2012 [2.8 MB] - Billy Graham Evangelistic Association

7. Endowment FundsBoard Designated EndowmentsThe Association’s Board of Directors has designated a portion of unrestricted net assets as funds functioning as endowments. Separatefunds have been established for the Billy Graham Library fund, the Billy Graham Training Center (Cove Charitable Trust Fund), the futureministries fund, and the Graham Fund for Evangelism.The purpose of the Billy Graham Library Endowment is to provide an ongoing and perpetual source of funding for the operations,maintenance, and long-term improvements of the Library located in Charlotte, North Carolina. The Billy Graham Library is an ongoingevangelistic Crusade. In 2012, over 135,000 visited the Billy Graham Library having the opportunity to hear the Gospel message with morethan 800 people making first time decisions for Christ. It is the desire of the Board of Directors that there should never be an admissionfee to the Library so that all can hear or experience the Gospel of Jesus Christ. This primary objective, as well as the investment objectiveof preserving and protecting the fund’s assets, will be accomplished by focusing on the conservation of principal and long-term growth ofcapital and income. This is generally achieved by investing in a diversified portfolio of high-quality securities. Expenditures from the fundhave been based upon a spending plan using a three-year rolling average of fund assets. For 2012, $1,441,881 was transferred to support theLibrary. In 2011, no transfers were withdrawn in order to preserve principal.The purpose of the Cove Charitable Trust Fund is to provide an ongoing source of funding for supporting, maintaining, and improvingthe facilities and ministry at the Billy Graham Training Center at The Cove. The primary investment objective of this fund is to preserve andprotect assets by focusing on conservation of principal and long-term growth of capital and income. This objective is generally attainedby investing in a diversified portfolio of high-quality securities. Expenditures from the fund have been based upon a spending plan using athree-year rolling average of fund assets. For 2012, $1,735,100 was transferred to support the ministry of The Cove. For 2011, funds were notwithdrawn in order to preserve principal.The purpose of the future ministries fund is to provide a source of funding for continuing and growing ministry activities through specialevangelistic projects and to provide for operating cash flow needs of the Association. The primary investment objective of the futureministries fund is to preserve and protect the assets by focusing on conservation of principal and adequate liquidity to meet ministry needs.This objective is generally attained by investing in a portfolio of high-quality securities. Expenditures from the future ministries fund aredetermined by the Board in order to meet ministry needs and projects. Funds were not withdrawn in 2012 or 2011 in order to preserve principal.The purpose of the Graham Fund for Evangelism has been to provide an ongoing source of funding for supporting, maintaining, andimproving the facilities and ministry at the Graham Center at Wheaton College. In 2012 and 2011, the support for the Graham Center atWheaton College was provided from BGEA’s general fund. The Graham Fund for Evangelism is being maintained with a minimal balancefor potential future evangelistic purposes. The primary investment objective of the fund is to preserve and protect its assets by focusingon conservation of principal. This objective is generally attained by investing in a portfolio of high-quality securities.2012 MINISTRY REPORT45