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 short-term assets for special projects that are intended to earn interest and then be spent entirely for church-related projects.

The Foundation also encourages gifts to the ministry of Grace that could include cash, real estate, living trusts, stocks, bonds, collectibles, and other assets, while providing benefactors opportunities to support specific projects if they wish. The foundation has total assets of $581,623.26 as of Nov. 30, 2006, compared to $528,743.00 as of Dec. 31, 2005.

Since Grace Foundation began, our bylaws have stated that "active management and investment of assets of this foundation must be handled by one or more trust companies authorized to engage in the business of acting as a fiduciary in the State of Oregon.' Twelve years ago, the only companies so authorized by the State of Oregon were banks. The Board found only three banks in the state that would consider managing our trust. After researching and interviewing two of them, we selected Union Bank of California.

We were satisfied with Union Bank’s management until the last year or so. The manager of our account retired in 2004. As a Board, we feel that Union Bank has become less responsive to our phone calls and e-mail. Policy changes in the way they want to transfer funds will cost us larger fees. Funds are not being transferred in as timely a manner as they once were. With the earnings of our funds only in the acceptable range, we are wondering if the money entrusted to the Foundation is receiving the best possible management at Union Bank.

For this reason, the Board has begun investigating the possibility of engaging another trust company to manage all or part of the trust. We intend to research several companies, interview their trust managers, and compare their programs. We do this with deliberate caution, and prayerful consideration.

We want the congregation to be informed of our actions. We, the Foundation Board, have always operated with the intent of keeping the congregation informed about our activities, including projects funded, donations received, and trust earnings. We may, after investigation other possibilities, leave the funds at Union Bank, but we will do so believing that it is the best alternative. If you have any questions or comments, feel free to contact any member of the Board or visit us through the church Web site: www.grace97330.org.

I thank Larry Burt and Michael Beachley, who are retiring from the board, for their service to the Foundation from its inception. Larry served as President of the Board from 1995 until 2004. Michael, who is the Secretary for the Board, has been filling that role since the beginning. They were part of a group of Church Council members who established the Foundation bylaws and presented them to the congregation in 1995. They have helped to establish a wonderful resource for the church, and the policies that will insure its continued support of the church’s ministries.

                                    Sincerely,
                                    Carolyn Warloe
                                    Board President
                                    Grace Lutheran Church Foundation

Foundation Board 2006: Michael Beachley (retiring), Larry Burt (retiring), Jeff Beck, Hal Dick, Peggy Custer, John King, and Carol Warloe. Neil Christensen and Pastor Dan were appointed by the Congregation Council as ex officio members of the Board.

During 2006, the Foundation paid for projects totaling $18,366.13, while authorizing funding up to $22,573.49. Some of those projects have not yet been completed.

Projects Funded or Pending in 2006