2007 ANNUAL REPORT C1 “How shall we picture the kingdom of God? . It is like a mustard seed . ” —MARK 4:30-32 The Mustard Seed Foundation is a Christian family foundation established in 1983 under the leadership of Dennis W. Bakke and Eileen Harvey Bakke. The Foundation was created as an expression of their desire to be faithful stewards of the financial resources entrusted to them, to bring together the Christian members of their extended families into common ministry, and to advance the Kingdom of God. The Foundation provides grants to churches and Christian organizations worldwide that are engaged in Christian ministry including outreach, discipleship, and economic empowerment. The Foundation also awards scholarships to Christians pursuing advanced educational degrees in preparation for leadership roles in both the Church and society. All directors and staff of the Mustard Seed Foundation are committed followers of Jesus Christ and affirm the Lausanne Covenant. C2 Dear friends of the Mustard Seed Foundation, When we started the Foundation in 1984, we did not have Over 1,000 students attending Christ-centered colleges and a fully developed philosophy of giving that would guide this seminaries outside the United States received $1.5 million in organization into the future. We did surround ourselves with scholarships through our Theological Education program. people of faith from both the Bakke and Harvey families to Another 57 students enrolled at Bakke Graduate University help us discern what good stewardship meant. Over the years, (BGU) were awarded scholarships for their work toward a simple approach evolved. Doctorate or Masters degrees. Of these scholarships, 77% were awarded to students who live and minister outside the The resources entrusted to us don’t belong to us: God has called United States. us to be stewards or caretakers. We chose to consume as few of those resources for own lifestyle as reasonable, consistent The year also marked the beginning of a new granting program, with our life callings, and to give the rest away in a thoughtful, Theology of Work. These grants are given to theological disciplined manner. institutions in the US and other parts of the world so that they can develop curriculum and courses to teach pastors, other Our primary granting strategy has been to discern what local Christian teachers, and lay people to connect Sunday with churches are doing around the world and participate with Monday. In its inaugural year, 11 Theology of Work grants them. In the early years of the Foundation’s giving decisions, totaling $88,000 were awarded. we recognized that in order for a ministry project to succeed, it needed to have local accountability and sustainability. We want to recognize and thank the 16 members of the staff, Churches are the embodiment of Christ in the world. Thus, who are ambassadors for Christ and for the Foundation. We over the years, we have matched thousands of initiatives welcomed Vivian Fayek from Cairo to our Middle East staff, that local churches around the world have launched and/ and bid goodbye to John Tooke, who retired in 2007 after six or financially supported. Our grants are intended to help a years as our wise and much beloved staff member in South project in its early years. Supported initiatives ultimately must Africa. We also want to recognize Eric Hornberger and be sustained through the work, prayers and financial support Lonni Jackson who, in addition to their regional leadership of the churches in their communities. responsibilities, assumed the roles of Executive Directors of the Foundation. We fund church sponsored efforts to reach their neighbors with the good news of Christ, to give economic power to the poor, The Junior Board, comprised of members of the Harvey and and to educate Christians to deepen their faith. We expect that Bakke families ages 13 to 18, awarded 17 grants totaling nearly each grant will accomplish something important in the church $200,000. Stuart Harvey succeeded Nathan Mansell as Board community and has some chance of being both sustainable Chair. On the Senior Board, Margaret Harvey Thompson and life changing for the people affected. Nearly $5 million, or became a permanent Board member and Carolyn Thompson 50% of Mustard Seed’s 2007 annual budget, was invested in and Elizabeth Bakke were elected to new five-year terms. We 943 local church initiatives. Over 88% of these grants went to are extremely grateful for the dedicated, wise participation of match local churches outside the United States. all of our board members. In addition to the core granting discussed above, the Looking ahead to 2008, we anticipate an operating budget Foundation funds four other initiatives. In 2007 our Harvey of $10 million, the largest in the history of the Foundation. Fellows Program provided $1.1 million in scholarships to 75 We plan to add a regional staff member in Southeast Asia, gifted