Our Catholic Journey March/April 2013

Happy Easter!

Official Publication of Catholic United Financial

Our Journey Catholic March/April 2013 Vol. 118 Issue 2

You Raised How Much?

Raffle raises astounding total for 82 schools

+ Our Annual Reports +

Fraternal Year in Review

to Your Kingdom & Keys Coins of Your Life

From the President

“...in reality, we have been constantly changing to meet the needs of our members. But what has not changed are the values underlying what we do and how we do it.”

Change….it is what we are counting on as we slowly see our winter season turn to spring. Folks in the Upper Midwest look at spring almost as a rebirth, a fresh start, or a new beginning. Most of all, we see it as a welcome change. As we look around, we see that change is a constant for us today. We often hear people say that there is so much change going on now compared to years ago. While that may be true, it is important to remember that change has always been a constant partner in our lives. As I write this, our Cardinals are meeting at the Vatican to elect a successor to Pope Benedict XVI. We will see the Holy Spirit at work in these deliberations, and the only certainty as to the outcome is that our Church will change in some ways. This is a good reminder that change often brings with it blessings.

Our Association, too, has been changing; I don’t mean in terms of our recent leadership changes but rather throughout our entire history. Catholic United has been in a constant state of change, for the better, since we were formed more than 135 years ago. Our first members spoke only German, and our first policies were written in German – quite natural since our name was also in German. Over the years we changed in many fundamental ways: we changed our policies and governing documents to be written in English; we updated our name numerous times over the years to reflect our changing times and needs. We were one of the first fraternal benefit

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March/April 2013

societies to admit women to full membership – years before women attained the right to vote in America!

We merged separate men’s and women’s societies and conventions. More recently, Catholic United was a fraternal pioneer in bringing a Universal Life insurance product to market in the 1980s. Our Credit Union was a landmark effort in providing banking services to fraternal benefit society members. We were one of the first societies to use imaging as a supplement to paper files. We provide our Sales Reps with technology tools that were unheard of, even unthinkable, just ten years ago. While we may consider Catholic United Financial as a stable and somewhat predictable organization, in reality, we have been constantly changing to meet the needs of our members.

But what has not changed are the values underlying what we do and how we do it. Our core values, as Catholic Christians, keep us true to our course and provide us with a roadmap to help us plan our future. By acting in a manner that is both thoughtful and consistent with our Vision, we continually seek ways to improve our already great Association.

Shifting gears slightly, we are already looking ahead to our Annual Delegate Convention on the first weekend in August. It will be held at the Marriott Hotel Northwest, in Brooklyn Park, the site of our Convention in 2010.

It will again be a one-day convention; this allows us to present several Gather4Good events throughout our area during 2013. This year, we will have three Directors standing for re-election: John Maile, Bob Krattenmaker and Mike Schmitz. Interim Senior Vice-President and Secretary/Treasurer Michael Ahles will also stand for election, to remove the “interim” from his title and complete his term. As we approach our Convention, you will find out more information about these people, and also about any other candidates who might be running for our Board of Directors. It is too early to say whether or not we will have any Constitutional issues for our Delegates’ consideration – nonetheless, our Conventions are always a wonderful part of our traditions. Getting involved in your local councils or getting involved in one of the Convention Committees is a terrific way to increase your knowledge of our Association. I look forward to seeing many of you at our Convention.

In the meantime, I wish you all a great Spring!

Peace,

www.catholicunitedfinancial.org

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Contents Features

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16

6 8

512

4

12

And the Winner Is...

We keep raising the bar and our schools leap clear over it. Find out how much money your Association helped raise for Catholic Schools this year!

2012 Annual Report

Get the inside scoop on our past year. Catholic United is going strong. See where we made gains and where we look to improve in 2013.

Foundation Review

The Foundation looks back on its first year with Executive Director Bob Heuermann at the helm.

in 2012 14 Fraternalism It’s what sets us apart from the other insurers. See how we supported the Catholic community in 2012.

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24

Departments

11 16

Coins of Your Life

Foundation Executive Director Bob Heuermann reprises his column on charitable giving.

Keys to Your Kingdom

Estate planning advice from our estate planning guru, John Tetzloff.

Sections

8 On the Cover Photo by Susan Detlefsen.

What a day to raise nearly a million dollars! On the cover of this this issue are, from left, Steve Pesek, host of the live raffle drawing, President Harald Borrmann and Spiritual Director Bishop John LeVoir.

Happy Easter from Catholic United Financial!

Our Journey Catholic March/April 2013 Vol. 118 Issue 2

You Raised How Much?

Raffle raises astounding total for 82 schools

Our Annual Reports

Year + Fraternal in Review

to Your Kingdom & Keys Coins of Your Life

SFI-00574

news@catholicunited.org

17

Happy Easter!

Official Publication of Catholic United Financial

+

4 20

Scrapbook

Read news tidbits and see member photos.

Memorials/Business

In loving memory of our deceased members.

Fraternal

JOIN HANDS DAY is coming up again. Find out how you can get involved.

Catholic United Financial President/Chairman Harald E. Borrmann, St. Paul Interim Senior Vice President and Secretary/Treasurer Michael Ahles, Andover Board of Directors Lead Director Joseph F. Kueppers, Mendota Heights; George Gmach, Rogers; John W. Maile, Cold Spring; Robert Krattenmaker, New London; Michael Schmitz, Mankato; Renee Brod, New Prague; Patricia Kasella, Royalton Magazine Staff: Publisher Harald E. Borrmann Editor Jared Roddy Staff Susan Detlefsen, Michelle Clark Director of Marketing Steve Wendorf Office of Publication: Catholic United Financial, 3499 Lexington Ave. N., St. Paul, MN 551268098; 651-490-0170 or 1-800-568-6670. Postmaster: Send change of address notice to above.

Periodicals postage paid at St. Paul, MN and other locations. Subscription price is 50 cents a year. Official Publication of Catholic United Financial. Published bimonthly.

Publication No. 093500

March/April 2013

3

Scrapbook

Run, Walk, Strut...fly?

Register today!

Fifteenth Annual

To u r n a m e nt

On Monday, May 20, 2013, we’ll hit the links once again at River Oaks Golf Course in Cottage Grove, Minn.

The Tournament is the Foundation’s biggest fundraiser of the year and we want YOU to join us FORE a great time! There may even be a surprise celebrity guest! Contact the Foundation if you want to register OR donate a silent auction gift. Call 1-877-2757145 or email Bob at rheuermann@ catholicunited.org or Sheri at skrotzer@catholicunited.org.

St. Michael, Minn.

The whole parish community came out to support St. Michael School October 6, 2012, for the annual Marathon for Non-Public Education.

Runners found sponsors in parents, local businesses and of course, the St. Michael Council. The Concil worked the water stations and “rocked the block” during the 5K run/walk, and Sales Rep Peter Ryan provided prizes for the gift bags the council gave to all the participants. More than just a walk in the park, participants released a helium balloon rosary and tried to keep up with super hero “Marathon Man,” Phy. Education teacher Mike Bloberger (below left.)

The council is looking forward to being even more involved in the event in the future. “it was really fun,” Fraternal Secretary Justine Folkestad said. “ The balloon rosary was just incredible.

Rogers Ralliers Roll-in

The Mary Queen of Peace Council in Rogers, Minn., sponsored the Mary Queen of Peace Catholic School students to bus into St. Paul, Minn., on January 22 to take part in the annual pro-life rally.

The Minnesota Citizens Concerned for Life “March for Life” rally attracted more than 2,000 brave participants to the Capitol in sub-zero weather to rally for better protection for the unborn.

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March/April 2013

Staying out of the Red in Vermillion, Minn.

One of our newest Sales Reps is already out in the field and making a difference in Catholic schools and parishes. Lori Jackson (center) presented Sister Tresa Margret, principal of St. John the Baptist School and Fr. Stan Mader, Pastor of St. John the Baptist Parish, with a MinisTREE check for more than $900.

www.catholicunitedfinancial.org

How to Contact your Sales Representative: Look on the back cover of this magazine. Your Sales Representative’s name and contact information should be listed with yours. Or, visit www.catholicunitedfinancial.org, or call 1-800-568-6670.

Delicious and Auspicious Vermillion, S.D. Nothing says “we appreciate your service” like “all you can eat taco buffet.” Once again on November 11, 2012, the youth of St. Agnes Parish in Vermillion, S.D., partnered with the St. Agnes Council there to honor local Veterans with a taco dinner.

Something Like a Manannah-menon!

