Winter 2012 The North Carolina Baptist Foundation, Inc. Vol. 28 – No. 4 www.ncbaptistfoundation.org

Established 1920

Celebrating 92 Years of Serving Those Whose Stewardship Lasts Forever

Merry Christmas to Our Foundation Friends“And the angel said unto them, Fear not: for, behold, I bring you good tidings of great joy, which shall be to all

people. For unto you is born this day in the city of David a Savior, which is Christ the Lord.” Luke 2:10-11 KJV

Merry Christmas to all from the Baptist Foundation board and staff. 2012 is our 92nd birthday, and we thank all our friends and donors for these many years of successful ministry. We join you in giving thanks above

all for a birthday that occurred over two thousand years ago, that of our Savior, Jesus Christ.

Spreading Good News 2 Winter 2012

I am forever being asked, “Just what does the NC Baptist Foundation do?” In response I will usually say something about these four areas of ministry:

1) ENDOWMENTS They work like this: An asset is given by a donor, translated into cash if it is a non-cash gift, immediately invested, with the earnings

used to support ministries designated by the donor. These are permanent instruments, 100% tax deductable, and the donor usually maintains the lifetime right to change beneficiaries.

2) CHARITABLE TRUSTS Trusts work the same way as endowments with this exception, the donor benefits from the trust first. So the gift is invested just as with an endowment, but the donor receives a certain percentage annually which is determined by their age and IRS regulations. Heirs can also be added for as many as 20 years after the donor(s) has benefitted, but the trust will eventually end and the remainder of the funds will pour over into an endowment set up previously by the donor. A portion of the trust gift is also tax deductable.

3) CHURCH FUND MANAGEMENT Churches frequently hold funds that they do not intend to spend, or at least not for awhile. These include scholarship funds, building funds, cemetery funds, or funds just being held for a “rainy day.” These funds can be returned at any time without any penalty.

4) CHURCH LOANS Our newest ministry is North Carolina Baptist Financial Services. Through NCBFS we make loans to NC Baptist churches for new construction, property acquisition, renovation or refinancing. NC Baptists invest in the Church Growth Investment Fund, receive an attractive CD-type rate and know that their money is being loaned to growing NC Baptist churches. But there is a broader answer to the question, “Just what does the NC Baptist Foundation do?” This broader answer is the umbrella under which these specific ministries hang. Our over-riding mission is this: To assist NC Baptists in being the very best stewards of God’s gifts to us, therein providing perpetual support for Kingdom work until our Lord returns. I am absolutely confident that the Lord has given NC Baptists the resources needed to do the Kingdom work He has for us to do. Unfortunately, we have a tendency to think that all our blessings are given simply for our personal use. Yet, scripture shows us that is not the case. We must be faithful in making tithing the starting point in Christian stewardship and we must come to realize that we are “robbing God” just as much when we fail to tithe our estates. Yes, Malachi 3:8-10 also applies to our estates. We need to wake-up to the fact that we can go a long way in resourcing our local churches, as well as state and world missions, by leaving a minimum of 10% of our God-given assets to Kingdom causes when we don’t need them anymore. Call the Foundation and let us help you, free of charge, put together an estate plan that will please the Father.

M. Clay WarfExecutive Director

All From Clay

Investment Returns September 30, 2012

YTD 1 Year 3 Year 5 Year Since Inception*

Growth Fund 8.75% 14.67% 5.59% -2.14% 3.90%

Balanced Fund 6.30% 9.70% 5.46% 0.64% 4.33%

Income Fund 5.71% 8.21% 6.47% 3.28% 3.94%

Fixed Income Fund 6.09% 6.35% 6.74% 6.32% 5.06%

S&P 500 Index 16.44% 30.20% 13.20% 1.05%

MSCI EAFE (net) 10.09% 13.75% 2.12% -5.24%

BC Int G/C 3.54% 4.41% 5.18% 5.71%

90-Day Tbills 0.06% 0.08% 0.09% 0.50%

Just what does the NC Baptist Foundation do?

Equities and other risk assets surged in the third quarter as banks eased monetary conditions. The Dow Jones Industrial Average rose 5% for the quarter. The NASDAQ gained 6.2%, and the S&P 500 grew 6.4%. Nine out of the ten sectors of the S&P 500 were up. Energy

was the best performer while Industrials and Utilities lagged. Both growth and value were up during the quarter, but value did slightly outperform growth. Emerging markets and global equities were also up during the third quarter. The MSCI EAFE index rose 7%, and the MSCI Emerging Markets index was up 7.9%. In response to banks easing monetary

policy, riskier parts of the bond market rallied. However, investors remained wary of mortgage-backed securities, and we only saw a 1.1% increase in The Barclay Intermediate Government Credit index. (Graystone Consulting. “Capital Markets Overview.” 3rd Quarter 2012).

