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THE QUADRENNIAL REPORT TO THE 2006 SYNODS OF THE NORTHERN AND SOUTHERN
PROVINCES OF THE MORAVIAN CHURCH IN AMERICA PRESENTED BY THE TRUSTEES AND
            STAFF OF THE MORAVIAN MINISTRIES FOUNDATION IN AMERICA

GREETINGS & GRATITUDE
Greetings from the Trustees and staff of the Moravian Ministries Foundation! At this
Synod, the Foundation celebrates our 8th Anniversary of service to Moravians and the
Church. It‟s been a truly amazing period and one full of so many joyful experiences
there isn‟t enough time and space to report them all. Collectively and individually, we
want to thank each of you and the entire Church for your support, prayers, and
encouragement. It‟s been a terrific journey and we believe the next decade holds even
more promise and opportunity.

OUR MINISTRY TO THE MORAVIAN CHURCH
To begin, we would like to paraphrase Rev. Larry Christianson, President of the
Northern Province‟s Western District: The role of the Foundation is to encourage and
support the growth of financial resources for more ministry. The Foundation
accomplishes this goal in three ways:
   1) Through our GiftLegacy program, we work with charitably motivated individuals
      who want to support their local congregation and/or favorite ministry through
      planned gifts;
   2) Through the Moravian Common Fund, together with TIAA-CREF Trust Company,
      we offer three low-cost, well-managed investment strategies which churches
      and agencies, in both Provinces, invest their permanent and endowment funds
      to generate superior investment results; and,
   3) Finally, through Morning Star Campaign Services, we aid churches plan and
      undertake successful capital fund drives and stewardship programs.

OUR STRUCTURE & ORGANIZATION
The Foundation is one of three Interprovincial agencies serving the Moravian Church in
America. Our ten Trustees are appointed in equal number by the two PECs. Terms of
Trustees are staggered and are limited to two four year periods. The Chair of the
Trustees, as well as the other corporate officers, rotates every two years between
representatives of the two Provinces.

                The Moravian Ministries Foundation‟s Board of Trustees

               Mrs. Beth Baldwin                           Mr. James L. Broughal
             Home Moravian Church                         Advent Moravian Church
               Winston-Salem, NC                               Bethlehem, PA
                  Term: 2008                                    Term: 2006

                Mrs. Joan Carson                          Mr. Roger "Dick" Jennings

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                 Central Moravian Church                                 Kernersville Moravian Church
                     Coopersburg, PA                                           Kernersville, NC
                        Term: 2008                                               Term: 2006

                Mr. William E. Kiessling, Jr.                             Mr. Alex "Mac" MacDonald
                Lake Mills Moravian Church                          Shepherd of the Prairie Moravian Church
                       Lake Mills, WI                                             Fargo, ND
                        Term: 2006                                               Term: 2006

                  Mr. Lascelles Patterson                                    Mr. R. Arthur Spaugh
             Prince of Peace Moravian Church                                Home Moravian Church
                        Westin, FL                                            Winston-Salem, NC
                        Term: 2006                                               Term: 2006

                   Rev. Gary Straughan                                       Mr. Powell Winstead
    President, Eastern District of the Northern Province              New Philadelphia Moravian Church
                      Bethlehem, PA                                           Winston-Salem, NC
                        Term 2008                                                Term: 2008


Corporately, the Foundation is chartered in the State of North Carolina and is a
501(c)(3) non-profit corporation. We operate our program in compliance with the
Philanthropy Protection Act, a federal law governing organizations like the Foundation,
the Uniform Management of Institutional Fund Act, a law adopted by most states where
there are Moravian Churches, and a host of other state laws governing charitable
organizations - on a state-by-state basis. Furthermore, we adhere to the professional
standards and codes of ethics of the American Society of Fund Raising Professionals,
American Committee on Planned Giving, and the National Council on Gift Annuities.
The staff of the Foundation includes two full-time professionals – Paul D. McLaughlin,
President and Chi-Chi Z. Messick, Vice President and two part-time support staff –
Nicole Allen, our Office Assistant and Bookkeeper and Debbie Bishop, our Relationship
Manager. Together, we have a great team that is here to serve you and the Church.
The Foundation operates under a “corporate model” of governance. This means the
Trustees establish policy, approve the annual budget, and monitor staff performance.
Staff, on the other hand, is responsible for implementing policy and applying their
professional skills and know-how to carry-out the Foundation‟s work.
Finally, a cornerstone corporate value the Foundation continually strives to live by is
“transparency.” What does this mean? And, why is it important? For the Foundation, we
publish our Annual Audit on our website for visitors to read and download. We also
distribute copies of the Audit to every church and agency that invests in the Common
Fund. And, we distribute copies to every person who has made a planned gift through
our office. In our view, applying the principle of stewardship, whatever funds we
receive are simply passing through our hands. Therefore, we have a responsibility to
use the funds wisely, and to disclose to all how we manage the resources that have
been entrusted to our care.

