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Troy DobbsSenior Pastor

Jon WrightExecutive Pastor

Dear Friends,

We have experienced an amazing year at Grace and are praising the

Lord for His goodness, His faithfulness, and His love.

As we reflect of on the three vision priorities the Lord has called us to, it is

clear that He continues to pour out His grace and blessing.

1. Intensify our mission efforts around the world and our evangelistic efforts across the street:

•TwohundredandthirteenfromtheGracefamilyservingonshort-

term missions trips, taking the Gospel of Jesus to the unreached.

•Hundredsoffamiliesreceivinghopethroughministrieslike

Barnabas, Clothing Closet, Handyman, Community Care Nights,

and others that demonstrate and declare the love of Christ.

2. Unprecedented attempts to reach and disciple children 0-18:

•Hundredsofstudentsin2nd,5th,6th,9th,and12thgrades

participating in “Foundations Next Generation,” learning doctrinal

truths of the Bible and growing in their love and knowledge of the

Lord.

•Weekly“D-Group”ministrywherestudentsconnectwithpeersand

adults for encouragement, accountability and discipleship.

•StudentsservinginministryhereatGraceandintheinnercity,

influencing fellow students for Christ.

•ServingChildrenAtRiskthroughVBSinthePark,RoyalFamilyKids

Camp, and AWANA in the City.

3. Increase the spiritual depth of our congregation:

•OnehundredandsevenpeoplefollowingChristinobedience

through baptism.

•PassionfortheWordinworshipservices,Foundationsclasses,and

SmallGroups.

•GreatertrustintheLordinstewardshipasevidencedbyexceeding

both the local ministry and missions budgets.

We are not confused about “who” and “what” are responsible for the

year we have enjoyed here at Grace. We are grateful, not great—but we

serve a God who is!

It is by Him, through Him, and for His glory alone.

Giving thanks with you and for you,

Troy Dobbs Jon Wright Senior Pastor Executive Pastor

Dear Friends,

“ As the deer pants for streams of water, so my soul pants for you, O God.” – Psalm 42:1

As I look back over this past fiscal year, the theme for

thisAnnualReportespeciallyresonatesinareaswithin

administrativeministries.Therehasbeenmuchseeking

of God’s leading, and He is moving in many ways.

TheevidencethatitisoftheLordisthere,becauseon

human terms it is not explainable and the end results

ofHisleadingallpointtoHisglory.Thefastandtiring

pace of this past year often left us “panting for water.”

However, I was often reminded that the only solution is to deeply desire to seek the

face of God.

I often hear from staff that these are exciting times at Grace Church. God is clearly

showingHisfavorandleadingusingreenpastures.Personally,havinganumeric-

centric bias, it is relatively easy to see how God has been leading Grace Church

financially this past year. It was in December, the final week of the calendar year,

that God poured out His generosity through His children by allowing us to catch up

on our giving budget. With several human limitations, such as Christmas falling on

aSundayandNewYear’sEvefallingonaweekend,itappearedtherewouldonlybe

threefinanciallystrongSundaysinacrucialmonthofourbudget.However,theLord

broughtinaDecemberofgivingthatcouldonlygiveHimglory.Thishappenednot

justoncethispastyear,buttwice,withthelastmonthofourfiscalyearinMay2012!

Grace was slightly behind giving budget at the beginning of May, and the last

weekend of the month was Memorial Day weekend. Again the Lord opened the

storehouses and allowed Grace to go beyond our annual budget by half a percent.

IalsowanttogiveGodthegloryforanincreaseinnon-traditionalgiving.Many

responded positively to new avenues of giving to the Lord beyond “putting a check

orcashintotheofferingplate”onSundaymornings.Theyarenowusingmany

creative ways to give (see “Give” on www.atgrace.com), and we continue to seek

God’sleadinginthisarea.Lastyear18percentofallreceiptswereprovidedoutside

offundsplacedintheSundayofferingandthisyearwearejustover28percent.We

aremakingsteadyprogresstowardhavingthisexceedmorethan50percentwithin

the next three years.

