July 1, 2012 – June 30, 2013 A Supplement to The Catholic Accent

Dec. 5, 2013Annual Report

Investing in a Catholic Future

The Catholic Accent The Catholic Foundation Thursday, Dec. 5, 2013CF2 CF3

Mission Statement: The Catholic Foundation for the Diocese of Greensburg, through its philanthropic initiatives that are rooted in Gospel values and in the teaching of the Catholic Church, raises funds, awards grants, and stewards assets in order to advance the mission of the Roman Catholic Diocese of Greensburg to proclaim in word and action the Gospel of Jesus Christ and to build up the kingdom of God on earth.

Statements of Financial PositionAs of June 30, 2013 2012 2011Assets

Cash and cash equivalents $ 21,530 $ 24,129 $ 7,034

Temporary deposits 176,204 175,948 175,611

Investments:

Managed balanced portfolio 51,770,815 46,885,318 43,515,116

Equity in other investments 285,176 272,552 308,256

Interest in perpetual trust 1,203,186 1,108,501 1,124,707

Temporary investments and deposits 121,335 142,975 180,529

Total investments 53,380,512 48,409,346 45,128,608

Interest receivable 101,543 98.310 106,891

Due from other diocesan entities 7,182 - -

Total Assets $53,686,971 48,707,733 $ 45,418,144

Liabilities and Net Assets

Liabilities:

Gift annuity payable $421,070 326,517 $ 281,296

Accounts payable - - 1,236

Due to other Diocesan entities - 48,616 156,914

Total Liabilities 421,070 375,133 439,446

Net assets:

Unrestricted:

Undesignated 1,787,221 1,194,965 1,313,558

Designated 5,811,222 5,689,882 5,226,909

Total unrestricted 7,598,443 6,884,847 6,540,467

Temporarily restricted 15,476,921 14,550,161 14,716,959

Permanently restricted 30,190,537 26,897,592 23,721,272

Total Net Assets 53,265,901 48,332,600 44,978,698

Total Liabilities and Net Assets $53,686,971 $ 48,707,733 $ 45,418,144

Dear Brothers and Sisters in Christ,

The 2012-13 fiscal year was an historic year for The Catholic Foundation of the Diocese of Greensburg. On June 30, 2013, its total net assets had increased by $5 million to more than $53 million, primarily due to an influx of dollars from the “Today’s Challenge ~ Tomorrow’s Hope” Capital and Endowment Campaign for the Diocese of Greensburg. In addition, The

Catholic Foundation’s disbursements increased to nearly $2.2 million, providing income to the diocese and its parishes, schools and cemeteries.

This year marked the first time in The Catholic Foundation’s history that total net assets exceeded $50 million and total disbursements exceeded more than $2 million at fiscal year’s end.

Three disbursements totaling $2.1 million were made to the foundation from funds received through the campaign, in accordance with the elements outlined in the diocesan case for support. A new endowment to assist with the capital needs of our Catholic elementary schools was created and funded with an initial deposit of $550,000. Also, an additional $1.2 million was added to the Catholic Charities Endowment, and $350,000

was added to the Diocesan Capital Maintenance Fund. Details about the endowments that grew as a result of this funding can be found in this report.

Prudent management of the investment portfolio continued to ensure the growth of the Foundation’s assets. Additionally, diversification of the Foundation’s investments and careful oversight by its asset manager, Institutional Investment Group at PNC, played an important role in the portfolio’s outstanding performance throughout the fiscal year. Details can be found in the financial statements on page 3 of this report.

A multi-faceted initiative aimed at informing and educating the Catholic population and benefactors of the Church about the importance of estate planning and the opportunities available through planned giving continued to lay the groundwork for providing future revenue streams.

During this third year of the initiative, outreach to households continued through the “Legacy of Faith” newsletter, which was circulated via direct mail and email. As a result of this outreach, a significant number of faithful people from across the Diocese were added to the Our Lady of the Assumption Society. The society was named in honor of our diocesan patroness, whose mural hangs in the north transept of Blessed Sacrament Cathedral, the Mother Church of our diocese.