Spreading Good News 3 Winter 2012

Special Project Grants and Educational AssistanceEach year our Board of Directors, through its

Denominational Relations Committee, has the privilege of awarding special project grants and student scholarships and loans to deserving Christian causes and Baptist students. These grants, scholarships and loans are possible because thoughtful in-dividuals and families have established endowments in years past to assist in such endeavors.

We offer a reminder to all students in our Baptist churches who are interested in financial assistance for college or graduate school in the coming year that applications must be returned to us no later than January 15, 2013. Such scholarships and loans will be available for the 2013-14 school year, beginning in the fall of 2013. Applicants are informed of the committee’s decision in late March or early April.

Churches, associations and other Baptist entities can apply for special project grants for special and innovative ministries. These applications must be returned to our Cary office by August 15th of each year. Awards are made during late September and early October.

During 2012, we awarded 23 college scholarships, 19 col-lege loans, and 27 mission grants. During a recent meeting of our Board of Directors, the interest rate on the loans was reduced to be the prime rate less one-half percent at the time of application; currently that would mean the rate on our loans would be 2.75%. All repayments begin six months after the completion of studies.

Application forms for scholarships, loans and grants can be secured on our web site: www. ncbaptistfoundation.org, under the “Resources” tab. Or if you prefer, contact our Cary office or your area manager and we will have a hard copy forwarded to you.

Church Loan Program• Churchloansformanypurposes• Competitiveinterestrates• Consultingservicesatnocost• Customizedloanservices

Church Growth Investment Fund• Abovemarketrates• $1,000minimuminvestment• Availabletochurchesandindividuals• DemandCertificates/TimedCertificates

Baptists partnering with other Baptists for the Kingdom

NC BAPTIST FINANCIAL SERVICES

church loans and investments

Tom Denton, Eastern Area Manager, presents Rev. Dougald McLaurin, DOM, Tar River Baptist Association, with a recent grant check awarded for a minister’s encouragement project. Grant checks are awarded each fall by the Denominational Relations Committee of our Board of Directors.

Spreading Good News 4 Winter 2012

January is Christian Estate-Planning Emphasis Time2013 Theme: Finishing Well

Spreading Good NewsVolume 28- Number 4

The purpose of this publication is to provide accurate and authoritative information of general character only. The publisher is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the service of an attorney or other professional person should be obtained.Please send me: o Making Your Will Bookleto Endowment Fund Informationo Charitable Trust Informationo Charitable Gift Annuity Information

For churches:o Fund Management Informationo Seminar Information/ Schedulingo Free Bulletin Inserts o Senior Adult Program o Church Loan Information

Please contact me:o I need estate-planning assistance.o I have a friend/family member who needs estate planning.o I am interested in the Church Growth Investment Fund

_________________________________________________________________________________________Name: Rev. Dr. Mr. Mrs. Ms.

_________________________________________________________________________________________Address

_________________________________________________________________________________________City State Zip

_________________________________________________________________________________________Home Phone Work Phone Email

_________________________________________________________________________________________Special Request

Administrative Office201 Convention DriveCary, NC 27511-4257919-380-7334 • 800-521-7334 919-460-6334 (fax) www.ncbaptistfoundation.org

Eastern OfficePO Box 12605New Bern, NC 28561252-634-4103 • 1-877-634-4103 252-634-9143 (fax)tdenton@ncbaptistfoundation.org

Central OfficePO Box 11924Winston-Salem, NC 27116336-922-2574 • 1-866-922-2574336-922-5264 (fax)cfox@ncbaptistfoundation.org

Western OfficePO Box 1038Boiling Springs, NC 28017704-477-2441 • 1-888-668-0488828-430-6807 (fax)dwebb@ncbaptistfoundation.org

NC Baptist Financial Services4727 Matthews-Mint Hill RoadSuite 105 PMB 185Charlotte, NC 28227919-459-1680800-521-7334 ext 1680704-246-7287 (fax)rjones@ncbaptistfoundation.org

W E WA N T T O H E A R F R O M Y O U !

