2016 ANNUAL REPORT

inFaith COMMUNITY FOUNDATION

CONSTANT

CHANGE

inFaith COMMUNITY FOUNDATION

2016 ANNUAL REPORT

CONSTANT

CHANGESTEADFAST

FAITHinFaith COMMUNITY FOUNDATION

2016 ANNUAL REPORT

®

AMID DIFFERENCE.

WHEN TIMES SHIFT.

IN THE MIDST OF LOSS.

WHEN NEEDS INCREASE.

ACROSS DIVISION.

TO BE UNDERSTANDING.

TO BE PRESENT.

TO PROVIDE HOPE.

TO RESPOND WITH MERCY.

TO LOVE.

It’s with questions of “What is our calling?” that donors create funds at InFaith Community Foundation. Questions of how to be light. Help. Hope. Justice. Mercy. Love. How to spread joy and change lives.

It’s our mission at InFaith to serve and be the best stewards of donor gifts in an ever-changing world—with an approach that allows our donors to live out their calling. Our experienced staff encourages donors to explore how they can best express their faith through giving with tools that match their financial strategies and personal intentions.

Our goal is to stay responsive to donors at all times, especially as needs change from one generation to the next.

VALUES

SERVICE Serve with gratitude and integrity.

STEWARDSHIP Manage resources wisely for the greatest good.

COLLABORATION Combine talents to expand connections.

POSSIBILITIES Live in the spirit of generosity and abundance.

RESULTS Achieve positive, effective and lasting change.

IT’S IN THE MIDST

OF CONSTANT CHANGE

THAT WE ARE CALLED

TO BE STEADFAST

IN OUR FAITH.

DISRUPT:1. To throw into confusion or disorder2. To interrupt or impede the progress of3. To break apart or alter so as to prevent normal or expected functioning

Sound familiar? It seems that we’re living in a constant state of upheaval these days. In fact, change seems too mild a word for it.

It’s in times of change—when the need for justice and mercy is visible and close—that giving can feel extraordinarily tangible. The moment challenges us to reflect on our faith and giving priorities in light of division, unrest and disquiet.

These times can also help us understand who we are as Christians and what we are asked to do and be. What is core to our faith and values? What is our response to those who are marginalized and powerless? What is the world we are building? Where can we strengthen community? What brings peace? And as priorities change locally and nationally and as spending shifts, where can people of faith step in?

A faith that only serves us in uneventful times is not a full faith. In fact, we need faith most when things are extraordinarily exciting or incredibly challenging. We need our faith to guide us in the best of times and the worst of times.

Yes, it’s messy out there. And it’s easy to get carried away and carried along with it. But we are called to love and be our most generous and most faithful in changing times, and we look to a steadfast faith to provide direction to our giving, remembering that Jesus Christ is the same yesterday and today and forever. (Hebrews 13:8) We at InFaith Community Foundation look to you, our donors, and to your stories for inspiration to be a steadfast and reliable resource to you. Together we will spread joy and change lives in whatever times we live in. And that you can count on.

Steadfast in faith,

Suzanne Hazard Chris Andersen Board Chair President & Executive Director

THE GIFTS THAT DEFINE

WHO WE ARE

Donors express their gratitude by sharing blessings. The collective result of this gratitude is more than $1.127 billion in outright and deferred gifts since the Foundation’s inception in 1995.

Donors made gifts totaling $106.8 million to InFaith in 2016, making it the top giving year in the Foundation’s history. Nearly 40% of these gifts were from current donors adding to their charitable funds.

Individuals and families created 284 new Donor Advised Funds in 2016; 48 of these were created through InFaith’s new no-minimum Donor Advised Fund. Faith-based nonprofits and churches established 18 new Endowment Funds. Charitable funds at InFaith now total 4,259. For a complete list of Donor Advised Funds, Endowment Funds and Collaborative Funds, visit InFaithFound.org/2016funds.

Donor satisfaction remained high at 95% in 2016. Donor feedback through surveys, focus groups and personal conversations provided valuable ideas on how InFaith can better serve our donors.

Life Insurance 20%

Bequests & Beneficiary Proceeds 52%

2016 Gifts

Charitable Gift Annuities 4%

Charitable Remainder Trusts 3%Outright Gifts 21%

0

200

400

600

800

1000

1200

20162011

20062001

2001

2006

2011

2016

$281.18

$529.07

$781.11

$1,127.41

2016 Gifts

$1,127.41

1995

2016

GIVE & RECEIVE 7%

GIVE NOW 21%

GIVE LATER 72%

Life Insurance 20%

Bequests & Beneficiary Proceeds 52%

2016 Gifts

Charitable Gift Annuities 4%

Charitable Remainder Trusts 3%Outright Gifts 21%

0

200

400

600

800

1000

1200

20162011

20062001

2001

2006

2011

2016

$281.18

$529.07

$781.11

$1,127.41

2016 Gifts

$1,127.41

1995

2016

GIVE & RECEIVE 7%

GIVE NOW 21%

GIVE LATER 72%

TYPE OF DONOR GIFTS IN 2016 by dollar value of gifts

GROWTH IN GIFTS Cumulative gifts in millions of dollars since inception

Each donor gift translates into charitable support that spreads joy. In 2016, InFaith charitable funds distributed a record 4,645 grants totaling $16 million.

