Report of the
Executive Board
The Executive Board of the Bible Fellowship Church continued to provide leadership for the Bible Fellowship Church throughout 2011. We are grateful to our Heavenly Father for the grace extended to our Denomination, Departments, and Churches. We serve a great God! We consider it a privilege to carry the message of the gospel to a lost and dying world through our Churches and Departments. We want to be an expanding fellowship of churches, but more importantly, we want to be united in making disciples of Jesus Christ. Still in our infancy as an Executive Board, we wanted to characterize 2011 as the year we laid a ‘Foundation of Prayer.’ This was our emphasis and we invited Dr. Daniel Henderson of Strategic Renewal to help us focus on prayer as the foundation for the Bible Fellowship Church. Many of our churches were blessed as a result of this emphasis, and the Executive Board, individually and collectively, spent much time praying for our churches, our pastors, our missionaries, and our departments. In the prayers for the Executive Board, we asked God to give us wisdom as we dealt with the issues and challenges that came before us. We believe He answered our prayers and has provided guidance for our Denomination.
We are grateful for the men that God has provided to lead our Departments. These leaders met both with the Executive Board and the Executive Director on several occasions as they shared their visions, concerns, and challenges of their respective departments.
Dana E. Weller – continues to lead the Board of Missions
David E. Gundrum – continues to lead Church Extension Ministries
Daniel P. Allen – concluded his time leading Pinebrook Bible Conference
Douglas Manwiller – continues to lead Victory Valley Camp
The Executive Board met with each of the department boards in the past year in an effort to foster understanding of the new structure of accountability and authority within the Bible Fellowship Church. In these meetings the department board members had the opportunity to share their impressions of the new structure. We are grateful for their willingness to help us work through this change within the Bible Fellowship Church. Throughout the year, the Executive Director was able to attend many of the department meetings and continued to stay abreast of each department through monthly reports and direct contact with the directors.
In an effort to stay above reproach and maintain fiscal accountability and responsibility, the year began with the desire to complete the application to join with the Evangelical Council for Financial Accountability (ECFA). In order to accomplish this, the four Departments of the Bible Fellowship Church (Board of Missions, Church Extension Ministries, Pinebrook Bible Conference, and Victory Valley Camp) needed to have complete and comprehensive financial statements that were officially reviewed by a non-related Accounting Firm. The Executive Board selected the firm of Buckno Lisicky & Company to perform the official review under the guidelines of ECFA. What initially appeared to be a straightforward accounting process became much more complex as we needed to research original documents that over the years were located in varying places! In seeking to be correct with our findings, we needed to provide an accurate trail of the BFC’s financial dealings over the past 40+ years. This, combined with our desire to clarify and simplify our dealings with the IRS, required us to reexamine all of our assets. We did not fully complete our application, but did make progress towards that goal.
In doing this more comprehensive review, we realized that the condition of Pinebrook Bible Conference’s facilities needed to be improved if it were to remain a viable ministry of and to the Bible Fellowship Church. In constantly reviewing its financial situation, it became apparent that unless some changes were made, the prospects for Pinebrook were poor, and it would continue to need financial assistance from the BFC Conference beyond its ability to raise funds. This led the Executive Board to make several recommendations concerning Pinebrook Bible Conference. These were presented to the 128th BFC Conference, and, after a lengthy discussion on the floor, at the request of the Pinebrook Board, the Executive Board agreed to reconsider each one. This was accomplished throughout the summer months. We hired Neil Fichthorn, a Christian Camping Consultant, to advise us throughout the process. We also requested and received valuable input from the members of BFC Conference. The complete reconsideration and the conclusions have been published at our http://info.bfc.org website. At the combined Pinebrook Board and Executive Board meeting in September, we reviewed the data together. At that meeting, it was noted that the financial status was still dire, and an infusion of funds was required. It was also at that meeting that Fellowship Homes, Inc. came forward with an offer to purchase the Crawford property, and lease it back to Pinebrook, so that there could be an infusion of cash with no disruption of ministry. The Executive Board accepted this offer and on November 1, 2011, the transfer of property and money was completed. One of the original recommendations of the Executive Board was that a change in leadership at Pinebrook Bible Conference be made to bring about a new direction for the ministry. Accordingly the contract of the current Director, Daniel P. Allen, was not renewed for 2012. A severance package was given in appreciation for his ministry at Pinebrook, and his duties and responsibilities were completed on November 8, 2011. A search was begun for an Interim Director who would be able to act more as a Chief Operations Officer than as a Ministry Director. Nate Brosius, who previously served at Pinebrook, was selected and began serving on December 15th as the Interim Director. Please pray for Pinebrook as we continue to monitor the viability of this venue for a family camp and conference center for the Bible Fellowship Church.
