Endowment Fund of Viking Charities, Inc.

PastPresentFuture

Performance

Investment

Growth

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This chart reflects the Annual totals for each year, 2002 – 2010. The data shows the economic downtrend in 2008 and the fund’s recovery.

The Principal of the Viking Endowment Fund has followed a steady building path that speaks loudly to the awareness and interest in the persistent growth of the Fund by Viking members. As the Fund has matured, so has the concept of investing in a perpetual Fund which will become a critical element in the level of Viking charitable operations.

Historic Fund Balances

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000

The earnings, separately charted here, have been available to the Gold Cuppers for charitable distribution as indicated in any yearly period. However, the earnings, by Endowment Committee recommendation and Gold Cupper policy, stay with the principal to compound growth.

The following slide pairs our trend line with the market’s performance.

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Historic Fund Income

020,00040,00060,00080,000

100,000120,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

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A picture may be worth a thousand words. Endowment Fund Policy, the Blue line, has been to earn CPI plus 5% while still maintaining our investment portfolio risk at a tolerable rate. The Red Line is the market-oriented Benchmark of 60% S&P 500 + 40% T-Bill and is a reflection on how the markets are doing with similar risk parameters. The Green line is the Viking Endowment investment portfolio.

It is fair to say that this portrayal validates the Endowment Fund investment strategy as our portfolio out-performs the market benchmark. It also brings recognition to our investment advisors who continually shape our portfolio to achieve a balance of the highest value securities and fixed income.

Comparative Fund Performance

0

200,000

400,000

600,000

800,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

Objective Actual Benchmark

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The original investment mix policy was set at 60% securities and 40% fixed income. That ratio was in development for two years until we had completed the systematic policy shift of assets managed by Frontier Asset Management. The policy is now guided more by value opportunity than arbitrary ratio. The constant balancing (re-balancing) of our portfolio by Frontier has resulted in a strategy that has kept the Endowment Fund positioned above almost all measurements of market performance.

Investment Mix - 2nd Qtr 2009

Real Estate , 10.00%

Commodities, 5.00%

US High Quality Bonds, 15.00%

High-Yield Bonds , 5.00%

US Small Stock, 10.00%

International Large Stock, 10.00%

Absolute Return, 20.00%

Emerging Markets Stock, 5.00%

US Large Stock , 20.00%

Investment

The Endowment Fund was ordained with a theme that it would be just one of Viking Charities fund raising components. The Endowment Committee has remained sensitive to that philosophy. The Fund presented a complete departure from the programs that Vikings had historically operated.

Over time individual Vikings have embraced the notion of investing in a Principal that could not be invaded and would produce a perpetual income stream. The Endowment Fund has become a widely accepted long-range mechanism.

The Endowment Committee uses the term “investment” for donations because every donation will remain in the Fund forever; which will be a legacy to those who have helped build the Fund.

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This chart depicts the four general levels of individual Viking cumulative participation in the Fund as of January 1, 2010.

In dark blue, 27% have contributed over $1,000In med. blue, 37% have contributed between $100 and $1,000In light blue, 13% of members have contributed $100 or lessIn red, 23% of members have yet to contribute.

Your giving is tracked on a cumulative basis – every $$ counts!

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Endowment Investment Groups

Not Yet Contributed

23%Over $1,00027%

$100 to $99937%

Less Than $10013%

Commitment to Achieve

From a marketing and interest perspective, the vision of developing the Endowment Fund falls squarely on the shoulders of the Endowment Committee. The commitment to achieving that vision however falls on the individual Viking members.

The previous chart reflects the stark reality; not all members can or choose to invest at the same level.

The Endowment Committee closely holds the dream that over time, all Viking members will invest at their best level.

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With that thought in mind, this chart reflects the Fund growth possibility over the next ten years. The orange line depicts potential growth using historic annual earnings only (no additional investments). The green line shows the level of Fund growth if all Vikings were to contribute $100 annually for the next ten years.

