January 22, 2005 marks the 10th anniversary of the Grace Lutheran Church Foundation, which was established by approval of the congregation at the annual meeting in 1995. Initial funding for the Foundation was graciously provided primarily by the estate of Alice and Carl Ronnenkamp. Carl and Alice wanted to have their gift invested so that earnings could provide continuing funding. The Foundation is dedicated to preserving long-term assets (principal) as an irreducible fund and using their earnings to support projects that will enhance the ministry of Grace. 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 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 while providing benefactors opportunities to support specific projects if they wish.

The Board of Directors for 2004 included Michael Beachley (Secretary), Jeff Beck, Larry Burt, Hal Dick, Karen Guzman (Treasurer), John King, and Carolyn Warloe (President). In addition, Jack Davis and Pastor Dan were appointed by the Congregational Council as ex-officio members of the Board.

During 2004, the Foundation met on a monthly basis, we have strived to be good stewards of the Foundation's assets. We consider requests for funding, monitor and work with the representatives of the Foundation's Trustee (Union Bank of California), develop promotional materials and policies, and maintain records of our investments, projects funded, and donation received by the Foundation.

Since the inception of the Foundation in 1994, we have funded $242,081 worth of projects. During 2004 we funded the following projects:

Continuing Education - Pastor Dan Augsburg Fortress Books / "Reclaiming the L Word" Medical Grant - Mr. Kropa Ylvisaker workshop Organ Repair Choir Music Portable Communion Kits Parish Nurse Ministries DVD PLayer for GLC House of Zion Ministries hunger project

$1,500 $999 $804 $503 $310 $585 $147 $100 $60 $500 2004 total = $5,508

During the first 9 months of this year, receipts for the Foundation totaled $17,139.63. That included $6,377.78 from the trust fund earnings and $5,376.00, in contributions from individuals and organizations primarily affiliated with Grace. Expenditures in 2004 for the same 9 month period totaled $12,227.93 including $1,496.92 in trustee fees to Union Bank of California and $2,283.79 in Administrative Assistant wages. We are hopeful that growing investments and additional giving will increase our ability to fund projects in the future.

The Board intends to remain accountable and prayerful stewards of the Foundation. As of Sept. 30, 2004, the carry value of the Foundation's total assets was $625,733.71. This is an increase of $13,271.71 from the same time last year. The market value of the Foundation's total assets also improved from $503,896 to $545,791 during the same period. The Board continues to maintain $507,591 as endowed (restricted principal) funds. 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 maintaining sound accounting and auditing procedures, providing information about estate planning and tax benefits to potential donors, encouraging additional contributions, and making sure funds are invested and maintained appropriately.