God is also leading in many areas beyond finances, such as:

Facilities – Building a chapel and making our building smarter with an

HVACsystemthatsavedus$85,000onourutilitybillsinjust10months

Communications – Creating a new website and rolling out an updated

branding image of Grace Church for those outside of the Grace family

Information Technology – Updating our technology infrastructure with

higher broadband capabilities, virtual servers, and more effective use of Cloud

Accounting –Receiving“highestcomments”ontheintegrityofGrace

Churchfinancialpoliciesandprotocolsfromourthird-partyauditors,as

well as structuring a new loan to meet ministry needs for a current loan

that is maturing next year

Human Resources – Being recognized nationally by our insurance

company for our risk management practices and Human Capital

management

Retreat Center–Bringingthe285-acreRetreatCenteruptocodefor

licensure, and making it available as a respite and ministry place for Grace

Church and other Christian ministries

Hospitality – Creating a welcoming environment for those visiting us via

theBreakfastClubonSundays,aswellashostingseveraleventsforthe

community,suchasnineHighSchool/Collegegraduationsonourcampus

Living Grace Bookstore–Providingresourceswithinthechurchtohelp

deepen the spiritual depth of our congregation and having sales within

thestoregrowby19percentduringthepastyear

Funshine Preschool – Deeply investing God’s truth in our young children

onadailybasis,andhelpingtobuildaChrist-centriceducational

foundation

TheseareexcitingdaysatGraceasweseehowGodisleadingus.

May we always and quickly give all the glory to Him alone!

Jeff A. Kornoelje Pastor of Administration

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Jeff KornoeljePastor of Administration

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Dear Friends,

During this past ministry year I have felt a greater need

thaneverbeforetocallouttotheLordinprayer.Ourentire

MissionsTeamofstaffandfaithfulvolunteershasjoinedme

in seeking God’s face. He has led us and continues to do so as

we are careful to give all glory to the Lord. He alone is mighty

and has done wondrous things in our midst.

OureffortsandinitiativesarecenteredonTheCAUSE.

An increasing number of people have engaged in “Livin’

TheCAUSE”bysharingtheGospel,makingdisciples,and

engaging in Missions across the street and around the world.

Across the Street (Prayer—Care—Share)

•ContinuingtotrusttheLordfor2,015peopletobeLivin’TheCAUSEbytheyear

2015.Youcanbepartofthisbyidentifyingfivepeopletoprayfor(yourFAV

5),beinganinviter,andgettingtrainedinmissionsandevangelism.Three

hundredandeightyfourGraceChurchfolkshavealreadyidentifiedtheirFAV

5,whichmeansover1,900pre-Christiansarebeingprayedfor,caredfor,and

reached out to in Jesus’ name.

•Over95havebeenengagedinSportsMinistry.

•ThroughtheSHARELifecourseandothertrainingopportunities,

796peopleatGraceChurcharenowtrainedforevangelism.

•Inordertoequipanyonewhowantstoactivelysharetheirfaith,

wehavedevelopedthe“MyStory”booklet.Itisasmallbookletthat

contains one’s own personal story and the Gospel presentation.

Check it out at www.atgrace.com/my-story-gospel-tract.Ourgoal

istohave1,000peopleusingthistoolwiththeirown“MyStory”tract.

•SomestudentleadersandathletesreallygotfireduplastFebruaryatthe

Dare2ShareeventwithGregStier,andstartedprayingfortheirpeersbyname

four days a week before school. As a result of their commitment and zeal,

about500kidsattendedtheiron-campusoutreacheventatEdenPrairieHigh

Schooland90kidsgavetheirheartstoChrist.

