The Foundation of the Roman Catholic Diocese of Albany,

2006 Annual Report

The Foundation of the Roman Catholic Diocese of Albany, New York

40 North Main Avenue Albany, New York 12203 518.453.8442 www.rcda.planyourgift.org We are called upon not only to continue the work of the Church, but Mission Statement to enlarge and increase it - to lay new foundations broader and deeper - to plant seed for larger growth, that the tree’s branches The mission of The Foundation of the Roman Catholic Diocese of Albany is to pro - vide an opportunity for individuals and organizations to ensure the ongoing and long may spread out, that you and your children may sit beneath its shade term financial stability and vitality of religious, charitable and educational institutions, programs and services of the Roman Catholic Diocese of Albany. and partake of its refreshing fruit. The Foundation fulfills this mission by:

• seeking endowment, quasi endowment and current funds that foster John Cardinal McCloskey and support the programs, services, aims and goals of the Church of Albany.

First Bishop of Albany • assisting parishes, schools, service organizations and other Catholic organizations in meeting their ongoing and long term financial needs.

• assisting donors in achieving their charitable and financial goals. 2 • providing responsible and effective financial management of Foundation investments.

• distributing net earnings and income according to the wishes of participating entities, donors and the distribution policy of the Foundation. Mr. Stephen Bouchey Board of Trustees Principle, Bouchey Financial Group

The Most Reverend Howard J. Hubbard Mr. John Hayes Bishop of Albany Vice President, MM Hayes President Sister Maureen Joyce, R.S.M. Reverend Michael Farano Chief Executive Officer-Catholic Charities of the Vicar General and the Moderator of the Curia Diocese of Albany Vice President Sister Jane Herb, I.H.M. Mr. Richard Farrell Superintendent- Catholic Schools of the Diocese of Chief Financial Officer of the Roman Catholic Diocese Albany of Albany Treasurer Mr. Richard Thiesen (Elect) Vice President - Key Bank Mr. Michael Costello, Esq. Partner, Tobin and Dempf Mr. John Murray (Elect) Counsel to the Foundation President - Rose and Kiernan Insurance, Surety and A Message From Our Bishop Benefit Services Mr. John Smircich Vice President, Wachovia Securities Mr. James Morrell (Elect) Secretary to the Foundation Corporate Vice President of Human Resources - MVP Healthcare

Rev. Stephen Morris (Elect) My dear brothers and sisters in Christ, Advisory Committee Pastor, St. Paul the Apostle (Hancock)

It is my pleasure to present The Foundation of the Mr. William Barrett Roman Catholic Diocese of Albany's 2006 Annual Chief Investment Officer-Office of the New York Staff to the Foundation 4 Report. At the close of the 2006 fiscal year, assets State Comptroller under management by the Foundation surpassed Mr. James Michael Kopp $29,000,000. These funds have been entrusted to Mr. Mark Morrison Executive Director the Foundation to secure the long term financial Vice President - Private Banking - Key Bank health of our parishes, schools and other essential Ms. Nicki Pezzulo ministries. The 'Church of Albany', therefore is Mr. Matthew Fitzgerald Assistant Director stronger because of the insight of the individuals, families and communities listed in this annual Reverend James Donlon Mr. John Hutchinson report. Judicial Vicar -Roman Catholic Diocese of Albany Assistant Treasurer Future generations of Catholics in the Albany Reverend Joseph Cebula Diocese will look back on this moment as we do our Pastor, Our Lady of the Assumption (Rotterdam) predecessors who crafted the sacred churches in which we worship and the schools where our chil - Reverend Peter Pagones dren are educated. They will be grateful to these Pastor, St. Paul the Apostle (Schenectady) people, but perhaps more importantly, they will fol - low their examples of generosity. Reverend Winston Bath Pastor, St. Mary's (Hudson) To those who went before us, I thank you. To those of us inspired by them, please page through this Mr. Robert Flynn annual report to see all the ways that you too may make a difference. Mr. Kevin Harrigan Vice President - Commercial Banking - Citizens Bank Sincerely Yours, Ms. Susan Tobin

Mrs. Mary Beth O'Brien Howard J. Hubbard Bishop of Albany Leave A Legacy Of Love How To Establish An Endowment Pass On The Gift Of Faith Making the Decision

