annuities and trusts are recorded in the statement of activities. The charitable present value of annuities and trusts is recorded as contribution revenue at the time the agreement is executed. Values of trust agreements in which the Ministry’s remainder interest is revocable are recorded as a liability until that interest becomes irrevocable, at which time the contribution revenue is recorded.

The Ministry is also named as a beneficiary in trusts and wills not managed by the Ministry, the

values of which are unknown and are not included in the consolidated statement of financial position.

Fair Value Measurements – Fair value is defined under GAAP as an exit price, representing the

price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Ministry utilizes market data or assumptions that market participants would use in pricing the asset or liability. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Other Assets – Other assets consists primarily of receivables, prepaid expenses, and deposits

which are carried at cost at the date of acquisition as well as gifts of property held for liquidation and cash surrender value of life insurance which are carried at fair value. Changes in fair value are reported in other income in the consolidated statement of activities.

The Ministry has contracted with a captive insurance company to obtain coverage for workers’

compensation, general liability, property, and automobile liability insurance. The Ministry 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 in the amount of $285,000 as of December 31, 2014 and 2013 is included as other noncurrent assets in the consolidated statement of financial position.

Inventories – Inventory consisting of Operation Christmas Child gift boxes, medical equipment

and supplies, and other equipment and supplies is stated at the lower of fair value as of the date of the donation or at market value as of the date of the consolidated statement of financial position.

8

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued

Property and Equipment – Land is stated at cost. All other property and equipment are stated

at cost less accumulated depreciation. Depreciation over the following estimated useful lives of property and equipment is computed using the straight-line method:

Buildings 30 years Furniture, fixtures, land improvements and equipment 3-10 years Ministry and missionary aircraft 10 years Ministry and missionary aircraft represents aircraft stationed throughout the world that are used

by the Ministry and other organizations in their ministries. Donated Property – Donated property is recorded at fair value at the date of donation. Net Assets Designated by Governing Board – The Board of Directors designates an amount

equivalent to 10 percent of the cost basis of the Ministry’s buildings to replace and repair buildings owned by the Ministry. The amounts designated as of December 31, 2014 and 2013 were $5,922,542 and $5,436,657, respectively.

Contributed Services – The Ministry received contributed services from approximately 154,800

individual volunteers in 2014 and approximately 154,000 individuals in 2013. The Ministry recorded the value of approximately 81,200 and 80,500 of those volunteers for the years ended December 31, 2014 and 2013, respectively. The value of contributed services recorded by the Ministry amounted to approximately $13,500,000 in 2014 and $12,200,000 in 2013. The recorded value is determined based on hours of service donated at average fair value of comparable services and is reported both as revenue and expense in the period the service is performed.

The remaining 73,600 volunteers in 2014 and 73,500 in 2013 performed services which are not

reflected in the consolidated financial statements as the services did not require specialized skills as specified by GAAP pertaining to Accounting for Contributions Received and Contributions Made. These services are estimated to be valued at $5,100,000 in 2014 and $5,600,000 in 2013. Approximately $3,400,000 of the 2014 amount and $2,800,000 of the 2013 amount not reflected in the consolidated financial statements were related to the collection of gift boxes for Operation Christmas Child.

Contributed Goods – The Ministry receives donations of medical equipment, supplies and other

materials for use in its programs. Such gifts are recorded at their estimated fair value at the date of donation. Based upon the quantities donated, some gifts were valued using the estimated wholesale value of gifts received considering their condition and utility for use. Gifts of approximately $189,900,000 and $191,600,000 were received for the years ended December 31, 2014 and 2013, respectively. These donations include the receipt of individual gift boxes through the Operation Christmas Child project. This project collected approximately 8,000,000 and 7,500,000 gift boxes from individuals for the years ended December 31, 2014 and 2013, respectively. The estimated value per gift box was $21.65 for 2014 and $23.50 for 2013. Contributed goods are held in inventory and expensed as used by the Ministry.

Gifts-in-kind distributed through the Ministry amounted to approximately $202,700,000 and

$162,300,000 for the years ended December 31, 2014 and 2013, respectively. The Ministry liquidates contributed securities upon receipt. The amounts, therefore, are included

on the consolidated statement of cash flows as an operating activity.

