The ministry of the Grace Lutheran Church Foundation was inaugurated on January 22, 1995 at the annual meeting of the Congregation of Grace Evangelical Lutheran Church (GLC). Initial funding for the Foundation was graciously provided primarily by the estate of Alice and Carl Ronnenkamp. The Foundation was created to encourage gifts to the ministry of Grace Church that would include cash, real estate, living trusts, stocks, bonds, collectibles and other assets. It is dedicated to preserving long-term assets (principal) as an irreducible fund and to invest them to support projects that will have a long-run effect on Grace's ministry. The Foundation is also equipped to allow for shorter-run assets for special projects that are intended to earn interest and then be spent entirely for church-related projects.

The Board of Directors for 2002 included Michael Beachley (Secretary), Jeff Beck, Larry Burt (President), Hal Dick, Karen Guzman (Treasurer), John King, and Carolyn Warloe. The Grace Congregation Council re-elected Karen and Carolyn to full three-year terms on the Board. In addition, Hal Brauner and Pastor Dan were appointed by the Congregation Council as one-year ex-officio members of the Board.

During 2002, its eighth year of operation, the Foundation's Board was very busy. We met on a monthly basis. During those times, we did such things as review budgets and financial statements, allocate budgeted project funds, work with representatives of the Foundation's Trustee (Union Bank of California), develop promotional materials and policies, and make progress on refining our investment and operating philosophies.

Since the inception of the Foundation, we have funded the following projects:
1994	(prior to incorporation) Ursula Beckert veterinary mission	$1708
1995	dedication of Ronnenkamp Hall	$484
1996	Partial funding for GLC Parish Nurse Health Ministry Partial funding for alcove window replacement Sponsor for Luther House "To Swim with the Salmon" event 30-week funding for the high school youth minister GLC playground project (net after special member appeal)	$5,550 $1,250 $250 $1,860 $ 1,283 1996 total = $10,693
1997	Match the first $500 in donations collected by the GLC Property     Committee for landscape improvements Underwrite the cost of the GLC computer network upgrade Underwrite Consecration Sunday costs Underwrite GLC commitment of $800 for Pastor Norlie's participation     in a special trip in support of our companion synod in Poland Purchase of new phone equipment and miscellaneous computer network     components for GLC	$500 $11,117 $1,705 $291 $ 3,592 1997 total = $17,205
1998	Provide matching funds for Carrie Bryant's mission work in Tanzania Provide matching funds for new position at Pastoral Counseling Center Salary and workstation set up support for the Director of Lay Ministry     position ($24,000 committed over 36 months) Amended 1997 computer equipment proposal to include new printer	$2,000 $1,000 $5,550 $1,100 1998 total = $9,650
1999	Continuing support for the Director of Lay Ministry position Seed money for the Parish Health Ministry Team fitness program EMS Lite networked multi-user software for GLC staff Educational expenses for Pastor Maier's sabbatical Support for Carrie Bryant's education as a medical missionary Support of the Percept Revision long range planning process Matching fund support for Ursula Beckert veterinary mission to Nepal Matching fund support for attendees to "The Child in Our Hand" conference Music purchase for the GLC choir - Kuehn Fund Matching funds for replacement of the Ronnenkamp Hall Alcove windows Matching funds for the Brian Smith Fund	$8,635 $500 $710 $600 $2,000 $165 $1,000 $541 $87 $1,250 $ 1,610 1999 total = $17,098
2000	Continuing support for the Director of Lay Ministry position "Footsteps in Faith" program New computer furniture for GLC office Projection screen for the Fireside room Grand piano down payment for the sanctuary Library books for the Lay Ministry program Seed money for the Augsburg resource/gift book center Drape replacements in Ronnenkamp Hall New acolyte robes Computer equipment for the Mueller Senegal Mission Furniture for Pastor Dan's office Ritual edition lectionary for the sanctuary	$5,821 $613 $727 $140 $4,800 $85 $1,554 $1,720 $1,485 $2,325 $890 $ 100 2000 total = $20,257
2001	"God in 2000" videotape purchase Sanctuary grand piano purchase Lending library book purchases Luther House 75th Anniversary National pastors' conference GLC office file cabinet Sanctuary drum set Continuing support for Director of Lay Ministries position OHSU scholarship for Carrie Bryant Capital Campaign Task Force architectural renderings House of Zion Ministries hunger project Property purchase - “Little-Grace #1"	$208 $42,090 $120 $3,800 $1,000 $100 $403 $3,333 $1,000 $7,605 $500 $90,102 2001 total = $150,261
2002	Portable communion kits House of Zion Ministries hunger project Tape players for homebound members	$417 $500 $ 80 2002 total = $997

Total projects funded to date = $228,356

Pending Projects: $152 for the lending library books project.

As of September 30, the 2002 receipts for the Foundation totaled $19,457. That included $7,927 from trust fund earnings and $3912 in contributions from individuals and organizations primarily affiliated with Grace. Expenditures in 2002 for the same 9-month period totaled $3910 including $1297 in trustee fees to Union Bank of California and $1628 in Administrative Assistant wages. We are hopeful that giving will further increase so that there will be even larger allocations possible in the future from interest and growth in the Foundation's current assets.

With good stewardship, we think that the Foundation will grow over the coming years through both new bequests and proper investment of its existing assets to balance income, growth and safety. The book value of all assets of the Foundation as of September 30, 2002 totaled $606,025, up $40,226 from the year-ago level. The endowed (restricted principal) funds including inflation adjustments as of that time were $498,520. That value excludes the Little-Grace #1 property which we are carrying on our books at $90,250. The Board has informed the Congregation Council that it intends, income permitting, to increase the principal amount periodically to reflect the loss of purchasing power due to inflation.

Much of our efforts in the coming year will be focused on fine-tuning our operating procedures, developing programs for soliciting new funds including reaching out to the Congregation, and maintaining sound accounting and auditing procedures.