What will be your legacy? Establishing an endowment with The Foundation of the Roman Catholic Diocese of Albany is a significant act of charity. We make the process of establishing a fund as simple as possible. At all stages in your life, The Foundation of the Roman Catholic Diocese of Albany can help you find a meaningful way to benefit others through your generosity. There are a few basic decisions you need to make:

Legacy giving is not only for those with wealth. The value of the gift isn't measured by the size or the • How much do you wish to contribute to open your fund? amount, but rather by the amount of spirit put into the act of giving. (Endowment funds may be opened with a minimum contribution of $10,000)

Depending on your needs, you may choose a giving method that can offer significant tax advantages, • How do you wish to make your contribution? Will you use cash, appreciated reduce future estate taxes, and/or provide a steady income for you and your loved ones. Some of the stock, real estate or some other asset? options include: charitable bequests in your will, memorial funds that honor family members or other loved ones, charitable gift annuities, trusts, donations of property or investments, designating the • Do you want the fund to be in your name, that of a relative or loved one, Foundation as a beneficiary of your retirement plan, or using a life insurance policy to make a gift. in memory of someone special in your life, or some combination of these?

If you would like to leave a legacy of love and pass on the gift of faith, but have questions on how to • What parish, program, ministry or school do you want to benefit from your fund? meet your specific financial and charitable goals, call The Foundation of the Roman Catholic Diocese of Albany. The Foundation Office may be reached at 518-453-8442 or visit us online at Once you have made these decisions, let us know. We will sit down with you and discuss your choices. www.rcda.planyourgift.org Based on our discussion, we will draw up a simple, two-page endowment agreement that details your charitable intentions.

5 Adding to an Existing Fund 6

The Foundation may already hold an endowment fund that benefits your parish, school or favorite Catholic charity. If that is the case, you might wish to add to that fund rather than open one of your own. You decide how much you would like to contribute, if you want to do it now or at your death, and if you wish to use cash or other appreciated assets to make your gift. Notify us of your decisions, and we will take care of the rest. Establishing an Endowment Through Your Estate

Planning a gift through your estate qualifies you for automatic membership in the John Cardinal McCloskey Society. Methods Of Giving Donor Advised Funds

A gift to The Foundation of the Roman Catholic Diocese of Albany occurs when a donor decides to A donor advised fund is a giving option offered by The Foundation of the Roman Catholic Diocese of transfer ownership of something with monetary value either now or at the time of death. A donor may Albany that some of our donors have found to be a convenient and flexible alternative for their charitable direct the benefits of a gift to one or more beneficiaries, for example, a parish, school, program or giving. With a donor advised fund, the donor may make substantial gifts to the fund in profitable years ministry. and/or periodic gifts to the fund over a period of years. When the donor wishes to make charitable contributions, they advise the Foundation regarding the Diocesan programs and organizations they The Foundation offers an extensive array of methods of giving to meet its donors' charitable and would like supported by the fund. financial needs. Here is a chart of some of the most commonly used giving options. The Foundation of the Roman Catholic Diocese of Albany fully invests the assets and the donor is able to make suggestions about distributions of income from the fund. Therefore, over time the donor has more money to contribute to charity than would have been available through their original gift(s).

Type of Gift Form of Gift Benefit to Church Benefit to You Any person or corporation may create a donor advised fund. Gifts may be in the form of cash, securities or other appreciated property. Distributions from a donor advised fund may be directed to Diocesan Catholic entities. At the end of the donor's life, the remaining assets become a permanent Outright Gift -Cash -Perpetual income -Income tax deduction endowment fund in The Foundation of the Roman Catholic Diocese of Albany to fund beneficiaries of -Stock -Interest income used -No capital gains on the donor's choosing -Real estate by parishes, schools appreciated securities -Insurance and other Diocesan entities Donor Advised Funds as of June 30, 2006 Bequest -Cash -Bequest will fund -Possible estate tax -Real estate Church needs as deduction Venera R. Miller Donor Advised Fund -Personal property specified by donor Dr. Frank Thomas and Ms. Nancy O' Keefe Donor Advised Fund -Percentage of estate The Tucker Family Donor Advised Fund 7 -Remainder of estate The Joseph A. Regan Memorial Donor Advised Fund 8 -Remainder of estate after other obligations have been satisfied