9

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued

Functional Classification of Expenses – GAAP pertaining to Financial Statements of Nonprofit

Organizations requires reporting of expenses by their functional classification in major classes such as ministry, fund raising, and general and administrative.

Ministry expenses consist of activities that result in food, medicine, clothing, shelter, other relief

supplies and Operation Christmas Child gift boxes being distributed to beneficiaries and all Christian evangelical activities such as sharing the Gospel through the distribution of Bibles or literature, training pastors, Christian education, intercessory prayer, religious services, lifestyle evangelism, or other activities that fulfill the purpose or mission for which the Ministry exists.

These services are the major purpose for, and the major output of, the Ministry. Ministry

expenses are in furtherance of our stated purpose as presented in our Articles of Incorporation, Bylaws, and representations to government authorities.

Fund raising expenses involve informing potential donors and facilitating contributions of money,

securities, materials, facilities, other assets, or time. Fund raising activities include publicizing and conducting fund raising campaigns, maintaining donor mailing lists, conducting special fund raising events, preparing and distributing fund raising manuals and other materials, and conducting other activities involved with soliciting contributions from individuals, foundations, government agencies, and others.

General and administrative expenses are those that are not identifiable with a single ministry or

fund raising activity, but are indispensable to the conduct of those activities and to the Ministry’s existence. They include oversight, business management, general record keeping, budgeting, and financing activities.

Allocation of Joint Costs – In 2014, the Ministry conducted activities that included requests for

contributions, as well as ministry and general and administrative components. Those activities included print communications and broadcast productions. The costs of conducting those activities included a total of $9,603,340 and $9,828,504 of joint costs for 2014 and 2013, respectively. These joint costs are not specifically attributable to particular components of the activities and were allocated as follows:

2014 2013

Ministry 3,268,376$ 3,363,030$

Fund raising 6,168,190 6,452,472

General and administrative 166,774 13,002

Total 9,603,340$ 9,828,504$

Income Taxes – The Ministry is exempt from federal income taxes, and contributions to the Ministry are deductible as charitable contributions under Internal Revenue Code Section 170. The Internal Revenue Service has issued a determination letter to the Ministry stating that it qualifies for tax-exempt status under Internal Revenue Code Section 501(c)(3). The Internal Revenue Service has also issued a ruling stating that the Ministry will not be treated as a private foundation within the meaning of Internal Revenue Code Sections 509(a)(1), 509(a)(2), and 509(a)(3).

10

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued The Ministry has determined that it does not have any material unrecognized tax benefits or obligations as of December 31, 2014. Fiscal years ending on or after December 31, 2011, remain subject to examination by federal and state authorities. Assessment – The Board of Directors has established a policy that all donor-restricted contributions for a specific project may be assessed up to 10 percent to be used for administering the gift if needed. Unrestricted and Restricted Support and Revenue – Contributions received are recorded as unrestricted or temporarily restricted, depending on the existence and/or nature of any donor restrictions.

All donor-restricted support is reported as an increase in temporarily restricted net assets,

depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as satisfaction of program and property restrictions.

The Ministry has no permanently restricted net assets. Subsequent Events – Subsequent events have been evaluated through April 14, 2015, which is

the date the consolidated financial statements were available to be issued. Comparative Data – The consolidated 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 GAAP. Accordingly, such information should be read in conjunction with the Ministry’s consolidated financial statements for the year ended December 31, 2013, from which the summarized information is derived.

Reclassifications – Certain reclassifications have been made to the 2013 amounts to conform

to the 2014 consolidated financial statement presentation. 2. Property and Equipment

A summary of property and equipment and related accumulated depreciation at December 31 follows:

2014 2013

Equipment, furniture and fixtures 39,716,377$ 34,759,911$

Ministry and missionary aircraft 50,208,999 42,605,874

Land and land improvements 10,654,555 5,861,874

Buildings 59,225,415 53,562,457

Total 159,805,346 136,790,116

Less accumulated depreciation 64,499,121 53,135,366

95,306,225 83,654,750

Construction in progress - 1,162,170

Property and equipment, net 95,306,225$ 84,816,920$

11

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued

The Ministry places assets in various countries at any given time to be used for support of

missions, medical assistance, and emergency relief. These assets are subject to the laws of the governments in the countries in which they reside. Ministry and missionary aircraft, equipment, and other assets that have a cost basis of $20,438,553 in 2014 and $15,757,803 in 2013 have been placed in various foreign countries.

