U. S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   Form 10-QSB

/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934

         For the quarterly period ending June 30, 2002

                                       Or

/_/ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from _________ to ____________

                          Commission File No. 333-93475

                  PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
                  --------------------------------------------
        (Exact name of small business issuer as specified in its charter)

         Georgia                                          58-2232313
--------------------------------------------------------------------------------
  (State or other jurisdiction              (IRS Employer Identification Number)
of incorporation or organization)

6030 Bethelview Rd, #203, Cumming, GA                           30040
--------------------------------------------------------------------------------
(Address of principal executive office)                       (Zip Code)

Issuer's telephone number, including area code: (678)-455-1100
                                                --------------

--------------------------------------------------------------------------------
Former name, address and former fiscal year, if changed since last report.

Check  whether  the issuer  (1) filed all  reports  required  to be filed by the
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for past 90 days.

                  Yes__X__                  No___

As of July 31, 2001,  there were issued and  outstanding  529,943  shares of the
common stock of the issuer.

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]

<PAGE>

                  PIF/Cornerstone Ministries Investments, Inc.

                                      Index
                                                                            Page

Form 10-QSB Title Page                                                        1

Index                                                                         2

PART I. FINANCIAL INFORMATION

         Item 1. Financial Statements

                 Balance Sheet at June 30, 2002                               3

                 Statement of Operations for six
                 Months ending June 30, 2001 and 2002                         4

                 Statements of Cash Flow for six
                 Months ending June 30, 2001 and 2002                         5

                 Notes to Financial Statements                                6

         Item 2. Management's Discussion and Analysis of
                 Financial Condition and Results of Operation                 8

PART II. OTHER INFORMATION

         Item 1. Legal Proceedings                                            9

         Item 2. Changes in Securities and Use of Proceeds                    9

         Item 3. Defaults on Senior Securities                                9

         Item 4. Submission of Matters to a Vote of Security Holders          9

         Item 5. Other Information                                            9

         Item 6. Exhibits and Reports on Form 8-K                             9

Signatures                                                                    10

Written statement of chief executive and chief financial officers             10

Special note about review by independent accountant                           10

                                                                               2
<PAGE>

PIF/Cornerstone Ministries Investments, Inc.
Balance Sheet June 30, 2002

         Assets
Current assets:
  Cash                                                               $ 4,099,690
  Accounts receivable                                                    250,000
  Other current assets                                                   656,403
                                                                     -----------
         Total current assets                                        $ 5,006,093

Real estate loans receivable                                          38,644,682
Fixed assets                                                           1,050,093
Bonds                                                                  5,110,500
Intangible assets, less amortization                                     306,229
Other assets                                                           1,110,833
                                                                     -----------

         Total assets                                                $51,228,430
                                                                     -----------

   Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable                                                   $     8,487
  Interest and dividends payable                                       2,114,557
  Income taxes payable                                                    98,320
  Due on redeemed certificates                                           971,646
  Payroll tax liabilities                                                 12,911
  Other current liabilities                                                7,231
                                                                     -----------
         Total current assets                                        $ 3,213,152
                                                                     -----------

Long term liabilities:
  Investor certificates                                              $43,627,877
  Building loan                                                          193,336

         Total liabilities                                           $47,034,365
                                                                     -----------

Common stock, $0.01 par value,
  10,000,000 shares authorized,
  528,975 issued and outstanding                                           5,299
Paid in capital                                                        3,439,332
Preferred stock                                                          500,000
Retained Earnings                                                        249,434
                                                                     -----------

         Total equity                                                $ 4,194,065
                                                                     -----------

Total liabilities and equity                                         $51,228,430
                                                                     -----------

                                                                               3
<PAGE>

PIF/Cornerstone Ministries Investments, Inc.
Statement of Income and Retained Earnings
for the six months ended June 30, 2001 and June 30, 2002

                                                     Six months ended June 30
                                                     ------------------------
                                                        2001           2002
                                                        ----           ----
Revenues
  Interest income - loans                          $ 1,400,505      $ 1,934,057
  Fees earned                                          795,925        1,097,974
  Rental income                                          7,346           13,235
  Other income                                           2,965             --
                                                   -----------      -----------