Amazing, isn’t it?Sure makes $1 Million look easy!

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Growth Potential

200,000

700,000

1,200,000

1,700,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

At Grow th Rate Growth Rate +$100/Mbr/Yr

This chart is a bit more personal. The chart projects the affect of one Viking investing $1,000 per year, plus the cumulative earnings, over 10 years.

Want to multiply that by 180 Vikings?

That’s $2,607,660 in principal earning $208,613 each year in interest!

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Your Impact

0

4,000

8,000

12,000

16,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Annual $1000 Contributions

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While it may not be realistic to expect that every Viking will contribute at least $1000 each year, this slide demonstrates the powerful future that the Fund can provide Viking Charities as members contribute and the Fund grows.

Contributions (or Investments in our future) help to build the principal of the Fund and expand future earnings that can be made available to the Vikings to carry on our mission of “providing help for the medically related needs of qualified individuals and health care organizations to provide others within Santa Barbara County a better quality of life.”

Camp Impact

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

100% of Members Annual $1000 Contributions

Short & Long Term Goals

Our short range target for the Endowment Fund was $500,000. We passed it once and, after the Market plunge, have achieved that number a second time. ($500,495 at June 30, 2009)!

The long range target for the Endowment Fund is $5,000,000. At that level a 5% income stream available to Viking Charities would bring $250,000 annually to fund charitable giving.

That’s worthy of being a dream!

In pursuit of that goal, we strongly believe that each Viking who has earned the Endowment Gold Pin has done so by believing in our dream. The Endowment Committee hopes the En Tusind Pins are worn proudly. We are honored to present every Gold Pin.

We also encourage all Vikings to give annually within your means. There are a variety of ways to give and any member of the Endowment Fund Committee would be happy to advise you.

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HOW CAN I CONTRIBUTE

Contributions become part of the corpus of the Endowment Fund and are available forever to provide future earnings in support of the Viking Charities philanthropic mission. There are about as many ways to contribute as you can imagine. We recommend that you seek the advice of your tax professional in choosing which avenue would be most beneficial for you.

If you are ready to make a contribution at this time, you can utilize the form on the next page to declare your intention and a member of the Endowment Committee will work with you to provide appropriate documentation for your files.

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ENDOWMENT FUND OF VIKING CHARITIES, INC.Contribution Commitment

Name: _______________________________________(Printed Name)

Direct Contribution – Attached please find cash, check or money order in the amount of $____________ to be treated as a tax deductible donation to the Endowment Fund of Viking Charities, Inc. from the undersigned.

Pledge Contribution – The undersigned hereby pledges to contribute a total of $__________, over a ______ year period at an annual rate of $ ___________ per year. Tax deductible pledge contributions will be paid annually in the month of ____________ in cash, check or money order payable to the Endowment Fund of Viking Charities, Inc.

Stock Contribution – The undersigned hereby commits to transferring stock or other securities with an estimated value of $ ___________ as a tax deductible donation to the Endowment Fund of Viking Charities, Inc. Transfer of these securities will be executed in the month of ____________, _______.

Life Insurance Benefit – The undersigned hereby commits to adding the Endowment Fund of Viking Charities, Inc. as a beneficiary in the amount of $ __________ to either an existing or a new life insurance policy. The undersigned will execute this order in the month of _____________, _______, and will provide the Chairman of the Endowment Fund with a copy of the insurance rider acknowledging this commitment.

Bequest – The undersigned hereby commits to adding the Endowment Fund of Viking Charities, Inc. to his last will and testament as the intended recipient of a bequest of $___________ to be paid from his estate upon his death. The undersigned shall submit a notarized letter to the Chairman of the Endowment Fund indicating the location of the last will and testament which includes this bequest provision.

___________________________ _______________________________ Date Signature

Endowment Fund of Viking Charities, Inc.

PastPresentFuture

Proud of our past,

Committed Today and

Confident in our Future