3. Investments

Investments are composed of the following:

2014 2013

Cash 1,529,304$ 32,632,948$

Certificates of deposit 200,012 -

Equities 17,735,680 20,010,868

Fixed income 57,615,153 59,556,035

Real estate - 90,000

Total 77,080,149$ 112,289,851$

Investment income, exclusive of annuities and trusts, consists of:

2014 2013

Interest and dividends 968,540$ 1,026,973$

Net realized gains (losses) 958,197 (438,774)

Net unrealized gains (losses) (311,836) 2,463,509

Total 1,614,901$ 3,051,708$

4. Planned Giving Program

The assets and liabilities of the planned giving program are as follows:

2014 2013

Assets:

Gift annuities 23,309,434$ 20,837,567$

Irrevocable trusts 972,551 968,268

Revocable trusts 4,791,435 4,619,415 Total 29,073,420$ 26,425,250$

Liabilities:

Gift annuities 13,371,969$ 13,008,640$

Irrevocable trusts 513,674 526,528

Revocable trusts 4,791,435 4,619,415 Total 18,677,078$ 18,154,583$

12

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued

The change in value of annuities and trusts presented on the consolidated statement of activities consists of:

2014 2013

Interest and dividends 855,316$ 833,575$

Net realized gains on investments 595,690 349,841

Net unrealized gains on investments 299,852 454,459

Actuarial adjustments 334,347 395,559

Administrative fees (131,020) (141,755)

Payments to income beneficiaries (1,735,713) (1,709,677)

Total 218,472$ 182,002$

5. Fair Value Measurements The carrying amount of cash and cash equivalents and accounts receivable approximates fair value because of the short-term maturities of those instruments. The fair values of investments are based on market prices obtained from various financial institutions. The carrying amount of accounts payable and accrued expenses approximates fair value because of the short-term maturities of those instruments. Prices for certain cash equivalents, such as investment securities and U.S. government agency instruments, which are readily available in the active markets in which those securities are traded, are categorized as Level 1. Prices for non-U.S. government agency fixed income instruments and real estate are based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets and are categorized as Level 2. Prices for privately held stocks are based on assumptions developed by management and are categorized as Level 3. There were no changes during the years ended December 31, 2014 and 2013 to the Ministry’s valuation techniques used to measure asset and liability fair values on a recurring basis. The following tables set forth by level within the fair value hierarchy the Ministry’s assets accounted for at fair value on a recurring basis as of December 31, 2014 and 2013. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Ministry’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

13

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued Measured at Fair Value on a Recurring Basis