Now in its 13th year, Our Lady of Grace Council in Manannah, Minn., is proving to be quite the wild teenager! Members there turned in another eventfilled year in 2012, including a Matching Grant Pork Chop Supper, after-program lunches, Appreciation Pot-Luck, and giving out candy bags at the Christmas Party they threw. These types of community events and people working together are what make a parish and council work. As Council President Jim Haag appeals to their friends and members: “Our Lady of Grace Council needs you to build and maintain a positive and consistent council that believes in the goodness of the fraternal spirit.” So far, so good!

Not Just An Oil Boom in North Dakota Catholic United itself is also a “gusher” in North Dakota, with funds flowing to schools and parishes. Sales Representative Victor Freisz is doing a lot of the legwork, hopping from place to place delivering muchappreciated checks from Matching Grants and other Fraternal programs. Below left, Friesz presents a $500 Matching Grant to Fr. Frank Schuster of St. Bonaventure Parish in Underwood, N.D. Below Right, in Mandan, N.D., he delivers a $150 MinisTREE check to Christ The King Parish Business Manager Joan Patrick.

Member Drive Winners

50-year members refer lots of family

Mary Weidert told Sales Representative Sarah Bartosh that she was “shocked” when she learned that she was the 2012 Membership Drive winner. Not her husband, Jerry, though. “She’s the lucky one,” he said. “She always wins something.” In this case, Mary received a $1,500 check and a $100 gift certificate to the Catholic United Financial Online Store. She plans to save the money to do some future renovations on her St. Kilian, Minn., home. On her way to the winner’s circle, Mary referred all 24 of her grandchildren and their parents.

Birthday Corner

Rita Braun, formerly of Aberdeen, S.D., and now of Sioux Falls, celebrated her 90th birthday on February 18, 2013. For many years she was President of St. Ann’s Council in Aberdeen. Her four children were all members of St. Ann’s or St. Joseph’s Councils in Aberdeen. Happy Birthday, Rita! news@catholicunited.org

March/April 2013

5

Catholic Schools Raffle!

Almost $1 million for Cat holic schoo ls!

What makes a school successful in th e Cath olic Schools Raffle? to raising the big bucks St. Francis of the Lakes School, Brainerd, Minn. – $53,785

Our top-selling schools share the secrets

Top-Selling School Secrets to their success: Family sales goals and Father Bumbo

Principal Deb Euteneuer, Development Director Maria Prozinski and Marketing and Development Coordinator Amy Kalthoff find success in engaging every family that participates in the Raffle. Each family is encouraged to set a fundraising goal, and coordinators offer weekly incentives for families to turn in their sold tickets. Families were also allowed to sell tickets at parish events and after Masses.

“We’re just supported by a strong parish family in the area, so everybody’s open to seeing the children and families out selling their tickets together,” said Kalthoff.

And as added inspiration, the St. Francis staff have a secret motivational tool in “Father Bumbo.” Kalthoff explains, “Father Brandon, one of our associate pastors, dressed up and pretended to be ‘Father Bumbo’ from down here in the [Twin Cities]. He went around to each of the classrooms to challenge the students saying ‘My school’s going to beat your school.’ I think that really motivated the kids and a lot of the families. Nobody calls him Father Brandon anymore. Everybody calls him ‘Father Bumbo.’”

St. Mary’s School, Pine City, Minn. –

$9,180

Principal Deanna Jahnz and Home and School Association President Kelly Welch were able to encourage students with goals and incentives at every level of selling. “One thing we did different this year is we gave incentives to the kids on different levels,” said Jahnz. “Local businesses gave gift certificates for the movie theater and restaurants so as the kids reached a certain level, they received that prize as they went along. The kids would each set their goal for which prize they wanted and they worked to sell that many tickets to receive that prize.”

Welch also said that the fact that the school keeps 100 percent of the ticket money was an energizing message. “We really emphasized that every dollar spent on the tickets goes back to our school. That’s really important for the people to know that we get 100 percent of the profits. We also promoted the raffle all over Facebook. I think that it’s the marketing that is the most important part of it.”

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March/April 2013

Top-Selling School Secrets to their success: Student sales incentives and getting out the word that they keep 100%

Follow Raffle updates on Facebook: www.facebook.com/catholicschoolsraffle

www.catholicunitedfinancial.org

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g

St. Vincent de Paul School, Brooklyn Park, Minn. – $17,235

Top-Selling First-Timer Secret to their success: Support from pastoral staff

As first-timers in the Catholic Schools Raffle, Principal Kathleen O’Hara and Administrative Assistant Terry Derksen were excited about their rookie success, and they want to win it all next year by being the top-selling school.

This year, they cite the support of the parish pastoral staff as being a huge asset. O’Hara said, “One of the biggest things was that our pastor and associate totally supported the Raffle. After all of their masses, I think it was three weekends we had a table out there. Our pastor would challenge the associate on who could bring in more money at the 9 a.m. or 11 a.m. Mass. We ran out of tickets the first weekend.”

O’Hara and Derksen are hungry for more. “Now that we’ve done it for a year, we get it. So, if we’re fortunate enough – blessed enough – to be chosen again for [the Raffle] next year, we will already have a better game plan!” Look out, St. Francis of the Lakes!

Every school wins in the Catholic Schools Raffle (Participating schools listed alphabetically by city. Starred schools met or exceeded their fundraising goals.)

Sacred Heart School, Adams, MN.....

Holy Family School, Albany, MN.....

Our Lady of the Prairie, Belle Plaine, MN.....

St. Philip’s, Bemidji, MN.....

St. Mary’s School, Bird Island, MN.....

Saint Francis of the Lakes, Brainerd, MN.....

St Vincent de Paul School, Brooklyn Park, MN.....

St. Scholastica H.S.C., Cambridge, MN.....

St. Peter’s School, Canby, MN.....

St. Hubert School, Chanhassen, MN.....

St. Bernard School, Cologne, MN.....

St. Raphael School, Crystal, MN.....

St. Peter’s School, Delano, MN.....

Holy Rosary School, Detroit Lakes, MN.....

St. James School, Duluth, MN.....

St. Michael’s Lakeside School, Duluth, MN.....

Faithful Shepherd School, Eagan, MN.....

St. Andrew Catholic School, Elk River, MN.....

St. John Vianney School, Fairmont, MN.....

Divine Mercy School, Faribault, MN.....

Sacred Heart School, Freeport, MN.....

St. Pius X School, Glencoe, MN.....

St. Joseph’s School, Grand Rapids, MN.....

St. Elizabeth Ann Seton School, Hastings, MN.....

St. Anastasia, Hutchinson, MN.....

St. Thomas School, International Falls, MN.....

St. John’s Academy, Jamestown, ND.....

St. John the Baptist School, Jordan, MN.....

Holy Cross School, Kimball, MN.....

All Saints School, Lakeville, MN.....

School of St. Philip, Litchfield, MN.....

Mary of Lourdes School, Little Falls, MN.....

St. Mary of Mt. Carmel, Long Prairie, MN.....

All Saints School, Madison Lake, MN.....

Christ the King School, Mandan, ND.....

Loyola School, Mankato, MN.....

Holy Redeemer School, Marshall, MN.....

St. John’s - St. Andrew’s School, Melrose, MN.....

St. Mary’s School, Melrose, MN.....

St. Lawrence School, Milbank, SD.....

Pope John Paul II School, Minneapolis, MN..... news@catholicunited.org

$16,210 µ $11,485 µ $3,580 µ $12,735 µ $6,985 $53,785 µ $17,235 $5,875 $3,960 $13,270 $4,025 $16,080 µ $4,030 µ $7,435 $24,435 $6,050 $10,120 $6,070 $15,650 µ $23,025 $8,380 µ $8,735 $6,565 $5,925 $7,325 µ $2,910 $3,500 $5,920 $8,040 µ $15,010 $10,945 $11,240 µ $15,720 $4,235 $12,650 $27,865 $14,220 $3,115 $6,335 $12,300 µ $5,107

St. Edward School, Minneota, MN.....

John Paul II Elementary, Mitchell, SD.....

St. Joseph’s School, Moorhead, MN.....

New Ulm Area Catholic Schools, New Ulm, MN.....

Transfiguration School, Oakdale, MN.....

St. Henry’s School, Perham, MN.....

St. Mary’s School, Pine City, MN.....

Rapid City Catholic Schools, Rapid City, SD.....

Blessed Trinity School, Richfield, MN.....

Sts. Peter & Paul School, Richmond, MN.....

