General:

The IRS requires non-profit organizations to compile annual Assets and Liabilities Statements. Effective July 1983, the US Department of the Treasury certified the FCC as a 501(c) (3) private organization. Accordingly, membership dues are NOT deductible for individuals; however, financial gifts ARE deductible from the tax submissions. Thus far, the FCC VISA account has only been used to finance the quarterly rent ($29.97) payment for our Website. The FCC checkbook, monthly bank and portfolio statements, and individual receipts and invoices are available for examination at the residence of the current Treasurer. Said detailed records will be neither mailed nor copied.

Assets - Stock Portfolio - Notes:

The 2009 Assets and Liabilities Statement was prepared upon receipt of the bank account statement but before receipt of the portfolio statement, itself, resulting in a net decrease in official assets of $249.00 from the $16,674.61 reported last year. The Treasurer has awaited receipt of formal documents in both accounts before preparing the 2010 Statement.

Assets sitting in a checking account and unused month in/month out are a wasted fiscal opportunity. As recommended by the Treasurer and approved by the President, two transfers ($500 + $2,000) were made to enhance the earning capacity of the FCC portfolio. During 2010, the value of our investments grew nearly $+3,200 or +28% despite both the market and the economy being down. Generally, a normal investment expectation is to realize 5% to 7% (Return on Investment or ROI). In mid-year 2009, we moved from our DWS (Dean Witter) account into one with Raymond James, investing an even $10,000. In that 1st year, the value of FCC stock rose 14.3%, and the current value ($17,121) represents a net portfolio increase of 46.2%. The investment strategy employed by this Treasurer is to place 60% in high-yielding, good dividend-paying stock, and 40% in more risk-managed stock with favorable expectation for future growth.

Our holdings as we enter 2011 (12/31/2010) include:

• 200 Shares of Whiting USA Trust priced @ $22.50/share or $4,500.00
• Dividend expected: $2.70 per share or a 12% yield
• Whiting is a Trust incorporated to hold significant oil reserves. It does not refine nor search for oil, and is in the fortuitous position of needing neither to sell nor buy except when the opportunity to buy (when barrel price is way down) and to sell (when inventories are low and demand is high) arises.
• 500 Shares of Alaska Communications priced @ $11.10/share or $5,550.00
• Dividend expected: $0.86 per share or a 7.7% yield
• Sub-Total (Dividend-bearing stock): $10,050.00 or 59% of the FCC portfolio
• 800 Shares of Mankind Corporation @ $8.06/share or $6,448.00
• This pharmaceutical company has developed an entirely new way to treat diabetes which may well revolutionize how diabetics are medicated. With the Mankind product, patients will use inhalers rather than taking shots. Final FDA approval is fully expected before Easter, and the brokerage community expects it to jump to no less than $20/share.
• Cash: $622.36
• Portfolio Value as of 01/01/2011: $17,120.36

Significant Financial Events:

2010:

$+772.90, income exceeded costs. Primary source of income was earnings from the Return on Investments (ROI), some $3200.

A $1,000 gift from Board member Fr. Elijah White caused a significant reduction in the cost of the biannual conference at Our Lady of the Snows. Conference fees, etc. ran $2,554 (plus three $100 emoluments, plus roundtrip airfare of $365 to enable Fr. Patterson to attend) raised the conference cost to $3,219 less Fr. White's donation.

Now in its 2nd year of operation, the Website cost $2,190, a huge savings from the $8,000 biannual cost for printing the former hard copy of the Directory of Parishes. Other significant costs in 2010 included $387 in reimbursements to our President for BOD Conference Calls, and $488 for storage of the printed Directories. The Treasurer disposed of some 700 copies of the 3-year old Directories in November, thereby eliminating that cost from future expenses. Website maintenance has two costs: rental of the domain which houses the site ($9.99/month, $29.97/quarter, $119.88/year) and the retainer for the Webmaster ($100/month, $1200/year).

2011:

The FCC Board of Directors set three major goals for 2011:

1. Increase the number of FCC members. 2 approaches have been taken to achieve this goal; asking all individual members to pay dues at the beginning of the year (cost: 110 single page letters & envelopes [$6] and stamps [$49]); and to invite churches in our Directory to join at a cost of $10 each (cost: 1000 single page letters & envelopes [$45] + stamps [$444] + 30 hours @ $12/hour to address them [$360] = an estimated total cost of $808). The 1,000 letters will ensure each State is included plus each Canadian province. If only 1/20th (50) join, we'll lose $308; yet should 1/10th join (100), dues received will be $1000, enough to offset the cost; and if 1/5th join (200), we'll receive $2,000. Should 1/2 accept our invitation, (500) dues will amount to $5,000.
2. Establish two scholarships, with a current value of $500 each or $1,000 for Seminarians. Leaders of two seminaries will nominate candidates for selection by appointed Board members.
3. Ensure FCC representation at significant Anglican/Episcopalian Conferences sponsored by other Christian agencies. Financial help will go to a current Director; should time and commitments preclude a board member's attendance, representation may be awarded to a faithful member.

Signed January 17, 2011,

Henry W. Needham, Treasurer