T R O P E R L A U N N A 6 0 0 2

THIS IS THE EVANGELISTIC ASSOCIATION

1 Billy Graham Parkway • Charlotte, NC 28201-0001 TELEPHONE: 704-401-2432 WEB SITE: billygraham.org

My Hope World Evangelism Television Project 45161 4473 Printed in the U.S.A. ©2007 BGEA THIS IS THE BILLY GRAHAM EVANGELISTIC ASSOCIATION

THIS IS THE BILLY GRAHAM EVANGELISTIC ASSOCIATION

Live Events Dare to Be a Daniel THIS IS THE BILLY GRAHAM EVANGELISTIC ASSOCIATION

THIS IS THE BILLY GRAHAM EVANGELISTIC ASSOCIATION

Counseling and Follow-Up Rapid Response Team “For God ... has made this light shine in our hearts so we could know the

glory of God that is seen in the face of Jesus Christ.”—2 CORINTHIANS 4:6, NLT THIS IS THE BILLY GRAHAM EVANGELISTIC ASSOCIATION

Dear Friend,

I wish you could share my view from the Crusade platform as men, women, and children stream forward to surrender their lives to Jesus Christ. What a blessing to see the faces of those individuals changed for eternity! Multiply this thousands of times over—across five continents—and these are the faces of the Billy Graham Evangelistic Association (BGEA).

“Those who look to him are radiant; their faces are never covered with shame” (Psalm 34:5, NIV). We are humbled that God would use BGEA in lifting up these faces and removing the shame of sin and guilt through the shed blood of Jesus Christ. Praise God, through evangelistic live events, nationwide TV broadcasts, disaster-response chaplain teams, innovative training for youth, and so much more, 3.9 million people made decisions for Jesus Christ in 2006.

Please join us in giving thanks to God for the great things He has done. All the glory belongs to Him alone! As I consider our plans for 2007—including the opening of the , the launch of our Dare to Be a Daniel group curriculum, and our busiest Crusade schedule in a decade—I can only imagine what God has in store.

My heart rejoices when I recall the Lord’s promise that He “is able to do immeasurably more than all we ask or imagine” (Ephesians 3:20, NIV). What a powerful God we serve! May He richly bless you.

Sincerely,

Franklin Graham President and CEO LIVE MINISTRY EVENTS

FRANKLIN GRAHAM FESTIVALS • In 2006, God was at work rewriting record books across the globe using Franklin Graham Festivals. Record-breaking crowds totaling more than 670,000 on three continents heard the Good News of Jesus Christ, and for the first time, Japanese- and English-speaking Christians in Okinawa joined together to reach their island for Christ. But the greatest records of 2006 are the 56,000 that will stand for all eternity—they are the men, women, and children God has changed forever by the saving power of Jesus Christ. • Festivals, like all of our Crusade events, begin with local believers who are burdened for the salvation of their friends and neighbors. At the invitation of

THIS IS THE BILLY GRAHAM Christian leaders in a city, BGEA partners with churches for EVANGELISTIC ASSOCIATION months of planning and training leading up to the three-day outreach. After the event, we assist the local body in following up with those who made decisions for Christ.

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 11 Franklin Graham Festivals Baltimore, Maryland FACING THE SAVIOR

During a follow-up phone call after the Festival in Mobile, Ala., one woman said the event saved her life. Two and a half years earlier, her husband had died. When Hurricane Katrina washed ashore months before the Festival, she lost her new boyfriend and several close friends. Dejected and hopeless, she was contemplating suicide. On the final evening she discovered something worth living for and came forward to give her heart to Jesus Christ. Louisiana State Penitentiary, Angola, Louisiana Okinawa, Japan

Because these churches are a permanent part of their day event at the city’s Superdome, the Grahams parole. Before the Festival, Franklin Graham visited country’s largest evangelistic event—and broke the community, lives continue to be changed by the power reminded crowds that real hope is found only in Jesus. and prayed with the men on Death Row. attendance record at Olympic Stadium. of the Gospel long after the Festival is over. Weeks later, inmates at what was once America’s More than 300 churches prepared for the Gulf In late fall, God’s love melted cold hearts in frigid The year began in the Philippines with the Metro bloodiest prison heard a message of forgiveness and Coast Festival in Mobile, Alabama, overcoming racial Winnipeg during the Central Canada Festival. Overflow Manila Festival—Franklin Graham’s first in Asia and his freedom. The Louisiana State Penitentiary at Angola barriers, as well as the physical trials brought on by crowds attended each night, and more than 2,000 largest to date. Over 317,000 people heard the Gospel, is still a maximum-security prison, and many inmates hurricanes Ivan, Dennis, and Katrina. Franklin Graham people responded to the call to follow Jesus. and more than 33,000 people made decisions for are serving life sentences without the possibility of spoke on the kind of relief that can only come from The Okinawa Festival, the final event for 2006, Jesus Christ. On Saturday morning, 82,500 kids and God, and hundreds put their trust in Christ. marked the first time that local Japanese-speaking family members packed Rizal Park, breaking the In July, the Metro Maryland Festival was held in churches and international English-speaking churches record for the largest children’s event ever held there. “And this gospel of the Oriole Park at Camden Yards, the only time in 2006 joined together to reach out to the island with the In March, God brought a message of new life to a kingdom will be that this famed venue hosted a nonbaseball event. A Good News of Jesus Christ. shattered city through the historic Celebration of record 81,000 people attended the Festival, and 3,255 Considering that less than 1 percent of the Hope in New Orleans, Louisiana, and 1,365 people preached in the whole made decisions for Christ. Billy Graham also made an population of Japan is Christian and the average made public commitments to Christ. appearance, preaching the sermon on the final day. church has only 40 members, local organizers were Billy Graham toured ruined neighborhoods with his world as a testimony to Next Franklin Graham traveled to Quito, Ecuador, for astonished at the response to the Festival. More than son, offered encouragement to local pastors, and Festival de Esperanza (Festival of Hope). More than 30,000 people turned out to hear the Gospel, and delivered Sunday’s closing message. During the two- all nations.”—MATTHEW 24:14, NIV 140,000 people attended the two-day Festival—the 1,784 responded to make decisions for Christ.

12 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 13 LIVE MINISTRY EVENTS ASSOCIATE EVANGELISTS

THIS IS THE BILLY GRAHAM WILL GRAHAM CELEBRATIONS EVANGELISTIC ASSOCIATION In 2006, William Franklin “Will” Graham, IV, held FACING THE SAVIOR his first large-scale evangelistic Crusade in the U.S. with the Billy Graham Evangelistic Association. A Ukrainian pastor Crowds totaling more than 12,600 attended the went door to door Greater Gaston Celebration in Gastonia, North in the days before Carolina. Will preached to an audience of 4,500 on the Viktor Hamm the opening night, a record for the decades-old Festival of Hope, stadium. During the three-day Celebration, over 450 people came forward to make personal decisions for Jesus Christ. inviting people to and , longtime Crusade partners of the evangelistic Billy Graham, joined Will on stage. outreach. One of those who agreed VIKTOR HAMM to come was his In June, Christian leaders across the Ukraine former teacher, an joined Viktor Hamm in holding the Festival of Hope in the southwestern city of Chernovtsy. With ardent atheist. overflow attendance during the three-day During the days of Festival, more than 44,000 people came to hear Soviet rule, she the Good News, and over 1,800 made personal regularly humiliated decisions for Jesus Christ. At the sight of fellow and even beat him Ukrainians finding new life in Christ, one attendee and other Christian said, “It’s a joy to see the happy faces of those who have found what they have been seeking for so long.” students for their The event was held as part of year-long preparations for Franklin faith. She came to Graham’s upcoming Festival in Ukraine, which will be held in the the Festival, heard nation’s capital, Kiev, in July 2007. the Gospel, and surrendered her life ROBERT CUNVILLE In addition to his major responsibilities as to the Savior she chairman of My Hope-India, Robert Cunville held had spent her life 14 evangelistic Festivals of Peace all across India— denying. A few many in areas traditionally hostile to the Gospel. months later, she We praise God that over 691,000 people heard was baptized by her the Good News, and more than 41,000 made former student. public commitments for Christ.