Charitable Gift -Cash -Upon the death of the -Guaranteed fixed income Annuities -Stock donor or last surviving for life -Real estate annuitant, remaining -Portion of income is tax assets fund the parish, free school, program or -Income tax deduction ministry as specified -Reduction of estate by the annuitant taxes

Insurance Policies -Name the Foundation -Foundation receives full -Opportunity to make as the beneficiary of face value upon the death substantial future gifts the policy of the donor or may to the Church at current receive current surrender manageable cost value prior to the -Income tax deduction donor's death for value of the policy when transferred -Premium payments may be tax deductible

Charitable Remainder -Cash -Foundation receives -Variable or fixed income Trusts -Securities substantial future gift -Option to defer income -Real estate to support the work of -Income tax deduction the Church -Reduction of estate taxes

Retirement Plan -Name Foundation -Significant gift upon -Estate and income tax as beneficiary the death of the donor advantages Diocesan Parish, School, And Catholic Charities Agency Funds

The Foundation of the Roman Catholic Diocese of Albany is structured in such a way as to encourage Catholic Charities Agency Current - Future Funds as of June 30, 2006 and facilitate the creation of 'agency accounts' by every parish, school, Catholic Charities agency or other Diocesan entity. Any Diocesan 'entity' may establish, with a minimum of $10,000, a 'current future' Catholic Charities of Schenectady County fund. A 'current future' fund is identical in all respects to an endowment fund with the exception that the Schenectady, New York principal within a 'current future' fund may be withdrawn after five years. This is not encouraged, however, in that the purpose of a 'current future' fund is to build the principal, so that the yearly interest increases, thereby allowing the Diocesan entity to plan for an additional and increasing revenue stream Catholic School Current - Future Funds as of June 30, 2006 for its operating budget. Blessed Sacrament Elementary School Notre Dame Bishop Gibbons High School Albany, New York Schenectady, New York

Blessed Sacrament Elementary School Building Fund Saint Pius X Elementary School Albany, New York Loudonville, New York

Saint Thomas the Apostle Elementary School Saint Patrick's Academy Parish Current - Future Funds as of June 30, 2006 Delmar, New York Catskill, New York

Saint Anthony and Saint Joseph Roman The Cathedral of the Immaculate Conception Herkimer, New York Albany, New York Diocesan Endowment and Current - Future Funds as of June 30, 2006

The Roman Catholic Church of the Annunciation Saint Teresa's Roman Catholic Church Catholic Charities Endowment Fund Diocese of Albany Endowment Fund Ilion, New York Windham, New York The income from this endowment supports the varied The income from this endowment supports the varied operations of Catholic Charities of the Diocese of operations of the Roman Catholic Diocese of Albany. Saint Joseph's Roman Catholic Church Sacred Heart Roman Catholic Church Albany. 9 Greenfield Center, New York Gloversville, New York Diocese of Albany Grant Fund 10 Diocesan Evangelization Fund The income from this endowment supports the varied Saint John the Evangelist Roman Catholic Church Saint Mary's Roman Catholic Church The income from this endowment enhances the operations of The Foundation of the Roman Catholic Rensselaer, New York Hudson, New York capacity of parishes to provide youth ministry and Diocese of Albany. catechesis programs. Saint Casimir's Roman Catholic Church Saint Alphonsus Roman Catholic Church Diocese of Albany School Office Fund Amsterdam, New York Glens Falls, New York Diocesan Leadership Fund The income from this endowment supports the varied The income from this endowment supports leadership operations of the Schools Office of the Roman Saint Paul's Roman Catholic Church Saint James Roman Catholic Church development initiatives for ordained and lay leader - Catholic Diocese of Albany. Greenfield Center, New York North Creek, New York ship within the Diocese of Albany.

Saint Peter's Roman Catholic Church Saint John the Baptist Roman Catholic Church Troy, New York Chestertown, New York Donor Created Endowment and Current - Future Funds as of June 30, 2006