Sacred Heart School, Robbinsdale, MN.....

Holy Spirit School, Rochester, MN.....

Mary Queen of Peace, Rogers, MN.....

St. Francis Xavier School, Sartell, MN.....

Holy Family School, Sauk Centre, MN.....

Christ the King School, Sioux Falls, SD.....

Holy Spirit School, Sioux Falls, SD.....

St. Katharine Drexel School, Sioux Falls, SD.....

St. Lambert School, Sioux Falls, SD.....

St. Mary’s School, Sleepy Eye, MN.....

Holy Trinity School, South St. Paul, MN.....

St. Raphael School, Springfield, MN.....

$7,785 $21,740 $17,210 $5,790 $8,515 $5,690 $9,180 µ $40,500 $14,445 $8,045 $15,844 $15,945 µ $10,335 $9,565 $5,440 $1,365 $2,075 $2,875 $10,590 µ $10,640 µ $10,090 µ $3,055

St. Mary Help of Christians School, St. Augusta, MN...... $7,630

St. Katharine Drexel School, St. Cloud, MN.....

St. Wendelin School, St. Cloud, MN.....

Holy Family Academy, St. Louis Park, MN.....

St. Michael School, St. Michael, MN.....

Saint Agnes School, St. Paul, MN.....

St. Agnes School, Vermillion, SD.....

St. John the Baptist School, Vermillion, MN.....

Marquette School, Virginia, MN.....

St. Felix Grade School, Wabasha, MN.....

St. Anne’s School, Wabasso, MN.....

St. Joseph Catholic School, Waconia, MN.....

St. John’s School, Wahpeton, ND.....

Sacred Heart School, Waseca, MN.....

Immaculate Conception School, Watertown, SD.....

Holy Cross School, Webster, MN.....

Winona Area Catholic Schools, Winona, MN.....

Holy Trinity School, Winsted, MN.....

St. Mary’s School, Worthington, MN.....

$16,565 $3,945 $34,120 $24,335 $42,650 µ $9,585 µ $10,230 µ $13,815 $4,545 $7,415 µ $3,535 $8,455 µ $5,345 $12,980 $9,765 $10,170 µ $12,075 $7,605

March/April 2013

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On Target 2012

Annual Report

W

e are pleased to report another successful year for our Association in 2012. We achieved numerous milestones of growth in assets, reserves, life insurance in force and membership.

Our balance sheet continues to be strong, as the protection of our members’ investments with us has always been management’s most pressing concern. We are proud to continue to be able to say that no member in our 135-year history has ever lost so much as a penny on their investments with us. Due to the continuing historically low interest rate environment, however, some of our financial goals were not fully realized.

We will provide you with complete information on these developments later in this report.

Our assets are managed conservatively and in our members’ long-term best interests. We invest primarily in bonds, and maintain a diverse portfolio in accordance with the Investment Policy set by our Board of Directors. We also have a small portfolio of commercial loans that we have had for many years. This portion of our assets is shrinking as loans are being paid off and as we see relatively few attractive new commercial loan opportunities. In addition, we decided to take aggressive action in writing down the value of two foreclosed properties on which we had made loans with our banking partners. Our philosophy in these cases is to take an aggressive posture in writing down our carrying value of such properties so that we deal

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March/April 2013

www.catholicunitedfinancial.org

Association Assets (in Millions)

800

$693

700 600 500 400 $382

$414

$458

$494

$516

$539

$559

$582

$736

$773.7

$626 Opposite Page: Catholic United Member Kendra Hunhoff of Yankton S.D. takes aim with her bow.

Catholic United’s aim has always been conservative, secure growth in all aspects of our Association. As we have for 135 years, we hit the mark again in 2012.

300

Surplus AVR Adjusted Surplus

200 100 0 2001

,

02

,

03

,

04

,

05

,

06

,

07

,

08

,

09

,

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with them fully and promptly. We then look for an opportunity to sell these properties at terms advantageous to our financial position. This strategy has been successfully applied in the past and has served us well. It should continue to do so in the future.

Our total premium income in 2012 was approximately $54 million, down slightly from the all-time record established in 2011. This was by design, as we are looking to grow our life insurance business while at the same time temper the growth of our annuity business. Our result was thus precisely in line with our premium goal.

It is also good to see that the combination of our Surplus and Asset Valuation Reserve (AVR) grew during 2012. Surplus and AVR serve as an important safety net for our members’ assets and our ability to pay claims in the future. You may recall that this important financial benchmark dropped slightly in 2011, largely the result of prevailing low interest rates affecting our pension liabilities. As rates begin to rebound, that effect on our surplus will reverse.

In the meantime, however, it is our goal to continue to grow our surplus until and while higher interest rates assert themselves.

The low interest environment we find ourselves in is a truly historic one; only in 1941 have 10-year interest rates been as low as the past year and, even then, they quickly recovered to more traditional levels. We have not seen any real improvement in interest rates in 2012, though it does appear as though interest rates have “bottomed out” and might be trending up ever so slightly. Last year, we told you of a new investing relationship with Wellington Management; I am pleased to report that this new relationship has been particularly helpful in dealing with the challenges of investing in today’s economic climate. Our Investment team news@catholicunited.org

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12/31/2011 $26,129,055 $1,741,668

12/21/2012 $26,484,782 $3,085,862

$27,870,723

$29,570,644

2012

continues to do extraordinary things in a lessthan-ideal environment on behalf of our members.

We also saw the full integration of the American Fraternal Union membership into Catholic United during 2012. A full system integration was in place by June, and we are pleased to report that former AFU members are now being fully serviced out of our Home Office in St. Paul. This merger was the first one for our Association, and we believe we gained strength and wisdom through this experience. We are equally pleased that, in addition to the 12,000 new members we gained from the AFU merger, we also saw modest organic growth of our Catholic United membership.

Fraternal insurance companies throughout the land are struggling to grow. In many cases, they are pleased to “only” shrink by 3-5% a year. Happily, we are in fact still growing, and 2012 marked our fourth consecutive year of member growth. There is no more telling statistic than member growth to confirm that we continue to offer financial products and fraternal benefits of interest to our members, and relevant to today’s needs. A quick look at the growth in our life insurance in force attests to this fact. Another all-time March/April 2013

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Premium vs. Investment Income (in Millions) Total Premium Investment Income Life Premium Annuity Premium

$60 $50 $40 $30 $20 $10

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2.50

2011

2012

Life Insurance In Force (in Billions)

2.00 $1.56

$1.62

$1.68

$1.75 $1.79

$1.84 $1.85

$1.87 $1.90

2006

2008

$2.06 $1.99 $2.03

1.50

1.00

.500

0.00

2001

2002

2003

2004

2005

2007

2009

2010

2011

2012

Year-End Financials for Catholic United Financial Statement of Operations Total Income Total Claims & Expenses Net Gain from Operations Refunds to Members Net Gain (loss) after Refunds Net Realized Capital Gains (Losses) Net Income Balance Sheet Total Admitted Assets Total Liabilities Surplus Total Liabilities and Surplus

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March/April 2013

2011 $92,596,423 $91,201,200 $1,395,223 $445,814 $949,409 ($684,081) $265,328

2012 $90,025,551 $89,865,835 $159,716 $450,925 ($291,209) $132,740 ($158,469)

$735,583,519 $709,454,464 $26,129,055 735,583,519

$773,677,339 $747,192,557 $26,484,782 $773,677,339

high of which we should all be very proud!

Finally, it is a great pleasure to tell you that our financial commitment to our fraternal benefits continues to grow. We have added to our Fraternal Department staff, and we are supporting their pioneering work in designing new council structures that will complement our traditional model. Kathleen Moriarty provides more information in this regard on pages 14-15 of this magazine.

Suffice to say, however, that we could not be more excited about, or supportive of, the developments in our Fraternal area. After all, it is the Fraternal aspect of Catholic United which makes us unique.

It would be remiss to review 2012 without mentioning the enormous contributions of Mike McGovern, who retired as the President, CEO and Chairman of the Board of Directors of Catholic United Financial this past January. His fifteen years of visionary leadership was the largest single factor in the growth of Catholic United to what has become a $770 million organization. His wise stewardship led us through an extraordinary time of economic turmoil, a name update, a merger, the formation of our Credit Union, the establishment of our Annual Catholic Schools Raffle, the development of our Catholic United Financial Foundation and many more accomplishments. Mike, we salute you. You and your family will remain in our thoughts and prayers for a long and happy retirement.

May God continue to bless Catholic United and our members each and every day!