The majority of InFaith grants, 84%, were distributed to charities recommended by donors through InFaith Donor Advised Funds. Another 13% of grant distributions were from Endowment Funds of churches and faith-based nonprofits, 0.5% from InFaith administered scholarship funds, and 2.5% were from InFaith Collaborative Funds and special projects.

Through donor gifts to InFaith Collaborative Funds, church communities received training to recognize and support victims of family abuse, international communities were rebuilt following natural disasters and the faith community was assisted in caring for God’s creation.

The Foundation launched its WomenGive InFaith campaign in 2016. This nationwide campaign bring women together through workshops, scholarships, investments, and giving circles to achieve long-term change for women, girls and families.

Grants distributed since the Foundation’s inception in 1995 total $160.55 million.

TYPE OF GRANTS IN 2016 by number of grants

GROWTH IN GRANTS Cumulative grants in millions of dollars since inception

Churches 31.5%

Education 17.5% Human Services 17.5%

Health Services 7%

Other 5%Arts & Culture 3%

Environment 2%

Disaster Relief 2.5%

Faith-basedOrganizations 14%

0 50

100

150

200

20162011

20062001

0 50

100

150

200

20162015

20112006

2001

2016 Grants

2001

2006

2011

2016

$10.18

$38.07

$85.71

$160.55

2016

1995

2016 Grants

$160.55

Churches 31.5%

Education 17.5% Human Services 17.5%

Health Services 7%

Other 5%Arts & Culture 3%

Environment 2%

Disaster Relief 2.5%

Faith-basedOrganizations 14%

0 50

100

150

200

20162011

20062001

0 50

100

150

200

20162015

20112006

2001

2016 Grants

2001

2006

2011

2016

$10.18

$38.07

$85.71

$160.55

2016

1995

2016 Grants

$160.55

THE ONGOING WORK

OF GRANTS

Sound stewardship helps make the most of each donor gift.

The investment strategies of InFaith’s investment portfolios reflect the objective to earn the highest returns possible within acceptable levels of risk. Dynamic and Organizational Fund Advisors have the flexibility to allocate assets among all portfolios—including the Growth, Mission and Income portfolios—to create the allocation that best serves their grantmaking plans.

InFaith earned its 21st consecutive clean audit from independent auditors in 2016. InFaith also continued to earn high ratings from Charity Navigator and GuideStar for sound fiscal management, transparency and commitment to excellence.

For more information about InFaith investment policies and performance, visit InFaithFound.org or call 800.365.4172.

Complete audited financial statements are available upon request.

2016 2015ASSETS

Cash and Cash Equivalents $ 4,840,642 $ 5,032,331

Receivables 2,705,834 1,396,807

Investments:

Securities and Treasury Notes $ 320,265,416 $ 284,857,785

Life Insurance and Annuity Contracts 48,041,978 46,324,030

Real Assets 1,638,800 4,298,150

Property and Equipment, Net of Depreciation – – – –

Total Assets $ 377,492,652 $ 341,909,103

LIABILITIES AND NET ASSETS

Liabilities $ 94,862,607 $ 90,712,401

Net Assets 282,630,045 251,196,702

Total Liabilities and Net Assets $ 377,492,652 $ 341,909,103

U.S./Global Equities 59%

Fixed Income 15%

Marketable Alternatives 17%

Real Assets 9%

0 50

100

150

200

250

300

350

400

20162011

20062001

2001

2006

2011

2016

$76.55

$189.35

$246.07

$377.49

2016

1995

$377.49

U.S./Global Equities 59%

Fixed Income 15%

Marketable Alternatives 17%

Real Assets 9%

0 50

100

150

200

250

300

350

400

20162011

20062001

2001

2006

2011

2016

$76.55

$189.35

$246.07

$377.49

2016

1995

$377.49

ALLOCATION OF GROWTH PORTFOLIO

ASSETS UNDER MANAGEMENTTotal assets in millions of dollars

FINANCIAL SUMMARY

THE BEDROCK

OF STEWARDSHIP

1

7

2

8

1

14

6

20

11

13

19

4

10

3

16

8

22

13

23

14

24

15

15

7

21

12

17

9

18

10

9

2

11

4

12

5

3

5 6

STAFF BOARD SUZANNE HAZARD (1), Chair Federal Government Washington, D.C.

