N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-08228

The Timothy Plan

(Exact name of registrant as specified in charter)

1055 Maitland Center Commons, #100 Maitland, FL	32751
(Address of principal executive offices)	(Zip code)

Citco Mutual Fund Services

83 General Warren Blvd., Suite 200

Malvern, PA 19355

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-846-7526

Date of fiscal year end: 12/31/2006

Date of reporting period: 6/30/2006.

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

ITEM 1. The Semi-Annual Report to Shareholders for the period ended June 30, 2006 pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended, (the “1940 Act”) C17 CFR 270.30e-1 is filed herewith.

Semi-Annual Report
	June 30, 2006
	(UNAUDITED)
Timothy Plan Family of Funds:
Small-Cap Variable Series

LETTER FROM THE PRESIDENT

June 30, 2006

ARTHUR D. ALLY

As I write this, our world seems full of turmoil and conflict. In spite of that, I am pleased to report that neither the markets nor our funds have performed too badly during the first half of 2006 as you can see from this semi-annual report.

Actually, I could make that same statement about the past 30 years. In fact, I would like to share an historical perspective with you: Over the 30 year period (January 1, 1976 thru December 31, 2005) the market, as measured by the S&P 500 Stock Index (an unmanaged index in which an investor cannot invest), experienced the following results¹:

• Decreased by over 20% in only one of those years,

• Decreased by less than 20% in five of those years,

• Increased by less than 20% in eleven of those years, and

• Increased by over 20% in thirteen of those years

Of course, past performance can never be considered to be an indication of future results but isn’t that interesting from a historical perspective?

As for a current perspective, our various Timothy Plan money managers agree that both the stock and bond markets could continue to be difficult for the remainder of this year. Nevertheless, each of them has expressed confidence that we should be able to close this year in positive territory.

I would also like to point out that each of our managers has subscribed to our policy that preservation of principal is job #1 so, even though short-term market movements are impossible to accurately predict on a consistent basis, they are all proceeding accordingly.

In the meantime, our unwavering commitment to morally responsible investing remains firmly in place. This is what our Lord has called us to do and it is simply not negotiable.

I am also pleased to report that our Biblical Stewardship Seminar Series is now being taught by numerous certified instructors in churches throughout our land. If you would like information about having this course taught in your church, please call us at 1-800-846-7526.

Once again, thank you for being part of the Timothy Plan family.

Sincerely,

Arthur D. Ally,

President

¹ Standard & Poors

Timothy Plan Letter from the President [1]

OFFICERS AND TRUSTEES OF THE TRUST

As of June 30, 2006 (Unaudited)

TIMOTHY PLAN FAMILY OF FUNDS

Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Arthur D. Ally* 1304 W Fairbanks Avenue Winter Park, FL	Chairman and President	Indefinite; Trustee and President since 1994	12
Born: 1942	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	President and controlling shareholder of Covenant Funds, Inc. (“CFI”), a holding company. President and general partner of Timothy Partners, Ltd. (“TPL”), the investment adviser and principal underwriter to each Fund. CFI is also the managing general partner of TPL.		None
Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Joseph E. Boatwright** 1410 Hyde Park Drive Winter Park, FL	Trustee, Secretary	Indefinite; Trustee and Secretary since 1995	12
Born: 1930	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	Retired Minister. Currently serves as a consultant to the Greater Orlando Baptist Association. Served as Senior Pastor to Aloma Baptist Church from 1970-1996.		None
Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Mathew D. Staver** 210 East Palmetto Avenue Longwood, FL 32750	Trustee	Indefinite; Trustee since 2000	12
Born: 1956	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	Attorney specializing in free speech, appellate practice and religious liberty constitutional law. Founder of Liberty Counsel, a religious civil liberties education and legal defense organization. Host of two radio programs devoted to religious freedom issues. Editor of a monthly newsletter devoted to religious liberty topics. Mr. Staver has argued before the United States Supreme Court and has published numerous legal articles.		None

Timothy Plan Officers and Trustees [2]

OFFICERS AND TRUSTEES OF THE TRUST

As of June 30, 2006 (Unaudited)