         Total income                              $ 2,206,741      $ 3,045,266
                                                   -----------      -----------

Operating expenses
  Interest expense                                 $ 1,254,944      $ 1,787,047
  Marketing expenses                                   105,203          228,734
  Other operating expenses                             431,575          563,979
                                                   -----------      -----------
         Total operating expenses                  $ 1,791,722      $ 2,579,760
                                                   -----------      -----------

         Net income from operations                $   415,019      $   465,506

Other income (expense)
  Estimated income taxes                              (174,541)         (89,800)
                                                   -----------      -----------

         Net income                                $   240,478      $   375,706
                                                   -----------      -----------

                                                                              4
<PAGE>

PIF/Cornerstone Ministries Investments, Inc.
Statement of Cash Flows
for the six months ended June 30, 2001 and June 30, 2002

                                                  Six months ended June 30
                                            -----------------------------------
                                                  2001                2002
                                                  ----                ----
Cash flows form operating activities:
  Net income                                   $   240,478    $   375,706
  Adjustments to reconcile net income
  To net cash provided by operations:
     Depreciation and amortization                  59,809        100,783
     Changes in:
         Accounts receivable                      (220,687)         3,668
         Interest receivable                        66,079        (81,086)
         Related company advances                     --         (160,738)
         Other assets                              (51,801)         9,456
         Accounts payable                          (12,869)       (69,463)
         Redeemed certificates due investors          --          978,128
         Interest payable                          199,041     (1,103,422)
         Dividends payable                        (151,974)           398
         Income taxes payable                       53,431         89,800
         Payroll taxes payable                     (24,368)         1,736
         Other liabilities                          75,821         (4,099)
                                               -----------    -----------

  Net cash provided by operating activities    $   232,960    $   140,867
                                               -----------    -----------

Cash flows from investing activities:
         Net loans made                        $(2,120,258)   $(7,111,187)
         Real estate purchased                    (451,392)        (2,351)
         Equipment purchased                      (257,460)       (32,018)
         Intangible assets purchased                  --          (44,400)
         Related company investment                   --          (62,585)
         Sale of bond holdings                        --           62,000
         Interest and fees receivable                 --         (364,859)
         Prepaid commissions                          --         (146,100)
                                               -----------    -----------

  Net cash used by investing activities        $(2,829,110)   $(7,701,500)
                                               -----------    -----------

Cash flows from financing activities:
         Common stock issued                   $   867,009    $     7,669
         Net debt certificates issued            2,090,671      9,022,921
         Building loan                             200,933         (3,858)
         Dividends                                    --         (172,452)
                                               -----------    -----------

  Net cash provided by financing activities    $ 3,158,613    $ 8,854,281
                                               -----------    -----------

Net cash increase for period                   $   562,463    $ 1,293,648
Cash at beginning of period                        364,608      2,806,042
                                               -----------    -----------

Cash at end of period                          $   927,071    $ 4,099,690
                                               -----------    -----------

                                                                               5
<PAGE>

                  PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2002

NOTE 1 - Summary of Significant Accounting Policies

(A) Conformity with Generally Accepted Accounting Principles and Accounting
    Method

The accounting  policies of the Company conform to generally accepted accounting
principles  consistent to its industry.  The Company uses the accrual  method of
accounting.

(B) Description of Company's Operations

The Company is in the business of originating  and purchasing  mortgage loans on
Church and Church related  properties.  Costs associated with loan  applications
received directly from borrowers are expensed as period costs.

(C) Organizational Information

The Company is a corporation organized under the laws of the State of Georgia.

(D) Provision for Loan Losses

Management  is of the opinion that losses  arising from the default of Church or
Church related loans are not probable or reasonably estimated. Management has an
aggressive  policy of working out any potential  problem loans before they reach
the  default  stage.  As of the  balance  sheet  date no loan is in arrears in a
material  amount.  Therefore,  no allowance  for loan losses is reflected in the
accompanying statements.