OUR FINANCES

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Our annual budget is developed by staff and presented to the Trustees every fall for
the up-coming year. Revenues to support the Foundation come from three sources:
      From the two Provinces, in equal amounts
      Management fees charged against invested assets
      Fee-for-Service contracts for capital and stewardship campaign projects.
When we began, in 1998, almost 100% of our operating budget was provided by the
Northern and Southern Provinces. In 2006, 18% of our operating revenue will come
from the Provinces, while the remaining 82% will come from fees. It is important to
note the reduction in support from the Provinces represents actual dollar reductions.
From the outset, we designed and built the Foundation‟s business model around this
plan. To do what the Foundation needed to do to serve the Church, we needed to
create a structure producing revenue based upon services provided.




It is important to mention, however, our work with individuals who wish to create a
planned gift and our work with churches and agencies that wish to develop a
GiftLegacy program are free services. It makes no difference how much time, effort, or
material is needed – it‟s without charge or obligation.
Lastly, the Foundation prides itself on being an efficient operation. We employ two full
time and two part-time staff. And, as we look at other similar foundations, locally and
nationally, one measure of our efficiency is the ratio between our budget and total
assets under management. Across the industry, the norm for
operational/administrative costs for foundations equals between 1% and 3% of assets
under management. Your Moravian Ministries Foundation spends an amount equal to
.61% (that‟s just 6/10ths of 1%) of all assets under management and custody to
operate and to provide the array of services we offer.

GIFTLEGACY

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The Foundation‟s GiftLegacy program has two goals:
   1. To inform, educate, and assist individuals who may be interested in creating or
       leaving a planned gift to the church or ministry of their choosing.
   2. To aid churches and ministries to develop a planned giving program that speaks
       to their members about their charitable needs.
Why is this so important? First, America is in the early stages of the largest wealth
transfer ever to take place. It has been estimated hundreds of trillions of dollars will
pass between generations of Americans over the next fifty years and there are, and will
be, opportunities for charities to secure a portion of these dollars to address worthy
needs. Secondly, there are a wide range of planned giving tools and instruments that
can help Moravians achieve a wide range of personal, financial, estate, tax, and
charitable goals. Thirdly, there are many unmet needs and ministries within the Church
that call out for help. Finally, as Christians we are called on to support the Lord‟s work
and a planned gift is a great way to give & receive.
Since we began our work, the Foundation has avoided the traditional fund raising role.
We don‟t solicit anyone, nor do we promote any ministry at the expense of another.
Instead, we educate and help Moravians fulfill their charitable wishes and dreams.
Since the Foundation has no vested interest in the gift (in fact, our policies prohibit us
to raise funds from individuals to support our work), we remain focused on the true
prize - the prospective donor‟s interest and needs. This is one of the many features
that make the Moravian Ministries Foundation unique and why we have been so
successful.
When we look back and account for how much we identified and secured through the
GiftLegacy program, a conservative estimate is between $16,000,000 and $18,000,000
will be flowing to churches and ministries in the years ahead. The largest single gift
the Foundation was actively involved in totaled approximately $4,500,000 and the
smallest gifts were $1,000. What‟s interesting is the inspiration and motivation to give,
whether large or small gifts, is the same. From our perspective, since we focus on the
individual, and not the size of their gift, we are always touched by their reasons for and
motivation to give.
We promote the GiftLegacy program through a variety of ways.
      Giving & Receiving is a semi-annual newsletter that reaches every Moravian
       household and covers a wide range of estate planning and planned giving
       topics.
      Weekly E-newsletter is an electronic newsletter that includes Gift Story, the
       Savvy Senior, Washington Update, Finance Update, and the “Weekly Special.” It‟s
       delivered to subscribers, via the internet every Monday morning. Weekly
       circulation is currently 1,000 readers.