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 15 Will Graham Celebrations Gastonia, North Carolina MY HOPE

WORLD EVANGELISM TELEVISION PROJECT • The My Hope World Evangelism Television Project is small group evangelism on a massive, nationwide scale, modeled after the Apostle Matthew, who invited many friends into his house to meet the Savior. • Last year, Christians in Mexico, the Philippines, and India became “Matthews” as they received evangelistic training from BGEA and—with much prayer—invited

THIS IS THE BILLY GRAHAM friends into their EVANGELISTIC ASSOCIATION homes to watch special TV programs featuring Gospel messages by Billy or Franklin Graham. Praise God, more than 3.7 million individuals have recorded decisions for Jesus Christ! • In Mexico, over 20,000 partner churches from every state in the country trained nearly 261,000 congregants for this relationship-evangelism outreach. Many of these believers,

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 17 My Hope World Evangelism Television Project India FACING THE SAVIOR

Struggling through a difficult marriage, 29-year-old Maricel had considered taking her children and leaving her husband. Before she could, the couple accepted a neighbor’s invitation to watch one of our My Hope programs. That night’s broadcast across the Philippines featured a story about a woman who finds strength in the midst of her adultery-torn marriage by turning to Jesus Christ. Maricel and her husband, touched by Franklin Graham’s message recorded at the Manila Festival, gave their hearts to the Savior—along with eight other guests. Within days, Maricel reported that her marriage was Mexico saved and the family restored.

eager to share their faith, did not wait for the Franklin Graham Metro Manila Festival in February as had an opportunity to hear the Gospel. Churches seeing others find new life in Jesus, and extremists My Hope broadcasts to tell their loved ones and Christian leaders across the island nation wanted to across the nation recorded more than 528,000 total burned several partner churches to the ground. Four neighbors about Christ. see more of their countrymen come to Christ. decisions for Christ. My Hope regional coordinators were beaten and One small church in Mexico City grew by almost Just weeks before the telecasts, two powerful Following previous successful My Hope efforts in another shot to death because he refused to stop one-third, weeks before the broadcasts even began. typhoons hit the central Philippines, killing hundreds, India, BGEA decided to carry out a third outreach teaching Christians how to win others to Christ. In The church, having limited resources, tore down the destroying electrical grids, and demolishing at Christmas. eastern and central India, pastors in remote villages back wall of their sanctuary to accommodate the thousands of houses. One pastor in a region Through broadcasts in 11 languages on 69 networks, were beaten or killed by radicals. overflow crowd. devastated by the final typhoon showed a My Hope My Hope programs saturated India’s airwaves with the God showed that His love and power are greater By God’s , our team was able to buy airtime video on CD (VCD) in public settings because he had Good News of Jesus Christ for three days. than any rival, and in 2006, over 2.7 million Indian on one of Mexico’s most powerful TV networks. One access to only one generator. Over 70 people made In some areas, participating Christians willingly people had made commitments to the One who gives My Hope host marveled, “I never thought that they’d decisions for Christ in one evening. faced severe religious persecution for the joy of hope beyond the trials of this life. broadcast a national program like this. … We’ve never But God was faithful, and My Hope programs were had anything like this in Mexico before.” broadcast on more than 100 local stations, which More than 433,000 Mexicans responded to the covered most of the nation. In addition, over 80,000 “In his name the nations will put their hope.” Gospel and committed their lives to Jesus Christ. DVDs and VCDs were distributed to pastors prior to The My Hope-Philippines initiative grew out of the the telecasts to ensure that people on every island —MATTHEW 12:21, NIV

18 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 19 COMFORT IN TIMES OF CRISIS RAPID RESPONSE TEAM AND WORLD EMERGENCY FUND

RAPID RESPONSE TEAM The Rapid Response Team was formed after the FACING THE SAVIOR terrorist attacks of 9/11 to offer the compassion of Jesus Christ during times of crisis or natural disaster. Amar was at church when the South Volunteer chaplains with the Rapid Response Team Asian tsunami hit his village on comfort and pray with victims, local pastors, and first- December 26, 2004. Though he used responders (firefighters, police, National Guard, etc). to worship other gods, 19 years ago Last year 1,776 chaplains from 37 states were Amar came to faith in Christ, and his deployed to the Gulf Coast in our continuing ministry life was changed forever. As the first to the region after Hurricane Katrina, and they Christians in his village, Amar’s family prayed with 44,130 people. Between August 12 and faced persecution from their neighbors, September 18, BGEA sent 97 chaplains to Binghamton, New York, after the region suffered the but after the devastating tsunami and worst flooding in nearly 30 years, and they ministered BGEA’s work to rebuild his village, many to 507 people. In total, more than 2,600 people made hearts are now open to the Gospel life-changing decisions to follow Jesus Christ after message. “It is the Christians who are speaking with Rapid Response Team chaplains. reaching out to our needs, and we tell [the other villagers] it is because of the WORLD EMERGENCY FUND love of Christ,” Amar says. The number Established in 1973, the World Emergency Fund has of Christians in the village has grown shared the compassion of Christ through physical and steadily, and approximately 50 families spiritual relief with multitudes around the world in the now have the peace that comes from midst of crisis. During 2006, the World Emergency knowing Christ. Fund continued to minister to people in areas ravaged

by the 2004 tsunami in South Asia and by hurricanes along the Gulf Coast. BGEA’s work to rebuild a fishing village in India, newly named the Village of Hope, is nearing completion, and many homes that were damaged or destroyed by the tsunami have been rebuilt. Hundreds of patients from nearby villages were treated in the THIS IS THE BILLY GRAHAM medical clinic, and children from miles around were EVANGELISTIC ASSOCIATION educated in the village school. This previously underdeveloped area is now thriving with residents who are grateful for their new community.

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 21 Rapid Response Team Plaquemines Parish, Louisiana TRAINING MINISTRIES DARE TO BE A DANIEL

In 2006, we launched our youth evangelism training ministry, Dare to Be a Daniel, to help equip youth to stand for Christ and share their faith with others. Based on the life of Daniel in the Old Testament, the program encourages students to obey God, pray and study His Word, pick godly friends, and point others to Jesus. Dare to Be a Daniel consists of a youth- oriented Web site—daretobeadaniel.com— and a printed booklet with a CD-ROM. More than 223,000 booklets and CD- ROMs were ordered, and thousands of youth completed the program. Daretobeadaniel.com offers students exclusive, FACING THE SAVIOR members-only resources, including spiritually encouraging videos, articles, and an online message “What’s that?” 13-year-old Brian’s board. Since its launch in May, more than 5,600 individuals have registered, and people have visited friend asked. Brian explained the the site over 158,000 times. dog tags he received after THIS IS THE BILLY GRAHAM Last July, 75 youth from states across the nation, completing BGEA’s Dare to Be a EVANGELISTIC ASSOCIATION including Florida, Alaska, and California, traveled to Daniel youth evangelism training. The Cove for Camp Daniel. The campers—all graduates Walking his friend through the eye- of Dare to Be a Daniel—participated in intensive evangelism training, while enjoying typical summer catching witnessing tool, Brian read camp activities such as hiking and horseback riding. out loud, “God loves you,” “Sin Our ministry team also began work on an exciting separates you from God,” “Jesus is and relevant 13-session group curriculum. Utilizing a the Way.” Using the dog tags, Brian number of different media, the finished course will was able to share the Gospel with include a leader’s guide and student field manuals, as well as a DVD featuring video vignettes for each his friend. When he shared the tag session and a CD-ROM containing handouts and containing a prayer to accept Christ, other reproducible items for course leaders. The his friend did not hesitate and Dare to Be a Daniel group training resource will be accepted Jesus into his heart. ready for use in early 2007.

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 23 Dare to Be a Daniel TRAINING MINISTRIES

THIS IS THE BILLY GRAHAM THE BILLY GRAHAM TRAINING CENTER, CHRISTIAN LIFE EVANGELISTIC ASSOCIATION & WITNESS COURSE, AND SCHOOLS OF EVANGELISM

THE BILLY GRAHAM TRAINING CENTER AT THE COVE Long before the Billy Graham Training Center at The Cove was built on 1,500 acres of mountainside near Asheville, North Carolina, Billy and laid the foundation with prayer. They asked God for a retreat where believers could be trained in His Word to win others to Christ. Their prayers continue to be answered today as guests come from around the world to hear premier Christian speakers, worship and fellowship with other believers, and be refreshed by God in the splendor of His creation. COUNSELING AND FOLLOW-UP In 2006, over 21,000 guests attended life-changing Our Counseling and Follow-Up ministry trained nearly seminars and other group ministry opportunities at 50,000 individuals for personal evangelism through The Cove, and more than 800 made commitments to our Christian Life and Witness Course (CLWC) in 2006, Jesus Christ. and during the course, over 4,500 made commitments to Christ. An integral part of any Crusade outreach, over 23,900 of these CLWC graduates served as FACING THE SAVIOR volunteer counselors during Franklin Graham Festivals, Will Graham Celebrations, and other events, and they During a seminar at The Cove, Caroline helped lead 58,667 individuals in making personal and her husband went to a training decisions for Jesus Christ. session on sharing their faith. Caroline’s

thoughts turned to her mother, who had BILLY GRAHAM SCHOOLS OF EVANGELISM long been resistant to the Gospel, and Through intensive conference-style training, she felt a strong conviction to share the Billy Graham Schools of Evangelism equip pastors, tract she had just received with her church leaders, and their spouses to lead congregations mother. When the couple arrived home, in reaching their communities for Jesus Christ. Caroline began to read through the More than 15,000 people attended Schools of booklet with her mother. Before she Evangelism and similar training sessions in the U.S., could finish, her mother was in tears. Canada, Ecuador, Panama, Paraguay, and Ukraine last Within an hour of returning home from year. One Ukrainian attendee said, “Everything we their retreat at The Cove, Caroline had have heard here will serve for the revival in our led her mother to the Lord Jesus Christ. personal life and our churches.”