(E) Accrued Interest Income

Interest  income  is  accrued  monthly  on  the  outstanding  balance  of  loans
receivable.

(F) Accrued Interest Expense

Interest on Certificates of Indebtedness is accrued  semiannually  from the date
of  issuance,  and  may  be  paid  semiannually.  Investors  holding  five  year
certificates in multiples of $10,000 may receive interest monthly.

(G) Cash and Cash Equivalents

Cash and cash equivalents  include checking accounts and short term certificates
with original maturities of 90 days or less.

NOTE 2 - LEASE COMMITMENTS

The Company had no lease commitments at June 30, 2002.

NOTE 3 - REAL ESTATE LOANS RECEIVABLE

At June  30,  2002,  the  Company  had Real  Estate  Loans  Receivable  totaling
$38,644,682.  These loans  mature over a period  beginning in 2002 and ending in
2012.

NOTE 4 - INTANGIBLE ASSETS

Intangible assets consist of costs incurred to 1)organize the Company,  2) costs
of  registering  the Company's  equity and debt  securities,  3) developing  the
Prospectus for registering of the Company's securities,  and 4) commissions paid
and/or accrued on the sale of debt securities and equity  securities and (5) the
costs of acquiring  assets and/or assuming  liabilities in  acquisitions.  These
intangibles are amortized on a straight line basis for periods of 5 to 40 years.

                                                                               6
<PAGE>

                  PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                       DECEMBER 31, 2001and MARCH 31, 2002


NOTE 5 - CASH CONCENTRATION

A cash concentration risk arises when the Company has more cash in one financial
institution than is covered by insurance. At June 30, 2002, the Company had cash
in one institution that was $1,762,777 over the amount insured by the FDIC.

NOTE 6-SECURITIES OFFERING

During  the  year  ended  December  31,  2001  the  Company  filed  2 Form  SB-2
Registration   Statements   under  the  Securities  Act  of  1933.  Under  these
Registration Statements, the Company issued 3 separate securities.

Under the first of the SB-2 filings the Company issued securities  identified as
"Access Certificates". These certificates have no stated maturity, are purchased
in $100  increments  and bear a rate of interest as  determined by the Company's
board of directors on the first of each January,  April,  July and October.  The
directors  may also change the rates  between  these dates if market  conditions
warrant such a change.

Under this same filing the Company issued 5 year "Graduated Certificates". These
certificates  require  a  minimum  investment  of $500.  Under  the terms of the
offering as filed,  these  certificates carry a graduated interest rate based on
how  long  the  certificate  is  held  by  the  investor  up to 5  years.  These
certificates  are  not  collateralized  and  no  sinking  fund  for  paying  the
certificates on maturity is required.

Also  during  the year  ended  December  31,  2001  the  Company  offered  up to
$17,000,000  of  Series  B  Certificates  of  Indebtedness.  Of the  $17,000,000
offered,  $3,000,000  has a March 13, 2003  maturity  date and bears an interest
rate of 7%. The  remaining  $14,000,000  has a March 15, 2005  maturity date and
bears interest at 9%. These  certificates are not  collateralized and no sinking
fund for paying the certificates on maturity is required.

Under a  registration  statement  effective  July 3,  2002,  the  Company  began
offering up to $45,000,000 of certificates,  which include access, graduated and
five-year,  fixed-rate  certificates.  These certificates are not collateralized
and no sinking fund for paying the certificates on maturity is required.

NOTE 7-LOAN GUARANTEES

At June 30, 2002,  the Company was  guarantor  for loans  secured by  retirement
facilities owned by non-profit  entities.  The total of such loan guarantees was
approximately $20,310,000 at June 30, 2002.

NOTE 8-PROFIT SHARING PLAN

During the year ended  December  31,  2001,  the  Company  established  a Profit
Sharing  Plan for its  employees.  The Plan allows for entry into the plan after
one year of service, and immediate vesting of contributed amounts. The Plan does
not have an employee contribution component. All contributions are to be made at
the discretion of the Company after approval by the board of directors.  For the
year ended  December  31, 2001 the Company  determined  that a  contribution  of
approximately $41,000 was to be made.