TIMOTHY PLAN FAMILY OF FUNDS

Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Richard W. Copeland 631 Palm Springs Drive Altamonte Springs, FL 32701	Trustee	Indefinite; Trustee from 2005, new as of 2/25/2005	12
Born: 1947	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	Principal of Richard W. Copeland, Attoney at Law for 31 years specializing in tax and estate planning. B.A. from Mississippi College, JD and LLM Taxation from University of Miami. Associate Professor Stetson University for past 29 years.		None
Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Bill Johnson 903 S. Stewart Street Fremont, MI 48412	Trustee	Indefinite; Trustee from 2005, new as of 2/25/2005	12
Born: 1946	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	President (and Founder) of American Decency Association, Freemont, MI since 1999. Previously served as Michigan State Director for American Family Association (1987-1999). Previously a public school teacher for 18 years. B.S. from Michigan State University and a Masters of Religious Education from Grand Rapids Baptist Seminary.		None
Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Kathryn Tindal Martinez 4398 New Broad Street Orlando, FL 32814	Trustee	Indefinite; Trustee from 2005, new as of 2/25/2005	12
Born: 1949	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	Served on board of directors from 1991 to present, including House of Hope, B.E.T.A., Childrens’ Home Society, and Susan B. Anthony List. Previously a private school teacher and insurance adjuster. B.A. received from Florida State University State University and MAT from Rollins College, FL.		None

Timothy Plan Officers and Trustees [3]

OFFICERS AND TRUSTEES OF THE TRUST

As of June 30, 2006 (Unaudited)

TIMOTHY PLAN FAMILY OF FUNDS

Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
John C. Mulder 2925 Professional Place Colorado Springs, CO 80904	Trustee	Indefinite; Trustee from 2005, new as of 2/25/2005	12
Born: 1950	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	President Christian Community Foundation and National Foundation since 2001. Prior: 22 years of executive experience for a group of banks and a trust company. B.A. in Economics from Wheaton College and MBA from University of Chicago.		None
Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Charles E. Nelson 1145 Cross Creek Circle Altamonte Springs, FL	Trustee	Indefinite; Trustee since 2000	12
Born: 1934	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	Certified Public Accountant. Director of Operations, National Multiple Sclerosis Society Mid Florida Chapter. Formerly Director of Finance, Hospice of the Comforter, Inc. Formerly Comptroller, Florida United Methodist Children’s Home, Inc. Formerly Credit Specialist with the Resolution Trust Corporation and Senior Executive Vice President, Barnett Bank of Central Florida, N.A. Formerly managing partner, Arthur Andersen, CPA firm, Orlando, Florida branch.		None
Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Wesley W. Pennington 442 Raymond Avenue Longwood, FL	Trustee	Indefinite; Trustee since 1994	12
Born: 1930	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	Retired Air Force Officer. Past President, Westwind Holdings, Inc., a development company, since 1997. Past President and controlling shareholder, Weston, Inc., a fabric treatment company, form 1979-1997. President, Designer Services Group 1980-1988.		None

Timothy Plan Officers and Trustees [4]

OFFICERS AND TRUSTEES OF THE TRUST

As of June 30, 2006 (Unaudited)

TIMOTHY PLAN FAMILY OF FUNDS

Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Scott Preissler, Ph.D. P O Box 50434 Indianapolis, IN 46250	Trustee	Indefinite; New as of 1/1/04	12
Born: 1960	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	President and CEO of Christian Stewardship Association where he has been affiliated for the past 14 years.		None
Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Alan M. Ross 11210 West Road Roswell, Ga 30075	Trustee	Indefinite; New as of 1/1/04	12
Born: 1951	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	Founder and CEO of Corporate Development Institute which he founded five years ago. Previously he served as President and CEO of Fellowship of Companies for Christ and has authored three books: Beyond World Class, Unconditional Excellence, Breaking Through to Prosperity.		None
Name, Age and Address	Position(s) Held With Trust	Term of Office and Length of Time Served	Number of Portfolios in Fund Complex Overseen by Trustee
Dr. David J. Tolliver 4000 E. Maplewood Drive Excelsior Springs, MO 64024	Trustee	Indefinite; Trustee from 2005, new as of 2/25/2005	12
Born: 1951	Principal Occupation During Past 5 Years		Other Directorships Held by Trustee
	Senior Pastor Pisgah Baptist Church, Excelsior Springs, MO since 1999. Previously pastored three churches in St. Louis, MO area (1986-1999). Currently serves on Board of Trustees Midwestern Baptist Theological Seminary. Past President Missouri Baptist Convention (2003-2004)		None