Fraternally Yours,

www.catholicunitedfinancial.org

By Bob Heuermann

Coins Life of your

“A poor widow came and put in two small copper coins, worth only a few cents.

Calling His disciples to Him, He said to them, “Truly I say to you, this poor widow put in more than all the contributors to the treasury.”

Mark 12:42-43 The lesson of the widow’s mite is an enduring testament to selfless giving. A destitute widow has only a few mites to her name, and rather than keep them for herself, she gives them to the Temple. As Jesus comments, the widow’s modest gift is worth more than the ostentatious contributions of the wealthy, for her mites represented all that she had.

This virtuous woman demonstrated true faith in God and the need to share our blessings with others. She might not know where her next meal would come from, but she shared what little she had with others in greater need than herself.

I can’t help but think of the lesson of the widow’s mite each year during the Christmas season as I pass by the red kettles with their bell ringers asking for the change I am carrying in my pockets. But the need for generosity does not end when our Christmas decorations are put back in storage.

Especially as we have just concluded this Lenten season of fasting and almsgiving – we must think of how this generous spirit can be sustained.

I saw a bumper sticker recently that quoted Gandhi, “Be the change you wish to see in the world.” What is the change in the world you want to see, and how will you be that change? When you reach in your pocket to pull out the coins, how do you weigh the impact your gift will provide? Will your “change” be only the change in your pockets, or can you do more?

Mother Teresa said, “Never worry about the numbers. Help one person at a time and always start with the person nearest you.” Who is nearest to you that needs your help? How will you share the gifts you have been given by God with others?

Recently, I have been blessed to assist Catholic United members in making permanent and

substantial donations that will provide support to others in perpetuity. One member has created an endowed fund in the Foundation that will provide investment earnings of $20,000 every year. His gift will provide support for seminarians who have been called to serve in India and Africa. Another member couple has made a commitment to create an endowed fund that will provide $10,000 each year to their parish’s Catholic school. The funds will provide scholarships for students who need tuition assistance to be able to attend the school. While these examples are noteworthy because of their size, I have also received many recent more modest gifts from members in support of the Msgr.

Schuler Seminarian fund. These gifts included a single dollar from a Catholic United member. That gift was as important to the Foundation and the seminarians who will benefit from the support as the larger gifts we receive. As you may read in the Foundation Annual Report (p. 12-13), it takes just one to make a change. That one dollar gift, when added to all of the other donations received by the Schuler Fund, have provided more than $500,000 in scholarship support to more than 1,000 seminarians, one at a time.

If you are interested in discussing how to turn the change in your pocket into the change you want to see in the world, call or email me today. You can also talk to your Catholic United Sales Representative.

He or she can show you how a small donation can be leveraged into a much larger future donation to the charity of your choice. The Foundation is here to help you, so give me a call at 651-765-6548 or email me at rheuermann@catholicunited.org.

Thank you for helping us change the world, one gift at a time.

Bob Heuermann

Is the Executive Director of the Catholic United Financial Foundation. If you have inquiries about charitable giving, our priority funds or Catholic United Response, contact him:

1-877-275-7145 rheuermann@catholicunited.org news@catholicunited.org

March/April 2013

11

It Takes Just

In Romans 5:12-21, Paul writes of God’s wrath against all sin through Adam’s single indiscretion, but also of God’s power to save through the divine act of Christ. Romans 5:18 sums it up by stating, “In conclusion, just as through one transgression, condemnation came upon all, so through one righteous act, acquittal and life came to all.” From this passage, God shows us that it only takes one person, or one action, to make a difference in many lives. We see this every day in you, our Catholic United Financial Members and Councils, who do so much to strengthen our Church and Faith.

During 2012, the Foundation was able to use your donations, along with distributions from Donor Advised Funds, proceeds from charitable annuities and life insurance policies to provide significant assistance to strengthen our Catholic community. One gift at a time, you provided support for 142 seminarians, 80 Catholic schools and 182 disaster volunteers. Still, we have many children to teach, many seminarians to support, many roofs to rebuild and, most importantly, many lives we can touch.

The theme of the Catholic United Financial Foundation’s Annual Report, It Takes Just One, reminds us that we all can make an impact on our faith and community, whether we give of our time, our talents or our financial resources.

Many of you already make gifts to and through our Foundation that help sustain the needs of our schools, parishes and other organizations within the Catholic community we serve. Since its inception, the Catholic United Financial Foundation has blessed the parishes, schools, ministries, and seminarians in our area with more than $1 million in gifts and grants to address their critical needs. This could not have happened without your generous contributions.

We have many children to teach, many seminarians to support, many roofs to rebuild and, most importantly, many lives we can touch.

While we do much to support the parishes, schools and seminarians in our community, the needs continue to be greater than the gifts and grants we are able to provide. Your gift could be the one that makes a difference for a parish in dire need of support, a school that needs to upgrade student technology or strengthen their chastity education, or for a seminarian who struggles with basic needs while funding his education.

In considering a gift to the Catholic United Financial Foundation, keep in mind the words of Mother Teresa, “If you can’t feed a hundred people, feed just one.” At the Catholic United Foundation, we are here to help you connect your charitable giving with our Catholic faith as we prepare for the future needs throughout our community of faith and charity.

Are you the one? I encourage each of you to consider how you can continue your current and planned charitable giving through a donation to, or by creating a donor advised fund within, the Catholic United Financial Foundation. Each gift, no matter how big or small, touches someone in need in our own community. Contact your Sales Representative, or call the Foundation directly to learn more about building your own charitable impact.

Robert Heuermann, Executive Director rheuermann@catholicunited.org 1-877-275-7145

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March/April 2013

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Catholic United Response helped our Catholic community prepare for potential disasters in addition to providing direct assistance to our neighbors affected by natural disasters, such as the Duluth area flooding in St. Louis, Carlton, and Aitkin counties. Volunteers aided uninsured and in-need residents by providing cleanup and demolition work of their homes destroyed and damaged by the floodwaters.

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The grants have provided support for schools’ educational technology needs, and chastity education aimed at our young Catholics at the most critical times of their lives. Fifty-nine Catholic schools received $29,024 in technology assistance; 21 parishes and schools received $17,602 in support of Chastity Education.

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Members like you created Donor Advised Funds and provided for charitable annuities or life insurance policies, which benefit the parishes, schools and charities of their choice. By using financial and estate planning assistance from Catholic United Financial Sales Representatives, these donors were able to substantially increase the value of their donations. The Foundation can help you to make permanent and lasting plans to ensure that your charitable desires are carried out during and after your lifetime.

Are you the one?

March/April 2013

13

2012 2012 was another busy and productive year for our council officers, members and Fraternal staff as we all continued to sponsor Kathleen Moriarty activities that Fraternal Director raised funds for parishes, schools and communities.

Financial Impact ­— The figures on the facing page illustrates the financial impact of all our efforts.

Our four mainstay programs – Matching Grants for parishes with and without councils, MinisTREE, post-high school tuition scholarships, and Member Assistance — generated $365,658 to support Catholic schools, religious education programs, youth retreats and conferences, members dealing with overwhelming financial needs due to medical circumstances, and young members seeking further education beyond high school. Additional funds given to youth programs, social gatherings of members and non-members, and donations to causes near and dear to all of us are also shown on the chart.

We would be remiss if we didn’t recognize specifically the total funds raised by the local communities that are the basis for our corporate giving.

Last year, local councils and parishes without councils raised a whopping $976,796 through matching grant

14

March/April 2013

events and benefits sponsored to assist their members. Thank you to all who contributed their time, talent and treasure to sustain the good works done by Catholic United Financial members in 2012.

Volunteer spirit — Financial tracking is just one measure of success, albeit a critical one in these days of increased need and diminished prosperity for many. However, the basis of our company’s formation was the desire to do good works to help others. (Note the article by Fraternal Liaison Stacie Suedkamp on

Keep in Touch with Fraternal ••Fraternal Dispatch – News and eNews for Council Officers ••www.Facebook.com/catholicunited ••www.Facebook.com/CatholicSchoolsRaffle ••@CatholicUF and @Gather4Good on Twitter ••www.CatholicUnitedFinancial.org/links/events ••email at Fraternal@CatholicUnited.org

www.catholicunitedfinancial.org

p. 20, highlighting volunteer opportunities.)

That volunteer spirit remains a bedrock of our company; nowhere was it more evident than in the four Gather4Good volunteer events held in 2012, in New Prague, Albertville, with St. Paul’s Outreach youth organization and at the St. Cloud Diocesan Youth Rally. More than 1,000 members and nonmembers assembled personal care kits that were distributed to women’s and homeless shelters, an emergency shelter for teens, Sharing and Caring Hands and to Duluth-Area flood victims. My most heartfelt thanks goes to the more than 100 councils that contributed money to subsidize the cost of the personal hygiene items that went in the kits.

Change is in the Air — In last year’s annual report, I wrote “the Fraternal staff is working closely with advisory groups, sales reps, members and nonmembers to determine the best way to deliver our fraternal benefits.” We’ve learned a great deal about volunteerism, approaches to giving, and the most effective ways to share information, delegate work among volunteers, and track our progress. As a result, you will see us managing pilot programs around social media outreach for council events, online tracking of events, expenses and funding of fraternal programs and, perhaps most significantly, the structure of council volunteers. We’re working with a small number of councils that are trying out a more collaborative, team approach to engaging volunteers.

The beauty of these pilots is the opportunity to learn from each other, celebrate what works and adjust what doesn’t.

We have a shared goal – utilize the best skills of our volunteers, respect the time demands 4.5% 1% we all face, and 4.8% generate the greatest 6% impact possible 17.6% to assist with local community needs.

As always, thank you for your prayerful dedication to the good 19.8% work of Catholic United Financial. We’re off to a great start and I know that 2013 will be an energetic, successful year for our fraternal initiatives.

news@catholicunited.org

Opposite Page: The St. John the Baptist Council of Jordan, Minn., was instrumental in the first Gather4Good of 2012, held in New Prague, Minn. Above: Volunteer staff (in blue) assist volunteer assemblers (in line) as they built hygiene kits for the homeless and disaster victims. More than 3,000 kits were built during several Gather4Good events last summer, involving more than 1,000 volunteers. Below: Adam and Alyssa Seymour, real Catholic United members, give us a better look at our fraternal expenses.

Every year, we publish the total Fraternal dollars given in our Annual Report, but that only tells a small part of the story. As you can see, Catholic United matched $171,385 this year. However, 1% the real impact is far 4.5% greater.

Local Catholic United 4.8%Councils and Parish Units 25.6% raised 6% an additional $976,796 in 2012.

And none of these figures 17.6% include the money we spent on the 2012 Raffle, or the $611,290 raised by the schools. All that being said, it is when we work together that Catholic 20.4% United truly becomes a force for good.

19.8% 25.6%

20.4%

$221,700 $177,205 $171,385 $152,093 $52,237 $42,180 $39,522 $8,787

Council Allowances Donations & Gifts Matched Funds Scholarships Fraternal Events MinisTREE Youth Programs Fees & Expenses

March/April 2013

15

Keys to your

Kingdom

Estate Planning with John Tetzloff In this issue of Our Catholic Journey, we contemplate Catholic United’s past and welcome its exciting future. With the retirement of Michael McGovern we celebrate a tremendous era of growth and change. With the election of Harald Borrmann, we ring in a new era of leadership to the Catholic United Financial. For this installment of “Keys to your Kingdom” I thought we could follow the lead of the Annual Report issue of the magazine. This last year was no picnic politically. So let’s look at occurrences of 2012 in terms of estate planning, and take a look forward to see what the future holds.

Around the middle-to-end of 2012, the biggest concern in estate planning circles was the “Fiscal Cliff” issues in regards to the estate tax exemption and the capital gains tax rates. Congress was tasked with deciding what should happen to the Federal Estate tax exemption, as it was set to “sunset” at the end of 2012.

What this meant was the estate tax exemption would decrease to past levels ($1,000,000 per estate) and a 55% estate tax rate would be applied on assets over this exemption.

Also, the capital gains tax rate increases were being discussed.

With the passage of the American Taxpayer Relief Act (ATRA) on January 2, 2013, congress avoided

16

the “Fiscal Cliff” and put into law the following features: • Raising the Federal Estate Tax Exemption amount to $5,250,000 per estate • Raising the Federal Estate Tax Rate maximum

states. Minnesota still has a $1,000,000 estate tax exemption, so it’s important to make a plan for paying state taxes.

With the higher capital gain rates the discussion moves to decisions about selling property. Is it better to sell property now or use the StepUp basis advantages at death? As far as the charitable IRA distribution we need “This last year was no picnic goes, to ask whether politically. Let’s look at occurrences this exemption of 2012 in terms of estate planning, makes sense for you, or if and take a look forward to see there are better strategies what the future holds.” for giving. from 35% to 40% The importance of putting • Continuing the Tax together an estate plan to effectively Basis Adjustment (steppass assets to the next generation or up basis) at death to our favorite charities has never • Preserving the ability of been greater. Change is inevitable. taxpayers over 70 1/2 We can’t predict with any certainty years old to exclude from what the rules are going to be at income the payments from the time of our death nor can we an IRA up to $100,000 in accurately predict the value of our 2013 if made directly to estate or even what type of assets we a charitable institution will have in our estate at death. That • Increasing the long-term is precisely why it is so important capital gains rate from 15% to build a plan with flexibility and to 20% if ordinary income certainty in how we want to pass falls in the 39.6% tax bracket our assets. That way, you won’t leave What do these changes mean the guessing up to your heirs. for the future of estate planning?

As always, if you want While the higher Federal estate assistance with your estate tax exemptions provide relief for planning please contact your those with estates under $5,250,000, local Sales Representative to we still need to be aware of the rules help arrive at a solid, safe plan for individual for you and your family.

May God bless you and your families.

John Tetzloff, CLU, FICF, LUTCF, is the Catholic United Financial Advanced Case Specialist and Trainer. He leads estate planning seminars throughout the year and is the host of the “Creating Wealth Beyond Money” radio show, which can be heard Saturday mornings on the Relevant Radio network. He has more than 20 years’ experience in estate planning and financial preparedness.

March/April 2013

www.catholicunitedfinancial.org

January, 2013

In loving memory of our deceased members

Dorothy F. Anderson, 96 Patricia M. Hermes, 84 St. Paul, MN Bemidji, MN St. Bernard’s Our Lady of the Snow

Lyle C. Pearson, Sr., 91 Mankato, MN Holy Family

Josephine M. Wickum, 99 Frederick C. Hagmann, 86 Maxine W. Ohnstad, 95 Rockville, MN Long Prairie, MN Winona, MN Mary Immac. Conception St. Mary of Mt. Carmel Queen of Peace

Francis A. Bauman, 86 Delano, MN SS Anthony & Ann

Rosella Hillesheim, 90 Leavenworth, MN Holy Family

Clarence J. Ritter, 88 Melrose, MN SS Bernard & Elizabeth

Lois A. Wills, 57 St. Francis, MN St. Francis

Weldon K. Brendon, 95 Sauk Centre, MN St. Paul

Gordon J. Hoffman, 82 Rosen, MN SS Anthony & Monica

Anselm J. Schefers, 88 St. Cloud, MN St. Augustine

Stanislaus J. Zlotkowski, 80 Theodore C. Kay, 82 Cologne, MN St. Paul, MN St. Bernard SS Peter & Clemens

Mathilda R. Brix, 97 Cold Spring, MN St. Boniface

Doris C. Huiras, 80 Leavenworth, MN Holy Family

Kathleen M. Schilling, 68 Walter F. Zumwalde, 79 New Ulm, MN Richmond, MN SS Joseph & Elizabeth SS Catherine & Joseph

Richard Brown, 87 Sykeston, ND SS Joseph & Elizabeth

Robert C. Jirik, 83 Fosston, MN St. Mary’s

Kathryn K. Schnobrich, 84 Mankato, MN Holy Family

Anna M. Brummer, 99 Eden Valley, MN SS Joseph & Mary

Walter N. Keller, 61 Fosston, MN St. Mary’s

Stanley J. Schnobrich, 92 Mary L. Anderson, 91 Searles, MN Minneapolis, MN St. John the Baptist St. Ann’s

Rollingstone, MN SS Nicholas & Theresa

Caledonia, MN St. Elizabeth

Leona Carkhuff, 88 Wadena, MN St. Joseph

Melvin A. Klaphake, 76 Spring Hill, MN St. Michael

Gebhard T. Schreiner, 90 George J. Degrood, 87 St. Cloud, MN Faribault, MN St. Michael SS Lawrence & Anna

Darlene M. Kuhl, 82 St. Martin, MN St. Martin

Evangeline Schneider, 83 Victoria, MN St. Victoria

Jane S. Czerwonka, 71 Rogers, MN Mary Queen of Peace

Donald J. Koller, 72 Sykeston, ND SS Joseph & Elizabeth

Hilaria Schwab, 92 St. George, MN St. George

Rose M. Deters, 90 Caledonia, MN St. Elizabeth

Pauline G. Kujawa, 89 Luxemburg, MN SS Theresa & Wendelin

Marie Ann Schwieters, 98 Spring Hill, MN St. Michael

Kenneth Daleiden, 82 St. Michael, MN St. Michael

Norma C. Lenzen, 78 Victoria, MN St. Victoria

Fred F. Segner, 86 St. Bonifacius, MN St. Boniface

Viola A. Dingman, 86 Roscoe, MN Holy Family

Frances M. Lacanne, 88 Faribault, MN SS Lawrence & Anna

Janet L. Scobic, 62 Big Stone City, SD Holy Family

Thomas E. Decker, 31 St. Nicholas, MN St. Nicholas

Benjamin C. Ludewig, 91 Andrew W. Simon, 91 St. Bonifacius, MN Comfrey, MN St. Boniface SS Paul & Mary

Donald F. Dummer, 89 Fairfax, MN SS Mary & Joseph

Marie G. Lambert, 92 St. Paul, MN SS Peter & Clemens

Cele Schlangen Silvers, 86 Richmond, MN SS Catherine & Joseph

Marcella M. Doyle, 88 Appleton, MN St. Paul

Phillip L. Martineau, 87 McGregor, MN Holy Family

Phyllis L. Eigen, 91 Comfrey, MN SS Paul & Mary

Helen S. Maciasek, 87 Minneapolis, MN St. Ann’s

Charles S. Snider, 87 Minneapolis, MN St. Boniface

Clotilda Eickhoff, 91 Richmond, MN SS Catherine & Joseph

Mary M. Mathiowetz, 93 Gene Staloch, 79 St. Charles, MN Sleepy Eye, MN Saint Isidore St. Mary

Colleen P. Ethen, 75 Zimmerman, MN Christ Our Light

Mary Ann Mechtel, 75 Waconia, MN St. Joseph

John H. Stopyro, 87 Rochester, MN Holy Family

Urban C. Fischer, 92 Morgan, MN St. Michael

Hildegard R. Mehr, 90 Richmond, MN SS Catherine & Joseph

Alvina M. Stark, 93 Chaska, MN Guardian Angels

Arleen K. Favre, 79 Bloomington, MN SS Ann & Wendelinus

Henrietta F. Meleen, 87 Delano, MN SS Anthony & Ann

Betty Sulla, 81 Rollingstone, MN SS Nicholas & Theresa

Marcella Friedrichs, 84 Mankato, MN Holy Family

George Meier, 90 Albany, MN St. Joseph

Alice Tauer, 90 Morgan, MN St. Michael

William J. Fleischhacker, 61 James L. Mensen, 61 St. Martin, MN Adrian, MN St. Martin St. Joseph

Judith Ann Terhaar, 67 Buckman, MN St. Michael

Otto J. Getschmann, 78 Wabasha, MN SS Joseph & Kunigunda

Mark B. Meyer, 52 Sauk Centre, MN St. Paul

Elizabeth J. Theis, 86 Delano, MN SS Anthony & Ann

Joseph L. Fuss, 93 Minneapolis, MN St. Boniface

Robert M. Miller, 79 St. Leo, MN St. Leo

Kerry J. Wallace, 50 Detroit Lakes, MN Holy Rosary

John J. Goblirsch, 83 Morgan, MN St. Michael

Andrew F. Moeller, 71 Kimball, MN Holy Cross

Rose M. Timmers, 96 Victoria, MN St. Victoria

Kathryn M. Goergen, 90 Johnsburg, MN St. Theresa

Charles F. Millner, 59 Pierz, MN SS Mary & Joseph

Bernice Wanek, 78 Freeport, MN Sacred Heart

Wilfred N. Goettl, 81 Mankato, MN Holy Family

Gladys M. Morgel, 84 St. Paul, MN SS Peter & Clemens

Virgil A. Uphoff, 85 Greenwald, MN St. Andrew

Wilfred N. Goettl, 81 Mankato, MN Holy Family

Martha J. Murphy, 84 Mahtomedi, MN St. Jude of the Lake

Bernard J. Wenisch, 91 Springfield, MN St. Boniface

Msgr. James D. Habiger, 85 Geraldine H. Murray, 77 St. Paul, MN St. Paul, MN SS Peter & Clemens SS Peter & Clemens

Robert E. Simon, 57 New Ulm, MN SS Joseph & Elizabeth

February

Ramona A. Koob, 77 St. Paul, MN Home Office

Albin M. Scherman, 81 Winsted, MN Holy Family

Rosemary Kreidermacher, 87 Mildred M. Schmitt, 84

Dorothy M. Nelson, 86 Theilman, MN Holy Family Beatrice C. Neu, 76 St. Cloud, MN St. Anthony

Jacob A. Weber, 91 Alexandria, MN Our Lady of the Runestone

John A. Guldan, 90 Sleepy Eye, MN St. Mary

Joseph N. Heiling, 66 Morgan, MN St. Michael

Patrick R. O’Keefe, 93 Kimball, MN Holy Cross

Darlene M. Westre, 74 St. Leo, MN St. Leo

Barbara Haberer, 92 Aberdeen, SD SS Joseph & Ann

Harry A. Roers, 103 Millerville, MN St. Catherine Betty Marie Rutz, 89 Minneapolis, MN St. Boniface

John A. Murray, Sr., 82 St. Paul, MN SS Peter & Clemens

Allen J. Nathe, 70 Spring Hill, MN St. Michael

Clarence J. Ritter, 88 Melrose, MN SS Bernard & Elizabeth

Elaine Klein, 89 St. Cloud, MN St. Augustine

Dorine M. Vonwahlde, 78 Agnes M. Grausam, 88 New Munich, MN Sleepy Eye, MN Immaculate Conception St. Mary

Charles E. Hartman, 57 Waconia, MN St. Joseph

news@catholicunited.org

Phyllis M. Huberty, 78 St. Paul, MN St. Bernard’s

Memorials for former AFU members are listed on page 19.

March/April 2013

17

Minutes of the

Board of Directors The 2013 Board of Directors.

Front row from left: Interim Senior Vice President & Secretary/Treasurer Mike Ahles, President Harald Borrmann and Lead Director Joseph Kueppers. Back row from left: John Maile, Michael Schmitz, Renee Brod, Patricia Kasella, Robert Krattenmaker and George Gmach.

Announcement: Declare Your Candidacy by June 1, 2013.

John Maile, Robert Krattenmaker and Mike Schmitz will be up for re-election at this year’s Annual Convention. If you would like to run for one of the three seats on the Board, you must declare your candidacy in writing to President Borrmann no later than June 1, 2013.

January 16, 2013 The meeting was held at the Home Office in St. Paul, MN and started at 10:00am with Director Joe Kueppers leading the Directors in the Opening Prayer and the Pledge of Allegiance.

All members were present.

The December Minutes were reviewed with minor corrections made and these revised Minutes were moved for approval by Mr. Kueppers, seconded by Director John Maile and approved.

Chairman Harald Borrmann reviewed the Investment Activities and Annuity Crediting Rate Reports for December.

The Association’s investment returns are consistent with recent months’ slightly declining yields. Mr. Borrmann discussed cash management practices and preparations to reduce product crediting rates given continued low interest rates. The overall portfolio has no investments outside the guidelines established by the Board. Mr. Kueppers moved, Director Michael Schmitz seconded and the Board approved the Investment Reports.

The following Policy Governance items were covered:

Cost of Governance Policy was presented by Interim Secretary Michael Ahles. Mr. Kueppers moved to accept, Mr. Gmach seconded and the Board approved the policy.

Governing Style Policy was reviewed by Mr. Borrmann.

Mr. Borrmann discussed the Board’s Lead Director position.

Mr. Maile nominated Mr. Kueppers, Mr. Gmach seconded, and the Board approved Mr. Kueppers’ as Lead Director.

Mr. Borrmann led a review of Board Committees. Mr. Kueppers moved, Director Bob Krattenmaker seconded, and the Board approved the Board Committee Members for 2013.

Mr. Borrmann commented that Board succession planning is important and invites interested Members to run for election.

The Board encourages qualified potential Board members to be involved in Council activities and Convention committees.

Mr. Gmach moved, Mr. Krattenmaker seconded and the Board approved a gift in honor of Bishop John LeVoir as the Association’s new Spiritual Director.

Mr. Borrmann discussed options to facilitate the Board’s review of revised Council By-laws, and reviewed the Board Calendar for 2013.

Mr. Ahles presented a DVD program and workbook materials on Robert’s Rules of Order.

Mr. Borrmann presented his President’s Remarks, as follows: The 2013 Annual Catholic Schools Raffle kicks off soon with 85 schools participating.

Goal is to raise $750,000.

Fraternal has hosted many Council officer appreciation events and launched the Parish Volunteer Team pilot.

Recent donations sponsored the Office of Marriage and Family and Catholic Community Foundation.

Billing statements were revised encouraging Members to contact their Catholic United Sales Representative.

Annuity sales decreased 9% vs. 2011 whereas life premium increased 9%. Both results were as planned. Net membership increased for the year.

2012 Sales Rep awards included Dan Markell for new members, Butch Byers for issued life applications plus 11 President’s

Board Minutes are abridged. Complete minutes are available at no charge by contacting the Home Office at 1-800-568-6670 or by visiting our website.

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March/April 2013

www.catholicunitedfinancial.org

Association Business Conference qualifiers.

New radio advertising campaigns were launched increasing brand and name recognition.

Credit Union launched a new web site and mobile application.

The capital ratio finished 2012 at its historic record level.

In January the Foundation received the largest single gift in its history.

Mr. Ahles presented the 2012 Fraternal Peer Study of financial data. The Association outperforms peers in life insurance in-force, new life and annuity premium, lapse rate and assets while lagging in surplus and net investment income.

Mr. Borrmann discussed Saint Paul’s Outreach 2013 Benefit Banquet highlighting that retired President and Chairman of the Board Michael McGovern will be honored with the Bishop Paul Dudley Servant Leadership Award. Mr. Kueppers moved, Mr. Schmitz seconded and the Board approved sponsorship of the event.

Mr. Borrmann briefed the Board on Risk Management activities: The transition to a new backup site for the Association’s mainframe system was completed by terminating the prior vendor’s support.

The State of Minnesota Exam on-site work is expected to be completed within 2 weeks.

The Association’s annual insurance renewals are complete.

Mr. Kueppers moved to postpone the Constitution and By-Laws Review to the March meeting, Mr. Maile seconded, and the Board unanimously approved.

The closing prayer was led by Mr. Schmitz and the meeting was adjourned at 2:35pm.

Respectfully submitted, Michael M. Ahles Interim Senior Vice President and Secretary/Treasurer

news@catholicunited.org

Report of the Compensation Committee Following is the report of the work of the Compensation Committee of the Board of Directors for Catholic United Financial for the year 2012.

The Compensation Committee reviewed and discussed salary ranges and benefits for the elected officers for the current year of 2012. Due to the leadership transition of the elected officers in the fall of the year, executive performance evaluations were not held. Review of the new executives will be completed by the Committee in 2013.

Market data from the Employers Association of America and the 2012 National Executive Compensation Survey was reviewed as was data of similarly sized fraternals. Data showed that executive compensation trended upward over the past year. The Committee further evaluated the pay range philosophy of the two executive’s salary ranges recommending closing the gap between the CEO and Senior Vice President and Secretary/Treasurer positions given the expanded role and responsibilities of the Senior VP. The Committee recommended new total compensation pay ranges for 2013 with a middle of the market position. The Committee prepared recommendations and reviewed them in closed session with the other non-officer members of the Board. The resulting recommendations were later approved by the full Board during the December 13, 2012 meeting.

In consideration of the guidelines established for executive pay, the following compensation was approved. Given his performance and years of service, the total cash package for Mr. Borrmann as President and Chair of the Board is set at $330,000 for 2013. Cash compensation for Mr. Ahles, a qualified Board appointee as Interim Senior Vice President and Secretary/Treasurer, is set at $290,000 for 2013.

Respectfully submitted, The Compensation Committee of the Board

In memory of our former A.F.U. Members January & February

Fred W. Adamic, 89 Dale D. Ayers, 84 Jack J. Blankenship, 62 Ricardo E. Brown, 76 Lillian Brulc, 89 Joseph F. Cekada, 74 Mary Chudovan, 97 T.C. Dean, 87 Clifford W. Farmer, 76 John L. Friedrichs, 75 Jeffrey S. Grandy, 47 Margene A. Grose, 81 Lucie G. Hafner, 69 Deborah S. Hendricks, 58

George W. Linkenhoker, 85 George B. Linn, 85 Emma Orris, 93 Arnold Sipp, 77 Betty L. Starlin, 78 Grace G. St. Clair, 93 Eugene J. Tezak, 96 Ellen Theiss, 65 Lula J. Thompson, 75 Jennie Valencic, 89 Anne Vodnick, 94 Cleveland Wood, 78 Geraldine Anesetti, 73 John Charles, 79 Margaret Davisson, 80

Bonita K. Donelow, 54 Doris Engels, 77 Joseph Ferlan, 92 Joe Florjancic, 94 Mary Grahek, 95 John T. Holt, 77 John C. Kemmerer, 38 Delphia Kirk, 75 Robert J. Koss, 65 Edward J. Labaki, 85 Joseph S. Leskovar, 85 Lillian R. Mullins, 77 Virgie E. Ritchie, 76 Kizzie M. Rose, 82 Donetta R. Royal, 66

March/April 2013

19

! t h g i l gh

Fraternal

Hi

Members of the Tri-Parish Youth Group in St. Charles, Minn., JOIN HANDS with adult members of the St. Isidore Council for a mini work-camp in 2012.

Volunteers: You Make the Difference!

By Stacie Suedkamp

E

very year, the Fraternal Department reads stories submitted in council annual reports and scholarship applications about how you help in your communities. Thousands of hours have been logged by our members in response to the needs of their parish, schools, religious education programs and communities.

Large events drawing hundreds of people are often the ones featured in magazines and articles, many of the events shared with the Home Office are more humble affairs with just four to five members getting involved. Whether it’s a small gathering or a large event, helping one another speaks directly to the heart of the church.

Simple opportunities are the ones that bring me the most joy. We received a MinisTREE card that read, “Take an elderly gentleman to lunch for his birthday.” MinisTREE helps meet the unmet needs of the parish and community. The thoughtfulness of this act brought us a smile in the office. Can you imagine the joy that gentleman experienced on his birthday, thanks to the efforts of just one volunteer?

As Catholics, we are familiar with answering the call to serve. As Catholic United Financial members, we have great opportunities to serve with councils, parish units and as individuals. We can see the rewards of our efforts satisfying the needs of the community and providing financial support for Catholic religious education.

Planning and participating in a Join Hands Day event is what gives our councils the opportunity to reach Platinum status. Join Hands Day is a nationwide day of events where young people and adults come

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together for service in the community. The American Fraternal Alliance, the national trade association for fraternal benefit societies, organizes the official Join Hands Day on the first Saturday in May. Councils may plan a Join Hands Day at any time during the year. Contact the Fraternal Department by phone at 1.800.568.6670 or e-mail fraternal@catholicunited. org if you’d like more information about how to organize Join Hands Day in your community.

National Volunteer Week this year is April 2127. The week is about inspiration, recognition and encouragement of people engaging in their communities. What a great opportunity for Catholic United members to share how they’ve been involved in their communities. For more information about National Volunteer Week, check out their webpage at www.pointsoflight. org/signature-events/national-volunteer-week.

Whether you’ve never volunteered or if you’ve logged a thousand hours yourself, our councils and parish units continue to offer a variety of events where your time and talent can be put to good use. Check out what your community is up to by calling your local Sales Representative.

www.catholicunitedfinancial.org

Catholic United Kids Cool Kid

Name: Alyssa Scherping Age: 8 Hometown: Freeport, Minn.

School: Sacred Heart School The “ABCs” of Alyssa! What word would her mom use to describe Alyssa? How about “Helpful!”

The 8-year-old dynamo is active in 4-H, Youth Choir and community service, along with giving her grandma a hand at the food shelf. Alyssa loves math, art, spelling and reading at school, and likes to ride her bike and swim during the summer. Congratulations, Alyssa!

Be the May/June Cool Kid! Fill out the puzzles on this page as best you can and submit them to Our Catholic Journey. One winner will get a Catholic United prize pack! Include your information, as seen above, a photo (can be returned) and a phone number. Send to: Catholic United Kids, 3499 Lexington Ave. N., St. Paul, MN 55126.