As of December 31, 2014

Description Level 1 Level 2 Level 3 Total

Equities

Energy/mining 2,785,647$ -$ -$ 2,785,647$

Financial 3,147,513 - - 3,147,513

Healthcare 1,949,609 - - 1,949,609

Manufacturing 1,896,465 - - 1,896,465

Services 6,477,921 - - 6,477,921

Transportation 1,331,121 - - 1,331,121

Mutual funds - 147,403 - 147,403

Fixed income

U.S. government 8,153,609 - - 8,153,609

Municipal - 1,080,677 - 1,080,677

Mortgage backed securities - 1,715,143 - 1,715,143

Asset backed securities - 6,541,771 - 6,541,771

Corporate - 38,799,352 - 38,799,352

Mutual funds - 1,324,602 - 1,324,602 Other assets

Donated equity securities and

other financial instruments

included in other assets 867,132 - 324 867,456

Total 26,609,017$ 49,608,948$ 324$ 76,218,289$

As of December 31, 2013

Description Level 1 Level 2 Level 3 Total

Equities

Energy/mining 3,902,180$ -$ -$ 3,902,180$

Financial 3,348,390 - - 3,348,390

Healthcare 1,952,207 - - 1,952,207

Manufacturing 3,087,320 - - 3,087,320

Services 6,128,570 - - 6,128,570

Transportation 1,441,618 - - 1,441,618

Mutual funds - 150,583 - 150,583

Fixed income

U.S. government 9,194,235 - - 9,194,235

Municipal - 1,553,379 - 1,553,379

Mortgage backed securities - 2,893,248 - 2,893,248

Asset backed securities - 5,764,202 - 5,764,202

Corporate - 37,938,584 - 37,938,584

Mutual funds - 2,212,387 2,212,387

Other

Real estate - 90,000 - 90,000 Other assets

Donated equity securities and

other financial instruments

included in other assets 1,561,231 - 324 1,561,555

Total 30,615,751$ 50,602,383$ 324$ 81,218,458$

14

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued

Cash and cash equivalents, money market deposit accounts, and certificates of deposit are not defined within the levels as prescribed in Fair Value Measurements. Accordingly, $1,729,316 as of December 31, 2014 and $32,632,948 as of December 31, 2013 of cash and cash equivalents, money market deposits, and certificates of deposit are not included in the table above. The determination of fair value above incorporates various factors. These factors include not only the credit standing of the counterparties involved and the impact of credit enhancements, but also the impact of the Ministry’s nonperformance risk on its liabilities.

6. Temporarily Restricted Net Assets Temporarily restricted net assets are available for the following purposes as of December 31:

2014 2013

Africa projects 8,452,092$ 3,484,554$

Agriculture projects 5,189,582 4,517,873

Asia projects 549,517 597,248

Bibles and Christian literature 563,169 108,561

Central and South America projects 163,347 97,999

Children's projects - Operation Christmas Child 26,076,488 23,962,811

Children's projects - other 6,445,096 4,371,105

Church construction projects 506,485 340,374

Clean water projects 3,742,097 3,917,066

Development projects 1,079,541 511,078

Emergency relief 2,486,746 3,624,125

Haiti earthquake relief 10,144 367,918

Housing construction projects 662,353 489,886

Japan relief 397,104 518,602

Medical missionaries' expenses to foreign field 2,590,067 2,317,151

Medical projects 2,775,684 2,732,780

Middle East projects 6,594,444 1,107,102

Missionary aid 1,483,018 581,809

Persecuted Christians 849,806 161,393

Philippines relief 9,454,114 14,055,289

U.S.A. - disaster relief 16,260,275 22,246,890

U.S.A. - nonemergency relief 3,169,743 1,428,458

Other 772,917 729,228

Inventories:

Operation Christmas Child gift boxes 17,723,845 34,320,290

Medical equipment and supplies 4,220,671 3,864,843

Other equipment and supplies 437,176 4,881

Total 122,655,521$ 130,459,314$

15

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued 7. Related-Party Transactions

