The document summarizes the 2010 financial reports of several Evangelical Covenant Church organizations. It shows that in 2010, Covenant World Relief distributed $981,000 and the Paul Carlson Partnership distributed $620,000 totaling $5.37 million since 2005. It also provides details on the budgets, funding levels, growth and performance of the Covenant Pension Plan, Bethany Benefit Service, National Covenant Properties, and Covenant Trust Company. An audit report gives positive ratings to the organizations for having balanced budgets, fully funded pension plans, enrollment growth, and exceeding financial benchmarks.

1. Covenant Annual Meeting 2011 FISCAL YEAR 2010 FINANCIAL REPORT

2. The Evangelical Covenant Church Paul Carlson Partnership National Covenant Properties Covenant Pension Plan Bethany Benefit Service Covenant Trust Company Evangelical Covenant Church

3. Covenant World Relief 2005 $1,303,000 2006 $1,315,000 2007 $1,267,000 2008 $1,558,000 2009 $1,016,000 2010 $ 981,000 Total $7,440,000

4. Paul Carlson Partnership 2005 $ 884,000 2006 $1,253,000 2007 $1,186,000 2008 $ 794,000 2009 $ 630,000 2010 $ 620,000 Total $5,367,000

5. Base Budget Covenant World Relief Paul Carlson Partnership Project Missionaries Short-term Missionaries Friends of World Mission Kingdom Builders Sustaining Pastoral Excellence Covenant Orientation Mission Projects PCP CWR PMs STMs KB FOWM CO SPE MPs MISSION & MINISTRY BUDGET

6. Budget Results Net +$21,000

7. Bethany Benefit Service (BBS) Medical Dental (including orthodontia) Life Insurance Long-term Disability Vision Benefit Prescription Drug

8. Medical Insurance Premium Increase Comparable market premium increases Bethany premium increases Cost $ avings

9. Recent Developments Bethany Benefit Service 12-month Enrollment Growth of 60 or 5.3% Current Open Enrollment June 2011 Premium Waiver, Saving $1 million Assist Churches in Eligibility for Federal Tax Credit, Saving $500,000

10. Covenant Pension Plan Defined Benefit Plan Can’t Outlive Your Benefits Pension Board Responsible for Investment Returns Covers 2,077 Pastors, Missionaries and Surviving Spouses

11. 1996-2008 Pension Benefit Enhancement Total Value $40 Million

12. Pension Benefits

13. Key Investment Considerations Asset allocation and diversification—improve risk/return relationship 2010 1992

14. Assets of Pension Fund Foothills Midrange Peaks ($ in millions)

15. Recent Pension Plan Results April 2011 2011 Assets up 7.5% Plan Performance > Benchmark Previous 26-month Return: + $76.2 Million Invested Assets 9.8% Above Previous High Plan Fully Funded

16. Funding Comparison Covenant Pension Plan vs. Average Corporate and Public Plan Assets as % of Liabilities 100% 85% 70%

17. Assets of National Covenant Properties ($ in millions)

18. The Loan Source for Covenant Churches Of the churches that have loans, over 85% have loans with NCP Other NCP

19. 2010 New Church Loans National Covenant Properties In 2010, National Covenant Properties loaned funds on 47 church projects with a total of $37,500,000 in new loans advanced.

20. Assets Under Management Covenant Trust Company ($ in millions)

21. 2010 Results Covenant Trust Company New Business $17.8 million Distributions $ 8.6 million % New Business to Conferences, Churches, 47.9% and Camps Assets Under Management $436.5 million

22. AUDIT REPORT

23. Covenant Financial Report Card YES NO Unqualified Opinion  Balanced Budget  No Management Comments 

24. Bethany Benefit Service Report Card Medical Rate Increase < Competition  Significant Enrollment Growth > 5%  June 2011 Premium Waiver (saving churches $1 million)  Special Bethany Open Enrollment (including retirees)  YES NO Federal Tax Credit Assistance (saving churches $500,000) 

25. Covenant Pension Plan Report Card Pension Plan Full Recovery from Market Decline  Pension Plan Fully Funded  Pension Plan Exceeds Target Benchmarks  YES NO 2/09-4/11 Asset Increase of $76 million 

26. Covenant Annual Meeting 2011 FISCAL YEAR 2010 FINANCIAL REPORT