Timothy Plan Officers and Trustees [5]

SMALL CAP VARIABLE SERIES

FUND PROFILE

June 30, 2006

FUND PROFILE (unaudited):

Top Ten Holdings (% of Net Assets)
CommScope, Inc.	3.94	%
Kaydon Corp.	3.76	%
Highland Hospitality Corp.	3.62	%
Interactive Data Corp.	3.60	%
InfoUSA, Inc.	3.46	%
MCG Capital Corp.	3.10	%
Jacuzzi Brands, Inc.	2.99	%
PMI Group, Inc.	2.99	%
Kite Realty Group	2.93	%
Stage Stores, Inc.	2.92	%
	33.31	%
Industries (% of Net Assets)
Industrial	25.87	%
Consumer, Cyclical	15.52	%
Financial	13.97	%
Communications	11.84	%
Consumer, Non-cyclical	10.85	%
Energy	8.44	%
Technology	6.44	%
Healthcare	4.79	%
Other Assets less Liabilities, Net	2.28	%
	100.00	%

EXPENSE EXAMPLE (unaudited):

As a shareholder of the Fund, you incur two types of costs: direct costs, such as wire fees and low balance fees; and indirect costs, including management fees, and other Fund operating expenses. This example is intended to help you understand your indirect costs, also referred to as “ongoing costs,” (in dollars) of investing in the Fund, and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period of January 1, 2006 through June 30, 2006.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested at the beginning of the period, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Timothy Plan Top Ten Holdings / Industries [6]

SMALL CAP VARIABLE SERIES

FUND PROFILE

June 30, 2006

Hypothetical example for comparison purposes

The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any direct costs, such as wire fees or low balance fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these direct costs were included, your costs would be higher.

	Beginning Account Value January 1, 2006		Ending Account Value June 30, 2006		Expenses Paid During Period* January 1, 2006 Through June 30, 2006
Actual	$	1,000.00	$	1,030.40	$	6.04
Hypothetical (5% return before expenses)		1,000.00		1,018.80		6.01

* Expenses are equal to the Fund’s annualized expense ratio of 1.20%, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 181 days/365 days (to reflect the one-half year period). The Fund’s ending account value on the first line in the table is based on its actual total return of 3.04% for the six-month period of January 1, 2006, to June 30, 2006.

Timothy Plan Top Ten Holdings / Industries [7]

SMALL CAP VARIABLE SERIES

SCHEDULE OF INVESTMENTS

As of June 30, 2006 (unaudited)

COMMON STOCKS - 97.72%

number of shares		market value
	AEROSPACE/DEFENSE - 3.99%
5,300	EDO Corp.	$	129,002
1,500	Teledyne Technologies, Inc.*		49,140
			178,142
	AUCTION HOUSE/ART DEALER - 1.54%
3,100	Adesa, Inc.		68,944
	AUTOMOTIVE RETAIL - 1.02
1,500	Lithia Motors, Inc.		45,480
	BUILDING - MOBILE HOME/MANUFACTURED HOUSING - 1.56%
6,300	Champion Enterprises, Inc.*		69,552
	BUILDING PRODUCTS - AIR & HEATING - 2.37%
4,000	Lennox International, Inc.		105,920
	BUSINESS SERVICES - 1.45%
3,000	Macrovision Corp. *		64,560
	COMMERCIAL BANKS - EASTERN US - 1.32%
2,400	Capital Crossing Bank*		59,040
	COMMERCIAL SERVICES - FINANCE - 3.60%
8,000	Interactive Data Corp.*		160,720
	CONSULTING SERVICES - 2.28%
4,500	Navigant Consulting, Inc.*		101,925
	DATA PROCESSING/MANAGEMENT - 3.46%
15,000	InfoUSA, Inc.		154,650
	DIVERSIFIED MANUFACTURING OPERATIONS - 5.71%
6,300	Blount International, Inc.*		75,726
3,000	Federal Signal Corp.		45,420
15,200	Jacuzzi Brands, Inc.*		133,760
			254,906
	E-COMMERCE/PRODUCTS - 1.16%
9,000	1-800-Flowers.Com, Inc.*		51,930
	ELECTRIC - INTEGRATED - 0.00%
1	Allete, Inc.		47
	ELECTRONICS COMPONENTS - MISC - 1.11%
2,050	Benchmark Electronics, Inc.*		49,446
	ELECTRONICS - 1.96%
4,500	DTS, Inc.*		87,660
	ENGINEERING / R&D SERVICES - 2.68%
2,850	URS Corp.*		119,700
	FINANCIAL GUARANTEE INSURANCE - 2.99%
3,000	PMI Group, Inc.		133,740