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      WWW.MMFA.INFO is the Foundation‟s website, with a „GiftLegacy‟ link, which
       contains a wealth of user friendly information and state-of the art streaming
       audio and video presentations. It allows the user to become better informed and
       to consider alternatives – all in the privacy of their home or office. Since the
       launch of the website there have been almost 10,000 unique visitors and over
       100,000 hits.
      The Moravian, the Moravian Church‟s official publication often contains feature
       stories and advertisements about the Foundation, our services, and ways to
       give.
      Church and agency-based initiatives involves developing and integrating
       GiftLegacy programs into stewardship and annual giving programs.
With all these strategies, we provide information and a variety of ways for Moravians to
express their interest. We do not engage in so-called “cold-calling.” And when
someone says they might be interested, the conversations are always kept in strictest
confidence. Our challenge is to keep information about GiftLegacy and planned giving
in front of Moravians, so when the time comes for them to consider their plans,
examine their charitable interests, and to look at tax efficient financial and estate
planning, they will turn to the Foundation for confidential assistance.
Lastly, whenever and wherever we have the opportunity, we always encourage
Moravians to consider leaving 10% of their estate to their church or favorite ministry.
Regardless of the size of the estate, if every Moravian set aside just 10% - think about
how much more of the Lord‟s work could be done – AND – there would still be plenty
left for heirs. For example, if the total value of an estate, after expenses is $500,000 -
$50,000 could be set aside for your favorite ministry and the remaining $450,000
could be left for family and friends. It‟s a win-win strategy.

THE MORAVIAN COMMON FUND
The Common Fund is a pooled investment/endowment management service that helps
churches and agencies manage permanent and endowment funds. Begun in 1999, with
just over $5,000,000 invested by the two Provinces, it stood at $11,000,000 by the
end of the first year. On 12/31/05 the total value of the Common Fund was
$64,000,000; and we expect the Common Fund to reach between $70,000,000 and
$75,000,000 by the close of 2006.




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                               The Moravian Common Fund: 1999-2006

                       $80.0

                       $70.0

                   M   $60.0
                   i
                   l   $50.0
                   l
                       $40.0
                   i
                   o   $30.0
                   n
                   s   $20.0

                       $10.0

                        $0.0
                            1999    2000   2001    2002          2003   2004   2005      2006
                                                                                      (projected)
                                                          Year




In addition to the growth in assets, participation in the Common Fund has also
increased. By the end of 2005, 65 churches and agencies chose the Common Fund as
their investment manger. Attachment A lists all the churches and agencies that invest
in the Common Fund, as of 12/31/2005. And these same churches and agencies had
over 230 sub accounts, which are individually managed and accounted for.
While the Common Fund is the name of the program, it actually consists of three
portfolios – the Moravian Growth Fund, the Moravian Balanced Fund, and the Moravian
Income Fund. Each of these funds has different levels of anticipated rates of return,
risk, and volatility. In selecting the right strategy, churches and agencies are
encouraged to consider the purpose of their investment, the needs and time horizon,
and the comfort level with investing the church/agency‟s funds.
Attachment B shows the most recent investment results, through December 21, 2005.
As you will note, the Common Fund has performed very well, on an absolute and
relative basis.
The Common Fund‟s investment manger is TIAA-CREF Trust Company, from Saint
Louis, MO. The Foundation also has an Investment Committee, which besides
representing investors, is composed of some of the best minds in the business. They
meet annually to review matters with TIAA-CREF and to consider changes. We think
the partnership between the Foundation, TIAA-CREF, and the Investment Committee is
an excellent model.
Finally, the cost for investing in the Common Fund is 69 basis points (less than
7/10ths of 1%), which makes it a very low-cost-value-added investment alternative
and service.


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Attachment C contains a recent story that was published in The Moravian – Eight
Reasons Why Investing in the Moravian Common Fund Makes Good Dollars & Cents. We
obviously think it makes an excellent case for investing in the Common Fund.