Christian graduate students enrolled in elite universities and we will launch the Daniel Award, a scholarship program who are preparing to teach at secular universities or to pursue in India modeled after the Harvey Fellows Program. Most leadership positions in other important vocational fields. One importantly, we will celebrate 25 years of God’s faithfulness of the highlights of the year was the Harvey Fellows 15th Year to the Mustard Seed Foundation and our mission to support Celebration and Summer Institute in California, where nearly the work of Christ and his people around the world 100 current and past fellows came together for a rich time of In Christ, study and celebration. Dennis and Eileen Bakke 1 Guiding Principles CHRIST AND HIS KINGDOM The gospel of Jesus Christ and the advancement of his kingdom are central to all that we are and all that we do. It is our joy to worship and serve him and to submit ourselves to the authority of the Bible. We seek to be Christ’s servants and ambassadors and to encourage as many as will come to follow Christ. We seek to encourage the formation of disciples from every “unreached” community, city, and culture. We desire to see the whole Church bring the whole gospel to the whole world. Therefore, we award grants and scholarships to churches and individuals representing the spectrum of biblical Christianity, including Orthodox, Catholic, Protestant, and Evangelical traditions. We affirm God’s redeeming and restorative grace and power as sufficient to bring blessing to all structures, institutions, and societies. All grant and scholarship recipients of the Mustard Seed Foundation must proclaim a personal faith in Christ, affirm the basic tenets of orthodox Christianity, and desire to serve and witness in Christ’s name. GLOBAL The Mustard Seed Foundation recognizes the global nature of the Body of Christ. Therefore, we desire to participate in God’s work to encourage churches and individuals through grants and scholarships around the world. Our goal is to give the majority of our funding to churches and individuals worldwide, while intentionally limiting our investment in the United States. Since the Foundation’s inception in 1983, we have awarded grants and scholarships in nearly 150 countries. LOCAL CHURCH We recognize the Church as God’s primary representative in the world. Therefore, we try to maximize the role and responsibility of local congregations in the initiatives we support. We seek to partner with and empower local congregations to identify, equip, and support their members who are called to specific areas of ministry in the church, marketplace, and the world. We also consider local church support and accountability as primary indicators of the priority, integrity, and sustainability of any potential grant or scholarship initiative. INDIVIDUALS IN COMMUNITY We believe that God endows individuals with the passions and gifts needed to further the work of his Kingdom. We believe that God desires those whom he calls and equips to be both nurtured by and held accountable to the local Body of Christ. It is our belief that individuals are strongest and most able to fulfill their callings when they are integral members of a local church. Thus, in all our giving we seek to support individuals who are active members of a church community. The power of individuals to be agents of grace and change in community is exemplified in history. We therefore seek opportunities to empower individuals who are clearly affirmed and supported by their local church to use their unique gifts to fulfill their callings. SMALL BEGINNINGS The biblical parable of the mustard seed reminds us that great things often have small beginnings. Through abiding in Christ and following him our seemingly small efforts possess power beyond imagination. This parable exhorts us to respond faithfully to God’s calling but to trust outcomes to him. In our giving we seek to trust individuals and churches as they listen to God by taking small steps toward their visions. Therefore, our grants are available to churches, including those that may be poor, powerless, or unproven. We recognize that results cannot be guaranteed and that big results often have risky beginnings. We choose to specialize in small, start-up initiatives, trusting that what is sown in faith will return abundantly. 2 2007 Overview The Foundation’s expenditures totaled $9.4 million in 2007, roughly 15 percent more than 2006. Approximately 86 percent of these funds were given to individuals, churches, and Christian organizations through over 1,700 scholarships and 1,000 grants. The remaining 14.4 percent, or $1,352,246, was used to administer this work through an international team of 16 staff located in eight countries around the globe. Nearly 53 percent, or “$4,946,676, of total operating expenditures was given through grants primarily to local churches in major urban centers worldwide.