Around the World (Pray—Give —Go)

•WecontinueourworkingrelationshipwithVishwaVaniinIndia.Eachproject

has a Mother Church at its center and, using a web concept, results in a grand

totalof125churches.Eachlocationincludesthechurch,alearning/training

center,andanorphanage/communitycenter.Thisyear,wewereinvolvedin

theHinduholycityofVaranasi,AndhrapradeshinNorthernIndia.We’veseen

over160churchesplantedinthepastyearandahalf.

•WedeepenedourrelationshipwithourfoursisterchurchesinIraq:Baghdad,

Erbil,MosulandDuhok.Thesechurcheshaveexperiencedsomehardship

and extreme challenges this past year. In spite of this, Jesus is still building His

Church.PleasecontinuetoprayforthebelieversinIraq.

•IhadtheprivilegeofjoiningwiththeEvangelicalChurchinVietnamto

celebratethe100-yearanniversaryoftheGospelcomingtoVietnam.

•ManyfromourGraceChurchFamilywentonshort-termmissionstripsto

variouslocations.Inaddition,anall-churchteamof205peoplewenttoLima,

PeruJuly23-31.Ateamofapproximately800joinedusfromtheCallaoChurch

andtogetherweserved“ShouldertoShoulder,”“HombroaHombro,”with

onegoalinmind:tobringglorytoGodandtobringtheGospeltoallwho

wouldlisten.Over3,200decisionswererecorded,andoursisterchurchin

Callaoandfivedaughterchurchesdiligentlyfollowed-upwithnewbelievers.

•InresponsetoFaithPromise,forthefirsttimeinthehistoryofGraceMissions,

yougavemorethan$2million,whichmadethisministrypossible.

•Godisusingourmissionariesastheyfaithfullyservearoundtheworld.Faith

Promisesupports89missionaryfamiliesin34countriesacrossfivecontinents.

Weadded10newmissionaryunitstoourmissionaryfamily.

TheCAUSEofChristisworthourgreatesteffortaswecontinuetowardourgoalof

glorifying God by making disciples of Jesus across the street and around the world. I

praise the Lord for His blessing over this past year.

PressingontoknowHimandmakeHimknown,

Dave Gibson Pastor of Missions and Evangelism

Dave Gibson Pastor of Missions and Evangelism

Dear Friends,

TheGraceChurchBoard

ofEldersisexperiencing

a significant transition in

leadership as five elders

endtheirsecondthree-year

terms of office and therefore,

perourchurchBy-Laws,roll

off the board at this year’s

AnnualMeeting.Themen

completing their terms of

officeare:PaulConiaris,Bob

Coughlin,DanMeiusi,Scott

Neubauer,andCalOtto.

It would be an understatement to suggest that these

menhaveservedthechurchwell.Eachofthesemen

have made an extraordinary commitment to the

workoftheKingdomthroughtheirministryaselders.

TheLordhasgiventhesedearbrothersinChrist

unique spiritual gifting, talents, spiritual insights, and

leadership skills which they have used to God’s glory as

elders at Grace.

Overthesix-yearspanthatthesemenhaveserved

as elders, much has happened at Grace as we have

weathered the challenges of a deep economic

recession, the transition to a new senior pastor, and

most recently, the exciting challenge of seeking the

Lord with regard to new ministry initiatives.

As we look to the future, we are “Giving Him Glory”

as we continue to experience His hand of blessing.

Onesuchhandofblessingthisfallwillallowusto

dedicate our new Chapel, which will not only serve

asasecondvenueforSundaymorningworship,but

also as a dedicated place for weddings, funerals, and

gatherings of various kinds. A second hand of blessing

is the expansion of our ministries here at home and

around the world. A third hand of blessing has allowed

for the restructuring of our mortgage debt, which has

freedup$75,000permonthforinvestmentinfuture

ministry initiatives.

