ANNUAL REPORT

2019

STRENGTHENING THE LOCAL CHURCH

Then the church throughout Judea,

Galilee and Samaria enjoyed a time

of peace and was strengthened.

Living in the fear of the Lord

and encouraged by the

Holy Spirit, it increased

in numbers. Acts 9:31

Assets Grow Beyond $251,000,000

A Word from the President

MB Foundation has experienced unprecedented growth in the past two years. In 2018

we celebrated a milestone of $200,000,000 in assets, having seen a 12% increase from

the previous year. We could not have forecasted another unprecedented growth spurt in

the next 12 months. This time an asset increase of 22%, resulting in over $251,000,000 in

assets at the end of 2019.

Total Assets

There were several key contributions to this growth:

• An increase in certificate investments, up nearly $10 million this year

• Contributions of $19.5 million

• Our standard endowment investment portfolio return was up 18.58%

It is our humble privilege to steward these resources for the benefit of donors,

investors, churches and ministries across the United States. We are committed to

managing these resources with excellence. We give thanks to each investor, donor and

organization that entrusts these funds to our care. From our first conference offering

collected in 1880 until now, we have pooled our resources to provide fuel for growing

the church. May we continue this Kingdom mindset until Christ returns for His Church.

One of our key goals at MB Foundation is to serve the local church. In 2019, we

piggybacked on the theme from our USMB Future Story with a concentration on

“Strengthening the Local Church.” Inspiration came from Acts 9:31.

MB Foundation is blessed to partner with

donors and investors who have the same

objective and want to see the local church

strengthened.

Let me share some of the highlights

we experienced in 2019 in order to

strengthen the local church:

• Hosted an event for boomers and

builders from 36 of our churches at

Celebrate 2019!

• Increased our ability to serve our

churches on the west coast through

our new office in Fresno

• Impacted 11 local churches by

funding leadership development

through LeadGen

• Engaged in teaching stewardship in

16 churches during 2019

• Facilitated gifts to local churches in

the amount of $1,063,929

• Loaned resources to churches for

purchase and remodel

I invite you to read this annual report to

learn more about these highlights. Be

inspired by stories of generosity in the MB

family and be encouraged by how God

is at work in our churches and ministries

through your investment and generosity!

Jon C. WiebePresident & CEO

250 Million

200 Million

150 Million

100 Million

2012 20162010 2013 20172011 20152014 2018 2019

Asset Growth up 22%

02 | MB FOUNDATION 2019 ANNUAL REPORT | 03

Celebrate 2019!

As part of our commitment to

expand our services to the west

coast, Bruce Porter joined our team

in January as a Planned Giving

Advisor. In August we moved our

Fresno office to a new location.

We are now located in Starpoint

Towers located at 6th and Shaw.

New staff and facility

Firstfruits Gift

Celebrate 2019! Living with Purpose

brought 221 boomers, builders and

empty nesters to Omaha, NE on

September 27-29, 2019. The third such

gathering sponsored by MB Foundation

provided opportunities to worship, learn

and fellowship together. Participants

represented 36 MB churches from

Central, Pacific and Southern Districts.

They were encouraged to return to their

churches and communities as productive

servants – to live a life with purpose.

Plans are being made for the next

gathering in 2021.

Annual gift from MB Foundation to USMB

$180,000

2019 ANNUAL REPORT | 0504 | MB FOUNDATION

Donor Story

In 2019, donors made donations of $4,728,631 through MB Foundation to 344 charities.

$1,063,929 was distributed by 101 donors to strengthen local MB churches.

$4,728,631

NON MB33%

OTHER MB 1%

EDUCATION21%

CONFERENCE9%

LOCAL CHURCH

23%

MISSIONS13%

In summer of 2019 Lakeview Church, a new

church plant in Utah, knew they needed

extra hands and feet for ministry efforts

in their community. Four young adults

were looking for opportunities to test the

waters of ministry and future leadership

in churches and missions. The two were

brought together through LeadGen, a

scholarship program at MB Foundation for

young adults who are exploring ministry

leadership opportunities in the Mennonite

Brethren family.

Before becoming a minister, Lakeview

Pastor Phil Wiebe himself had served as

a church intern. The experience is what

helped to launch him into full time ministry.

He believes it is one of the best avenues

to develop future leaders of the church.

Linda and Steve Pauls share the values of their church and know financial support is

important to sustain and grow the ministry. Linda says, “In order for our church to remain

a voice in the community of who Jesus is and what we believe, we need to support it

financially.”

The Pauls believe in the importance of giving regularly to their church and have gifted

appreciated stocks for special needs such as a capital campaign or other large expenses.

In gifting appreciated stock to MB Foundation, they receive a charitable deduction, avoid

capital gains on the growth of the stock and make a gift to their church.

The Pauls are able to help meet the needs of their church while

stewarding their finances well. “We find it easy to work through the

process with MB Foundation and appreciate our common value

of strengthening the local church.” Linda and Steve worship at

Willow Avenue Mennonite Church in Fresno, CA.

