However, in light of the current economic climate, it is not surprising to report to you that the Foundation's funds have decreased in value. The ELCA Foundation received $522,118.75 in January of 2008, and had distributed income of $16,583.50 to the Foundation during the year. The Board withdrew $7,000 in funds for the renovation of the Grace basement, leaving the fund balance at $346,097.08 on November 30. This is approximately a 35% decrease in the value of the fund while the stock market lost approximately 32% during the last year. While we are not happy with this outcome, we are realistic about the current market. The endowed value (the amount of money which is to be maintained to earn spendable income) of the Foundation is $474,345, while our fund value (the value the ELCA Endowment Fund places on our account) is $374,093.

This is not the first time in its 13-year history that the value of the foundation has dipped below the endowed value. This also occurred in 2002. The last time this happened there was not such a large deficit between the value of the fund and the endowed value. In time, the value of the fund rebounded; we have faith that this will happen again.

After the last major drop in the stock market, many foundations were in the same position of falling below their endowed levels. The State of Oregon adopted some new rules that allow for some funds to be spent even below the endowed level. These include funding grants already awarded, costs associated with doing business, and continuing to serve the purpose for which the fund was established. It was felt that if a Foundation was prudently managed, that donors would want the Foundation to continue to serve the purpose for which it was established. This does not mean that we have any plans to award other grants at the moment. It does, however, mean that we will take into consideration the needs of Grace, consider the dispersal of non-endowed funds, and be able to pay for the cost associated with doing business (e.g., paying the CPA to file our tax forms).

Since its conception, the Foundation has awarded $336,625 to support the mission and ministry of Grace. With continued support from the congregation and a rebound in the stock market, the Foundation will continue its financial support of programs and special projects at Grace.

Sincerely, Carolyn Warloe Board President, Grace Lutheran Church Foundation

Foundation Board 2008: Tom Kiersky, Hal Dick, Jeff Beck, Jack Davis, Kris Saathoff, Shelly Lundahl, and Carolyn Warloe. Anne Orwick and Pastor Zane Wilson were appointed by the Congregation Council as ex-officio members of the Board.

During 2008, the Foundation supported the following projects: