2 | GRACE CHURCH ANNUAL REPORT

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

PRIORITIES:• Increase the impact of the

Gospel locally and globally.

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

• Maintain commitment to biblical teaching and spiritual depth.

STRATEGIES:• Children at Risk

• Marriage

• Small Groups

• Generosity

• Multisite Locations

Increase the impact of the Gospel locally and globally.1

Ministry Priority #1

GRACE CHURCH ANNUAL REPORT | 3

Highlights from 2015-2016YOU AREHERE

• 56th Street packed approximately 140 shoeboxes for the Operation Christmas Child ministry.

• Each month 20-25 students went downtown to hand out food, clothing, and care packages; engage in conversations; and share the Gospel with the homeless and those struggling to meet basic needs.

• Continued to deepen our partnerships and outreach with the following community organizations:

- City of Eden Prairie

- Eden Prairie High School, Central Middle School, and all of our elementary schools, in partnership with Compass

- The PROP Shop & PROP

- New Beginnings High School in Chaska (teen moms), in partnership with One Less Child at Risk

• Sent 155 short-term, 6 mid-term missionaries.

• Supported 109 full time missionaries.

• Planted 3,233 churches.

• Partnered with 23 sister-churches.

• Trained more than 1,800 church planters.

• Accumulated over 4,000 followers on the Grace Church Facebook page.

• Averaged 500+ people who watch Sunday morning services via livestream.

• Reached over 1,000 households during the last 12 months with Fare for All food distribution coop.

• Served over 9600 meals for those coming for ministry at Care Nights.

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

Ministry Priority #2

4 | GRACE CHURCH ANNUAL REPORT

• 150+ junior and senior high students from Grace Church attended the Dare2Share event.

• Hosted Dare2Share conference equipping over 2,000 teens to share their faith.

• Launched The CAUSE for Children at Grace, a monthly missions education and prayer focus.

• Partnered with the Huduma School in Nairobi, Kenya with 750 kids, KEDC Egypt Awana for 25,000 kids in poverty, VBS missions trip programs in Haiti and Mongolia, and 600 orphans to homes and churches through The Timothy Initiative.

• Mentored and tutored 25 students through Arriba on Thursday nights.

• Senior Adults in The Gathering did outreaches through: Feed my Starving Children, Hope Academy, and New Beginnings.

Highlights from 2015-2016

2

Maintain commitment to biblical teachingand spiritual depth.

Ministry Priority #3

3• Over 20,000 verses memorized by children on Wednesday evenings.

• Through the Run for Your Life and the Road to Truth sermon series, over 4,700 adults went through the study guide workbooks together in small groups.

• 650 women attended “The Gather” event to study God’s Word and worship.

• 452 women participated in women’s Bible studies.

• Trained over 300 people in relational evangelism.

• Pastoral and church planter training as well as relational evangelism training in Vietnam and Kenya.

• 125 men completed the Man-Up teaching series.

• Hosted nearly 400 people for Biblical Counseling training this spring.

• 130 individuals received free Biblical Counseling care.

• 350+ individuals attended various marriage conferences hosted at Grace Church.

GRACE CHURCH ANNUAL REPORT | 5

Highlights from 2015-2016

6 | GRACE CHURCH ANNUAL REPORT

FISCAL YEAR 2016 CHURCH OFFERINGSNote: FY 2016 figures are unaudited

FUND BALANCESFISCAL YEAR 2016 INCOME/EXPENSE REPORT

BALANCE SHEETMay 31

2014May 31

2015 May 31

2016 UnauditedNote: FY 2016 figures are unaudited

Building FundFund Balance 5/31/15 $205,841

Offerings 410,784

Expenditures 399,816

Difference Income/Expenses 10,968

Fund Balance 5/31/16 $216,809

Missions/Outreach FundFund Balance 5/31/15 $547,718

Offerings 3,179,108

Designated Income 290,877

Expenditures 3,081,533

Difference Income/Expenses 388,452

Fund Balance 5/31/16 $936,170

Church MinistryRestricted Funds

Fund Balance 5/31/15 $1,941,166

Income 876,503

Expenditures 2,104,139

Difference Income/Expenses (1,227,636)

Fund Balance 5/31/16 $713,530

Church Ministries $8,154,441 $8,425,335 $8,261,315

Missions and Outreach 2,392,553 2,917,389 3,179,553

Building 587,605 454,690 410,784

Total Tithes and Offerings $11,134,599 $11,797,414 $11,851,652

Assets

Cash $3,764,413 $3,248,121 $2,929,826

Retail Inventory 64,116 49,601 28,930

Property/Equipment 46,200,553 45,322,161 43,830,049

Total Assets $50,029,082 $48,619,883 $46,788,805

Liabilities

Mortgage 8,603,096 7,666,540 6,958,521

Total Liabilities 8,603,096 7,666,540 6,958,521

Net Worth $41,425,986 $40,953,343 $39,830,284

Church Ministries FundFund Balance 5/31/15 $802,854

Income:

Tithes and Offerings 8,261,316

Other Income 17,092

Total Income 8,278,408

Expenditures 8,280,199

Difference Income/Expenses (1,791)

Fund Balance 5/31/16 $801,063

Retail MinistriesFund Balance 5/31/15 $166,900

Income 1,140,600

Expenditures 1,124,617

Difference Income/Expenses 15,983

Fund Balance 5/31/16 $182,883

FY 2014 FY 2015 FY 2016

Financial Information

Thank you for your generosity!

GRACE CHURCH ANNUAL REPORT | 7

World Strategic Local Missions Total Evangelism Vision Missions Services FundsFund Balance 5/31/15 $44,034 $481,871 $15,860 $5,953 $547,718

Income 1,780,300 1,242,859 224,288 222,538 3,469,985

Expenditures 1,355,053 1,357,869 211,960 156,651 3,081,533

Fund Balance 5/31/16 $469,281 $366,861 $28,188 $71,840 $936,170

FY 2017 Missions Budget $1,400,000 $750,000 $175,000 $175,000 $2,500,000

MISSIONS AND OUTREACH

CHURCH MINISTRIES

FISCAL YEAR 2017 PROPOSED EXPENSE BUDGETS

FY2016 FY2016 FY2017Budget Summary Budget Actual BudgetPersonnel $4,467,214 $4,390,888 $4,607,678

Sr. Pastor Initiatives 64,270 42,813 60,000

Music and Worship 185,480 182,186 181,330

Children Ministries 127,120 121,113 120,870

56th Street Ministries 5,800 4,638 5,500

Student Ministries 127,930 122,715 123,845

Involvement 37,400 38,428 30,450

Men’s Ministry 15,770 13,460 22,000

Women’s Ministry 27,970 26,909 26,600

Children at Risk 120,000 116,624 74,000

Multi-Site 297,820 91,744 320,320

Spiritual Depth 77,270 99,130 94,470

Care/Biblical Counseling 67,908 65,000 64,480

Executive Leadership 91,839 45,042 48,000

Communications 126,950 124,490 106,950

Tech Media 77,250 72,015 73,400

Administration 273,571 337,856 260,000

Grace Retreat Center 170,422 100,748 114,000

Information Technology 166,019 145,362 157,718

Facilities 489,491 566,308 465,000

Custodial 104,200 99,585 98,990

Utilities 625,000 572,546 593,800

Debt Service 850,599 850,599 850,599

Capital Improvements 50,000 50,000 50,000

Total Expenses $8,647,293 $8,280,199 $8,550,000

New Members Added During Fiscal Year 2016

Akuvi Akoumany

James Anderson

Christopher Barrella

Anna Behnen

Tim Behnen

Alex Bloomquist

Jordan Bloomquist

Drew Boe

Ryan Christenson

Brian Deem

Jason Derkevics

Pascha Derkevics

Barbara Drew

Raymond Drew

Laurie Evans

Angie Faber

Dan Faber

MaryAnn Ford

Robert Ford

JoLonna Frieling

Catherine Gennrich

Kevin Gennrich

Larry Green

Diane Gullman

Diane Gullman

Emily Hagen

James Henderson

Shirley Hiller

GraceAnn Kangas

Sharon Lindholm

Vern Lindholm

A.J. Literski

Jamie Literski

Butch Maciewski

Carol Maciewski

Katherine Maydahl

James McEliece

Julie McEliece

Bailey Meyer

Brad Narveson

Patty Narveson

Karl Nath

Milo Raaum

Marilyn Rhodes

Don Riley

Jennifer Riley

Annalisa Sawtell

Brian Sawtell

Wynn Schendel

Erice Schumann

Andy Seidensticker

Sherrie Seidensticker

Oliver Skurdahl

Barb Skurdahl

Chad Smith

Ellen Smith

Quay Smith

Walter Smith

Jake Stanczyk

Lindsay Stroia

Harlan Swanson

Alexandra Tabakov

Dmitriy Tabakov

Donald Tetamore

Gary Thompson

Joan Thompson

Ronald Wilkinson

Barb Wilkinson

Julie Wilson

Todd Wilson