MORNING STAR CAMPAIGN SERVICES
Morning Star is our newest ministry and has three elements:
         Our capital campaign consulting service aids churches and agencies organize,
          plan, and execute fund raising efforts to build, renovate, or expand facilities.
         Our stewardship campaign consulting service aids churches and agencies in
          developing comprehensive stewardship programs that increase participation –
          financial and otherwise – in the life of the church.
         Our long range planning service helps churches and agencies identify
          strengths, weaknesses, and develops a comprehensive strategy built around
          core values, church and agency growth, and enhanced ministries.
These services are provided on a fee-for-service basis and can be provided individually
or in any combination. The costs vary and depend upon the scope of work; however,
the fee structure is significantly less than what private firms charge for comparable
services.
Some may ask: Why is there a charge for Morning Star? Very simply, the Foundation
does not believe it fair or reasonable to expect other churches and agencies to pay for
or subsidize a very labor intensive effort with one church/agency. In addition,
experience indicates everyone – the leadership of the ministry and the staff of the
Foundation - involved in a project related to Morning Star takes the work much more
seriously when there is a contract and money is exchanged for services.
Attachment D lists the churches and agencies Morning Star has served, since the
inception of this ministry. In addition, the nature of the service provided is briefly
listed.

THIS & THAT
In addition to GiftLegacy, the Moravian Common Fund, and Morning Star, the
Foundation has aided a growing number of churches and agencies develop
“Endowment Polices and Procedures.” The aim of having these policies is threefold: 1)
they bring order and structure to the management, investment, and organization to
what can be a blessing and a burden of having permanent/endowment funds; 2) they
bring a church/agency in compliance with applicable state laws; and, 3) they can be
used to articulate needs members can address through planned gifts. The
Foundation‟s work with churches and agencies in developing these policies is free of
charge; and, to facilitate the process the Foundation has developed a set of “Model



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Policies,” which are customized to meet the unique needs of each ministry. Attachment
E is a copy of the Model Policies.
The Foundation, in the spring of 2005, sponsored a conference for lay leaders from
both Provinces which focused on the subject: The Responsibilities of Trustees: It‟s
More Than the Book of Order. Over 50 leaders attended from as far away as Fargo, ND
to New York to Florida participated in the weekend long conference.




Beginning Friday evening and continuing until Sunday, at Laurel Ridge, trustees heard
experts and other trustees address a wide range of topics focused on the fiduciary
obligations of Trustees. The keynote and main speaker was Alan Cates. Alan is an
attorney concentrating in estate planning, tax, and business matters in Chattanooga,
Tennessee. Alan was the planned giving officer at the University of Tennessee before
entering private practice. He is a Fellow in the American College of Trust and Estate
Council, a frequent speaker before professional and charitable audiences across the
country, and has served on the faculty of the National Planned Giving Institute at the
College of William & Mary since 1980. It was a great event and will be held again in
2008, at a location in the Northern Province. In fact, it is anticipated a “Summit” will be
held every three years.
Finally, as 2005 drew to a close, the Moravian Ministries Foundation remained the 9th
largest foundation in the Winston-Salem, High Point, and Greensboro region of North
Carolina. Considering the fact the Foundation is just 8 years old, this is a remarkable
feat and accomplishment. While we don‟t subscribe to the notion “bigger is better,” we
believe your Moravian Ministries Foundation is a unique ministry that has
accomplished a great deal in eight years, and still has even more opportunity to serve
the Church.