The Roman Catholic Church of Assumption/Saint Paul Saint Francis De Sales Roman Catholic Church Catholic Charities Housing Office Endowment Fund Catholic Charities of the Diocese of Albany Berrigan- Mechanicville, New York Loudonville, New York The fund, created by an anonymous donor, supports Powers Trust the operations of the Catholic Charities Housing The fund, established in 1996 through an estate gift Saint Paul the Apostle Roman Catholic Church Saint Patrick's Roman Catholic Church Office. of Joseph A. Powers, supports programs of Catholic Hancock, New York Cambridge, New York Charities of the Diocese of Albany that provide sup - The Reverend William F. Girard Memorial port to the elderly. Saint Paul's Roman Catholic Church Holy Spirit Roman Catholic Church Endowment Fund Rock City Falls, New York East Greenbush, New York The fund, established by Fr. Girard's family in 1996, Helen and Pauline Dermody Endowment Fund supports the parishes of St. Ann's and St. Phillip's Established in 1996 through the generosity of James Saint Bridget's Roman Catholic Church Roman Catholic Churches and is to be used for a Dermody, the fund benefits St. Margaret Mary Roman Copake Falls, New York specific humanitarian and or education need within Catholic Church in Albany and Catholic Charities of those parishes. Albany - Rensselaer County. Mr. And Mrs. Robert G. Feuerriegel, Sr. Family Fund The Francis J. Urbano Endowment Fund Established in 1996 through the generosity of Mr. and Established by Ms. Nancy Urbano in 2003 in memory Mrs. Robert G. Feuerriegel of Schenectady, the fund of her husband Francis, this fund provides yearly benefits St. Joseph's Roman Catholic Church in support to seminarians studying for ministry in the Schenectady. Roman Catholic Diocese of Albany.

Very Rev. Msgr John E. Maney Memorial Fund The Frank and Katherine Roos Memorial Endowment Established in 1996 by Ruth Maney, the fund sup - Fund ports vocation awareness and seminarian develop - Rev. John Roos established this fund in 2004, in ment in the Diocese of Albany. memory of his mother and father, to provide yearly assistance to Catholic Charities of the Diocese of Lee and Richard F. Lindstrom Fund Albany. Established in 1996 by Lee and Richard Lindstrom, this fund provides yearly support to Catholic Charities The Kenneth and Thelma Lally Partnership in Disabilities Services. Education Fund Established by Mr. Kenneth and Mrs. Thelma Lally in Rabbi Silverman - Bishop Hubbard Interfaith 1999, this fund provides need based scholarships to Sculpture Fund those attending Catholic schools in the Diocese of Established in 1997 through the generous contribu - Albany. tion of the Silver - Way Fund of The Foundation of the Jewish Community, this fund ensures the perpet - The Peggy Ciesinski Hennessy Scholarship ual care of the 'Portal' sculpture, located on the Endowment Fund grounds of the Cathedral of the Immaculate Created by the friends and family of Peggy Ciesinski Conception. Hennessy in 2004, this fund provides scholarship assistance to a student attending Notre Dame - 12 The Lucy and Francis J. Miller Endowment Fund Bishop Gibbons High School. Established in 1999 through the generosity of Frank Miller, this fund provides for the maintenance of the The Sister Dolores Hanlon Scholarship Endowment Cathedral of the Immaculate Conception. Fund Established in 2004 through the generosity of Ms. The Bishop Edwin Broderick Endowment Fund Shelia Blasch, this fund provides scholarship assis - Established in 2000 by Bishop Edwin Broderick, this tance to a student attending Notre Dame - Bishop fund supports the general operations of the Roman Gibbons High School. Catholic Diocese of Albany . The North Creek Cemetery Trust Endowment Fund The Munzer Family Endowment Fund Established in 2006, this fund provides perpetual Established in 2000 by Ms. Marion Munzer, this fund operating support to the cemetery at St. James' supports Catholic Charities of the Diocese of Albany Roman Catholic Church in North Creek. in meeting the needs of the 'hungry and homeless' in the Capital Region. The Society of the Propagation of the Faith This fund provides yearly support to the Diocesan The Rosemary Eber Endowment Fund chapter of the Society of the Propagation of the Faith. Established in 2002 by Manuel Eber in memory of his wife Rosemary, this fund provides yearly operating Saint Vincent DePaul Society Chapter of the Roman support to Catholic Charities Disabilities Services. Catholic Church of the Immaculate Conception This fund provides need based scholarship support The St. Mary's Institute Class of 1952 Alumni for students entering Catholic Schools in the Diocese Endowment Fund of Albany. Established by Mr. and Mrs. Michael Cuddy, this fund provides tuition assistance to needy families who wish to enroll their children in St. Mary's Institute in Amsterdam. The Office Of Evangelization And Cathechesis Scholarship Fund

Grants to Rural and Urban Parishes Grant Awards 2004 - 2005 As a result of Capital Campaign 2000, an endowment fund was established in The Foundation of the Roman Catholic Diocese of Albany to provide support for a competitive grant program to enhance the evangelization and cathechesis programs of parishes in the Roman Catholic Diocese of Albany. These • $16,500.00 to the Catholic Community of Our Lady of Hope, St. Ann's, and St. Philip's in awards are given according to parish/cluster need. In 2006, the criteria for awards was expanded to all Whitehall for continued salary support of the pastoral associate for faith formation and youth parishes in the Diocese of Albany due to the needs surfaced through pastoral planning and the collabo - ministry and related program expenses. ration among parishes in geographical areas. The awards are given for 1-3 years, must be applied for annually, and require mid-year and end-of-year evaluations. The maximum annual award is $20,000.00 • $12,000.00 to St. John Francis Regis, Grafton and Sacred Heart, Berlin, towards the salary of a for a parish/cluster. Since inception, the grants to rural and urban parishes have totaled $445,352. part-time professional catechetical leader and secretarial assistance.

• $10,000.00 to Holy Cross, Salem and St. Patrick's, Cambridge, towards a part-time youth minister/adult faith formation leader.

Grant Awards 2001 - 2002 • $10,000.00 to St. Thomas, Cherry Valley and St. Joseph, Richfield Springs, towards the hiring of a professional catechetical leader to develop a cluster catechetical program. • $20,000.00 to Northern Points Cluster - Blessed Sacrament, Hague, St. John the Baptist, Chestertown, and St. James, North Creek, towards the salary of a cluster youth minister and • $10,000.00 to St. James, Fort Plain and St. Patrick's, Johnsville, towards the hiring a related program expenses. professional catechetical/youth ministry leader to serve both communities.

• $5,000.00 to St. James, St. John-St.Ann, the Cathedral and St. Teresa's in Albany towards the Grant Awards 2002 - 2003 staffing and development of a cluster catechetical program for grades 7-12, computer purchase and related technology support. • $20,000.00 to Northern Points Cluster - Blessed Sacrament, Hague, St. John the Baptist, • $5,000.00 to St. Luke's Church in Schenectady to increase the position and salary of the parish 13 Chestertown, and St. James, North Creek, towards the continued salary of a cluster youth 14 minister and related program expenses. catechetical leader to diocesan pay scale.

• $3,5000.00 to St. Margaret of Cortona in Rotterdam towards the hiring of a part-time youth Grant Awards 2003 - 2004 ministry leader.

• $1,000.00 to St. Paul's Parish Community in Rock City Falls to purchase adult print media for • $20,000.00 to the Catholic Community of Our Lady of Hope, St. Ann's, and St. Philip's in new parish library. Whitehall for continued salary support of the pastoral associate for faith formation and youth ministry and related program expenses.

• $20,000.00 to St. Luke's in Schenectady to expand the position of the catechetical leader, to purchase computer and office furniture, and to initiate two new programs - summer vacation bible school and liturgy of the word for children.

• $16,000.00 to Northern Points Cluster - Blessed Sacrament, Hague, St. John the Baptist, Chestertown, and St. James, North Creek, towards the continued salary of a cluster youth minister and related program expenses.

• $12,000.00 to St. Joseph/St. John, Rensselaer towards the salary of a part-time youth minister and related program expenses.

• $5,500.00 to St. Margaret of Cortona in Rotterdam towards the hiring of a part-time youth ministry leader and computer purchase.

• $2,000.00 to St. Paul's Parish Community in Rock City Falls to purchase a mobile library unit for their adult faith formation library, books and related supplies.

• $400.00 to St. Mary's Church in Oneonta to initiate a Lenten retreat program for their parish and the surrounding community. 2006 Beneficiaries Of Catholic Foundation Funds

Grant Awards 2005 - 2006 The following organizations received one or more gifts from The Foundation of the Roman Catholic Diocese of Albany during the 2006 fiscal year. as a result of distributions specifically designated from endowment or donor advised funds: • $15,000.00 to the Catholic Community of Our Lady of Hope, St. Ann's, and St. Philip's in Whitehall for continued salary support of pastoral associate for faith formation and youth ministry and related program expenses. • Saint Anthony's - Saint Joseph's Roman Catholic Church (Herkimer, New York) • $10,000.00 to St. John Francis Regis, Grafton and Sacred Heart, Berlin, towards the salary of a • The Roman Catholic Church of the Annunciation (IIion, New York) part-time professional catechetical leader and secretarial assistance. • Catholic Charities of Schenectady County • St. Joseph's Roman Catholic Church (Greenfield Center, New York) • $10,000.00 to St. Thomas, Cherry Valley and St. Joseph, Richfield Springs, towards the salary • Saint John the Evangelist Roman Catholic Church Parish Center (Rensselaer, New York) of a professional catechetical leader to direct a cluster catechetical program. • Saint Casimir's Roman Catholic Church (Amsterdam) • $15,000.00 to St. James, Fort Plain and St. Patrick's, Johnsville, towards the hiring of a • Saint Paul's Roman Catholic Church (Rock City Falls, New York) professional catechetical/youth ministry leader to serve both communities. • Saint Peter's Roman Catholic Church (Troy, New York) • The Roman Catholic Churches of Assumption - St. Paul (Mechanicville, New York) • $7,000.00 to St. James, St. John-St.Ann, the Cathedral and St. Teresa's in Albany towards the • Saint Vincent DePaul Society Chapter of the Roman Catholic Church of the Immaculate staffing and computer expenses in developing a cluster catechetical program for grades 7-12. Conception (Glenville, New York) • $3,000.00 to St. John/St. Joseph, Rensselaer toward the development of a comprehensive • Roman Catholic Diocese of Albany youth ministry program. • Saint Bridget's Roman Catholic Church (Copake Falls, New York) • Saint Ann's - Saint Phillip's Roman Catholic Church (Fort Ann, New York) • Catholic Charities of the Diocese of Albany 15 • Saint Margaret Mary's Roman Catholic Church (Albany, New York) 16 • Catholic Charities of Albany - Rensselaer Counties • Saint Joseph's Roman Catholic Church (Schenectady, New York) • Vocations Office of the Roman Catholic Diocese of Albany • Catholic Charities Disabilities Services • Cathedral of the Immaculate Conception (Albany, New York) • Saint Mary's School (Amsterdam, New York) • Community Maternity Services • The Foundation of the Roman Catholic Diocese of Albany • Diocesan Schools Office • Notre Dame - Bishop Gibbons Diocesan High School • Saint James Roman Catholic Chruch (North Creek, New York) • Catholic Charities Housing Office • Women's Commission of the Roman Catholic Diocese of Albany • St. Ann's and St. John's Roman Catholic Church Food Pantry Program (Albany, New York) • Saint Mary's Roman Catholic Church (Crescent, New York) • Pyramid Life Retreat Center • Ladies of Charity 2006: The Year In Review

Growth in Distributions and Assets Under Management

The Foundation of the Roman Catholic Diocese of Albany paid over $940,000 in distributions and grants in the fiscal year ending June 30, 2006. Since inception in 1996, distributions to eligible accounts within The Foundation of the Roman Catholic Diocese of Albany have increased 3,800%, providing more than $4,000,000 to support the spiritual, educational and social needs of our Catholic community. Additionally, assets under management within the Foundation have increased over 900% in the last ten years. For the fiscal year ending June 30, 2006, assets under management by the Foundation's were $29,750,364.

The Annual Foundation Awards Luncheon

On May 23, 2006, leaders from throughout the Capital Region gathered together to celebrate The Foundation of the Roman Catholic Diocese of Albany. Rhea Clark, Daniel Hogarty and Jack Manning were honored by Bishop Howard Hubbard for their years of leadership and devoted service. Kerry Robinson, current director of development of Yale's St. Thomas More Chapel and Founding Executive Director of the National Leadership Roundtable on Church Management, presented the keynote address entitled 'A Spirituality of Stewardship".

18

The Staff of the Development and Stewardship Office of the Diocese of Albany Pictured, left to right (back row) Laura Yaun - Director of Development for Catholic Charities, James Kopp - Executive Director of Development and Stewardship (front row) Nicki Pezzulo - Director of Development for Catholic Schools, Ellen Donovan - Director of the Bishop's Appeal and Parish Stewardship, Tom Prindle - Director of Development for the Cathedral of the Immaculate Conception Investment Philosophy

The Board of Trustees of The Foundation of the Roman Catholic Diocese of Albany, New York recognizes that a significant element in achieving successful investment results over time is the periodic review of the Foundation's investment objectives for both its investment funds.

The long term investment objective of the trustees is to produce, over any five year period, a total rate of return that equals or exceeds the spending rate as determined by the Board of Trustees, plus long term inflation as measured by the GDP price inflator, plus the costs of conducting the investment program.

As of October of 2006, the asset allocation targets established for the Foundation of the Roman Catholic Diocese of Albany were:

Equities: 60% Fixed Income: 40%

Equity managers are expected to produce a cumulative annualized total return, net of fees, commissions, and expenses that meet or exceed the S&P 500 over a rolling five year period. The purpose of the fixed income investment portfolio is to provide a source of liquidity and income with limited credit and interest rate risk. The goal of the portfolio is to achieve a return equal to or exceeding the Lehman Government- Corporate Credit Bond Index over a rolling five year period.

19 Diocese Current Futures Selected Period Performance As of June 30, 2006

Sector Market Value 07/01/1996 07/01/1997 07/01/1998 07/01/1999 07/01/2000 07/01/2001 07/01/2002 07/01/2003 07/01/2004 07/01/2005 as of 06/30/2006 06/30/1997 06/30/1998 06/30/1999 06/30/2000 06/30/2001 06/30/2002 06/30/2003 06/30/2004 06/30/2005 06/30/2006

Cash and Cash Equivalent -444 4.24 2.98 4.49 5.51 5.20 2.05 .84 .53 4.29 90 Day TBill 5.26 5.23 4.74 5.18 5.89 2.66 1.53 .98 2.15 3.98

Equity-Mgd 14,848,480 34.31 29.60 22.83 6.70 -14.92 -17.34 .22 18.69 6.17 8.47 S&P 500 34.71 30.17 22.75 7.25 -14.83 -17.99 .25 19.11 6.32 8.63

Fixed Income Mgd 9,735,284 6.79 11.03 2.54 4.97 9.50 7.95 11.54 -1.98 6.01 -1.70 Lehman US Treasury 7.30 11.32 2.97 5.32 9.83 8.48 11.94 -1.65 7.05 -1.14

Total Account-All Assets 24,583,320 20.44 20.34 13.42 5.64 -3.09 -4.43 7.16 10.25 6.15 4.40 My dear brothers and sisters in Christ,

Thank you for taking the time to both review and reflect upon the stories contained within the Foundation of the Roman Catholic Diocese of Albany's 2006 Annual Report.

In the magnificent Pastoral Constitution of the Church in the Modern World, Gaudium et Spes, the Second Vatican Council clearly indicated that

The Church does not only communicate divine life to men but in some way casts the reflected light of that life over the entire earth, most of all by its healing and elevating impact on the dignity of the person, by the way in which it strengthens the seams of human society and imbues the everyday activity of men with a deeper meaning and importance. Thus through her individual matters and her whole community, the Church believes she can contribute greatly toward making the family of man and its history more human.

The ongoing and future ability of The Catholic Church to discharge the mission of Jesus Christ in the modern world, to heal through its charitable programs, to teach through its educational institutions and catechetical programs and to sanctify through the sacraments, is predicated, in large part, upon the ongoing generosity of the faithful.

When we are called to discipleship with Jesus Christ, the practice of stewardship no longer becomes an option. Our acceptance of such a call, to participate with our Savior in advancing 'the kingdom of God', compels us to share abundantly, with those who have not been as richly blessed, our time, talent and treasure.

The Foundation of the Roman Catholic Diocese of Albany provides, to each of us, a vehicle whereby we may respond to the call of the Church to contribute greatly toward making the family of man and its history more human. Whether by establishing a donor advised or endowment fund, including the Foundation as the beneficiary within your will or retirement plan or by establishing a charitable gift annuity, you may rest assured that your gift will be utilized exactly as you intend to promote the sacred dignity of the human family through the programs and ministries of the Roman Catholic Diocese of Albany.

Sincerely,

James Michael Kopp Executive Director The Foundation of the Roman Catholic Diocese of Albany, New York

2006 Annual Report

The Foundation of the Roman Catholic Diocese of Albany, New York

40 North Main Avenue Albany, New York 12203 518.453.8442 www.rcda.planyourgift.org