People who have chosen to share their blessings through planned gifts to their parish or another diocesan entity, by including the Church in their will, can become members of the Our Lady of the Assumption Society. Details about how to be included in the Society and how to receive the “Legacy of Faith” newsletter can also be found in this report.

I am profoundly grateful to all who have assisted in the continued growth of The Catholic Foundation through their financial contributions or generous donations of time and talent. It is my fervent hope that many others will follow your fine example and respond to God’s call for authentic stewardship in their lives.

With sentiments of deep gratitude, I remain,

The Most Reverend Lawrence E. Brandt, JCD, PhDBishop of Greensburg

Our Lady of the Assumption SocietyIf you have chosen to share the blessings you’ve received from God through a planned gift to your parish or one of our other diocesan entities, you join a group of supporters who share your love for the church. We call this inspirational group the Our Lady of the Assumption Society, in honor of our diocesan patroness. It is easy to become a member. If you have included the church in your estate plans, please contact The Catholic Foundation office at 724-552-2502. We will explain how your gift will benefit the church and mail you the “Legacy of Faith” newsletter. Any details of your gift that you disclose are held in confidence.

On the cover: A view of a stained glass window of the lamb of God as seen from the choir loft in St. Francis of Assisi Parish, Masontown site.

Photo by Mary Seamans/The Catholic Accent

2012-2013

Members of the Corporation

The Most Reverend Lawrence E. Brandt, JCD, PhD, ChairpersonThe Very Reverend Larry J. Kulick, Vicar General, Vice ChairpersonFather Jonathan J. Wisneski, Chancellor

Board of Trustees (voting)

Lawrence S. Busch, PresidentMarc B. Robertshaw, SecretaryDaniel L. Chess, Treasurer Raymond J. Hanley Leo N. Hitt

Ex-Officio Trustees (nonvoting)

DeansThe Reverend Monsignor James T. Gaston, VF, Deanery IThe Very Reverend Thomas A. Federline, VF, Deanery IIThe Very Reverend Kenneth G. Zaccagnini, VF, Deanery IIIThe Very Reverend Daniel C. Mahoney, VF, Deanery IVThe Reverend Monsignor Michael W. Matusak, VF, Deanery V

Diocese of Greensburg Managing Directors

Sheila R. Murray, FinanceTrent D. Bocan, Catholic SchoolsThe Reverend Monsignor Raymond E. Riffle, Catholic CharitiesRobert A. Sherwin, Evangelization and Faith FormationJerome M. Zufelt, Communications

Diocese of Greensburg Development Personnel

Judith M. Modecki, Catholic Charities

Letter fromthe Bishop

+ Lawrence E. Brandt

Statements of ActivitiesYears Ended June 30, 2013 2012 2011

UNRESTRICTED NET ASSETS

Revenues, Gains and Other Support:

Gifts and bequests $ 443,815 $ 462,983 $ 422,287

Investment income 641,248 192,283 1,095,475

Foundation subsidy 260,000 310,000 530,000

Endowment administration fee 149,088 112,674 86,103

Net assets released from restrictions 1,857,246 1,567,247 1,489,928

Total Revenues, Gains and Other Support 3,351,397 2,645,187 3,623,793

Expenses:

Professional fees 45,977 46,858 33,368

Special grant - - 7,500

Administrative expenses 405,439 395,647 606,370

Payments to beneficiaries 734,253 675,080 662,328

Transfers to diocesan entities 1,452,132 1,183,222 1,043,908

Total Expenses 2,637,801 2,300,807 2,353,474

Change in unrestricted net assets 713,596 344,380 1,270,319

TEMPORARILY RESTRICTED NET ASSETS

Revenues, Gains and Other Support:

Gifts and bequests 356,798 210,188 616,128

Investment income 2,440,662 1,204,853 3,082,069 Change in value of split-interest agreements (13,454) (14,592) (10,319)

Net assets released from restrictions (1,857,246) (1,567,247) (1,489,928)Change in temporarily restricted net assets 926,760 (166,798) 2,197,950PERMANENTLY RESTRICTED NET ASSETS

Revenues, Gains and Other Support:

Gifts and bequests 2,210,513 3,693,420 4,184,795

Investment income 1,107,868 (460,576) 2,563,500 Change in value of split-interest agreements (25,436) (56,524) (28,101)Change in permanently restricted net assets 3,292,945 3,176,320 6,720,194

Change in net assets 4,933,301 3,353,902 10,188,463

Net assets, beginning of year 48,332,600 44,978,698 34,790,235

Net assets, end of year $53,265,901 $ 48,332,600 $ 44,978,698

All photos are from The Catholic Accent files

Ordained Ministry Funds

The following endowed funds provide income to support the education and formation of seminarians for the priesthood, ongoing education of clergy and education of the permanent diaconate:

Clergy Continuing Formation and Education Fund John and Anne Duff FundJohn and Elizabeth Sapara & John and Helen Ezzyk Memorial FundJohn P. and Mary B. Baran Memorial FundPermanent Diaconate FundPriestly Vocations FundRev. Msgr. Francis J. Tambellini FundSt. John the Baptist Memorial FundSt. Joseph the Carpenter Fund

Donor Designated (gifts made by donors designated to these funds):Anonymous

Lay Ministry Education Grants and Program Funds

The following endowed funds provide income to support operations and various needs of lay ministry formation and education programs:

Ministry Formation FundSt. Anselm FundSt. Francis of Assisi Fund

Priests’ Health and Retirement Funds

The following endowed funds provide income to support the costs of health care and other needs of retired diocesan priests:

Neumann House FundPriest Post Retirement FundRev. Joseph A. Tamilowski FundRev. Msgr. Augustine Marzhauser Memorial Fund

Catholic Education Funds

The following endowed funds provide income for tuition assistance for families of Catholic school students. Future plans include funds to support parish-based evangelization and faith formation programs for youth, young adults and adults:

Catholic Elementary School Capital Maintenance FundDiocesan Catholic School Tuition Assistance FundDiocesan Evangelization & Faith Formation FundFayette County Catholic Schools FundSt. Gerard Tuition Assistance Fund

Catholic Charities Funds

The following endowed funds provide income to support Catholic Charities’ programs for families and individuals in the four counties of the diocese:

Catholic Charities FundCatherine P. and Michael Moran FundElijah FundMinistry for Seniors FundThomas Lynch Memorial Fund

Diocesan Pastoral Care Funds

The following endowed funds provide income to fund the needs of the diocese and support a variety of spiritual, educational and operational programs:

Adolph and Julia Bartolomucci Memorial FundBishop Hugh L. Lamb Memorial FundBishop William G. Connare Memorial FundCapital Maintenance FundCharles E. Salizzoni FundCharles L. and Rose Sweeney Melenyzer Memorial FundCharles M. and Mary Ellen Fischer FundLeo F. Hughes Jr. and Rose G. Hughes Memorial Trust FundMary Catherine Collier Memorial FundRose and Michael Gribik Memorial FundSt. Maximilian Kolbe FundThomas L. Kinsey, Sr. Memorial Scholarship Fund

Parish Funds The following endowed funds provide supplemental income for pastoral programs and other general needs of the parish:

Ascension, JeannetteBlessed Sacrament Cathedral, GreensburgBlessed Sacrament Cathedral, Bethlehem Project Memorial Fund, GreensburgBlessed Sacrament Cathedral, Maintenance, GreensburgChrist the King, LeechburgChurch of the Good Shepherd, KentChurch of the Resurrection, Northern Indiana CountyHoly Cross, YoungwoodHoly Family, SewardHoly Family, West NewtonHoly Trinity, Educational Fund, LigonierHoly Trinity, Holy Name Society, LigonierHoly Trinity, Operational Fund, LigonierImmaculate Conception, ConnellsvilleImmaculate Conception, IrwinImmaculate Conception, Outreach, IrwinMount St. Peter, New KensingtonMount St. Peter, St. Anthony Guild, New KensingtonSS. Simon and Jude, BlairsvilleSt. Agnes, Bishop Anthony G. Bosco Center, North HuntingdonSt. Ambrose, AvonmoreSt. Barbara, Harrison CitySt. Bernard of Clairvaux, IndianaSt. Boniface, LatrobeSt. Edward, HerminieSt. Florian, UnitedSt. Francis of Assisi, MasontownSt. Hubert, Point MarionSt. James, New AlexandriaSt. John Baptist de La Salle, DelmontSt. John the Evangelist, LatrobeSt. John the Evangelist, UniontownSt. Joseph, EversonSt. Lawrence, CadoganSt. Margaret Mary, Lower BurrellSt. Patrick, Brady’s BendSt. Regis, TraffordSt. Rita, ConnellsvilleSt. Sebastian, Belle VernonSt. Sylvester, SlickvilleSt. Therese, Little Flower of Jesus, UniontownSt. Thomas More University, Indiana

Catholic School Funds

The following endowed funds provide supplemental income to assist in the overall operation of Catholic schools in the diocese:

Elementary SchoolsAquinas Academy, GreensburgChrist the Divine Teacher, LatrobeMary Queen of Apostles, New KensingtonQueen of Angels Catholic, North HuntingdonSt. Bernard, IndianaSt. John the Evangelist Regional Catholic, UniontownSt. Sebastian, Belle VernonThe Divine Redeemer, Ford City

Secondary SchoolsGeibel Catholic Junior-Senior High, ConnellsvilleGreensburg Central Catholic Junior-Senior High, Greensburg

The following Catholic schools receive support from these specific funds:

Conn-Area Catholic, Connellsville: Joseph B. Velucci Memorial FundConn-Area Catholic, Connellsville: Rev. Thomas J. Kalasky Memorial FundGeibel Catholic Junior-Senior High, Connellsville: Rita P. and Stephen A. Peters FundHoly Trinity, Ligonier: Sarni Family Tuition Assistance FundSt. Bernard, Indiana: Cecil Spadafora Athletic FundThe Divine Redeemer, Ford City: Wallace and Cecilia Burdette Memorial Fund

Catholic Cemetery Perpetual Care Funds

The following endowed funds provide supplemental income for the perpetual care of 68 parish cemeteries in the diocese:

Cemetery Perpetual Care (68 funds)

The Catholic Accent The Catholic Foundation Thursday, Dec. 5, 2013CF4

THE CATHOLIC FOUNDATION ENDOWMENTS

Fair Market Value of Endowments as of June 30, 2013

Catholic Education Funds$9,103,527

Ordained Ministry Funds$5,488,468

Lay Ministry EducationGrants and Programs Funds

$3,862,988

Catholic Charities Funds$3,040,458

Priests’ Health andRetirement Funds

$6,445,060

Catholic School Funds$1,134,9492%6%

23%

17%

15%12%

10%

8%

7%

Parish Funds$4,452,579

Catholic Cemetery Perpetual Care Funds: $558,092Catholic Education Funds: $376,081Diocesan Pastoral Care Funds: $347,760Priests’ Health and Retirement Funds: $271,144Ordained Ministry Funds: $234,714Lay Ministry Education Grants and Programs Funds: $186,983Catholic Charities Funds: $89,629Parish Funds: $85,190Catholic School Funds $29,292

Disbursements FY2012-13:

Catholic CemeteryPerpetual Care Funds

$12,259,594

Diocesan Pastoral Care Funds$7,694,432