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                            Attachment A
         PARTICIPANTS IN THE MORAVIAN COMMON FUND
                        DECEMBER 31, 2005
                               Alaska Province Fire Fund
                  Ardmore Moravian Church, Winston-Salem NC
                 Bethabara Moravian Church, Winston-Salem NC
                      Bethania Moravian Church, Bethania NC
         Board of Christian Education, S. Province, Winston-Salem NC
Board of Evangelism and Home Mission, Southern Province, Winston-Salem NC
                       Board of World Mission, Bethlehem PA
          Bryant Ministerial & Music Scholarship, Winston-Salem, NC
                   Calvary Moravian Church, Winston-Salem NC
                      Canaan Moravian Church, Davenport ND
                   Canadensis Moravian Church, Canadensis PA
                      Central Moravian Church, Bethlehem PA
Eastern District, Northern Province, Moravian Church in America, Bethlehem PA
                    Enterprise Moravian Church, Lexington NC
                       Ephraim Moravian Church, Ephraim WI
                         First Moravian Church, Riverside NJ
                  Friedland Moravian Church, Winston-Salem NC
               Fries Memorial Moravian Church, Winston-Salem NC
               Garrett Mission & Ministry Fund, Winston-Salem NC
                        Goshen Moravian Church, Amenia ND
                         Grace Moravian Church, Mt Airy NC
                    Home Moravian Church, Winston-Salem NC
                    Hope Moravian Church, Winston-Salem NC
           Immanuel-New Eden Moravian Church, Winston-Salem NC
             Interprovincial Board of Communication, Bethlehem PA
                       Jessie Stone Fund, Winston-Salem NC
                           King Moravian Church, King NC
                       Larger Life Foundation, Bethlehem PA
         Laurel Ridge Camp and Conference Center, Laurel Springs NC
              Laurel Ridge Higgins Legacy Fund, Laurel Springs, NC
                      Little Church on the Lane, Charlotte NC
                     Macedonia Moravian Church, Advance NC
                   Main Street Moravian Church, Northfield MN
                Marquardt Foundation and Village, Watertown WI
                        Mary Spoch Fund, Winston-Salem NC
                      Mayodan Moravian Church, Mayodan NC
                   Messiah Moravian Church, Winston-Salem NC
                         Mission Society, Winston-Salem NC
                       Moravian Archives, Winston-Salem NC
                         Moravian Hall Square, Nazareth PA
                     Moravian Historical Society, Nazareth, PA
               Moravian Ministries Foundation, Winston-Salem NC
                  Moravian Music Foundation, Winston-Salem NC
                      Nazareth Moravian Church, Nazareth PA
                        Nelson Scholarship Fund, Ephraim WI
                   New Dorp Moravian Church, Staten Island NY
               Northern Province Homeland Mission, Bethlehem PA
                    Olivet Moravian Church, Winston-Salem NC
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         Providence Moravian Church, Winston-Salem NC
              Rudolph Moravian Church, Rudolph WI
             Salem Congregation, Winston-Salem NC
         Saratoga Moravian Church, Wisconsin Rapids WI
       Shepherd of the Prairie Moravian Church, Fargo ND
         Society for Promoting the Gospel, Bethlehem PA
Southern Province, Moravian Church in America, Winston-Salem NC
        Southern Wisconsin Mission Council, Lake Mills WI
              Sunnyside Ministry, Winston-Salem NC
        Sylvia Scott Scholarship Fund, Winston-Salem NC
   United Brethen's Church on Staten Island, Staten Island NY
               Unity Moravian Church, Lewisville NC
             Voight West Salem Fund, Champaign IL
            West Side Moravian Church, Green Bay WI
  Western District - N Province, Moravian Church, Sun Prairie WI
     Wisconsin Rapids Moravian Church, Wisconsin Rapids WI




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                                  Attachment B

INVESTMENT PERFORMANCE FOR THE MORAVIAN COMMON FUND – THRU 12/31/2005 (GROSS OF
                                        FEES)


       The Moravian Growth Fund (approximately 70% equities 30% fixed income)




      The Moravian Balanced Fund (approximately 50% equities 50% fixed income)




       The Moravian Income Fund (approximately 30% equities 70% fixed income)




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                                     Attachment C

EIGHT REASONS WHY INVESTING IN THE MORAVIAN COMMON FUND MAKES GOOD DOLLARS AND
                                          CENTS
We are often asked, when we talk about the Moravian Common Fund: Why should our
church or ministry invest its funds in the Common Fund?
Below are eight reasons why I believe the Moravian Common Fund should be and is
THE Moravian Church‟s investment and endowment management service:
      FIRST AND FOREMOST – The Common Fund is an excellent investment and
       endowment management program that produces solid investment returns for
       Moravian churches and ministries. Since the move (7/1/04) to TIAA-CREF, the
       three portfolios – the Growth, the Balanced, and the Income Funds – have
       significantly outperformed the S&P 500 and matched or exceeded the
       comparative benchmarks.
      SECOND - The Common Fund is expertly managed by TIAA-CREF, one of the
       oldest and most respected investment firms in the USA. Furthermore, as added
       oversight, the Foundation has an Investment Committee composed of
       representatives from churches and agencies that invest in the Common Fund
       and consisting also of retired and active professionals who bring a wealth of
       expertise and insight into investing and endowments.
      THIRD – While the three portfolios have different levels of risk and performance
       expectations associated with them, they incorporate the fundamental
       investment principal of “diversification.” For example, the Balanced Fund has 9
       different and distinct asset classes in the portfolio. Over the long-term, the
       diversified portfolios should work well for Common Fund investors.
      FOURTH – In addition to investment management, there are some added
       endowment management features that are included in the package of Common
       Fund services. The reporting feature makes it easy to monitor and account for
       each fund a church or agency has invested. For example, if a church has three
       funds – each will be reported and accounted for. There is no limit to the
       number of accounts a church or agency can have invested in the Common Fund.
       In addition, scheduled and unscheduled distributions are easy and can be issued
       by check or direct deposit.
      FIFTH – The Common Fund is low cost. The Management Fee is 69 basis points
       (that‟s .69%), charged on a prorated basis to the assets held in the Common
       Fund. There are no loads, redemptions fees, sales charges...