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [8]

SMALL CAP VARIABLE SERIES

SCHEDULE OF INVESTMENTS

As of June 30, 2006 (unaudited)

COMMON STOCKS - 97.72% (cont.)

number of shares		market value
	HOUSEHOLD PRODUCTS - 1.54%
1,600	Central Garden & Pet Co.*		68,880
	INDUSTRIAL AUTOMATION/ROBOTICS - 2.36%
4,600	Intermec, Inc.*	$	105,524
	INDUSTRIAL MACHINERY - 2.05%
3,500	Robbins & Myers, Inc.		91,490
	INVESTMENT COMPANIES - 3.10%
8,700	MCG Capital Corp.		138,330
	MEDICAL - BIOMEDICAL/GENETICS - 3.64%
600	Bio-Rad Laboratories, Inc.*		38,964
3,360	Charles River Laboratories International, Inc.*		123,648
			162,612
	MEDICAL - DRUGS - 2.03%
4,850	K-V Pharmaceutical Co.*		90,501
	METAL PROCESSORS & FABRICATION - 3.76%
4,500	Kaydon Corp.		167,895
	NETWORKING PRODUCTS - 3.13%
1,100	Anixter International, Inc.*		52,206
4,000	Polycom, Inc.*		87,680
			139,886
	OIL & GAS DRILLING - 2.41%
14,000	Grey Wolf, Inc. (a)		107,800
	OIL COMPANY - EXPLORATION & PRODUCTION - 6.03%
3,000	Comstock Resources, Inc.*		89,580
4,500	Energy Partners Ltd.*		85,275
2,200	Swift Energy Corp.*		94,446
			269,301
	PUBLISHING - BOOKS - 2.23%
3,000	John Wiley & Sons, Inc.		99,600
	REITS - DIVERSIFIED - 2.93%
8,400	Kite Realty Group Trust		130,956
	REITS - HOTELS - 3.62%
11,500	Highland Hospitality Corp.		161,920
	RESORTS/THEME PARKS - 0.66%
2,900	Sunterra Corp.*		29,696
	RETAIL - APPAREL/SHOE - 2.92%
3,950	Stage Stores, Inc.		130,350
	RETAIL - OFFICE SUPPLIES - 2.71%
3,800	School Specialty, Inc.*		121,030

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [9]

SMALL CAP VARIABLE SERIES

SCHEDULE OF INVESTMENTS

As of June 30, 2006 (unaudited)

COMMON STOCKS - 97.72% (cont.)

number of shares		market value
	RETAIL - PAWN SHOPS - 1.07%
1,500	Cash America International, Inc.		48,000
	RETAIL - RESTAURANTS - 1.86%
800	Brinker International, Inc.		29,040
1,600	CBRL Group, Inc.		54,272
			83,312
	RETAIL - SPORTING GOODS - 2.77%
11,300	K2, Inc.*	$	123,622
	TECHNOLOGY DISTRIBUTORS - 1.53%
3,600	Insight Enterprises, Inc.*		68,580
	TELECOMMUNICATIONS EQUIPMENT - 3.94%
5,600	CommScope, Inc.*		175,952
	WIRE & CABLE PRODUCTS - 1.85%
2,500	Belden CDT, Inc.		82,625
	WIRELESS TELECOMMUNICATIONS SERVICES - 1.38%
4,200	Syniverse Holdings, Inc.*		61,740
	Total Common Stocks (cost $3,763,527)		4,365,964
SHORT-TERM INVESTMENTS - 2.06%
number of shares		market value
92,235	Fidelity Institution Money Market, 5.01% (A)	$	92,235
	Total Short-Term Investments (cost $92,235)		92,235
	TOTAL INVESTMENTS - 99.78% (cost $3,855,762)		4,458,199
	OTHER ASSETS IN EXCESS OF LIABILITIES, NET 0.22%		9,815
	NET ASSETS - 100.00%	$	4,468,014

