2 | GRACE CHURCH ANNUAL REPORT

MISSION:We exist to glorify God by making disciples ofJesus across the street and around the world.

PRIORITIES:• Increase the impact of the

Gospel locally and globally.

• Make outrageous efforts to reach and disciple those 0 to 18.

• Maintain commitment to biblical teaching and spiritual depth.

STRATEGIES:• Orphans and Foster Children

• Marriage

• Small Groups

• Debt Reduction

• Multisite Locations

1Ministry Priority #1Increase the impact of the Gospel locally and globally.

GRACE CHURCH ANNUAL REPORT | 3

• More than 1800 volunteers (total) participated in two Big Serve events, demonstrating the love of Christ at about 30 different Twin Cities locations

• No Longer Music team toured in Albania where they saw more than 500 come to Christ; a team is prepared to join the Grace Mission Trip to Peru in July 2014

• In Vietnam, the Nguyen Tri Phuong Church saw over 800 come to Christ and at the Danang Church over 1,087 came to Christ

• Pakistan now has 700 newly trained national pastors

• Placed 975 volunteers at 27 locations for the first Big Serve event on October

• A team of 23 senior high students and adults ministered alongside Urban Ventures in the Phillips neighborhood of Minneapolis in July

• In one three-month period, Covert Ops students served 450 meals to homeless people in Minneapolis and shared the Gospel with more than 100

• The RiseUp Twin Cities night of worship attracted more than 500 young adults; 50 indicated they were seeking a church, a ministry, or a small group

• More than 450 Peruvians have trained through The Timothy Initiative (TTI) to plant new churches throughout the area

• More than 200 men committed their lives to Christ during the Arise With The Guys event at Grace Church

Highlights from 2013-2014

YOU AREHERE

2Make outrageous efforts to reach and disciple those 0 to 18.

Ministry Priority #2

4 | GRACE CHURCH ANNUAL REPORT

• Trained more than 100 volunteer leaders for children’s Sunday ministries

• The home school ministry at Grace includes more than 175 families and about 500 children

• Foundations Next Generation is in its fifth year of this 17-week course, with 51 freshmen in the 9th grade, and 51 in the 12th grade

• Jam Camp hosted 155 students at Lake Shetek; nine were baptized

• The senior high class attended a winter retreat at Lake Geneva Conference Center in Alexandria, Minnesota; worship and teaching was led by members of the current graduating class

• Barnabas Ministry at Grace hosted Joni Earickson Tada for a conference on disability; over 500 attended the community banquet

• The public school education ministry hosted an educators breakfast for 100 teachers, encouraging them to live for Christ as their schools

• School of the Arts (SotA) at Grace provided instrumental and vocal lessons to more than 100 students, promoting biblical discipleship within the context of the arts

• The children’s choir released their second CD, “Believe” with songs that are used during Wednesday evening children’s programs

• Through the Canvas Art project, students raised $850 to purchase thermal gloves and more for Covert Ops ministry use

• One-hundred-thirty from the Cornerstone ministry actively served in the Barnabas ministry, the Foundry and a variety of care ministries around the Twin Cities

• About 25 students are being tutored through the “SAY Yes” Latino ministry

• Last year over 1,600 kids attended Vacation Bible School

Highlights from 2013-2014

Maintain commitment to biblical teaching and spiritual depth.

Ministry Priority #3

3 • The father and son Rite of Passage weekend at Grace Retreat Center hosted 28 dads and 38 sons (66 total)

• Women’s Bible studies trained 24/34 small group or teaching leaders who serve about 300 women

• MOPS ministered to 72 women of preschool children

• As a result of the Decisions sermon series, 50 new Small Groups were formed, and more than 500 people joined a small group for the first time

• More than 100 people participated in The CAUSE Institute, which launched in November with teachings on apologetics

• Fifty young adults participated in the Cornerstone (young adult) retreat

• More than 300 Caring Tree Christmas gifts were provided to members of 75 families

• The Women’s Retreat at the Minnetonka Marriott had 250 in attendance; eight women were baptized in the hotel pool

• A group of 55 journeyed to Israel for a 10-day discipleship trip

• The weekly Thursday Care Nights ministry serves the community with 200-250 dinners accompanied by prayer

• The Torchbearer Choir sang at five care centers as part of an initiative to build a care network for vulnerable adults

• Families that visited an assisted living center for Big Serve are joining a network of people who visit shut ins and the homebound

• During the past fiscal year, 165 baptisms were performed and Grace welcomed 100 new members

Highlights from 2013-2014

GRACE CHURCH ANNUAL REPORT | 5

6 | GRACE CHURCH ANNUAL REPORT

FISCAL YEAR 2014 CHURCH OFFERINGSNote: FY 2014 figures are unaudited

FUND BALANCESFISCAL YEAR 2014 INCOME/EXPENSE REPORT

BALANCE SHEETMay 31

2012May 31

2013 May 31

2014 UnauditedNote: FY 2014 figures are unaudited

Building FundFund Balance 5/31/13 $129,042

Offerings 593,207

Expenditures 546,018

Difference Income/Expenses 47,189

Fund Balance 5/31/14 $176,231

Missions/Outreach FundFund Balance 5/31/13 $548,607

Offerings 2,431,953

Designated Income 428,937

Expenditures 2,484,455

Difference Income/Expenses 376,435

Fund Balance 5/31/14 $925,042

Church MinistryRestricted Funds

Fund Balance 5/31/13 $1,831,492

Income 1,471,415

Expenditures 1,178,976

Difference Income/Expenses 292,439

Fund Balance 5/31/14 $2,123,931

Church Ministries $7,296,340 $7,900,210 $8,538,161

Missions and Outreach 2,060,235 2,099,442 2,431,953

Building 401,787 1,331,335 593,207

Total Tithes and Offerings $9,758,362 $11,330,987 $11,563,321

Assets

Cash $5,043,167 $3,404,960 $4,087,835

Retail Inventory 92,367 81,971 63,310

Property/Equipment 47,322,002 47,712,744 50,479,382

Total Assets $52,457,536 $51,199,675 $54,630,527

Liabilities

Assessments – Paid off 10/13 405,041 432,326 0

Mortgage 11,200,586 9,539,177 8,603,096

Total Liabilities $11,605,627 $9,971,503 8,603,096

Net Worth $41,851,909 $41,228,172 $46,027,431

Church Ministries FundFund Balance 5/31/13 $825,000

Income:

Tithes and Offerings 8,508,161

Other Income 30,660

Total Income 8,538,821

Expenditures 8,229,793

Difference Income/Expenses 309,028

Fund Balance 5/31/14 $1,134,028

Retail MinistriesFund Balance 5/31/13 $75,508

Income 1,096,683

Expenditures 1,043,588

Difference Income/Expenses 53,095

Fund Balance 5/31/14 $128,603

FY 2012 FY 2013 FY 2014

Financial Information

GRACE CHURCH ANNUAL REPORT | 7

World Strategic Local Missions Total Evangelism Vision Missions Services FundsFund Balance 5/31/13 $35,474 $461,093 $62,194 ($10,153) $548,608

Income 1,413,373 1,121,125 204,794 121,598 2,860,890

Expenditures 1,382,731 791,828 206,120 103,776 2,484,455

Fund Balance 5/31/14 $66,116 $790,390 $60,868 $7,669 $925,043

FY 2014 Missions Budget $1,265,000 $616,000 $165,000 $154,000 $2,200,000

MISSIONS AND OUTREACH

CHURCH MINISTRIES

FISCAL YEAR 2015 PROPOSED EXPENSE BUDGETS

FY2014 FY2014 FY2015Budget Summary Budget Actual BudgetPersonnel $3,715,476 $3,662,082 $4,263,418

Sr. Pastor Initiatives 51,070 48,313 51,070

Music and Worship 175,000 156,575 175,000

Children Ministries 110,620 106,967 132,620

Student Ministries 116,030 117,967 148,630

Involvement 44,750 29,350 38,600

Women’s Ministry 21,200 18,935 24,620

Men’s Ministry 16,170 16,021 19,838

Small Groups 75,500 60,752 112,120

Care/Biblical Counseling 48,690 44,606 53,690

Children at Risk 65,900 67,548 60,800

Multi-Site 0 203 64,364

Executive Leadership 93,000 96,228 93,000

Communications 90,000 97,134 143,650

Tech Media 78,250 93,691 81,250

Administration 212,067 190,226 250,571

Grace Retreat Center 138,500 119,712 129,625

Information Technology 188,000 152,839 178,280

Facilities 534,000 662,507 508,995

Custodial 69,000 67,017 104,300

Utilities 510,000 548,010 525,000

Debt Service 1,150,598 1,150,598 850,559

Capital Improvements 350,000 350,000 350,000

Assessments 71,765 71,765 0

The Big Serve 0 238,105 *

Strategic Initiatives 319,414 62,642 0

Total Expenses $8,245,000 $8,229,793 $8,360,000

*Contingent on The Big Give

New Members Added During FY 2014

Alyssa Aguirre

Michael Aguirre

Jamie Anderson

Paul Arneberg

Paul Arneberg

Wendy Arneberg

Chris Bernard

Laura Bernard

Eric Bjorklund

Jesse Blackburn

Jeannie Demmer

John Demmer

Carolyn Dixon

Joelle Dixon

Marquise Dixon

Heidi Dreyer

Christine Erickson

Jim Erickson

Kathy Ervin

Robin Fraley

Alexis Friedrich

Carl Friedrich

Christine Galkin

Ginny Garlock

Julie Geffre

Bonnie Germann

Daniel Germann

Nancy Geske

Paul Geske

Olga Grin

Patricia Hansen

Rick Hansen

Dan Haugland

Kelly Haugland

Jessica Havlik

Nathan Havlik

Zac Henschel

Angie Hitterdal

Tim Hitterdal

Erin Hollister

Carrie Jagodzinski

Jeffery Jasper

Susan Jensen

Ron Johnson II

Shani Johnson

Elizabeth Kopylov

Yevy Kopylov

Mary Kubow

Emma Lee Kuehner

Kyle Kuehner

Anthony Larkin

Kammie Larkin

Trevor Larsen

Bruce Larson

Irina Lelyukh

Joan Lundgren

Bethany McMunn

CJ McMunn

Alex Merrick

Craig Meuer

Lynnae Meuer

Andrey Monjoseph

Ellie Monjoseph

Igor Monjoseph

Liliya Monjoseph

Olga Monjoseph

Aaron Montello

Melissa Montello

Jenny Moon

Randy Moon

Amy Morrison

Chris Morrison

Bradley Neuerburg

Michelle Nyamushanya

Susan O’Brien

Matt Olson

Patti Payne

Mike Peterson

Danny Quam

Debbie Sanmoogan

Raschelle Schottmuller

Barbara Sheplee

Merv Sheplee

Tami Sneen

Holly Steinbarger

Scott Steinbarger

Lynn Swanson

Curtis Tabron

Molly Tabron

Christine Thompson

Dan Tripps

Bernadette Walker

Rory Walker

Emilie Wall

Paula Wallace

Laine Warwick

Brodie Wheaton

Bruce Wheaton

David Wheaton

Mary Jane Wheaton

Agitu Wodajo