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      SIXTH – The Common Fund operates in compliance with all applicable federal and
       state laws; and as added protection - the Trustees carry $5,000,000 in liability
       insurance, in the very unlikely event something unfortunate occurs.
      SEVENTH - A portion of the Management Fee supports the work of the Foundation
       in helping Moravians make planned gifts to the cause or causes of their
       choosing. In other words, the Foundation and the Common Fund together are
       committed to growing Moravian church and agency funds two ways: 1) via
       superior investment returns; and, 2) through our GiftLegacy program. Since the
       inception of the Foundation, we have identified and/or secured approximately
       $18,000,000 in planned gifts. No other investment program, service, or firm can
       make this statement or claim!
      FINALLY – It‟s the Foundation‟s ministry to and for the Moravian Church. Put
       another way, when the Moravian Church carries out international mission work,
       we turn to the Board of World Mission; or when the Church needs to train a
       prospective pastor, we turn to Moravian Theological Seminary; or when we do
       worship and ministry in a community, we turn to the local congregation. Since
       the operative work in our name and mission is “Moravian” - we want and hope
       to remain the go-to ministry for endowment management, GiftLegacy, and
       capital campaign services.
Today, the Common Fund has over $64,000,000 invested by churches and agencies
from the Northern and Southern Provinces. As more funds are added, the Trustees
have already committed the Foundation to reducing the cost of participation. We want
and are able to do this – because we are non-profit and our goal is simply to have
sufficient resources, thru fees and support from the Provinces, to operate the
Foundation and to reach and serve more Moravians thru our GiftLegacy ministry – at no
cost or obligation to individual Moravians. At the same time, the Foundation is
reducing the financial support we receive from the two Provinces. In 2006, 18% of our
operating income will come from direct aid from the Provinces. For 2007, we already
expect Provincial support to fall to 12% of our operating income. These are actual
dollar reductions and all part of our intended business model and strategy. This
contrasts to eight years ago when the Provinces provided almost 100% of the funds
needed to operate the Foundation.
If you would like more information about the Moravian Common Fund and our other
ministries, contact either Chi-Chi Messick (chichi@mmfa.info) or me (paul@mmfa.info)
at 888.722.7923.




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                                    Attachment D

     PARTICIPANTS IN THE MORNING STAR CAMPAIGN SERVICE THRU DECEMBER 31, 2005


Shepherd of the Prairie Moravian Church, Fargo, ND - Feasibility Study and Campaign
Management ($100,000 capital campaign)

Peace Moravian Church, Charlotte NC - Feasibility Study and Campaign Management
($500,000 capital campaign)

Veedum Moravian Church, Pittsville WI - Feasibility Study

Mayodan Moravian Church, Mayodan NC- Feasibility Study and Campaign Management
($200,000 capital campaign)

Konnoak Hills Moravian Church, Winston-Salem NC - Feasibility Study and Campaign
Management ($200,000 capital campaign)

Covenant Moravian Church, Wilmington NC - Feasibility Study and Campaign
Management ($300,000 capital campaign)

Laurel Ridge Camp, Conference & Retreat Center - Feasibility Study, Marketing Study,
Campaign Management, Campaign gift receipt, acknowledgement and pledge tracking
($1,900,000 capital campaign)

Friedberg Moravian Church, Winston-Salem NC - Stewardship Study and plan design

Schoenbrunn Community Church, New Philadelphia OH - Feasibility Study

Wisconsin Rapids Moravian Church, Wisconsin Rapids, WI -Strategic Planning Retreat



  SINCE THE INCEPTION OF MORNING STAR CAMPAIGN SERVICES, THE MORAVIAN
MINISTRIES FOUNDATION HAS BEEN INVOLVED IN SUCCESSFUL CAMPAIGNS TOTALING
  OVER   $3.2 MILLION FOR NEW AND RENOVATED FACILITIES FOR VITAL MINISTRIES




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                                       Attachment E
                                    <NAME> CHURCH
                                          MODEL
                         ENDOWMENT/INVESTMENT GUIDELINES
Introduction

The purpose of these guidelines is to establish policies for accepting, receiving, and
investing permanent funds and endowments that result from major outright and
planned gifts. These guidelines apply to gifts for purposes other than the ordinary
donations to the Church‟s general operating budget.

Types of Funds

There are two types of funds that fall within the purview of these guidelines.

       “Donor Designated” funds resulting from outright and/or planned gifts to the
        Church in which donors stipulate, in writing, the purpose(s) and use(s) of the
        gift.

       “Board Designated” funds resulting from outright and/or planned gifts to the
        Church from donors that do not have any stipulation or requirement from
        donors concerning their use.

Donor Designated Funds

The Trustees deeply appreciate the fact that many donors wish to address specific
needs that they see and believe in through outright or planned gifts. The Trustees will
make every effort to insure that the Church complies with the donor‟s wishes.
However, prior to accepting a donor designated gift or gifts the Trustees will make
every effort to understand the donor‟s wishes and intentions to assure that the Church
will be able to faithfully carry out the purpose(s) of the gift(s). In the event the
Trustees determine that the gift imposes an undue restriction on the Church an/or
compromises the mission and ministries of the Church, the Trustees may ask the
donor or his/her representative to amend the designation in such a manner that it
fulfills the donor‟s wishes and intention(s) and does not impose an undue burden on
the Church. If a mutually agreeable accommodation is not reached, the Trustees
reserve the right to reject the intended gift to the Church.

Board Designated Funds

In many cases, major outright and planned gifts are given to the Church without any
restrictions. While these gifts are blessings they impose a significant and important
responsibility on the Trustees. These guidelines, therefore, set forth how these gifts
will be used.

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The Board has designated four general purposes to which undesignated major outright
and planned gifts shall be allocated:

(The following are suggestions. Each church should look at and define its own unique
needs and define them so as to insure they are „second-mile‟ and not fundamental to
the operation of the church or its core ministry. The staff of the Foundation is
prepared to aid churches in determining these needs. Furthermore, these needs can
then be promoted as part of a church-based planned giving program, which the
Foundation is also prepared to help develop and implement.)
             The Music Fund shall support:
                 o   The acquisition of music, materials, and capital items that support
                     the choir and the Church‟s music programs.

                 o   Concerts sponsored by the Church for the community;

                 o   Attendance by members of the Church involved in the music
                     program to conferences and programs sponsored by the Moravian
                     Music Foundation, the Bi-annual Moravian Music Festival and other
                     programs and training deemed appropriate by the Board of Elders
                     that further the Church‟s music programs.

             The Mission & Evangelism Fund supports worldwide and local efforts to
              bring the Good News to the un-churched, to those who do not know
              Christ, and to the needy. Some of the efforts the Fund supports include:

                 o   Direct aid for projects and needs of the Board of World Mission;

                 o   Mission trips, both internationally and domestically, by members
                     of the Church;

                 o   Outreach programs to the <name of locale> community;

                 o   Direct aid to organizations like Habitat for Humanity, shelter
                     programs for the homeless and battered spouses, and other
                     community services that are consistent with the mission and
                     ministries of the Church; and,

                 o   Other efforts that brings the Gospel and the work of the Church to
                     people in need.

             The Camp and Scholarship Fund supports children and youth of the
              Church through:

                 o   Scholarship programs to attend programs at <name of camp> and
                     Conference Center;


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                   o   An annual scholarship to one or more members of the Church who
                       intend to pursue post-high school education (college, technical, or
                       trade);

                   o   Scholarship aid for members of Church that are attending
                       Moravian Theological Seminary or other denominationally
                       approved seminaries; and,

                   o   Continuing and post graduate education for the Pastor.

             The Preservation Fund supports capital projects and major repairs of the
              church and parsonage. For a project to qualify for this Fund, the total
              cost must exceed $5,000 and result in extending the useful life of the
              structure. Furthermore, the congregation will be expected to provide no
              less than 25% of the total cost of the project, through second-mile gifts.
              This Fund shall not be used to pay for routine maintenance and upkeep
              for the church and/or parsonage.

Types of Gifts

There are two types of gifts that fall within the purview of these guidelines:

           1. Major Outright Gift – A gift or pledge in excess of $500 that has not
                 been designated for the Church‟s operating/general budget. A Major
                 Outright Gift may consist of cash, stocks, bonds, mutual funds and/or
                 other marketable securities. Other property, such as real estate, boats,
                 cars and other items where there is a ready-market may also be given;
                 however, in these instances an agency of the denomination, the
                 Moravian Ministries Foundation, will be asked to assist the trustees prior
                 to acceptance. The trustees reserve the right to refuse any gift that may
                 burden the Church with a current or future liability equal to or in excess
                 of the value of the gift.