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 25 Counseling and Follow-Up MEDIA EVANGELISM RADIO, TELEVISION, AND FILM

TELEVISION Last year we aired seven prime-time television specials on broadcast network affiliates or Christian cable networks across the U.S. and Canada. Our 2006 programs featured messages from Billy and Franklin Graham, musical performances, and powerful testimonies. These programs reached into an estimated 9.9 million homes with the life-changing news of Jesus Christ. Thousands more heard the Gospel through weekly broadcasts FACING THE SAVIOR of classic Billy Graham Crusades on TBN. After watching BGEA programs, more than 26,000 people called A 21-year-old called in our phone centers to make decisions for Jesus Christ and pray with operators who are trained much like counselors at BGEA Crusades. Over after a BGEA telecast 130,200 requested the free Gospel book offered during the TV special. and shared that both of his parents were RADIO atheists and he had Using radio, the Internet, and satellite (Sirius and Sky Angel), our radio never been in a church outreaches The —now in its 57th year—and Decision Minute or read a Bible. After a boldly proclaim the Good News of Christ in six languages to a potential lawn-mower accident audience of over 80 percent of the earth’s population. To reach out to people in Asia and Africa, we translated and broadcast programs in Farsi, three weeks prior, he Mandarin, and West African French. had lost half of his foot BGEA’s listener-supported ministry, Blue Ridge Broadcasting (BRB), and was battling with operates four stations, including 106.9 the Light WMIT, 1010 WFGW, and severe depression. WFGW.org. Last year BRB celebrated its 44th year of ministry, and we After flipping through launched LaLuzDeCristo.org, an Internet outreach to the Latino community. channels, he stopped on a telecast from INTERNATIONAL FILM MINISTRY Billy Graham’s 1971 BGEA’s evangelistic films are being used in dozens of countries to share the Good News of Christ, and during 2006, we expanded our Chicago Crusade and international distribution of these evangelistic movies into Germany, was moved to pray. THIS IS THE BILLY GRAHAM Cambodia, Mexico, Nigeria, and the Netherlands. That evening the young EVANGELISTIC ASSOCIATION Last year, films were broadcast on TV in Guatemala, South Korea, and man accepted Christ a number of countries in Europe and Africa. Several movies aired the into his heart and message of Jesus Christ to the Middle East, reaching Egypt, Jordan, acknowledged Him as Syria, Lebanon, and Turkey. We know of at least 35,110 decisions for Lord and Savior. Christ recorded around the world through this film ministry in 2006, but only God knows the full harvest of these seeds sown for the Gospel.

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 27 Television Broadcasts MEDIA EVANGELISM DECISION MAGAZINE, INTERNET, LITERATURE, CALL CENTER, AND CHRISTIAN GUIDANCE

DECISION MAGAZINE Grason helped rebuild New Orleans pastors’ libraries For 47 years, Decision magazine has been with over 50,000 products. proclaiming Good News in print and helping readers grow in their faith. During 2006, BGEA produced INTERNET more than 6.7 million copies of Decision, and it was God continues to use the round-the-clock outreach of distributed in 97 countries in three languages. In BGEA Web sites “to seek and save the lost,” and more partnership with prison chaplains around the nation, than 6,700 people came to faith in Jesus Christ online over 280,000 copies of the magazine took the Good in 2006. Thousands of others—Christians and seekers THIS IS THE BILLY GRAHAM News to men and women behind bars. Decision alike—sought direction and encouragement in the EVANGELISTIC ASSOCIATION remains one of the few Christian magazines regularly extensive spiritual help sections of our sites. published for the blind or visually impaired, and last Resources including articles, audio and video clips, and year we produced over 4,500 issues in Braille and answers from Billy Graham provide biblical responses more than 6,500 on audiotape. to hundreds of questions.

CHRISTIAN GUIDANCE BGEA’s Christian Guidance department provides FACING THE SAVIOR biblical study resources for everyday living, to assist those who write in for help on overcoming daily A young woman grew up watching struggles. God blessed the department with the Billy Graham on TV and longed for opportunity to respond to 149,000 inquiries during a relationship with God. After years 2006, and by God’s grace, 2,400 people made of searching, she again felt God decisions for Christ. pulling at her heart. She was wary

RESPONSE CENTER of visiting a church, and God drew BGEA’s toll-free Response Center is our 24-hour, 7-day her to the BGEA Web site. ministry to callers requesting prayer, free Gospel Encouraged to learn more, she materials, or help in committing their lives to Christ. soon began attending a church Our representatives experienced our busiest year ever, close to her home. Six weeks later, answering more than 674,000 calls. the woman came to faith in Jesus Christ. “I am not sure that I would GRASON Grason, the literature ministry of BGEA, continued to ever have made that step if … your offer spiritually encouraging books, movies, and organization did not have this Web evangelism tools to thousands of people in 2006. site,” she wrote. During the Celebration of Hope in New Orleans,

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 29 Internet MILITARY MINISTRY

OPERATION BLESS OUR TROOPS, TRAINING, AND LIVE EVENTS

OPERATION BLESS OUR TROOPS staff at the Walter Reed Army Medical Center in Operation Bless Our Troops sends a message of Washington, D.C. In conjunction with Franklin’s encouragement and hope in Jesus Christ to U.S. Okinawa Festival in November, BGEA hosted a servicemembers through multimedia packets. Each luncheon for 1,100 Marines at Camp Hansen, to honor kit includes a CD featuring worship songs, the and thank these brave men and women for their Billy Graham film Last Flight Out on DVD, and simple service to our country. Personnel were given a packet steps for beginning a walk with the Prince of Peace. of materials containing an Operation Bless Our Troops By the end of 2006, over 16,900 packages were sent DVD and CD, a copy of Billy Graham’s book Peace with to U.S. troops around the world at the request of God, and other Gospel literature. family and friends. Many more were distributed by military chaplains, in addition to books and other materials provided by BGEA. FACING THE SAVIOR One sergeant told us, “The music strengthened and kept me in His grace and mercy throughout my days On Christmas Day, an officer here in Iraq. Thank you.” Another soldier said the THIS IS THE BILLY GRAHAM who attended our military package helped her deal with being far from home, EVANGELISTIC ASSOCIATION seminar at The Cove gave his because it reminded her that “God is always there.” When another servicemember was asked if he shared wife a gift she had long prayed the package with other soldiers, he replied, “Yes. They for—the news of his faith in love free stuff, which opens the door for evangelism.” Jesus Christ. The Gospel message he heard at the WEST POINT TRAINING CONFERENCE AT THE COVE conference stirred his heart, and In November, over 100 West Point officers and their spouses attended the West Point Training Conference days after the retreat, he sought at The Cove. The three-day event provided a much- out his chaplain with questions. needed physical and spiritual retreat as these guests He found answers and prayed to of honor experienced fellowship, worship, and begin a new life in Christ. Those teaching that equipped them to more effectively around him noticed the changes share the love of Jesus Christ with those they encounter in their military calling. in his life, and he began inviting friends and colleagues to LIVE EVENTS Sunday services so that they On Easter morning Franklin Graham brought Good too might meet the Savior. News to injured soldiers, their families, and medical

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 31 Live Events THE BILLY GRAHAM LIBRARY

AN ONGOING CRUSADE

CONSTRUCTION The majority of construction on the Billy Graham Library took place in 2006, and it will open to the public in June 2007. The 40,000-square-foot facility began to take shape as 10 exhibits and four galleries were constructed, each examining a different facet of Mr. Graham’s life and ministry. The Graham family homeplace was replicated with as many original pieces as possible, and it will give visitors a glimpse into the THIS IS THE BILLY GRAHAM evangelist’s family life in the 1920s and 1930s. EVANGELISTIC ASSOCIATION