* Non-income producing securities

A. Variable rate security; the yield shown represents the rate at June 30, 2006.

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [10]

SMALL CAP VARIABLE SERIES

STATEMENT OF ASSETS AND LIABILITIES

As of June 30, 2006 (unaudited)

ASSETS
	amount
Investments in Securities at Market Value (cost $3,855,762) [NOTE 1]	$	4,458,199
Receivables:
Fund Shares Sold		6,680
Interest		513
Dividends		7,099
Prepaid Expenses		191
Total Assets	$	4,472,682
LIABILITIES
	amount
Accrued Expenses	$	4,668
Total Liabilities	$	4,668
NET ASSETS
	amount
Net Assets	$	4,468,014
SOURCES OF NET ASSETS
	amount
At June 30, 2006, Net Assets Consisted of:
Paid-in Capital	$	3,371,418
Accumulated Net Investment Loss		(488	)
Accumulated Undistributed Net Realized Gain on Investments		494,647
Net Unrealized Appreciation in Value of Investments		602,437
Net Assets	$	4,468,014
Shares of Capital Stock Outstanding (No Par Value, Unlimited Shares Authorized)		280,827
Net Asset Value, Offering and Redemption Price Per Share ($4,468,014 / 280,827 Shares)	$	15.91

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [11]

SMALL CAP VARIABLE SERIES

STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2006 (unaudited)

INVESTMENT INCOME

	amount
Interest	$	3,376
Dividends		21,849
Total Investment Income		25,225
EXPENSES
	amount
Investment Advisory Fees [Note 3]		23,966
Fund Accounting, Transfer Agency, & Administration Fees		5,282
Custodian Fees		1,580
Audit Fees		691
Participation Fees		4,793
Printing Expense		504
Legal Expense		548
Insurance Expense		141
Trustee Fees		236
Miscellaneous Expense		1,867
Total Expenses		39,608
Expenses Waived by Adviser [Note 3]		(10,849	)
Total Net Expenses		28,759
Net Investment Loss		(3,534	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
	amount
Net Realized Gain on Investments		448,690
Net Change in Unrealized Appreciation of Investments		(271,899	)
Net Realized and Unrealized Loss on Investments		176,791
Increase in Net Assets Resulting from Operations	$	173,257

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [12]

SMALL CAP VARIABLE SERIES

STATEMENTS OF CHANGES IN NET ASSETS

INCREASE (DECREASE) IN NET ASSETS

	six months ended 06/30/06			Year ended 12/31/05
	(unaudited)
Operations:
Net Investment Income (Loss)	$	(3,534	)	$	3,046
Net Realized Gain on Investments		448,690			45,957
Net Change in Unrealized Appreciation of Investments		(271,899	)		(110,975	)
Net Increase/(Decrease) in Net Assets (resulting from operations)		173,257			(61,972	)
Distributions to Shareholders:
Net Investment Income		—			—
Net Realized Gains		—			(373,708	)
Total Distributions to Shareholders		—			(373,708	)
Capital Share Transactions:
Proceeds from Shares Sold		82,805			159,685
Dividends Reinvested		—			373,708
Cost of Shares Redeemed		(673,342	)		(775,839	)
Decrease in Net Assets (resulting from capital share transactions)		(590,537	)		(242,446	)
Total Decrease in Net Assets		(417,280	)		(678,126	)
Net Assets:
Beginning of Year		4,885,294			5,563,420
End of Year	$	4,468,014		$	4,885,294
Accumulated Undistributed Net Investment Income/(Loss):	$	(488	)	$	3,046
Shares of Capital Stock of the Fund Sold and Redeemed:
Shares Sold		5,070			10,008
Shares Reinvested		—			24,204
Shares Redeemed		(40,685	)		(48,431	)
Net Decrease in Number of Shares Outstanding		(35,615	)		(14,219	)

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [13]

SMALL CAP VARIABLE SERIES

FINANCIAL HIGHLIGHTS

The table below sets forth financial data for one share of capital stock outstanding throughout each period presented.