The Chief Executive Officer, President, and Chairman of the Ministry serves as Chief Executive Officer, President, and Chairman of Billy Graham Evangelistic Association. Billy Graham Evangelistic Association 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, Billy Graham Evangelistic Association and the Ministry 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 agreement, the Ministry reimbursed the sum of $962,345 in 2014 and $681,526 in 2013 to Billy Graham Evangelistic Association and Billy Graham Evangelistic Association reimbursed the sum of $1,636,711 in 2014 and $1,575,654 in 2013 to the Ministry. Billy Graham Evangelistic Association received and forwarded contributions totaling $361,422 in 2014 and $399,026 in 2013 to the Ministry designated for support of ministry activities. The Ministry received and forwarded contributions totaling $54,226 in 2014 and $98,760 in 2013 to Billy Graham Evangelistic Association for support of ministry activities. Amounts receivable from Billy Graham Evangelistic Association at December 31, 2014 and 2013 were $61,714 and $193,385, respectively, and are included in other current assets on the consolidated statement of financial position. Amounts payable to Billy Graham Evangelistic Association at December 31, 2014 and 2013 were $123,297 and $154,182, respectively, and are included in accounts payable-suppliers on the consolidated statement of financial position. The Ministry provided cash grants totaling $750,000 in 2014 and $1,000,000 in 2013 and in-kind contributions valued at $574,469 in 2014 and $607,953 in 2013 to Billy Graham Evangelistic Association in support of various ministry projects. Billy Graham Evangelistic Association provided cash grants totaling $3,754 in 2013 and in-kind contributions valued at $952 in 2014 and $54,063 in 2013 to the Ministry in support of various ministry projects. The Ministry served as Billy Graham Evangelistic Associations’ international partner for the 2013 La Paz Bolivia Festival in order to meet the obligations and laws of the country. As such, the Ministry was reimbursed $43,235 for 2013. Following is 2014 unaudited summary financial information for Billy Graham Evangelistic Association: total assets - $371,351,027; total liabilities - $75,991,339; total net assets - $295,359,688; total revenues - $112,893,788; and total expenses - $102,062,361. The Ministry maintains license agreements with the following unconsolidated organizations: Samaritan’s Purse-Australia, The Samaritan’s Purse-Canada, Samaritan’s Purse International-United Kingdom, and Gifts of Hope-Germany. The agreements outline how the affiliate organizations coordinate program activities and the terms and conditions of their use of the Ministry’s registered name and trademarks. The Ministry paid these affiliated organizations $1,289,285 in 2014 and $1,872,235 in 2013 for employment cost reimbursement and support of various projects. These affiliated organizations reimbursed the Ministry $1,167,515 in 2014 and $1,099,899 in 2013 for ministry support and materials. Amounts receivable from these affiliates at December 31, 2014 and 2013 were $590,920 and $679,349, respectively, and are included in other current assets on the consolidated statement of financial position. Amounts payable to these affiliates at December 31, 2013 were $248,900 and are included in accounts payable-suppliers on the consolidated statement of financial position. Samaritan’s Purse also donated a fully depreciated disaster relief unit to The Samaritan’s Purse-Canada in 2013.

16

Samaritan’s Purse Notes to Consolidated Financial Statements, Continued

One board member of the Ministry is also a board member of Mafraq Sanatorium Association.

The Ministry donated $808,108 in 2014 and $763,050 in 2013 to Mafraq Sanatorium Association, of which $40,191 and $104,261, respectively, was donor-restricted. The Ministry paid for some ministry and administrative expenditures which amounted to $33,346 in 2014 and $44,493 in 2013.

8. Retirement Plan

The Ministry sponsors a defined contribution retirement and salary reduction plan (the “Plan”) that covers eligible employees as determined by the Plan agreement. Employer contributions are five percent of each participant’s salary plus a matching provision which provides a $1 employer contribution to each $1 employee contribution up to three percent of each participant’s salary. Retirement expense was $3,381,597 in 2014 and $3,019,751 in 2013. The assets of the Plan are held in an employee benefit trust and are not included in the accompanying consolidated financial statements.

9. Concentrations of Credit Risk The Ministry has deposits in various banks in excess of the amounts covered by federal

depository insurance. Management believes that credit risk related to these deposits is minimal. 10. Self-Insurance Program

The Ministry maintains a self-insurance program for hospitalization and medical coverage for its employees. The Ministry limits its losses through the use of stop-loss policies from reinsurers. Specific individual losses for claims are limited to $100,000 per year. The Ministry’s aggregate annual loss limitation is based on a formula that considers, among other things, the total number of employees. At December 31, 2014 and 2013, the estimated liability for these claims approximated $2,400,000 and $2,100,000 respectively, and is included in accrued expenses.

11. Line of Credit On October 20, 2014, Branch Banking and Trust Company, Inc. (“BB&T”) extended to the Ministry a $5,000,000 unsecured line of credit bearing interest at bank prime rate (3.25% at December 31, 2014) until its expiration in October 2015. There were no outstanding borrowings under this line of credit at December 31, 2014. This line of credit is subject to certain restrictive financial covenants. At December 31, 2014, the Ministry was in compliance with the covenants.

