THE FOUNDATION FOR THE DIOCESE OF HELENA , INC. ANNUAL REPORT – FISCAL YEAR ENDING JUNE 30, 2006

BACKGROUND AND MISSION STATEMENT

Because of others, seeds are sown in fertile fields. Through time the seeds are carefully nurtured so that the fields are filled with grain ready for the harvest.
Yet, those who have sown the seeds will not reap its harvest; rather, they have planted the seeds with others in mind – providing for others in the same manner that others have provided for them.

The Foundation for the Diocese of Helena, Inc., is a legal, separate entity (corporation) from the Diocese of Helena, made up of a volunteer Board of Trustees, currently consisting of 23 Catholic church, business and civic leaders drawn from the five diocesan vicariates who manage and administrate all foundation assets and endowments. These dedicated men and women are responsible for the prudent investment of the financial resources of FDH to help assure a sound fiscal under-pinning for both the present and future Church in the Diocese of Helena.
The diocese (as a legal entity) and the diocesan bishop have no role in the management of the Foundation, which is a separate 501(c)(3) nonprofit organization (a public charity). Endowment funds held within the foundation cannot be attached for the diocesan operating budget, for the settlement of diocesan liability claims, or for any other uses by the diocese unless allowed in the donor’s endowment agreement. The foundation works with the parish or person creating an endowment to specify the intended purpose of the endowment, which is then administered in perpetuity based upon an irrevocable legal agreement.
The Finance Committee of the Board of Trustees oversees all Foundation investments and it is guided by a detailed investment policy. The committee works closely with those responsible for the active management of the endowment funds (currently, Wells Capital Management and The Investment Group, both of Helena); and, with an independent financial auditing firm (currently Anderson ZurMuehlen & Co. PC, Helena, Montana).
Other related items:
• The foundation charges an annual administration fee of 1.5 percent of the market value of each endowment fund account, taken at the end of each quarter. Also, there is an initial fee of 5 percent charged on the incorporating value of all endowment gifts except those contributed by a parish or mission of the Diocese of Helena.
• Benefactors and beneficiaries are provided with annual performance reports by mail. Financial updates are also available on a day-to-day basis by contacting the foundation office. The foundation produces an annual audited financial report – a copy of which is available through the foundation office.
The foundation normally distributes funds to beneficiaries on a quarterly basis – usually within 6 to 8 weeks of the close of each quarter. The foundation’s distribution policy calls for the distribution of the actual earnings of the endowment fund or 4.5 percent, whichever is less. Earnings in excess of 4.5 percent are added to the principal of the endowment fund and equally apportioned to each sub-endowment account according to its unitive value and share of the principal fund. The board determines the distribution percentage annually based upon both investment performance and the ongoing goal of providing growth and income in the endowment fund.

The mission of the FDH is to provide funding for parishes, institutions, agencies, programs and ministries of the diocesan Church, so that the Lord’s work of evangelizing our Catholic and apostolic faith may perpetually continue within the Diocese of Helena and the universal Church.
Primary among its goals and objectives, the FDH is:
• To provide a venue through which donors can make both living and testamentary gifts to benefit personally identified charitable objectives that help sustain the ministries and works of parishes, schools, agencies, ministries and outreach programs of the Diocese of Helena. By living and practicing gospel stewardship, donors can help assist the diocese in facing the many fiscal challenges confronting the current and future diocesan Church, while assuring that the spirit of their giving and caring will endure;
• To serve as a depository for contributed funds, mainly in the form of restricted or quasi-restricted endowments. Additionally, unrestricted charitable contributions are encouraged for use within the diocese – to be used where most needed as determined by the Board of Trustees.
• To invest donated assets held for benefit of the diocesan Church or other named beneficiaries according to a prudent policy that closely balances risk, reward and safety by providing an adequate mix of invested assets designed to optimize yield while obtaining consistent growth within the portfolio.
• Through the solicitation of charitable contributions and the prudent investment thereof, FDH is committed to strengthening the long-term presence and viability of the Roman Catholic Church in its institutions, agencies, outreach programs and ministries within the Diocese of Helena.

Published in The Montana Catholic, Vol. 23, No. 3, March 23, 2007.