	six months ended 06/30/06(a)			year ended 12/31/05			year ended 12/31/04			year ended 12/31/03			year ended 12/31/02			year ended 12/31/01
Per Share Operating Performance:
Net Asset Value, Beginning of Period	$	15.44		$	16.83		$	15.10		$	10.70		$	13.05		$	12.29
Income from Investment Operations:
Net Investment Income (Loss) (b)		(0.01	)		0.01			(0.01	)		(0.03	)		(0.01	)		(0.02	)
Net Realized and Unrealized Gain (Loss) on Investments		0.48			(0.12	)		1.74			4.43			(2.26	)		1.42
Total from Investment Operations		0.47			(0.11	)		1.73			4.40			(2.27	)		1.40
Less Distributions:
Distributions from Net Investment Income		—			—			—			—			—			—
Distributions from Realized Gains		—			(1.28	)		—			—			—			(0.64	)
Return of Capital		—			—			—			—			(0.08	)		—
Total Distributions		—			(1.28	)		—			—			(0.08	)		(0.64	)
Net Asset Value at End of Period	$	15.91		$	15.44		$	16.83		$	15.10		$	10.70		$	13.05
Total Return (c)		3.04	%		(0.66	)%		11.46	%		41.12	%		(17.38	)%		11.48	%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000s)	$	4,468		$	4,885		$	5,563		$	5,300		$	4,839		$	5,114
Ratio of Expenses to Average Net Assets:
Before Reimbursement and Waiver of Expenses by Adviser		1.65	%(d)		1.69	%		1.63	%		1.56	%		1.82	%		2.00	%
After Reimbursement and Waiver of Expenses by Adviser		1.20	%(d)		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Ratio of Net Investment Income (Loss) to Average Net Assets:
Before Reimbursement and Waiver of Expenses by Adviser		(0.60	)%(d)		(0.43	)%		(0.52	)%		(0.55	)%		(0.73	)%		(0.94	)%
After Reimbursement and Waiver of Expenses by Adviser		(0.15	)%(d)		0.06	%		(0.09	)%		(0.19	)%		(0.11	)%		(0.14	)%
Portfolio Turnover		26.16	%		59.82	%		63.35	%		51.95	%		69.14	%		67.40	%

(a) Unaudited

(b) Per share amounts calculated using average shares.

(c) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Total return would have been lower if certain expenses had not been reimbursed or waived.

(d) Annualized

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [14]

NOTES TO FINANCIAL STATEMENTS

June 30, 2006 (Unaudited)

SMALL CAP VARIABLE SERIES

Note 1 – Significant Accounting Policies

The Timothy Plan Small-Cap Variable Series (the “Fund”) was organized as a diversified series of The Timothy Plan (the “Trust”). The Trust is an open-ended investment company established under the laws of Delaware by an Agreement and Declaration of Trust dated December 16, 1993 (the “Trust Agreement”). The Fund’s primary objective is long-term capital growth, with a secondary objective of current income. The Fund seeks to achieve its investment objective by investing primarily in common stocks and American Depositary Receipts (ADRs) while abiding by ethical standards established for investments by the Fund. The Fund is one of a series of funds currently authorized by the Board of Trustees. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies.

A. Security Valuation.

Investments in securities traded on a national securities exchange are valued at the NASDAQ official closing price on the last business day of the period. Securities for which quotations are not available are valued at fair market value as determined in good faith by the Fund’s investment manager, in conformity with guidelines adopted by and subject to the review and supervision of the Board of Trustees (the “Board”). Unlisted securities, or listed securities in which there were no sales, are valued at the closing bid. Short-term obligations with remaining maturities of 60 days or less are valued at cost plus accrued interest, which approximates market value.

The Fund generally determines the total value of its shares by using market prices for the securities comprising its portfolio. Securities for which quotations are not available and any other assets are valued at fair market value as determined in good faith by each Fund’s investment manager, in conformity with guidelines adopted by and subject to the review and supervision of the Board.

The Board has delegated to the Adviser and/or Sub-Advisers responsibility for determining the value of Fund portfolio securities under certain circumstances. Under such circumstances, the Adviser or Sub-Adviser will use its best efforts to arrive at the fair value of a security held by the Fund under all reasonably ascertainable facts and circumstances. The Adviser must prepare a report for the Board not less than quarterly containing a complete listing of any securities for which fair value pricing was employed and detailing the specific reasons for such fair value pricing. The Trust has adopted written policies and procedures to guide the Adviser and Sub-Advisers with respect to the circumstances under which, and the methods to be used, in fair valuing securities.