LeadGen interns also found it to be a

positive experience. Caleb Rempel said,

“Serving God in a new place allowed me

to see where He has gifted me and also

where I need to grow. I love LeadGen’s

dedication to supporting young Christians

in their journey to follow Christ.”

Wiebe says the summer was an amazing

experience with the four students working

in youth and children’s ministries. “It was

like a boost to our church as they brought

youthful enthusiasm and excitement. Our

interns feel like family, our church has

taken ownership of them and wants to be

part of helping them in their futures.”

Scholarships for tomorrow’s church leaders.

Gifts of stock strengthen the local church

CHARITABLE DISTRIBUTIONS06 | MB FOUNDATION

Since its beginning in 2015, Lighthouse

Church in Denver, CO has grown

from a gathering of 12 to a church of

400 or more each Sunday. They have

worshipped in a house, a warehouse,

a high school, and in a leased church

building. In January 2019 they needed to

move again as their lease was expiring.

Partnering with Southern District

Conference and MB Foundation, the

church purchased an indoor soccer

facility for their next worship center. In

three months, church staff and members

provided over 7,000 volunteer hours to

help renovate and move in. The grand

opening was September, 2019.

Lead Pastor Josh Shaw said, “The greatest

gift this building has given us is an open-

door to the diversity of our community.

We have always had a desire to look like

our neighborhood for the sake of the

Kingdom of God. We are excited to not

only grow in a diverse congregation; but

also increase the diversity of our staff and

elder-team!”

2019 LOAN PORTFOLIO

$84.7 MILLION

investors contributed to the MB community by offering capital for our Loan

Program. In return they received a rate of return and peace of mind that they were

contributing to a greater cause by helping us make loans to growing churches.

The purchase of MBLF’s securities is subject to risks, which are described in our Offering Circular. This is not an offer to sell you our securities and we are not soliciting you to buy our securities. We will offer and sell our securities only in states where authorized. The offering is made solely by the Offering Circular. Not FDIC or SIPC insured. Not a Bank Deposit. No U.S. Conference Guarantee.

782

Certificate ProgramInvestors provide capital for growing churches

Church transforms building to serve the community.

Lighthouse Church

Loan Program

Before Renovation

After Renovation

2019 ANNUAL REPORT | 09

Financial Overview

STATEMENT OF ACTIVITY JANUARY 1 - DECEMBER 31

REVENUES 2019 2018 & RECEIPTSInvestment income $6,543,684 $5,368,050 Contributions 19,537,578 25,168,415Change in value of deferred gifts 1,525,650 (1,290,991)Other 1,239,927 908,958Unrealized/realized gain(loss)on investments/assets 9,732,048 (3,269,731) Total Revenues & Receipts $38,578,887 $26,884,701 EXPENSES Program 8,663,864 7,305,840Management/general 1,465,554 1,222,068 Total Expenses $10,129,418 $8,527,908

CHANGE IN NET ASSETS 28,449,469 18,356,793 NET ASSETS AT BEGINNING OF YEAR 82,488,103 64,131,310 NET ASSETS AT END OF YEAR $110,937,572 $82,488,103

PLANNED GIVING SERVICES

Helping you achieve charitable giving

goals that benefit you and the ministries

you love.

FUND MANAGEMENT

Managing over $251 million in total

assets. As a fiduciary of these assets

we are committed to stewarding funds

with excellence.

CHAMPIONING STEWARDSHIP

Encouraging individuals and churches

toward a God-honoring use of their

resources.

INVESTMENT CERTIFICATES

Investing with purpose to earn a rate

of return AND provide resources for

growing churches.

LOAN PROGRAM

Financing is available to ministries for

property purchases, building projects

and capital improvements. We also

offer home loans to pastors.

Our Services

MISSION To encourage and assist individuals, congregations, and ministries in the Mennonite Brethren community with Biblical financial stewardship solutions.

“Tell them to use their

money to do good.

They should be rich in

good works…always being

ready to share with others

whatever God has given them…

so that they may take hold of real life.”

1 Timothy 6:18-19

*Audited financial statements available upon request.

STATEMENT OF FINANCIAL POSITION DECEMBER 31

ASSETS 2019 2018Cash and cash equivalents $1,446,410 $1,676,269 Interest receivable 389,750 277,957 Prepaid expenses and other 364,946 583,528 Investments 161,818,058 105,086,359Loans receivable, net 82,039,932 87,179,641 Real Estate investments 3,548,190 8,073,244 Property and equipment, net 2,139,399 2,148,436 Total Assets $251,746,685 $205,025,434

LIABILITIES Earnings, notes and accounts payable $440,149 $65,187Certificates payable 74,866,610 64,684,400Deferred gifts - liability 21,975,988 20,946,104 Amounts managed for others 43,526,366 36,841,640 Total Liabilities $140,809,113 $122,537,331 NET ASSETS Without Donor Restrictions 72,486,277 50,254,487With Donor Restrictions Restricted by purpose or time 11,445,637 7,106,243 Restricted by perpetuity 27,005,658 25,127,373 Total Net Assets $110,937,572 $82,488,103

Total Liabilitiesand Net Assets $251,746,685 $205,025,434

2019 ANNUAL REPORT | 11

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