Every church and association needs to promote and encour-age the concept of Christian estate planning with its membership. The results of such a promotion will be positive in several differ-ent ways. First, individuals have the opportunity to remember the Lord’s work through their Last Will and Testament and other planning documents. Without such a plan, nothing can be left to the church or other ministries. Second, surviving family members can be better cared for when a plan is in place. It is the loving thing to do. Third, the individual preparing the plan becomes better organized by going through this satisfying process. This is a win-win-win opportunity.

The Baptist Foundation provides free promotional materi-

als and speakers to help in this effort, and sample packets were mailed to every church and asso-ciation in early October. January is Make Your Will month in Baptist life, so make sure your church starts 2013 off with a great start by contacting the Foundation for assistance. The theme for the 2013 em-phasis is “Finishing Well.”

Foundation Frequently Asked QuestionsIn this and future issues of Spreading Good News, look for the answers to questions we frequently are asked.

What is the relationship between the North Carolina Baptist Foundation and the Baptist State Convention of North Carolina?

The North Carolina Baptist Foundation is one of two agen-cies of the Baptist State Convention. The Foundation is legally the “trust agency” of the Convention. North Carolina Baptist

churches and individuals can provide support for ministry un-til our Lord returns by placing assets in our care. Though the Foundation operates independently from the Baptist State Convention, our Board of Directors is elected by the Convention during the annual session in November of each year.

Spreading Good News 5 Winter 2012

2012 Noel Inspirational Retreat

David Webb leads an interactive breakout session dealing with Christian estate and financial planning. About 140 guests join in the festivities whenever the music is playing.

Emcee George Fields amazes all with his many talents. Most of the

time it is music and humor, this time he folds shirts…real fast.

Clay Warf and the staff always welcome the guests at the door. In 2012, we were joined by “Mr. Wooly Worm” (far

left) and “Meriweather the Wooly Worm”

Jere Blackburn and sister Marylene Noel receive a fun gift to use as they travel. Their family has been

instrumental over the years in making the Noel Inspirational Retreat possible

Pastor Andy Oliver from Shelby led our devotionals centered on the theme of

“Finishing Well.”

Sylvia Stafford is obviously excited to receive her door prize from Charles Fox.

“Close Harmony” from the Fuquay Varina area provided a fun evening of Doo Wop

music from the 1950 and 1960s era.

Spreading Good News 6 Winter 2012

On the Inside . . .Holiday Greetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1All From Clay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2Investment Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2Special Project Grants and Educational Assistance . . . . . . . . . . . . . . . . . . . . . . . Page 3NC Baptist Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3Make Your Will Emphasis 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4Foundation Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4Clip ‘n Send . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 42012 Noel Retreat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5Tax Forms Mailing Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 6Holiday Hours & Year-End Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 6

PRSRT STDNon-Profit Org.

U.S. Postage

P A I DCary, NC

Permit 333

The North Carolina Baptist Foundation, Inc.201 Convention DriveCary, North Carolina 27511-4257

Robert D. Howard, Southport, ChairTerry W. Alford, Spring HopeJ. Dean Baughn, RutherfordtonHal E. Brown, Cornelius Jack A. Cooper, Elizabeth City

Michael C. Cummings, CharlotteGeorge N. Fox, KnightdaleC. Philip Ginn, BooneR. Scott Good, HickoryAmelia S. Hopkins, Greensboro

Nancy V. Hunter, RaleighRoy D. Krege, Banner ElkWilliam E. Lane, ApexHarvey L. Montague, RaleighC. Allen Overton, Clinton

David A. Smith, LexingtonFaye Steele, GreenvilleE. Brinson Vestal, KenansvilleJ. Randall Wadford, ConcordSam H. Weeks, Randleman

Board of Directors

Tax Forms Mailing Schedule for Forms 1099-R and K-1 IRS 1099-R forms, for income received in 2012 from a charitable gift annuity, will be mailed by January 31, 2013. K-1 forms, for income received in 2012 from a charitable remainder trust, will be mailed in March 2013. Please note that due to the complexity in preparing these forms, K-1s are always mailed much later than the 1099-Rs.

Year-End GiftsIf you are planning to make a year-end gift in 2012, don’t wait until the last minute.

Contact us now if your gift will require the preparation of documents.

Christmas 2012 Office HoursThe offices of the North Carolina Baptist Foundation will be closed for the holidays on the following days:Monday, Dec. 24 – Wednesday, Dec. 26 Tuesday, Jan. 1

Have a blessed and happy Holiday season!