THE LOOK The Library’s farm setting emphasizes Billy Graham’s humble beginnings. Visitors must enter the barn through doors at the base of a 40-foot glass cross, symbolizing the message of Christ that the beloved resources will be carefully selected to ensure that they evangelist has preached for over 60 years. help visitors grow in their walk with God. The lobby will include a bookstore called Ruth’s Attic—named for Billy Graham’s wife, Ruth Bell AN ONGOING CRUSADE Graham—and will include books by the Graham family, Upon entering the core experience of the Library, Christian classics, Bibles, custom gift items, BGEA films, visitors will see multimedia presentations and state-of- and DVDs of classic Billy Graham Crusades. Bookstore the-art exhibits, plus artifacts and photographs, as they explore the man, the ministry, the message, and the mission of Billy Graham. “It is my prayer that this The experience illustrates the mighty things God can do through a single life that is center will be a testimony to yielded to Him. the world of the amazing love It is estimated that 200,000 visitors will tour the Library each year, and everyone will of God and the great things hear the Gospel of Jesus Christ numerous He can do through lives that times during the visit. Guests will have the opportunity to make a decision for Christ at are surrendered to Him.” the conclusion of the tour. With God’s blessing, the Billy Graham Library will truly be —FRANKLIN GRAHAM an ongoing Crusade for generations to come.

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 33 The Billy Graham Library BOARD MEMBERS EMERITI OUR FINANCIAL COMMITMENT TO YOU

6 • We subscribe to a written statement of faith

0 clearly affirming our commitment to the

0 evangelical Christian doctrine. Advancing the 2

Gospel of Jesus Christ is the singular

S objective of our financial conduct. R Billy Graham David L. Burnham George E. Battle, Jr. David P. Bruce Richard G. Capen, Jr. Melvin L. Cheatham ▲ Marjorie Gieser Clifford B. Barrows George F. Bennett Wallace E. Berg • We are governed by a Board of Directors, the O Bishop Executive Assistant Former U.S. Ambassador to Spain Clinical Professor of Freelance Artist/Sculptor Evangelist & Chairman Elected 1950 Elected 1973 Elected 1973 Elected 1985 AME Zion Church to Billy Graham Corporate Director & Author Neurosurgery Wheaton, Illinois Billy Graham Evangelistic Emeritus 2000 Emeritus 1999 Emeritus 1997 Emeritus 1998

T Davidson, North Carolina Montreat, North Carolina Rancho Santa Fe, California UCLA Medical Center Elected 1992 Association majority of whom are not staff members or Elected 2003 Elected 2002 Elected 1990 Ventura, California Montreat, North Carolina Elected 1950

C Elected 1997 their relatives. Our full Board meets at least

E two times annually to establish policies, set

R budgets, oversee operations, and review I ministry accomplishments. D

F • Our financial statements are prepared in

O accordance with generally accepted accounting principles. We obtain an annual D Melvin F. Graham ▲ Wm. Franklin Graham, III ▲ Wm. Franklin Graham, IV J. Frank Harrison, III Herbert P. Hess ▲ ● Graeme M. Keith ▲ Allan C. Emery, Jr. Michael E. Haynes Arthur P. Johnston C. Howard Kast audit in accordance with generally accepted

R President & Owner First Vice Chairman, President & Assistant Director Chairman & Chief Executive President & Chief Executive Chairman Elected 1967 Elected 1987 Elected 1983 Elected 1987 Graham Enterprises Chief Executive Officer Billy Graham Training Center Officer Officer The Keith Corporation Emeritus 1999 Emeritus 2002 Emeritus 1997 Emeritus 1999 auditing standards by an independent public Charlotte, North Carolina Billy Graham Evangelistic Association Asheville, North Carolina Coca-Cola Bottling Co. North American Charlotte, North Carolina A Elected 2001 President & Chief Executive Officer Elected 2005 Consolidated Management Corp. Elected 1990 accounting firm, Ernst & Young LLP. Samaritan’s Purse—U.S.A. Charlotte, North Carolina Boston, Massachusetts

O Boone, North Carolina Elected 2002 Elected 1979 Elected 1979

B • Our Board appoints an audit committee, none

of whom are staff members or their relatives, A to review the annual audit and report its E findings to the Board. G B • We seek to conduct our activities with the highest standards of integrity and to avoid Greg Laurie Denton Lotz Hon. Stephen E. Merrill ● Charles O. Morgan, Jr. William B. Pauls ▲ Guy A. Martin Harold E. Martin William B. Walton, Sr. Elected 1978 Senior Pastor President General Secretary Former Governor of New Hampshire ▲ ● Chairman Elected 1967 Elected 1978 Emeritus 1999 Emeritus 1998 Emeritus 1997 conflicts of interest. Because we believe that Harvest Christian AnGeL Ministries Baptist World Alliance Attorney, President Attorney The Pauls Corporation Fellowship Raleigh, North Carolina McLean, Virginia Bingham Consulting Group Miami, Florida Englewood, Colorado Riverside, California Elected 1994 Elected 1999 at Bingham McCutchen LLP it is God’s place to prompt a response to our Elected 1983 Elected 1997 Elected 1994 Boston, Massachusetts Elected 1997 fund-raising appeals, we shun high-pressure or manipulative fund-raising tactics.

• Our fund-raising appeals clearly identify the A OFFICERS BOARD COMMITTEE purpose and programs to which donations will CHAIRPERSONS be applied, and we ensure that donations are Billy Graham used for the purposes for which they were Chairman C. William Pollard Herbert P. Hess Wm. Franklin Graham, III raised. Occasionally, we receive more Executive Committee Investment Committee C. William Pollard ▲ ● Paul T. Saber ▲ Ruth Shanahan Joseph M. Stowell, III ▲ First Vice Chairman Charles O. Morgan, Jr. Billy Graham contributions for a given project than can be Chairman Emeritus President and Chief President Former President Clifford B. Barrows The ServiceMaster Company Executive Officer Crowley Shanahan Moody Bible Institute Audit Review Committee Nominating Committee Downers Grove, Illinois Manna Development Group Foundation Chicago, Illinois Vice Chairman wisely applied to that project. When that Elected 1986 Encitas, California Dallas, Texas Teaching Pastor William B. Pauls Herbert P. Hess Elected 2006 Elected 1992 Harvest Bible Chapel C. William Pollard happens, we use these funds to meet a similar Rolling Meadows, Illinois Building Committee Pension & Personnel

Chairman of Executive E Elected 1999 C. William Pollard Committee Committee pressing need. Our policy is to meet the needs Corporate Compensation Joel B. Aarsvold Committee God lays before us, so that Christ is lifted up Secretary William B. Pauls Graeme M. Keith and the Gospel advanced. Finance Committee Treasurer Sterling W. Huston ▲ Executive Committee Graham Center Liaison • Contributions to the ministry are tax- ● Audit Review Committee Committee Richard G. Capen, Jr. deductible to the full extent allowed by law. Insurance Committee

• We will not operate this ministry with indebtedness that dishonors the cause of G Christ and hinders the work of the Gospel.

34 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION B The Billy Graham Evangelistic Association 2006 REPORT OF INDEPENDENT AUDITORS exists to support and extend the evangelistic calling and ministries BILLY GRAHAM EVANGELISTIC ASSOCIATION AND AFFILIATED ORGANIZATIONS of Billy Graham and Franklin Graham by proclaiming the Gospel of the Lord Jesus Christ to all we can by every effective means available to us and by equipping others to do the same.