NOTE 9-ACQUISITION OF INTEREST IN LIMITED LIABILITY COMPANY

During the year ended December 31, 2001, the Company  acquired a 99% equity/100%
profits  interest in Wellstone  Financial  Group,  LLC (WFG), a Georgia  Limited
Liability  Company.  WFG was formed  for the  purpose  of  assisting  non-profit
entities  secure  financing  from sources other than the Company for  retirement
facilities,  childcare facilities and church and church related facilities.  WFG
receives  a fee for  assisting  these  non-profit  entities  secure  non-Company
financing.

                                                                               7
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

Overview

Since  our  inception,   we  have  been  focused  on  serving  only  faith-based
organizations,  principally  churches.  We also offer  specialized  programs for
churches  and  non-profit  sponsors  of senior  housing and  affordable  housing
programs.  While our earnings have  historically  come from financing  churches,
that  began to change  during  the last  quarter  of 2000 as we began to realize
revenues from investment in senior and affordable housing projects.

As previously reported,  Cornerstone Ministries  Investments,  Inc. acquired, by
merger  effective  December  29,  2000,  all of the  assets and  liabilities  of
Presbyterian  Investors Fund, Inc., a not for profit corporation.  No additional
shares were issued in the merger.

PIF/CMI generates  revenue from origination and renewal fees on loans,  interest
on these  loans,  gains on the sale of property  and  interest  on money  market
accounts.  We also receive limited lease income, but we are no longer pursuing a
lease/purchase  strategy. We currently charge a 10% fee on new loans and renewal
fees of as much as 5% of the  outstanding  balance  of the  renewing  loan.  Our
interest  rate on all new loans is  currently  from 10% to 12%.  Some  loans are
participating  loans,  enabling  PIF/CMI to receive income from the gains on the
sale  of  property  for  which  it has  provided  financing.  The  participation
percentage varies between 25% and 33% of the gains on the sale of real estate.

Comparison of Periods Ending June 30, 2001 and June 30, 2002

Income

General.  Assets  increased from  $34,650,051 at June 30, 2001 to $51,228,430 at
the end of June 2002,  as a result of the sale of CMI's stock and  certificates.
Gross income was  $2,206,741  for the first two quarters of 2001 and  $3,045,266
for the same period in 2002. Net income for these periods,  before dividends but
after taxes, was $240,478 and $375,706.

Total loans  outstanding on June 30, 2001 were  $28,590,067  and  $38,644,682 on
June 30, 2002.  Our other assets at the end of June 2002 included  $5,110,500 in
investments in bonds.

Interest  Income.  Interest income  increased from $1,400,505 for the six months
ended June 30, 2001 to $1,934,057 in the 2002 period, largely as a result of the
additional loans made during this period.

Fee Income.  Fee income for the six months  ending June 30, 2002 was  $1,097,974
versus  $795,925  for the same period in 2001.  The  increase is  primarily  the
result of additional  loans being made during the period out of increased  funds
arising from the sale of certificates.

Expenses

Interest Expense. As a result of its growth in assets through certificate sales,
we experienced an increase in interest  expense from $1,254,944 in the first six
months of 2001 to  $1,787,047  in the 2002  period.  This  increase  in interest
expense is  primarily  a result of a net  increase  in  outstanding  certificate
principal, from $28,047,867 to $43,627,877.

Marketing  and Selling  Expenses.  To date,  CMI has not  committed  substantial
resources  for  marketing  its lending  capabilities  because of the  continuing
backlog of projects with which it has been approached.  Total marketing expenses
in the first two quarters of 2002 were $228,734 versus $105,203 in 2001. Selling
commissions are paid in cash but capitalized  over three,  five, and seven years
depending on whether a three-year  certificate,  five-year certificate or common
stock is sold.  Commission expense and the accompanying  capitalized assets will
increase as securities continue to be sold.