During the year, the Executive Board dealt with several church situations that required counsel and our input. Several of our churches are struggling with financial difficulties and have requested reprieves concerning the repayment of their loans payable to the Bible Fellowship Church. These were granted on a case by case basis. We are grateful to Church Extension Ministries for their willingness to assist our Long Neck, Delaware church and supply an Interim Pastor, Mark Morrison, as it rebuilds its Congregation. One of our churches requested our involvement and input concerning several doctrinal issues. Another church brought to us a proposal for a merger with one of our smaller churches. As a result of these situations, and others brought to us by the Church Health Committee, the Executive Board established an Ad Hoc Committee to develop formal guidelines concerning the care of declining churches. The committee’s report will be presented to the 129th BFC Conference for further review and direction.
The Executive Board has continued to refine its Core Values and has begun the process to develop a vision for the Bible Fellowship Church for the near future. The status of that process will be presented at the 129th BFC Conference. We believe that the completion of this process will provide the direction that we need as a Denomination and help us to sharpen our focus as a church and align our departments with that vision. In keeping with our stated focus of ‘Making Disciples of Jesus Christ’ we have invited Dr. Gene Getz to be our guest at this year’s conference. His primary emphasis will be on discipleship, but he has also written much about leadership within the church and will have more to share on that topic.
The Executive Director continues to care for the day to day operations of the Bible Fellowship Church. He is grateful for the assistance of Don Kuntzman who handles many of the daily financial functions (such as payroll and payables), and Carolyn Bloomfield who gracefully answers the phone at the ‘unofficial’ office of the Executive Board (in the Board of Missions office at 1011 Brookside Road, Wescoesville, PA). Lisa Christensen and Ruth Richards cared for the correspondence at the ‘official’ office at 3000 Fellowship Drive, Whitehall, PA 18052 (Church Extension Ministries office), where all mail should be sent. He has continued to visit the churches and represent the Bible Fellowship Church at official and some unofficial functions. We are reminded by the Apostle Paul that our Lord has given to the church various individuals in leadership positions, but all with the same intent, and that is ‘to equip the saints for the work of ministry, for building up the body of Christ, until we all attain to the unity of the faith and of the knowledge of the Son of God, to mature manhood, to the measure of the stature of the fullness of Christ.’ (Eph 4:12-13-ESV)
The officers of the Executive Board are Randall A Grossman, President; Robert A Sloan, Jr., Vice President; Jay H Fasnacht, Treasurer; and Ronald L. Kohl, Secretary. Charles Lavigna is the Health Insurance Coordinator. The Executive Board has retained:
The American Insurance Group as Health Insurance Administrators,
Fitzpatrick, Lentz, and Bubba as our legal representatives,
Buckno Licisky & Company as our Accounting Firm,
Asset Planning Services as our Pension Fund administrators,
Brotherhood Mutual Insurance Company as the preferred church liability insurers, and
American Bank of the Lehigh Valley as the depository of its funds.
Internally, L. James Roberts, Stephen J. Kauffman, and Robert H. Zentz serve as the Personnel Committee, while Dennis M. Cahill, Jay H. Fasnacht, and Charles A. Lavigna serve as the Finance Committee for the Executive Board.
The Executive Board wants to maintain a position of being above reproach in all of its dealings and has created a Conflict of Interest Policy which each member has signed. The written policy can be found at our http://info.bfc.org website, and would be worth considering for each local church board of elders.
The Executive Board recommends the approval of the following resolutions:
1. Resolved, that the 2012 revised Executive Board budget be presented for adoption by the 129th BFC Conference.
2. Resolved, that an assessment rate of two (2.0) percent be presented for adoption by the 129th BFC Conference for 2013 (based on assessable receipts for 2011).
3. Resolved, that the 2013 proposed Executive Board budget be presented for adoption by the 129th BFC Conference.
PENSION FUND (MRF) Update
2011 Review and Status (figures rounded for simplicity): The total of Ministers’ Retirement Fund (MRF) annuity payments to beneficiaries in 2011 was $170,600 (compared to $186,300 in 2010 and $196,000 in 2009): see Statement of Cash Receipts and Disbursements. This is the fifth year that the total disbursements have declined. There are 6 future beneficiaries of the MRF, the youngest of which will begin receiving benefits at age 65 in the year 2013. There were two widow beneficiaries who went home to the Lord in 2011. Based on the current mortality assumptions, the final year of MRF payments to beneficiaries is projected to be 2035. Between now and then, it is estimated that the MRF will distribute future benefits totaling nearly $2,400,000.