The Billy Graham Evangelistic Association believes the Bible to be the infallible Word of God, that it is His holy and inspired Word, and that it is of supreme and final authority • In one God, eternally existing in three persons—Father, Son, and Holy Spirit • Jesus Christ was conceived by the Holy Spirit, born of the Virgin Mary • He led a sinless life, took on Himself all our sins, died and rose again, and is seated at the right hand of the Father as our mediator and advocate • That all men everywhere are lost and face the judgment of God, and need to come to a saving knowledge of Jesus Christ through His shed blood on the cross • That Christ rose from the dead and is coming soon • In holy Christian living, and that we must have concern for the hurts and social needs of our fellowmen • We must dedicate ourselves anew to the service of our Lord and to His authority over our lives • In using every modern means of communication available to us to spread the Gospel of Jesus Christ throughout the world

2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 37 BILLY GRAHAM EVANGELISTIC ASSOCIATION AND AFFILIATED ORGANIZATIONS

Report of Independent Auditors CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of December 31, 2006 and 2005

2006 2005 ASSETS THE BOARD OF DIRECTORS BILLY GRAHAM EVANGELISTIC ASSOCIATION Assets available for current ministries: Cash and cash equivalents $ 19,998,582 $ 21,093,224 We have audited the accompanying consolidated statement of financial position of Billy Graham Evangelistic Accounts receivable, net 2,064,957 1,835,476 Association and Affiliated Organizations (collectively referred to as the Organization) as of December 31, 2006 and Pledges receivable, net 2,730,053 2,995,254 Inventories of books, supplies, and materials the related consolidated statements of activities and cash flows for the year then ended. These financial statements 811,613 1,071,354 Prepaid expenses and other short-term assets 461,933 558,178 are the responsibility of the Organization’s management. Our responsibility is to express an opinion on these 26,067,138 27,553,486 financial statements based on our audit. The prior year summarized comparative information has been derived from the Organization’s 2005 financial statements and, in our report dated March 3, 2006, we expressed an unqualified Other assets 2,940,000 137,334 opinion on those financial statements. Property and equipment used in present ministries, at cost less accumulated depreciation 94,891,101 84,418,463 We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial Investments: statements are free of material misstatement. We were not engaged to perform an audit of the Organization’s Investments functioning as endowments 161,230,559 164,875,702 internal control over financial reporting. Our audit included consideration of internal control over financial reporting Other long-term investments 254,046 1,741,689 as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of Deferred giving program 94,422,568 91,947,941 255,907,173 258,565,332 expressing an opinion on the effectiveness of the Organization’s internal control over financial reporting. Total assets $ 379,805,412 $ 370,674,615 Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant LIABILITIES AND NET ASSETS estimates made by management, and evaluating the overall financial statement presentation. We believe that our Liabilities: audit provides a reasonable basis for our opinion. Accounts payable $ 5,693,305 $ 6,479,366 Accrued expenses 2,559,076 2,544,140 In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the Deferred revenue 1,285,593 1,443,660 consolidated financial position of Billy Graham Evangelistic Association and Affiliated Organizations as of December 31, Deferred giving program 74,208,952 74,592,049 Total liabilities 2006 and the consolidated changes in its net assets and its cash flows for the year then ended, in conformity with 83,746,926 85,059,215

United States generally accepted accounting principles. Net assets: Unrestricted: Designated by governing board 163,994,955 163,657,443 Represented by property and equipment 76,681,317 84,418,463 General 17,265,552 13,662,150 Total unrestricted net assets 257,941,824 261,738,056 Temporarily restricted 32,002,093 19,190,771 Charlotte, North Carolina Permanently restricted 6,114,569 4,686,573 March 14, 2007 Total net assets 296,058,486 285,615,400 Total liabilities and net assets $ 379,805,412 $ 370,674,615

See accompanying notes.

38 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 39 BILLY GRAHAM EVANGELISTIC ASSOCIATION AND AFFILIATED ORGANIZATIONS

CONSOLIDATED STATEMENT OF ACTIVITIES 2006 REVENUE For the year ended December 31, 2006 (with Summarized Totals for 2005)

2006

TEMPORARILY PERMANENTLY 2005 UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL

Support and revenue: Contributions $ 59,420,638 $ 19,827,525 $ – $ 79,248,163 $ 82,478,699 Proceeds from estates, annuities, and trusts 17,325,642 624,974 1,416,518 19,367,134 24,333,199 Billy Graham Training Center 4,792,704 – – 4,792,704 5,949,146 Decision magazine and other evangelistic materials 3,772,324 – – 3,772,324 4,672,944 Investment income 17,148,480 1,131,915 134,672 18,415,067 10,437,156 Change in value of annuities and trusts (1,713,023) (868,367) (123,194) (2,704,584) (3,135,661) Contributions, 60.4% Other income 8,373,378 – – 8,373,378 7,301,001 Proceeds from estates, annuities & trusts, 14.8% Net assets released from restrictions 7,904,725 (7,904,725) – – – Billy Graham Training Center, 3.6% Total support and revenue 117,024,868 12,811,322 1,427,996 131,264,186 132,036,484 Decision magazine & other evangelistic materials, 2.9% Investment income, 14.0% Expenses: Other income & change in value of annuities & trusts, 4.3% Ministry expenses: Evangelistic crusades and festivals 17,280,196 – – 17,280,196 23,230,943 2006 EXPENSES Communications: Radio, television, and films 26,037,355 – – 26,037,355 30,622,287 Decision magazine 3,479,900 – – 3,479,900 4,118,478 Communications – other 21,484,268 – – 21,484,268 25,348,257 Training ministry: Billy Graham Training Center 10,068,495 – – 10,068,495 11,621,654 Training ministry – other 9,225,543 – – 9,225,543 6,965,373 International television and film ministry 13,989,458 – – 13,989,458 16,648,102 Library 500,501 – – 500,501 – Other evangelistic ministry 3,370,093 – – 3,370,093 3,272,058 Total ministry expenses 105,435,809 – – 105,435,809 121,827,152

Support activities: Fund-raising 3,148,142 – – 3,148,142 4,237,448 Evangelistic crusades and festivals, 14.3% Radio, television & films, 21.6% General and administrative 12,237,149 – – 12,237,149 11,927,561 Decision magazine, 2.9% Total expenses 120,821,100 – – 120,821,100 137,992,161 Communications – other, 17.8% Billy Graham Training Center, 8.3% Change in net assets $ (3,796,232) $ 12,811,322 $ 1,427,996 $ 10,443,086 $ (5,955,677) Training ministry – other, 7.6% Net assets at beginning of year 261,738,056 19,190,771 4,686,573 285,615,400 291,571,077 International television & film ministry, 11.6% Net assets at end of year $ 257,941,824 $ 32,002,093 $ 6,114,569 $ 296,058,486 $ 285,615,400 Library, 0.4% Other evangelistic ministry, 2.8% Fund-raising, 2.6% General and administrative, 10.1%

See accompanying notes. 40 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 41 BILLY GRAHAM EVANGELISTIC ASSOCIATION AND AFFILIATED ORGANIZATIONS NOTES

CONSOLIDATED STATEMENT OF CASH FLOWS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2006 and 2005 December 31, 2006