Catholic United Kids

news@catholicunited.org

Amazing Saints artwork and games ©2012 Mario D. Macari. All rights reserved. mario@incrediblesaints.com

march/April 2013

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ye on the Industry Your sneak peek into current trends of the fraternal life insurance industry

Gen X & Y uneducated on financial products Sound the alarm!

Members of the Gen X and Gen Y generations admit to being ignorant of investing and financial products.

A new report published in February finds that only one out of five young persons in America are working with a financial professional, and more than half of Gen X and Gen Y consumers admit having little or no knowledge about investments and financial products.

“Most Gen X and Y Americans will have to rely solely on their savings to fund their retirement, yet few are taking full advantage of the retirement savings vehicles available to them. The decisions these consumers make today will have a lasting impact on their ability to be financially secure in their retirement years,” said Cecilia Shiner, senior analyst for LIMRA, a trade organization for the life insurance industry.

“There’s a lot of attention on the Baby Boomers (78 million) but there are nearly 116 million Americans aged 20 to 47, and as an industry we need to help these Americans plan and save for retirement,” said Shiner.

The study found that young people who seek out the help of financial professionals tended to be more knowledgeable about investments and financial products than those who did not. (Source: www.limra.com)

March/April Catholic Crossword Across

could not find a place to stay 14. Baseball great who was featured 1. “Ted” star who mentioned his Catholic faith at the Oscars (2013), on “Champions of Faith” ____ DiMaggio Mark ____ 18. Dress (up) 6. Top quarterback, Tom ____ 20. Time of arrival, for short 9. Retirement savings account 11. Putting money aside for the fu- 21. The Son of ____ 22. Income from an investment that ture is paid out in a series of regular 12. Place where Mary and Joseph

payments 24. Fisherman’s equipment 26. Son of Abraham 27. Young singer of Disney fame, Selena ____ 30. Pledges taken by priests 31. Broke bread 33. TV host, Jimmy ____ Live!

35. Airline, abbr.

37. Clippers’ state 38. Quality of taking care about spending money 40. Traveling vehicle, for short 41. Religious songs 43. Hot and cold drink 45. Ravens head coach, John _____ 49. Lead singer for the BlackEyed Peas 51. ___ Jeanne d’Arc 53. Place (abbr.)

54. Where the Exodus was from 55. Important Catholic ceremony 56. Not eat for a period of time

Down

5. Nurse, for short 7. Roman Catholic, for short 8. Removes moisture from 10. Syrian city that was visited by St. Paul on his first missionary journey 13. Denial word 15. Measure of the fineness of gold, for short 16. Take food 17. Baby 19. Well-known politician who produced “Nine Days That Changed the World” about Pope John Paul’s visit to Poland, Newt ____ 23. You and me 25. The ___ of Babel 28. Lady who makes apple pies 29. Native South African people 30. Pet doctor 31. New Testament book, ____s 32. Our planet 34. City head 36. “___ Maria” 39. Enjoy a good meal 42. Carpenter’s tools 44. Africa, abbr.

45. Tint of color 46. Bit of sunshine 47. Salt Lake City locale 48. Prize jewel 50. Student score 52. George Washington’s dream

1. The three who visited the baby Jesus (2 words) 2. ______ Parseghian of Notre Dame Solution posted at 3. Safe place 4. The youngest son of Jacob, www.catholicunitedfinancial.org/ links/games in the Bible

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March/April 2013

www.catholicunitedfinancial.org

Metro/East

Sales Representatives in Your Area Roger Bauer, FIC

Directory

Mary Holm, FICF 715-218-7522 mholm@catholicunited.org Wausau & surrounding area

651-437-6026 rbauer@catholicunited.org Cannon Falls, Hampton

Michael Gross, FIC 651-641-1740 mgross@catholicunited.org Mahtomedi, St. Paul, Roseville

Lori Jackson

952-437-2208 ljackson@catholicunited.org Hastings, Vermillion

Mike Skillrud

(612) 750-5885 mskillrud@catholicunited.org Burnsville, Cottage Grove, Eagan, Inver Grove Heights

Jeff Passe, FIC, LUTCF 651-955-2453 jpasse@catholicunited.org Woodbury, Cottage Grove, Stillwater

Susan Stenzel

507-459-2669 jhansen@catholicunited.org Winona, Rollingstone, Stockton

Jeff Plank, FIC 507-457-0413 jplank@catholicunited.org Wabasha and surrounding area

Patrick Brown, FIC, CLF 888-412-9766 pbrown@catholicunited.org Regional Manager, Metro

Mary Harens, FIC

Roger Reitmaier, FIC 507-454-4979 rreitmaier@catholicunited.org St. Charles

Robb Smith, FICF

Gail Hakes, FIC 507-254-7471 ghakes@catholicunited.org Owatonna, Austin and surrounding area Jamie Hansen

651-295-2040 mharens@catholicunited.org St. Paul area

Region Events April 19 – Annual Family Baseball Night Watch the Minnesota Twins face-off against the Chicago White Sox on a large screen while enjoying ball park foods, door prizes, games and so much more at Church of the Resurrection in Rochester, Minn. Doors open at 5:30 p.m. with the first pitch flying at 7:05! Contact Greg Mader at roseandgreg@charter.net with questions.

May 20 – Foundation Golf Tournament Annual fundraiser for the Catholic United Financial Foundation will be held at the scenic River Oaks Golf Course in

Cottage Grove, Minn. Registration and lunch starts at 11 a.m. Call 1-877-2757145 to register or email rheuermann@ catholicunited.org.

May 27 – Memorial Day The Catholic United Financial Home Office will be closed.

May 31-June 1 – Minnesota Catholic Home Education Conference Say “Hi” to us at the Catholic United booth at this conference, held at the University of St. Thomas in St. Paul, Minn. More information can be found at www. mnconference.org.

Find more details and up-to-date event listings on our Facebook page: www.facebook.com/catholicunited news@catholicunited.org

ChFC, LUTCF, FIC 507-282-1793 sstenzel@catholicunited.org Rochester, Adams

715-645-2730 rsmith@catholicunited.org Regional Manager, East

We are hiring in Wisconsin

Your skills and work ethic ensure your success. Wouldn’t you prefer to succeed in a values-based organization? Catholic United Financial is offering excellent opportunities for motivated, goal-oriented professionals as a part of our local sales team.

Contact our Recruiter today: 1-800-568-6670 ext. 154 or email ccamarillo@catholicunited.org

March/April 2013

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3499 Lexington Ave. N., St. Paul, MN 55126-8098

Welcome Our New Spiritual Director John M. LeVoir, Bishop of New Ulm We are proud to announce the appointment of Bishop John LeVoir, of the Diocese of New Ulm, to the post of Spiritual Director of Catholic United Financial.

Bishop LeVoir was born in Minneapolis, Minn., son of Marvin and Mary, with Bishop John M. LeVoir, three siblings, Frederick, Mary Ellen and Paul.

Spiritual Director His path to the priesthood was somewhat unusual, as he received bachelor of science degree in chemistry from the University of St. Thomas, and then a BSB in accounting from the University of Minnesota.

He worked as a certified public accountant and taught accounting at the U of M, where he also recieved a BA in history. It wasn’t until he was in his late twenties that he entered seminary.

Bishop LeVoir follows in the footsteps of one of his mentors, Msgr. Richard J. Schuler, as Spiritual Director of Catholic United. Schuler, who had a special

gift for guiding men to their vocation, was a strong figure in his formation, LeVoir said. “I am especially grateful to the late Msgr. Richard Schuler,” the Bishop wrote to his Diocese upon his elevation, “for the support he gave me during my seminary years.”

The new spiritual director strongly associates himself as a parish priest, and has close connections to the Twin Cities. He was an Associate Pastor at St. Charles Borromeo in St. Anthony for eleven years, and Pastor of Holy Trinity (and later St. Augustine) in South St. Paul for twelve years. Since 2004 he had been pastor of St. Michael and St. Mary in Stillwater.

“I go back more than 30 years with Catholic United,” LeVoir said. “They do so much for The Bishop’s Coat of Arms the Church... includes the My vocation is to phrase “Nolite help people to Timere,” which be holy, and any means “Do not be afraid,” which advice I can give Christ often said to Harald or the to his disciples Board to help it (example, Mt in that regard I 14:27) look forward to.”

Catholic United Financial Fraternal Results through February, 2013

Total:

$ 0 6 7 ,7 3 2.8 2

$ 0 5 8 ,8 7 7.7 1 8 ,8 5 5.1 1 Matched: $

Raised By Councils:

Hours Volunteered: 0 1 ,4 8 2