Annual Funding: 2011 was the first year that the Executive Board funded the Pension Fund on a monthly “pay as you go” basis in an amount roughly equal to each month’s payments to beneficiaries. Funding is supported by a portion of the BFC Conference Assessment. There should be no need in the future to issue any Pension Notes.
403(b) Plan: Refer to the 2009 Yearbook for details, or visit http://info.bfc.org where a copy can be downloaded. There are no changes in IRS requirements for 2012.
Planned Giving: The benefits of planned giving were clearly evident in 2008 by way of the receipt of the bequest of $225,000. The Executive Board urges other members of the Bible Fellowship Church to consider including the MRF in their estate planning arrangements. The simplest and most tax efficient method would be to name the MRF as a contingent or primary beneficiary (for married or singles, respectively) of a portion of an IRA or 403(b) account. This arrangement can be adjusted or revoked at any time, and does not involve changing one’s Will. For more information, please contact the BFC Executive Director.
Administration: The Executive Board expresses appreciation to Pension Plan Administrator Rick Volpe, of Asset Planning Services, for his faithful service to the Pension Fund.
The Executive Board recommends the following resolutions to the 129th BFC Conference:
4. Whereas, the MRF annuity rate for 2012 is $221 per year of service, and
Whereas, cost-of-living adjustments no longer apply to MRF payments, be it
Resolved, that the MRF annuity rate for calendar year 2013 be $221 per year of service.
Resolution Relating to Rental/Housing Allowances for Retired or Disabled Ministers of this Conference for Calendar Year 2013
5. Whereas, the religious denomination known as The Bible Fellowship Church has and functions through Ministers of the Gospel who are duly ordained or licensed; and
Whereas, the practice of The Bible Fellowship Church is to provide a parsonage or a rental allowance as part of the gross compensation for each of its active ordained or licensed ministers; and
Whereas, pensions paid to retired and disabled ordained or licensed ministers of The Bible Fellowship Church are considered as deferred compensation and are paid to said retired and disabled ordained or licensed ministers in consideration of previous, active service; and
Whereas, the Internal Revenue Service has recognized that The Bible Fellowship Church is the appropriate organization to designate a housing/rental allowance for retired and disabled ordained or licensed ministers who are members of this Conference;
Resolved,
1. An amount equal to 100% of the pension payments received during the year of 2013 be and is hereby designated as a rental/housing allowance for each retired and disabled ordained or licensed minister of The Bible Fellowship Church who is or was a member of the Bible Fellowship Church Minister’s Retirement Fund.
2. This rental/housing allowance shall apply to each retired and disabled ordained or licensed minister who has been granted the retired relationship or placed on disability leave by the Bible Fellowship Annual Conference and whose name and relationship to the conference is recorded in the Yearbook of the BFC Conference of the Bible Fellowship Church and in other appropriate records maintained by the conference.
3. The pension payment to which this rental/housing allowance applies shall be the pension payment resulting from all service of such retired or disabled ordained or licensed minister from all employment by any local church, Annual Conference or institution of The Bible Fellowship Church or of any former denomination that is now a part of The Bible Fellowship Church, or from any other employer who employed the minister to perform services related to the ministry and who elected to make contributions to the pension funds of The Bible Fellowship Church for such retired minister’s pension.
Note: The rental/housing allowance which may be excluded from a minister’s gross income is limited to the lesser of (1) the amount of the rental/housing allowance designated by the minister’s employer or other appropriate body, (2) the amount actually expended by the minister to provide his or her housing, or (3) the legally-determined fair rental value of the parsonage or other housing provided. As specified in Rev. Rul. 71-290 C.B. 92, “the only amount that will qualify for exclusion under section 107(2) of the Code as a ‘rental allowance’ is an amount equal to the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.”
Bible Fellowship Church Executive Board: Randall A. Grossman, President; David T. Allen, Executive Director; Dennis M. Cahill, Carl C. Cassel, Robert T. Evans, Jay H. Fasnacht, Ronald L. Kohl, Charles A. Lavigna, Stephen J. Kauffman, L. James Roberts, Robert A. Sloan, Jr., David A. Thomann, Robert H. Zentz.