17

SAMARITAN’S PURSE Schedule of Functional Expenses Information

For The Year Ended December 31, 2014 (With Comparative Totals for 2013)

2014 2013

Ministry General and

Expenses Fund raising administrative Total Total

Grants 12,834,751$ -$ -$ 12,834,751$ 11,342,640$

Contributed goods and services 216,099,904 730 124,915 216,225,549 174,432,465

Direct materials/project costs 73,391,592 504,824 21,175 73,917,591 58,802,672

Employment 65,531,834 14,896,180 12,375,246 92,803,260 81,056,613

Contracted services 8,674,245 1,115,664 1,174,051 10,963,960 9,483,376

Vehicle maintenance and repairs 5,527,033 50,977 34,100 5,612,110 6,153,149

Travel - staff 15,878,617 2,421,570 709,466 19,009,653 17,337,781

Aircraft 5,102,190 511 511,971 5,614,672 7,416,738

Supplies 2,687,682 169,259 1,045,088 3,902,029 5,935,815

Telecommunications 2,356,473 658,582 629,122 3,644,177 3,092,434

Postage and shipping 3,027,338 3,370,092 150,768 6,548,198 7,004,408

Printing and broadcast 4,479,419 5,651,420 590,026 10,720,865 10,903,597

Buildings and equipment 6,982,677 561,635 1,944,791 9,489,103 8,130,539

Depreciation 7,863,208 2,129,766 1,686,436 11,679,410 9,051,143

Other 4,271,462 1,990,626 97,842 6,359,930 3,922,598

Total expenses 434,708,425$ 33,521,836$ 21,094,997$ 489,325,258$ 414,065,968$

18

SAMARITAN’S PURSE Schedule of Ministry Expenses Information For The Year Ended December 31, 2014

2014

Emergency Community Medical Children's Children's Christian Miscellaneous Other ministry Total Ministry

relief dev. min. ministry ministry-OCC ministry-other education ministry services Expenses

Grants 2,684,530$ 1,698,662$ 2,953,828$ 262,730$ 1,521,807$ 3,287,871$ 425,309$ 14$ 12,834,751$

Contributed goods and services 2,835,141 77,012 15,085,801 197,970,578 37,062 93,826 30 454 216,099,904

Direct materials/project costs 32,051,579 10,059,768 7,149,466 21,899,821 1,171,181 1,055,048 3,570 1,159 73,391,592

Employment 17,200,358 17,094,652 6,891,128 11,904,430 1,896,235 8,856,555 263,430 1,425,046 65,531,834

Contracted services 2,715,447 1,408,335 493,320 3,358,585 150,906 498,609 31,521 17,522 8,674,245

Vehicle maintenance and repairs 2,785,784 1,722,618 426,517 29,940 209,044 350,295 190 2,645 5,527,033

Travel - staff 2,413,692 1,935,163 2,960,347 5,788,983 723,250 1,762,630 101,380 193,172 15,878,617

Aircraft 1,662,713 771,513 475,888 91,587 99,988 1,998,114 2,379 8 5,102,190

Supplies 970,042 815,651 310,074 361,930 68,206 153,303 1,639 6,837 2,687,682

Telecommunications 592,496 917,147 177,013 281,091 72,400 296,472 4,981 14,873 2,356,473

Postage and shipping 17,414 23,267 13,129 1,230,219 1,095 1,737,586 45 4,583 3,027,338

Printing and broadcast 199,763 118,133 217,688 1,790,467 40,171 2,112,857 37 303 4,479,419

Buildings and equipment 1,636,129 2,862,747 382,964 1,215,361 212,965 643,913 4,231 24,367 6,982,677

Depreciation 2,661,316 536,496 321,226 1,284,904 98,532 2,800,121 - 160,613 7,863,208

Other 1,978,839 742,381 393,772 387,712 110,148 624,030 4,558 30,022 4,271,462

Total ministry expenses 2014 72,405,243$ 40,783,545$ 38,252,161$ 247,858,338$ 6,412,990$ 26,271,230$ 843,300$ 1,881,618$ 434,708,425$