1. SIGNIFICANT ACCOUNTING POLICIES Property and Equipment 2006 2005 Land is stated at cost. Buildings, improvements, and equipment OPERATING ACTIVITIES Description of Ministry are stated at cost less accumulated depreciation. Depreciation of The mission of the Billy Graham Evangelistic Association (the buildings, improvements, and equipment is calculated using the Change in net assets $ 10,443,086 $ (5,955,677) Association) is to support and extend the evangelistic calling and straight-line method over their estimated useful lives. Costs of new facilities and improvements are capitalized, while maintenance and Adjustments to reconcile change in net assets to net cash ministries of Billy Graham and Franklin Graham by proclaiming the Gospel of the Lord Jesus Christ to all we can by every effective repairs are charged to expense in the period incurred. provided by (used in) operating activities: means available to us and by equipping others to do the same. Depreciation and amortization expense 6,167,937 7,642,400 Support is received primarily through contributions and deferred Investments Realized (gains) on sale of investments (12,222,869) (6,895,449) giving programs. Investments in equity securities with readily determinable fair Unrealized losses on investments 1,016,744 2,651,118 values and all debt securities are recorded at fair value based upon Actuarial adjustment on annuity obligations 2,704,584 3,135,661 Principles of Consolidation quoted market prices. Other investments (such as real property) The consolidated financial statements include the Association are reported at the lower of cost or fair value. Donated investments Donations of real estate and mortgage deeds receivable (49,294) (1,251,314) and the following other affiliates: Blue Ridge Broadcasting without a readily determinable fair value are stated at a nominal Net (gains) on sale of fixed assets and donated real estate (3,986,557) (3,395,343) Corporation; Graham Fund for Evangelism; ICIE, Inc.; and ICIE- value. Investment income or loss (including gains and losses on Changes in operating assets and liabilities: Stichting. In accordance with SOP 94-3, management annually investments, interest, and dividends) is included in the change in Decrease in receivables 95,720 836,838 evaluates which entities should be consolidated for financial unrestricted net assets unless the income or loss is restricted by Decrease in inventories, prepaid expenses, statement presentation purposes. the donor. and other short-term assets 355,986 307,131 The affiliated organizations strengthen the ministries of the Investment income is recorded net of investment expenses. For (Decrease) in accounts payable, accrued expenses, Association and share the same goals and purposes. All significant the years ended December 31, 2006 and 2005, investment expenses intercompany accounts and transactions have been eliminated. were $692,259 and $767,654, respectively. and deferred revenue (929,192) (6,569,458) The financial statements include certain summarized prior year Realized gains or losses on investments are determined by Net cash provided by (used in) operating activities 3,596,145 (9,494,093) comparative information in total but not by net asset classification. comparison of specific cost of acquisition to proceeds at the time of Such information does not include sufficient detail to constitute a disposal. Unrealized gains or losses are calculated by comparing INVESTING ACTIVITIES presentation in conformity with accounting principles generally cost to market values at the statement of financial position date. accepted in the United States. Accordingly, such information should Maturities of investments 2,605,358 3,572,819 be read in conjunction with the Organization’s financial statements Deferred Giving Program Net purchases and sales in investments functioning as endowments 13,189,550 16,446,397 for the year ended December 31, 2005, from which the summarized The Association has a fully funded program whereby deferred Decrease in unamortized film costs and production costs – 184,681 information was derived. gifts can be made through gift annuity and trust participation. Purchases of fixed assets (18,183,490) (10,726,924) Certain amounts in the December 31, 2005 consolidated All gift annuity fund assets are held in trust by a bank and statement of activities have been reclassified to conform to current managed by investment management companies. Various state Net increase in deferred giving program assets (4,157,079) (5,543,558) year presentation. On the consolidated statement of activities, laws require that the Association maintain segregated accounts Proceeds from the sale of fixed assets and donated real estate 4,203,743 3,591,260 certain expenses previously reported in Other Evangelical Ministry with assets equal in amount to the actuarial reserve necessary to Net cash provided by (used in) investing activities (2,341,918) 7,524,675 Expenses have been reclassified to better reflect the specific pay the annuities plus an additional reserve. Some state laws also ministry nature of the expenditures. establish specific investment regulations related to the manner in which the assets are invested. Trust assets are held and managed FINANCING ACTIVITIES Cash and Cash Equivalents by the Association. Cash and cash equivalents include highly liquid investments with a The Association records assets received in the deferred giving Proceeds from deferred giving program contracts 2,496,721 3,411,425 maturity of three months or less. For the purposes of the Statement program at their fair value and records the liabilities incurred. The Payments of deferred giving program contracts (4,845,590) (4,938,843) of Cash Flows, cash and cash equivalents included in investments liability is recorded at the present value of payments to be made Net cash used in financing activities (2,348,869) (1,527,418) functioning as endowment and investments in the deferred giving under annuity and irrevocable trust agreements over the term of program are not considered cash and cash equivalents. the agreements, usually the beneficiaries’ life expectancy. For annuities, the present value calculation used a 3.75% discount rate. (Decrease) in cash and cash equivalents (1,094,642) (3,496,836) Inventories Cash and cash equivalents at the beginning of the year 21,093,224 24,590,060 Inventories are stated at average cost. Cash and cash equivalents at the end of the year $ 19,998,582 $ 21,093,224

See accompanying notes.

42 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 43 BILLY GRAHAM EVANGELISTIC ASSOCIATION AND AFFILIATED ORGANIZATIONS NOTES

For trusts, the present value calculation used a discount rate of Income Taxes 2. PROPERTY AND EQUIPMENT 4.702% in 2006 and 4.375% in 2005. Revaluations of expected The Association and significant affiliated organizations are future payments to beneficiaries based on changes in life exempt from federal income taxes, and contributions to them are A summary of property and equipment and related accumulated depreciation expectancy are calculated using the Annuity 2000 mortality table deductible as charitable contributions under Internal Revenue Code at December 31, 2006 and 2005 is as follows: for annuities and the 90MT mortality table for trusts as well as Section 170. The Internal Revenue Service has issued determination other actuarial assumptions and are recorded as a change in value letters to the Association and exempt affiliated organizations stating 2006 2005 of annuities and trusts in the statement of activities. The that they qualify for tax-exempt status under Internal Revenue Code contribution portion is recognized as income at the time the Section 501(c)(3). The Internal Revenue Service has also issued Land $ 15,885,698 $ 16,710,941 agreement is executed. Revocable trust agreements are recorded as rulings stating that they will not be treated as private foundations Buildings and improvements: a liability until the agreement becomes irrevocable or the assets are within the meaning of Internal Revenue Code Sections 509(a)(1), Billy Graham Training Center 29,502,504 31,783,921 distributed, at which time the contribution revenue is recognized. 509(a)(2), and 509(a)(3), except foreign affiliates. Headquarters and other 38,320,103 38,278,529 The Association is also named as a beneficiary in revocable trusts Equipment, furniture, and fixtures 35,124,574 34,738,282 and wills which are not managed by the Association. These assets Net Asset Classifications Total 118,832,879 121,511,673 are not included in the consolidated statement of financial position, Permanently restricted net assets include contributions which Less accumulated depreciation 47,009,423 43,959,064 as the Association’s share of these assets cannot be determined. donors have specified must be maintained in perpetuity. The related 71,823,456 77,552,609 income may be expended for such purpose as specified by the Construction in progress 23,067,645 6,865,854 Deferred Revenue donor or, if none, then for any purpose of the Association. Net property and equipment $ 94,891,101 $ 84,418,463 The subscription price of Decision magazine is charged to Temporarily restricted net assets are comprised of funds which unearned subscriptions when received and is amortized to income are restricted by donors for specific purposes or time periods. over an 11-month period. Unrestricted net assets represent funds which are fully available, at the discretion of management and the Board of Directors, for the Advertising Costs Association to utilize in any of its programs or supporting services. 3. INVESTMENTS AND INVESTMENT INCOME The Association expenses advertising costs as incurred. For the years ending December 31, 2006 and 2005, advertising costs Temporarily Restricted Contributions Investments are composed of the following: totaling approximately $12,757,000 and $15,620,000, respectively The Association records contributions as temporarily restricted if primarily related to television airtime to promote airing of they are received with donor stipulations that limit their use either 2006 2005 evangelistic telecasts, evangelistic crusades and festivals, and free through purpose or time restrictions. When donor restrictions offers for literature and materials. expire, that is, when a time restriction ends or a purpose restriction U.S. common stock $ 118,857,302 $ 120,610,143 is fulfilled, temporarily restricted net assets are reclassified to Fixed income 101,230,612 95,629,478 Allocation of Joint Costs unrestricted net assets and reported in the statement of activities Money market accounts 28,174,139 32,341,399 Certain expenditures of the Association and affiliates (radio and as net assets released from restrictions. Real estate 6,787,932 9,028,856 television, direct mail, and postage) relate to both ministry expenses During 2006, the Board of Directors established a policy that up Other 857,188 955,456 and support activities. The allocation of these joint costs is based on to 10 percent of all donor-restricted contributions for a specific Total investments $ 255,907,173 $ 258,565,332 estimates of the content, audience, and purpose of these expenditures. project may be used for administering the gift, if needed. Total joint costs and respective allocations are as follows: Use of Estimates Investment income consists of: 2006 2005 The preparation of financial statements in conformity with accounting principles generally accepted in the United Evangelistic crusades and festivals 2006 2005 $ 912,179 $ 1,000,008 States requires management to make estimates and Radio, television, and films 23,258,574 26,668,737 assumptions that affect the amounts reported in the Interest and dividends $ 7,208,942 $ 6,192,825 Decision magazine 3,422,947 4,094,125 financial statements and accompanying notes. Actual Realized gains 12,222,869 6,895,449 Communications – other 18,128,893 22,160,292 results could differ from those estimates. Unrealized (losses) (1,016,744) (2,651,118) Billy Graham Training Center 144,581 146,308 $ 18,415,067 $ 10,437,156 Training ministry – other 1,229,788 1,214,819 Accounting for Long-Lived Assets International television and film ministry 555,420 513,568 The Association records losses on long-lived assets used Library 9,082 – in operations when indicators of impairment are present Other evangelistic ministry 740,962 1,708,450 and the undiscounted cash flows estimated to be Fund-raising 1,463,914 2,185,312 generated by those assets are less than the assets’ General and administrative 11,455,919 10,237,835 carrying amount. $ 61,322,259 $ 69,929,454

44 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 45 BILLY GRAHAM EVANGELISTIC ASSOCIATION AND AFFILIATED ORGANIZATIONS NOTES

4. DEFERRED GIVING PROGRAM Unrestricted net assets designated by governing board were as follows:

The assets and liabilities in the deferred giving program are as follows: 2006 2005

