FISCAL YEAR 2010 FINANCIAL REPORT

The

Evangelical Covenant Church

PaulCarlson

Partnership

NationalCovenantProperties

CovenantPension

Plan

BethanyBenefitService

Covenant Trust

Company

EvangelicalCovenantChurch

Covenant World Relief2005 $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

Paul Carlson Partnership2005 $ 884,000

2006 $1,253,000

2007 $1,186,000

2008 $ 794,000

2009 $ 630,000

2010 $ 620,000

Total $5,367,000

BaseBudget

PCP

CWR

PMsSTMs

KBFOWM

CO

SPE

• Covenant World Relief

• Paul Carlson Partnership

• Project Missionaries

• Short-term Missionaries

• Friends of World Mission

• Kingdom Builders

• Sustaining Pastoral Excellence

• Covenant Orientation

• Mission Projects

MPs

MISSION

&

MINISTRY

BUDGET

Budget Results

Net +$21,000

Bethany Benefit Service (BBS)

Medical

Dental (including orthodontia)

Life Insurance

Long-term Disability

Vision Benefit

Prescription Drug

100

120

140

160

180

200

220

240

260

2002 2003 2004 2005 2006 2006 2007 2008 2009 2010

Public

ECC

Comparable market premium

increases

Bethany premium increases

Medical Insurance

Premium Increase

Cost Cost $$avingaving

ss

Recent DevelopmentsBethany 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

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

1996-2008

Pension Benefit Enhancement

Total Value$40 Million

0

1000

2000

3000

4000

5000

6000

7000

8000

'88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Pension Benefits

Key Investment Considerations Asset allocation and diversification—improve

risk/return relationship

20101992

Assets of Pension Fund

Foothills Midrange Peaks

($ in millions)

Recent Pension Plan ResultsApril 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

Funding ComparisonCovenant Pension Plan vs.

Average Corporate and Public Plan

0%

20%

40%

60%

80%

100%

Covenant

Corporate

Public

Assets as % of Liabilities

100% 85% 70%

Assets of National Covenant Properties

($ in millions)

The Loan Sourcefor Covenant Churches Of the churches that have loans,

over 85% have loans with NCP

Other

NCP

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.

Assets Under Management Covenant Trust Company

($ in millions)

2010 ResultsCovenant 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

AUDIT REPORT

Covenant Financial Report Card

YES NO

Unqualified Opinion

Balanced Budget

No Management Comments

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)

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

FISCAL YEAR 2010 FINANCIAL REPORT