KURT SENSKE (2), Vice Chair Chief Executive Officer Upbring – The New LSS Austin, Texas

JOY ANDERSON (3) President and Founder Criterion Ventures Haddam, Connecticut

HUDSON EVEI (4) Associate, Corporate and Investment Bank SunTrust Robinson Humphrey Jamaica Plain, Massachusetts

KAREN HIMLE (7) Vice President, Corporate Affairs Thrivent Financial Minneapolis, Minnesota

JAMES HUSHAGEN (6) Attorney Eisenhower Carlson, PLLC Tacoma, Washington

DARCY BERUBE JOHNSON (5) Principal Fulcrum Capital, LLC Seattle, Washington

BETH LARSON (11) Former Vice President, Advisor Marketing Thrivent Financial Minneapolis, Minnesota

TIM LEHMAN (9) Chief Executive Officer Time of Grace Ministry Neenah, Wisconsin

MARCIA MALZAHN (10) President Malzahn Strategic Maple Grove, Minnesota

KNUT OLSON (8) Former Managing Partner, South Region Thrivent Financial Nashville, Tennessee

TERRY RASMUSSEN (12) President Thrivent Financial Minneapolis, Minnesota

REV. JOHN R. SABATELLI (13) Pastor Emeritus Christ Lutheran Church Baltimore, Maryland

RON SCHULTZ (15) Chief Administrative Officer The Lutheran Church–Missouri Synod St. Louis, Missouri

JIM THOMSEN (14) President, Thrivent Holdings Thrivent Financial Minneapolis, Minnesota

LEADERSHIP & ADMINISTRATION

CHRIS ANDERSEN (3) President & Executive Director

ROBERTA GROENING (10) Manager of Administrative Services

KELLY KLUKAS (1) Office Administrator

PAT NORTON (20) Office Administrator

ALYSSA SOMMER LARSON (2) Office Administrator

NEW VENTURES

CONSUELO GUTIERREZ-CROSBY (23) Women’s Philanthropy Associate

DONOR SERVICES

MANDY TUONG (22) Senior Director, Donor Services & General Counsel

DONOR SERVICES –

CHARITABLE GIVING SERVICES

GREG SHAMEY (16) Director, Charitable Giving & Donor Services

CINDY AEGERTER (4) Senior Gift Planner

BEN BOLINE (7) Gift Planner

DELINDA ROOD (21) Gift Planner

DONOR SERVICES –

COMMUNICATIONS & MARKETING

LORI ANDERSON (17) Marketing Communications Manager

MEGAN HEDTKE (14) Communications Associate

DONOR SERVICES –

COMMUNITY GRANTS & SERVICES

KIM BORTON (5) Director, Grants & Donor Services

KAITLIN OSTLIE (6) Grants Associate

REBECCA SAUER (13) Senior Associate, Donor Services

NIKKI JOHNSON (11) Donor Services Associate

OPERATIONS – FINANCIAL

SERVICES & ADMINISTRATION

TOM PETERSON (15) Director, Financial Services & Administration

NANCY ASHLAND (18) Asset Services Administrator

REDIET KASSA (19) Finance Accountant

STACEY KLONOWSKI (9) Finance Accountant/Analyst

HER VANG (8) Senior Accountant

OPERATIONS –

TECHNOLOGY SERVICES

DAVID MEIER (12) Technology Manager & Web Communications

BRAD VANSPRIELL (24) Senior Technology Associate

SPREADING JOY.

CHANGING LIVES.MISSION

To serve our donors with integrity as together we change lives and spread joy by sharing our blessings with the world.

VISION

Throughout our community and by God’s grace, we will achieve effective, positive and lasting change.

INFAITHFOUND.ORG

625 FOURTH AVENUE SOUTH, SUITE 1500, MINNEAPOLIS, MINNESOTA 55415

p 800.365.4172 f 612.844.4109

INFAITHFOUND.ORG

625 FOURTH AVENUE SOUTH, SUITE 1500, MINNEAPOLIS, MINNESOTA 55415

p 800.365.4172 f 612.844.4109

MISSION

To serve our donors with integrity as together we change lives and spread joy by sharing our blessings with the world.

VISION

Throughout our community and by God’s grace, we will achieve effective, positive and lasting change.

SPREADING JOY.

CHANGING LIVES.MISSION

To serve our donors with integrity as together we change lives and spread joy by sharing our blessings with the world.

VISION

Throughout our community and by God’s grace, we will achieve effective, positive and lasting change.

INFAITHFOUND.ORG

625 FOURTH AVENUE SOUTH, SUITE 1500, MINNEAPOLIS, MINNESOTA 55415

800.365.4172 612.844.4109