Cove Charitable Trust Fund $ 78,715,346 $ 76,560,776 2006 2005 Graham Fund for Evangelism 15,574,332 14,726,259 ASSETS LIABILITY ASSETS LIABILITY Billy Graham Library fund 22,045,298 18,085,352 Future ministries Gift Annuity Fund $ 48,140,927 $ 38,748,119 $ 47,069,394 $ 38,860,574 47,659,979 54,285,056 Irrevocable Trusts 15,141,272 10,264,174 14,608,460 9,773,149 $ 163,994,955 $ 163,657,443 Endowment Fund 5,954,951 11,241 4,347,327 35,566 69,237,150 49,023,534 66,025,181 48,669,289 Temporarily Restricted Net Assets Temporarily restricted net assets are available for the following purposes: Revocable Trusts 25,185,418 25,185,418 25,922,760 25,922,760

2006 2005 Total $ 94,422,568 $ 74,208,952 $ 91,947,941 $ 74,592,049 Donor-designated contributions $ 27,051,131 $ 14,443,367 The gift annuity fund liability includes an actuarial reserve for the The change in value of annuities and trusts presented on the Annuity Fund 13,603 - annuity payments of $38,746,588 and $38,858,047 for 2006 and statement of activities consists of actuarial adjustments of Term Endowment fund 187,786 12,593 2005, respectively. ($2,704,584) and ($3,135,661) for 2006 and 2005, respectively. Irrevocable trusts 4,749,573 4,734,811 $ 32,002,093 $ 19,190,771 5. SALE OF THE COVE CAMP PROPERTY

The donor-designated contributions primarily represent funds December 31, 2006, related to Billy Graham Library construction in The Association sold two parcels of real property and personal receivable net of a 2% allowance for uncollectible accounts of restricted for the Billy Graham Library and for the World Emergency progress will be reclassified to unrestricted net assets when the property, used for the Cove Camp operations, to a Florida non-profit $60,000 is reported as Other Assets on the consolidated statement Fund. The irrevocable trusts are restricted by time for the facility is placed in service during 2007. corporation. In connection with the sale, a promissory note of of financial position. The note and accrued interest is secured by a Association. Temporarily restricted net assets of $18,209,783 at $3,000,000 was issued. The note plus accrued interest at 5.5% deed of trust in the property. compounded annually is due in full at December 30, 2008. The note

Permanently Restricted Net Assets 6. NET ASSETS Permanently restricted net assets are held as follows:

Unrestricted Net Assets Designated by Governing Board 2006 2005 The Association’s Board of Directors has designated a portion of improve the facility to be known as the Billy Graham Library located Endowment fund unrestricted net assets as funds functioning as endowment. in Charlotte, North Carolina consistent with the evangelistic $ 5,755,924 $ 4,299,168 Separate net asset designations have been made for the purposes of the Association. Irrevocable trusts 127,524 100,500 Billy Graham Training Center (The Cove Charitable Trust Fund), the The purpose of the future ministries fund is to receive, hold, and Gift annuity 223,176 286,905 Graham Fund for Evangelism, the Billy Graham Library fund, and for invest assets in trust to be used for continuing and growing ministry Library endowment 7,945 - future ministries. activities through special evangelistic projects such as the My Hope $ 6,114,569 $ 4,686,573 The purpose of The Cove Charitable Trust Fund is to receive, hold, television project. In addition, a portion of these funds is held to and invest assets in trust to be used for supporting, maintaining, and provide for operating cash flow needs of the organization. improving the facilities and ministry at the Billy Graham Training In 2006 and 2005, $10,672,888 and $17,414,287, respectively, was 7. RETIREMENT PLANS Center consistent with the evangelistic purposes of the Association. transferred from the fund functioning as endowment for future The purpose of the Graham Fund for Evangelism is to receive, ministries to support various special projects, including the My Hope The Association has a 401(k) retirement plan. Employer $1,581,607 for the year ended December 31, 2006 and $1,673,954 hold, and invest assets in trust to be used for supporting, television project. Also, $1,672,726 and $2,701,101 in 2006 and 2005, contributions are 3% of each participant’s eligible salary with a for the year ended December 31, 2005. maintaining, and improving the facilities and ministry at the Graham respectively, was transferred from The Cove Charitable Trust Fund matching provision whereby the employer will match the In addition, the Association has deferred compensation plans for Center at Wheaton College consistent with the evangelistic purposes to provide support for the Billy Graham Training Center property employee’s contributions up to an additional 3% of the which deferred compensation expense of $73,000 and $39,000 was of the Association. maintenance, security, and capital improvements. participant’s salary. The plan includes a provision whereby the incurred for the years ended December 31, 2006 and 2005, The purpose of the Billy Graham Library fund is to receive, hold, The Board reserves the right to change its designations or Board of Directors can approve additional contributions of up to respectively. Deferred compensation liabilities of $121,554 and and invest assets to produce income to support, maintain, and expend the principal of any of these funds by future board action. 2%. The Association and its affiliates recorded expense of $41,340 existed at December 31, 2006 and 2005, respectively.

46 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 47 BILLY GRAHAM EVANGELISTIC ASSOCIATION AND AFFILIATED ORGANIZATIONS NOTES

8. PLEDGES RECEIVABLE Following is un-audited summary financial information for the International Affiliates which are controlled by independent boards of directors:

The Association received commitments or pledges to support the future cash flows. The discount on these amounts is computed using AS OF DECEMBER 31, 2006 AND TOTAL T0TAL TOTAL TOTAL TOTAL Billy Graham Library construction project. Unconditional promises to a risk free interest rate at the date of the pledge. Amortization of FOR THE YEAR THEN ENDED ASSETS LIABILITIES NET ASSETS REVENUE EXPENSES give that are expected to be collected within one year are reported the discount is included in contribution revenue. Pledges receivable BGEA of Australia (in Australian $’s) $ 229,737 $ 44,878 $ 184,859 $ 171,716 $ 163,873 at net realizable value. Those expected to be collected in more than consisted of the following: BGEA of Canada (in Canadian $’s) one year are reported at the net present value of their estimated $ 11,280,370 $ 3,094,543 $ 8,185,827 $ 8,274,894 $ 7,744,636 BGEA LTD (in Pounds) £ 441,903 £ 24,613 £ 417,290 £ 348,395 £ 350,344 Vozrozhdeniye (in Rubles) руб 388,197 руб 15,610 руб 372,587 руб 6,661,399 руб 6,918,200 2006 2005 Geschenke der Hoffnung (in Euros) ¤ 2,404,067 ¤ 411,559 ¤ 1,992,508 ¤ 3,294,591 ¤ 3,304,545 Unconditional promises to give before amortized discount and allowance for uncollectible amounts $ 3,055,600 $ 3,370,500 Less unamortized discount 265,750 314,118 The Vice Chairman, President, and Chief Executive Officer of the either organization. Cash contributions of $237,500 and $250,000 2,789,850 3,056,382 Association is the Chief Executive Officer of Samaritan’s Purse. To were given to AnGeL Ministries in 2006 and 2005, respectively. In Less allowance for uncollectible pledges 59,797 61,128 gain efficiencies over administrative services supporting their addition, an in-kind contribution valued at $8,779 was given in 2006 Net pledges receivable $ 2,730,053 $ 2,995,254 individual ministries, the Association and Samaritan’s Purse and $10,886 in 2005. The president of AnGeL Ministries is a board entered into a shared services agreement to provide a meaningful member of the Association. Included in international ministries Amounts due in: structure for regulating and overseeing the shared services and expenditures are contributions of $190,050 in 2006 and $200,000 Less than one year $ 1,447,818 $ 1,147,417 expenses. In accordance with the provisions of the agreements, the in 2005 to East Gates Ministries International for ministry in Asia. Association reimbursed Samaritan’s Purse $951,239 in 2006 and The president of East Gates Ministries International is the brother of One to five years 1,307,782 1,823,083 $1,464,729 in 2005 and Samaritan’s Purse reimbursed the the Chief Executive Officer. Over five years 300,000 400,000 Association $956,697 in 2006 and $1,251,681 in 2005. Accounts During 2002, the Association entered into a contract with The $ 3,055,600 $ 3,370,500 receivable and accounts payable from Samaritan’s Purse are Keith Corporation, a real estate development company located in $330,574 and $382,396, respectively as of December 31, 2006 and Charlotte, to provide real estate development advisory services for $127,345 and $189,959 in 2005. the construction of a new headquarters building. During 2005, this 9. SELF-INSURANCE PROGRAM The Association received and forwarded contributions totaling agreement was amended to include construction of the Billy Graham $216,687 in 2006 and $334,100 in 2005 to Samaritan’s Purse Library. Mr. Graeme M. Keith is a director of the Association and the The Association maintains a self-insurance program for $75,000 for 2006 and 2005. At December 31, 2006 and 2005, the designated for support of their ministry activities. Samaritan’s Purse chairman of The Keith Corporation. Mr. Keith did not participate in hospitalization, medical, and dental coverage for its employees. The estimated liability for these claims approximated $860,000 and received and forwarded contributions totaling $289,429 in 2006 the Board approval of the agreement. The agreement with The Keith Association limits its losses through the use of stop loss policies from $855,000, respectively, and is included in accrued expenses. and $344,696 in 2005 to the Association designated for support of Corporation stipulates that the Board of Directors of the Association a re-insurer. Specific individual losses for claims were limited to the Association’s ministry activities. determine that any fees paid under the agreement are to be at or During 2006, the Association received from Samaritan’s Purse below market rates. A review of the fees paid under the agreement cash grants totaling $3,026,039 and in-kind contributions valued has been performed and it was determined that fees paid are at or 10. RELATED PARTY TRANSACTIONS at $688,068 for various ministry projects. In addition, the below market rates. The agreement further requires full disclosure Association and Samaritan’s Purse began a multi-year joint to the Board of Directors and determination at the conclusion of the The Association partners with local organizations to host Association, LTD., Vozrozhdeniye, and Geschenke der Hoffnung (the ministry project in Southeast Asia for which the Association has agreement of the reasonableness of profits, if any. A review of the domestic evangelistic crusades and festivals. In conjunction with International Affiliates) to further the global ministry of the incurred expenses of $832,562 in 2006. Samaritan’s Purse also reasonableness of profits earned from construction of the these activities, the Association received designated contributions Billy Graham Evangelistic Association. The Association does not reimbursed the Association $790,522 for expenses incurred on headquarters building was performed in 2005, and the Board of for these events totaling $565,423 and $2,240,940 in 2006 and control the board of directors of these organizations. In conjunction behalf of Samaritan’s Purse. Directors has concluded that The Keith Corporation did not earn a 2005, respectively. As of December 31, 2006 and 2005, the with these activities, the Association received and forwarded Other evangelistic ministry includes contributions of $780,731 in profit on this phase of the agreement. A similar review will be Association had accounts receivable totaling $339,441 and contributions totaling $20,000 and $15,000 in 2006 and 2005, 2006 and $845,700 in 2005 to Wheaton College and $97,500 in performed after construction of the Billy Graham Library is $148,067, respectively from the local organizations. For the years respectively, to the International Affiliates. For the years ending 2006 and $103,000 in 2005 to Gordon-Conwell Theological completed. The Keith Corporation was paid $366,863 in 2006 and ending December 31, 2006 and 2005, the Association provided December 31, 2006 and 2005, the International Affiliates Seminary. The Association shares several common board members $303,994 in 2005 in connection with the design and construction of funding to the local organizations totaling $1,817,122 and reimbursed the Association $1,453,209 and $704,552, respectively. with these institutions but does not control the board of directors of the headquarters and library buildings. $4,382,563, respectively. As of December 31, 2006 and 2005, the Association had accounts The Association has entered into “Affiliate Ministry Agreements” receivable totaling $152,022 and $320,586, respectively from the International Affiliates. with Billy Graham Evangelistic Association of Australia, Billy Graham Scripture quotations marked NIV are taken from the Holy Bible, New International Version. ©1973, 1978, 1984 by International Bible Society. Used by permission of Zondervan Publishing House. All rights reserved. Scripture Evangelistic Association of Canada, Billy Graham Evangelistic quotations marked NKJV are taken from the New King James Version, ©1982 by Thomas Nelson, Inc. Used by permission. All rights reserved.

Testimonies used throughout this report are actual comments and stories received by the Billy Graham Evangelistic Association. BGEA is a charter member of the Evangelical Council Names have been changed to protect the privacy of individuals. for Financial Accountability (ECFA).

48 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION 49 BILLY GRAHAM EVANGELISTIC ASSOCIATION AND AFFILIATED ORGANIZATIONS

11. SCHEDULE OF FUNCTIONAL EXPENSES

FOR YEAR ENDING DECEMBER 31, 2006

MINISTRY FUND- GENERAL AND EXPENSES RAISING ADMINISTRATIVE TOTAL

Grants and scholarships $ 3,517,360 $ – $ – $ 3,517,360 “We, who Salaries and wages 22,177,495 1,253,522 6,318,203 29,749,220 Retirement 1,167,754 67,973 345,880 1,581,607 Employee benefits 2,948,073 169,225 868,927 3,986,225 Payroll taxes 1,680,531 97,494 476,801 2,254,826 with unveiled Accounting and audit fees 103,712 – 197,886 301,598 Legal fees 73,077 34,412 77,559 185,048 Professional services 1,115,170 39,468 204,006 1,358,644 faces all Contract labor 4,841,643 16,525 197,285 5,055,453 Other personnel expenses 746,030 42,021 527,226 1,315,277 Supplies 2,179,104 34,775 272,292 2,486,171 Telephone 1,287,765 23,690 163,048 1,474,503 reflect the Postage and shipping 9,153,798 451,136 168,019 9,772,953 Utilities and occupancy 1,278,934 18,486 221,759 1,519,179 Equipment rental and maintenance 1,020,006 7,316 357,780 1,385,102 Printing 6,063,689 231,035 73,233 6,367,957 Lord’s glory, Travel 5,946,287 147,769 366,186 6,460,242 Advertising and promotion 12,440,603 187,300 129,148 12,757,051 Free offers 1,293,265 86,486 22,203 1,401,954 Broadcasting and production 13,067,838 58,418 86,733 13,212,989 are being Other event costs 6,895,632 – 11,735 6,907,367 Conferences, conventions, and meetings 197,759 49,759 39,554 287,072 Interest expense 2,962 310 4,043 7,315 Insurance 633,866 12,747 114,510 761,123 transformed Miscellaneous 453,445 7,898 85,584 546,927 Depreciation and amortization 5,150,011 110,377 907,549 6,167,937 into his Total Operating Expenses $ 105,435,809 $ 3,148,142 $ 12,237,149 $ 120,821,100

FOR YEAR ENDING DECEMBER 31, 2005 likeness MINISTRY FUND- GENERAL AND EXPENSES RAISING ADMINISTRATIVE TOTAL Grants and scholarships $ 5,210,122 $ – $ – $ 5,210,122 with ever- Salaries and wages 21,513,936 1,571,189 6,021,029 29,106,154 Retirement 1,300,359 78,595 295,000 1,673,954 Employee benefits 3,603,417 262,065 1,026,737 4,892,219 Payroll taxes 1,484,918 110,345 600,583 2,195,846 increasing Accounting and audit fees 82,429 – 54,088 136,517 Legal fees 56,802 19,269 48,840 124,911 Professional services 1,218,629 13,857 711,259 1,943,745 Contract labor 4,256,318 32,082 168,598 4,456,998 glory, which Other personnel expenses 985,393 24,085 493,899 1,503,377 Supplies 2,408,562 71,563 362,628 2,842,753 Telephone 1,418,314 24,241 182,866 1,625,421 Postage and shipping 11,123,544 603,268 135,423 11,862,235 comes from Utilities and occupancy 1,373,658 22,456 250,055 1,646,169 Equipment rental and maintenance 893,121 10,538 318,447 1,222,106 Printing 6,331,198 295,950 39,072 6,666,220 the Lord.” Travel 6,806,217 204,594 319,194 7,330,005 Advertising and promotion 15,253,635 312,537 53,946 15,620,118 Free offers 1,458,596 87,067 8,132 1,553,795 Broadcasting and production 16,324,492 244,666 23,580 16,592,738 Other event costs 9,858,202 – – 9,858,202 —2 CORINTHIANS 3:18, NIV Conferences, conventions, and meetings 283,751 37,486 71,535 392,772 Interest expense 6,898 78 87,677 94,653 Insurance 774,282 18,807 59,421 852,510 Miscellaneous 768,084 15,117 163,020 946,221 Depreciation and amortization 7,032,275 177,593 432,532 7,642,400

Total Operating Expenses $ 121,827,152 $ 4,237,448 $ 11,927,561 $ 137,992,161

50 2006 ANNUAL REPORT BILLY GRAHAM EVANGELISTIC ASSOCIATION T R O P E R L A U N N A 6 0 0 2

THIS IS THE BILLY GRAHAM EVANGELISTIC ASSOCIATION

1 Billy Graham Parkway • Charlotte, NC 28201-0001 TELEPHONE: 704-401-2432 WEB SITE: billygraham.org

My Hope World Evangelism Television Project 45161 4473 Printed in the U.S.A. ©2007 BGEA