Under the leadership of these elders, along with our full

elderboardandpastoralstaff,wehavebeen“Seeking

God’s Leading” with regard to the expansion of our

ministries.Tothatend,theLordhasalreadybirthedthe

vision of making Grace Church a church of small groups

where fellowship, the study of His Word, and outreach

become a lifestyle. Additionally, the Lord has increased

our burden for the health of marriages in our church and

community.ConsistentwithJames1:27,Heisalsoleading

us to make a difference in the lives of orphans. And finally,

as we continue to look for extraordinary ways to reach our

ownJudeaandSamaria,weareseekingGod’sleading

with regard to expanding our ministries thru the planting

ofchurchesusingaone-church,multi-siteconcept.

Indeed, we are grateful for the steady and godly

hand of leadership provided by the elders who are

completing their service. While keeping their eyes fixed

on Jesus Christ, the author and perfector of our faith,

they have guided Grace Church through challenges

andpreparedusforthefuture.Thoughtheyhave

served for His Glory alone, as you have opportunity,

please join me in thanking them for their faithful work

of service to our church.

Michael Pagh Chairman, Board of Elders

Mike Pagh Chairman of the Board of Elders

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“ As the deer pants for streams of water, so my soul pants for you, O God.” - Psalm 42:1

Financial Information

FY12 CHURCH OFFERINGSNote: FY 2012 figures are unaudited

FUND BALANCESBALANCE SHEETMay 31

2010May 31

2011 May 31

2012 UnauditedNote: 2012 figures are unaudited

Building FundFund Balance 5/31/11 $57,763 Offerings 401,787 Expenditures 459,550 Difference Income/Expenses (57,763) Fund Balance 5/31/12 0

Missions/Outreach FundFund Balance 5/31/11 $543,941 Offerings 2,060,235 Designated Income 448,835 Expenditures 2,455,329 Difference Income/Expenses 53,741 Fund Balance 5/31/12 $597,682

Church MinistryRestricted Funds

Fund Balance 5/31/11 $4,526,297 Income 1,125,468 Expenditures 1,979,014 Difference Income/Expenses (853,546) Fund Balance 5/31/12 $3,672,751

Church Ministries $6,783,722 $7,139,373 $7,296,340 Missions and Outreach 1,796,024 1,991,692 2,060,235 Campus Development 373,394 364,745 401,787 Total Tithes and Offerings $8,953,140 $9,495,810 $9,758,362

Assets Cash $2,658,774 $5,338,283 $5,043,167 Retail Inventory 76,216 107,420 92,367 Property 45,638,115 48,723,182 47,322,002 Other Assets 227,152 116,393 177,447 Total Assets $48,600,257 $54,285,278 $52,634,983

Liabilities Miscellaneous Liabilities $1,661,070 $457,252 $405,041 Mortgage/Construction Debt 13,998,852 12,276,755 11,200,586 Total Liabilities $15,659,922 $12,734,007 $11,605,627

Net Worth $32,940,335 $41,551,271 $41,029,356

Church Ministries FundFund Balance 5/31/11 $795,445 Income: Tithes and Offerings 7,296,340 Other Income 27,540 Total Income 7,323,880 Expenditures 7,243,145 Difference Income/Expenses 80,735 Fund Balance 5/31/12 $876,180

Retail MinistriesFund Balance 5/31/11 $3,075 Income 1,043,224 Expenditures 972,129 Difference Income/Expenses 71,095 Fund Balance 5/31/12 $74,170

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FY 2010 FY 2011 FY 2012

World Strategic Local Missions Total Evangelism Vision Missions Services FundsFund Balance 5/31/11 $11,569 $475,237 $42,502 $14,633 $543,941 Income 1,186,610 1,059,942 164,660 107,748 2,518,960Expenditures 1,132,009 1,069,660 164,433 99,117 2,465,219Fund Balance 5/31/12 $66,170 $465,519 $42,729 $23,264 $597,682