The Fund generally invests the vast majority of its assets in frequently traded exchange listed securities of domestic issuers with relatively liquid markets and calculates its NAV as of the time those exchanges close. The Fund typically does not invest in securities on foreign exchanges or in illiquid or restricted securities. Accordingly, there may be very limited circumstances under which the Fund would hold securities that would need to be fair value priced.

B. Investment Income and Securities Transactions.

Security transactions are accounted for on the date the securities are purchased or sold (trade date). Cost is determined and gains and losses are based on the identified cost basis for both financial statement and federal income tax purposes. Dividend income is recognized on the ex-dividend date. Interest income and expenses are recognized on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

C. Net Asset Value Per Share.

Net asset value per share of the capital stock of the Fund is determined daily as of the close of trading on the New York Stock Exchange by dividing the value of its net assets by the number of Fund shares outstanding.

Timothy Plan Notes to Financial Statements [15]

NOTES TO FINANCIAL STATEMENTS

June 30, 2006 (Unaudited)

SMALL CAP VARIABLE SERIES

D. Federal Income Taxes.

It is the policy of the Fund to continue to comply with all requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

E. Use of Estimates.

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

F. Distributions to Shareholders.

Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date.

Note 2 – Purchases and Sales of Securities

Purchases and sales of securities, other than short-term investments, aggregated $1,228,162 and $1,843,649 respectively, for the six months ended June 30, 2006.

Note 3 – Investment Management Fee and Other Transactions with Affiliates

Timothy Partners, Ltd., (“TPL”) is the investment adviser for the Fund pursuant to an investment advisory agreement (the “Agreement”) that was renewed by the Board on February 25, 2005. Under the terms of the Agreement, TPL receives a fee, accrued daily and paid monthly, at an annual rate of 1.00% of the average daily net assets of the Fund. The Adviser has contractually agreed to reduce fees payable to it by the Fund and reimburse other expenses to the extent necessary to limit the Fund’s aggregate annual operating expenses, excluding brokerage commissions and other portfolio transaction expenses, interest, taxes, capital expenditures and extraordinary expenses, to 1.20% of average daily net assets through the life of the Fund. As a result, TPL has waived a portion of their fee and reimbursed the Fund for expenses in excess of the limit in the amount of $10,849 for the six months ended June 30, 2006. There is no guarantee that the Adviser will waive fees and/or reimburse expenses in the future. Any waiver or reimbursement by TPL is subject to repayment by the Fund within the following three fiscal years if the Fund is able to make the repayment without exceeding its current expense limitation. An officer and trustee of the Fund is also an officer of the Adviser.

TPL earned advisory fees of $23,966 for the six months ended June 30, 2006. The Fund did not owe advisory fees to TPL at June 30, 2006.

At June 30, 2006, the cumulative amounts available for reimbursement that has been paid and/or waived by the Adviser on behalf of the Fund are as follows:

Small-Cap Variable Series $ 75,505

At June 30, 2006, the Adviser may recapture a portion of the above amounts no later than the dates as stated below:

	December 31,
	2006		2007		2008		2009
Small-Cap Variable Series	$	17,225	$	23,105	$	24,326	$	10,849

Note 4 – Control Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Fund creates presumption of control of the Fund under Section 2(a) 9 of the Investment Company Act of 1940. As of June 30, 2006, Annuity Investors Life Insurance Co. held for the benefit of others in aggregate, 100% of Small Cap Variable Series.

Timothy Plan Notes to Financial Statements [16]

NOTES TO FINANCIAL STATEMENTS

June 30, 2006 (Unaudited)

SMALL CAP VARIABLE SERIES

Note 5 – Unrealized Appreciation (Depreciation)

At June 30, 2006, the cost of investments in securities for federal income tax purposes is $3,855,762. At June 30, 2006, the composition of gross unrealized appreciation (depreciation) of investment securities for tax purposes is as follows:

	app		dep			net app. / dep.
Small-Cap Variable Series	$	777,400	$	(174,963	)	$	602,437

Note 6 – Distributions to Shareholders

The tax characteristics of distributions paid during 2004 and 2005 were as follows:

	Small Cap Variable Series
2005
Ordinary Income	$	—
Long-term Capital Gains		373,708
	$	373,708
2004
Ordinary Income	$	—
Long-term Capital Gains		—
	$	—
As of December 31, 2005, the components of distributable earnings on a tax basis were as follows:
Undistributed Ordinary Income	$	3,046
Undistributed Long-term Capital Gains		45,957
Unrealized Appreciation		874,336
	$	923,339

Timothy Plan Notes to Financial Statements [17]

DISCLOSURES

June 30, 2006

SMALL CAP VARIABLE SERIES

N-Q Disclosure & Proxy Procedures (Unaudited)

The SEC has adopted the requirement that all Funds file a complete schedule of investments with the SEC for their first and third fiscal quarters on Form N-Q for fiscal quarters ending after July 9, 2004. For the Timothy Plan Funds this would be for the fiscal quarters ending March 31 and September 30. The Form N-Q filing must be made within 60 days of the end of the quarter. The Timothy Plan Funds’ Forms N-Q will be available on the SEC’s website at http://sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room).

The Trust has adopted Portfolio Proxy Voting Policies and Procedures under which the Portfolio’s vote proxies related to securities (‘portfolio proxies”) held by the Portfolios. A description of the Trust’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Company toll-free at 800-846-7526 and (ii) on the SEC’s website at www.sec.gov n addition, the fund will be required to file new Form N-PX, with its complete voting record for the 12 months ended June 30th, no later than August 31st of each year. The first such filing was due August 31, 2004. Once filed, the Trust’s Form N-PX will be available (i) without charge, upon request, by calling the Company toll-free at 800-846-7526 and (ii) on the SEC’s website at www.sec.gov.

Timothy Plan Disclosures [18]

1055 Maitland Center Commons, #100

Maitland, Florida 32751

(800) TIM-PLAN

(800) 846-7526

Visit the Timothy Plan web site on the internet at:

www.timothyplan.com

This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective Prospectus which includes details regarding the Fund’s objectives, policies, expenses and other information. Distributed by Timothy Partners, Ltd.

ITEM 2. CODE OF ETHICS.

Not applicable at this time.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable at this time.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable at this time.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS

Included in the Semi-Annual Report to Shareholders filed under Item 1 of this form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANY

Not Applicable

ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There has been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

ITEM 11. CONTROLS AND PROCEDURES

a. The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment

Company Act of 1940, as amended (the “1940 Act”) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

b. There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto.

SIGNATURES

[See General Instruction F]

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) The Timothy Plan.
By:	/s/ Arthur D. Ally
Arthur D. Ally, PRESIDENT
Date 8/23/2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Arthur D. Ally
Arthur D. Ally, PRESIDENT
Date 8/23/2006
By:	/s/ Arthur D. Ally
Arthur D. Ally, TREASURER
Date 8/23/2006

^* Print the name and title of each signing officer under his or her signature.

EX-99.CERT

CERTIFICATIONS PURSUANT TO SECTION 302

I, Arthur D. Ally, certify that:

1. I have reviewed this report on Form N-CSR of the Timothy Plan.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 21, 2006

/s/ Arthur D. Ally

Arthur D. Ally

Treasurer

I, Arthur D. Ally, certify that:

1. I have reviewed this report on Form N-CSR of the Timothy Plan.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 21, 2006

/s/ Arthur D. Ally

Arthur D. Ally

President

EX-99.906CERT

CERTIFICATIONS PURSUANT TO SECTION 906

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350, and accompanies the report on Form N-CSR for the period ended June 30, 2006 of The Timothy Plan (the “trust”).

I Arthur D. Ally, the Treasurer of the trust, certify that:

(i) the form N-CSR fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m(a) or 78o(d)); and

(ii) the information contained in the Form N-CSR fairly represents, in all material respects, the financial condition and results of operations of the Issuer.

Date: August 21, 2006	/s/ Arthur D. Ally
	Arthur D. Ally
	Treasurer

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350, and accompanies the report on Form N-CSR for the period ended June 30, 2006 of The Timothy Plan (the “trust”).

I Arthur D. Ally, the President of the trust, certify that:

(i) the form N-CSR fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m(a) or 78o(d)); and

(ii) the information contained in the Form N-CSR fairly represents, in all material respects, the financial condition and results of operations of the Issuer.

Date: August 21, 2006	/s/ Arthur D. Ally
	Arthur D. Ally
	President