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AMERICAN BAPTIST FOUNDATION NEWS

AMERICAN BAPTIST NEWS SERVICE 
Office of Communication  
American Baptist Churches USA 
P.O. Box 851, Valley Forge, PA 19482-0851 
Phone: (610)768-2077 / Fax: (610)768-2320 
Web: www.abc-usa.org
Richard W. Schramm, Director 
 E-mail: richard.schramm@abc-usa.org

AMERICAN BAPTIST FOUNDATION PRESIDENT: NO RELATIONSHIP 
EXISTS BETWEEN ABF AND MEDIA-SCRUTINIZED BAPTIST FOUNDATION 
OF ARIZONA
 In the light of recent negative media coverage of the 
Baptist Foundation of Arizona, John B. Jacobs, president of 
the American Baptist Foundation, has emphasized that the 
American Baptist Foundation has no relationship to that 
organization.
 Many newspapers have provided coverage intimating that 
both individual and church monies have been mishandled by 
the Baptist Foundation of Arizona.  Information is sparse 
and the extent of losses, if any, is unclear.  The Arizona 
foundation is one of several Southern Baptist state 
foundations.  Each of these organizations is autonomous and 
offers a variety of services.  The news articles suggest 
that individuals and church organizations utilized the 
Arizona foundation as an investment vehicle.  The articles 
further suggest that the Arizona foundation then invested 
some of the funds in real estate ventures and put the 
investments in subsidiary companies to hide disappointing 
investment results.
 In response to these articles and questions which may 
arise because of them, Jacobs said,  "There is no 
relationship, legal or otherwise, between the two 
organizations.  The structure of the American Baptist 
Foundation, the major planned giving organization of 
American Baptist Churches USA, and the services it offers 
differ greatly from those of the Arizona foundation."  
 The American Baptist Foundation utilizes professional 
money management in all of its investments.  Except for 
several charitable remainder trusts where donors funded 
trusts with real estate, the American Baptist Foundation has 
no real estate and it does not invest in real estate.  All 
investments appear on its corporate balance sheets and the 
financial records have received a clean audit by the outside 
auditors for the entire history of the American Baptist 
Foundation.  Also, the American Baptist Foundation has no 
subsidiaries.
 Jacobs added, "I am concerned about the individuals 
and churches that have investments with the Baptist 
Foundation of Arizona and pray that if there are any losses 
those losses are minimal.  The staff and Board of the 
American Baptist Foundation exercise great care in the 
handling and investing of all funds received.  The Finance 
Committee of the Board sets policy, reviews performance, and 
works directly with the auditors to see that the policies 
are upheld.  We know that these funds will eventually be 
available for ministry and mission within our denomination.  
Good stewardship is critical in all we do."

WFN98A 

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