FY 2013 Missions Budget $1,273,670 $1,053,519 $200,229 $170,264 $2,697,682

MISSIONS AND OUTREACH

CHURCH MINISTRIES

2013 PROPOSED EXPENSE BUDGETS

2012 2012 2013Budget Summary Budget Actual BudgetPersonnel $3,285,974 $3,305,448 $3,489,501Sr. Pastor 51,250 37,179 55,000Music and Worship 113,000 106,221 142,875Tech Media 69,000 74,764 74,750Childrens 73,700 73,896 88,650Student Ministries 94,500 93,580 105,000Adult Ministries 17,750 17,561 29,000Women’s Ministries 11,300 8,656 13,250Men’s Ministry 10,500 10,791 18,250Spiritual Development 10,100 9,237 26,500Caring for People Ministry 8,000 8,347 12,000Executive Leadership 44,500 36,761 68,890Communications 80,000 81,813 78,800Administration 178,750 199,249 198,500Retreat Center 131,500 118,050 133,750Information Technology 175,000 164,101 188,420Facilities 537,500 529,466 559,000Utilities & Assessments 589,360 533,683 609,000Mortgage and Debt Service 1,556,641 1,593,239 950,360Capital Expense Reserve 185,000 185,000 200,000Strategic Initiatives – Ministries 56,675 56,103 233,504Strategic Initiatives – Debt Reduction 0 0 225,000

Church Ministries Total $7,280,000 $7,243,145 $7,500,000Fund Balance Reserve $725,761 $876,180 $876,180

New Members Added During 2012 Fiscal Year

Brad Adams

Bruce & Anita AndersonRoseMarieBarberioMark&ReginaBarkerSherryBarnesSteveBarnesJustin BartzPamelaSteinleBartzHarvey BernardIna Bernard RonBieverThomasBoarderKateBoarderGreg&VivianButeynRobb&JessicaChristensenLauren CritzerJohn&KariDanekKudaDeveMichael DickersonTodd&AngelaDoyleBradley&InnaEckmanJeffreyEngelkingJenniferEsauHao FangLei FangJohn GeblerEllenGeblerRonGentolizoTomGeoffroyJoseph GeraghtyBen GloegeJared & Leanna HansonDaniel&EditeIzumiJoe JacobsDallas&KarlaJanesPeterJoasMarkKendallPepperKendall

ConnieKensinger

Matthew&DeborahKoivistoRussell&LaurenKozakAnita LeeBoyd LeeKarenLeuMitch LewisJosh&StacyLucasErikaMarondeAdam MarondeLuke Mattson EleisiaMcGuireDavid & Lori MelbyCourtney MeriwetherDustin MeriwetherScott&RogeneMeriwetherKurtMillerLaure MillerSteveMillerPaulaMitlyngPeggyMoonBrick MooreMarie MooreLinda MoranJen MulvihillJosh MulvihillLeanna MurphreyJourdan MyersKurtNelsonTammyNeuerburgBrenda NewmanRichNewmanDaniel NoonanLucinda NoonanMelissaOllieShane&TuchaOrndorffCarinOsvogRichardPetkoff

Nathan&CalliePrice

CindyRichardsonJesseRobersonTeddyReimerTonyRiceHillaryRimaWilmaRuppertAngieRyazanovBonnieSafePatriciaSaundersScott&JenniferSchlauderaffAudreySchmittJeff&JordanaSchmidtSteven&DeborahSchmidtSuzanneSchmidtTammySchoenrockMichaelSchwarzNadiaSelverstovaCarolSimsRogerSimsDonaldSmithDylan&NastassiaSmithColerSnellemanJanetteSpannJohn&RobinStegerJennifer&LouStephensCarmelaSterlingPeterSterlingRonStoffelAngieStrassbergElisaTakagiYvonneTestaJulie WalkerRichardWallJames&EstherWilliamsonRoger&MichelleWolterYingziZhang

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9301EdenPrairieRoad

EdenPrairie,Minnesota55347

Phone:952-926-1884

Web: atgrace.com