                                                                               8
<PAGE>

Operating and Administrative  Expenses.  Operating and  administrative  expenses
totaled $563,979 in the first six months of 2002 and $431,574 in the same period
of 2001.  This  increase  can be  attributed  to  additional  staff and  support
facilities.

Amortized  legal  expenses  increased as a result of the offerings  begun in the
2000.  Legal expenses  associated  with both the offerings are  capitalized  and
amortized.  We  capitalized  and are amortizing  the costs  associated  with the
transfer of registrar, paying agent, and trustee services as well.

Taxes.  We estimated  income taxes for the  six-month  periods to be $89,800 for
2002 and $174,541 for 2001, based on projected income estimates for the year.

Liquidity and Capital Resources

Cash from  Operations.  Net cash from operating  activities was $140,867 in 2002
and $232,960 in 2001.

Cash from  Financings.  For the six months ended June 30, 2002,  $9,030,590  was
raised  from  the  sale of new  securities,  after  subtracting  the  amount  of
outstanding  securities redeemed.  The net new capital raised in the 2001 period
was $2,957,680.

We believe that additional sales of new investments from the current and planned
offerings,  as well as cash on hand, expected refinancings and sales of existing
loans,  will be sufficient  to meet our capital needs for the next quarter.  The
amount and timing of our future capital requirements will depend on factors such
as the  origination  and  funding of new  investments,  the costs of  additional
underwriting and marketing efforts, and general expenses of operations.

Effects of Inflation

Inflation,  which has been limited  during the course of our operating  history,
has had  little  effect  on  operations  and we do not  believe  it will  have a
significant  effect on our cost of capital or on the rates that we charge on our
loans. Inflation resulting in increased prices for real estate could potentially
decrease the ability of some potential clients to purchase,  finance, or lease a
property.

Part II. Other Information

Item 1. Legal Proceedings

         Not Applicable

Item 2. Changes in Securities

         Not Applicable

Item 3. Defaults upon Senior Securities

         Not Applicable

Item 4. Submission of Matters to a Vote of Securities Holders

         Not Applicable

Item 5. Other Information

         Not Applicable

Item 6. Exhibits and Reports on Form 8-K

(a) No exhibits are filed.
(b) No reports on Form 8-K were filed  during the  quarter for which this report
    is filed.

                                                                               9
<PAGE>

Signatures

In accordance  with the  requirements  of the  Securities  and Exchange Act, the
registrant  caused  this  report to be signed on its behalf by the  undersigned,
thereunto duly authorized.

                          PIF/Cornerstone Ministries Investments, Inc.
                          (Registrant)
                          Dated: August 12, 2000


                          By:   S/ John T. Ottinger
                             ------------------------------------------------
                                   John T. Ottinger
                                   Vice President and Chief Financial Officer

Written statement by the chief executive officer and chief financial officer

I certify  that the Report on Form 10-QSB for the six months ended June 30, 2002
of  PIF/Cornerstone  Ministries  Investments,   Inc.  fully  complies  with  the
requirements  of section 15(d) of the  Securities  Exchange Act of 1934 and that
information  contained in that Report fairly presents, in all material respects,
the financial condition and results of operations of PIF/Cornerstone  Ministries
Investments, Inc.

                                S/ Cecil A. Brooks
                          ------------------------------------------
                          Cecil A. Brooks
                          President and Chief Executive Officer


                                S/ John T. Ottinger
                          ------------------------------------------
                          John T. Ottinger
                          Vice President and Chief Financial Officer

Special note about review by independent accountant

The independent accountant for PIF/Cornerstone Ministries Investments,  Inc. has
been T. Jackson McDonald,  CPA, a sole  proprietorship.  Mr. McDonald had issued
all audit and review  reports  during the entire  time that the  registrant  has
filed reports under Section 15(d).  Mr. McDonald died suddenly and  unexpectedly
on July 20, 2002,  while on vacation with his family.  The  registrant is making
all diligent efforts to engage an independent accountant but was unable to do so
in time for a review of this Report.

                                                                             10