           2. Planned Gift – A gift made by bequest, revocable or irrevocable trust, gift
                 annuity, retirement plan, life insurance, and the like. In the event the
                 planned gift consists of real estate, boats, cars or other items where
                 there is a ready-market may also be given; however, an agency of the
                 denomination, the Moravian Ministries Foundation, will be asked to
                 assist the trustees prior to acceptance. The trustees reserve the right to
                 refuse any gift that may burden the Church with a current or future
                 liability equal to or in excess of the value of the gift.

All non-cash gifts will be liquated upon their receipt. In the case of gifts of marketable
securities, the Church will maintain a brokerage account for the purpose of receiving
and liquidating the donated assets.

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Accounting and Reporting

All Donor and Board Designated Funds will be accounted for separately and reported to
the congregation at Church Council. In addition, an annual report on the use of all
Funds will also be provided at Church Council.

The Trustees will also provide a written acknowledgement to the donor or donors of
the gift.

Investing Funds

Both Donor Designated and Board Designated Funds will be invested in a diversified
portfolio of stocks and bonds. The options for investing the funds shall include a
“growth allocation” consisting of approximately 70% equities and 30% fixed income
securities, a “balanced allocation” consisting of approximately 50% equities and 50%
fixed income securities, and/or an “income allocation” consisting of approximately 30%
equities and 70% fixed income securities.

The selection of the allocation for each Donor and Board Designated Fund shall
consider the goals and purposes of each fund and the risk tolerance of the Church to
the marketplace. In most cases, the investment time horizon is in perpetuity, and
therefore, primary consideration should be given to economic and market trends over
a five to ten year period.

It is important to note that there may be times when there are market conditions that
affect the performance or value of the funds, significantly. While the trustees will not
engage in so-called „market-timing,‟ from time-to time the Trustees will evaluate and
affirm or change the asset allocation. Nevertheless, investing in the stock and bond
market always has an element of risk; however, the Trustees believe that over the long
term the Funds will greatly benefit from being invested in a diversified portfolio.

Distributions

Unless otherwise prescribed by the donor, the Trustees shall make annual distributions
to carry out the purpose or purposes of the fund, using one of the following methods:

           The Total Return Method – considers the Net Asset Value (NAV) of the fund,
            regardless of the rate of return, computed against a percentage amount that
            will be no less than 5% and no greater than 7%.

           The Income Method – considers the income generated by the fund through
            interest, dividends and realized capital gains.

           The Dollar Method – is a dollar amount allocation from the fund determined by
            the Trustees, without regard to the NAV or the income generated.



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The Trustees shall annually adopt one method for each Donor and Board Designated
Fund; however, the Trustees shall not be obligated to make a distribution in the event
there is not a need.

Recognition

The Trustees will be bound by the principle that the donor‟s wishes with regard to
naming and recognition will prevail. Therefore, if a donor wishes to remain publicly
anonymous about the gift the Trustees shall honor the donor‟s request.

If the donor wishes or agrees to public recognition of the gift, the Trustees will
determine an appropriate and respectful method that is also satisfactory to the Church.

In the event the donor is silent on whether he or she desires any recognition, the
Trustees will keep his or her name anonymous

In every instance the donor‟s name and other known information about the donor will
be recoded in minutes of the meeting where the Trustees accept the gift.

Other Provisions

From time-to-time the Church may need to respond to crisis needs that require the
expenditure of funds well in excess of cash available from the operating and other
reserve funds. In these cases, the Trustees shall have the option of either:

    1. Liquidating needed assets in any or all the Board Designated Funds, and/or

    2. Borrowing the funds from either the Board or Donor Designated Funds. If the
        Trustees wish to borrow funds, then there shall be a note that contains a
        payment plan, with interest. The fixed rate of interest shall be comparable to
        the prevailing rate for government securities for the length of maturity equal to
        the term of the loan.

Finally, the State of <name of state>, through “The Uniform Management of
Institutional Funds Act, as amended” spells out duties, rights and obligations of
charities and churches in their management of endowment and permanent funds.
Therefore, it is the intension of these policies is to comply with the statue and any
omissions shall default to the provisions in the Law.

In either case, the Trustee shall bring this matter before Church Council for its advice
and consent.




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