BETHESDA LUTHERAN COMMUNITIES
VOLUME 106, ISSUE 1 | SPRING 2015
Special 2014 Annual Report Edition
Executive Team Mike Thirtle President and CEO Mike.Thirtle@mailblc.org Jeff Kaczmarski Executive Vice President Jeff.Kaczmarski@mailblc.org Jennifer Becher Vice President of Human Resources and Organizational Development Jennifer.Becher@mailblc.org Julie Timm Vice President of Marketing and Communications Julie.Timm@mailblc.org Jack Tobias Vice President of Administrative Services Jack.Tobias@mailblc.org John Twardos Vice President of Operations John.Twardos@mailblc.org
Regional Directors Lori Anderson Missouri, California Lori.Anderson2@mailblc.org Gretchen Block Wisconsin Gretchen.Block@mailblc.org James Greer Oregon, Washington James.Greer@mailblc.org Megan Gumbel New Jersey, Ohio, Indiana, Michigan Megan.Gumbel@mailblc.org Tamico Melvin Texas Tamico.Melvin@mailblc.org Monica Schmidt Minnesota Monica.Schmidt@mailblc.org Mark Wester Colorado, Kansas Mark.Wester@mailblc.org Debbie Zubke Illinois Debbie.Zubke@mailblc.org
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What will be your connection to Bethesda? Thanks for looking at this special 2014 Annual Report edition of Bethesda’s Messenger. As I travel through all of Bethesda’s 14 states and visit the people we support in the places where they live, work and worship, I always spend time with Bethesda’s Direct Support Professionals (DSPs)— our front-line operations staff. Our DSPs are truly amazing people. They come from all walks of life and have a singular commitment: caring for the people that we support. It is this focus and passion for service that truly makes Bethesda a great organization. Our staff understands how important their work is—whether it is supporting friendships, cooking a meal or assisting others with getting to church on a Sunday. They understand the importance of helping the people we support to live the kind of life that they want to live. The same goes for every member of Team Bethesda I interact with as I travel the country. Whether I’m visiting a ministry consultant in Indiana, a member of the Bethesda Auxiliary in Washington, or a thrift shop volunteer in Kansas, I see it again and again. Through the work of supporting others, Team Bethesda creates connections that lead to mutually beneficial relationships for everyone involved. In this Annual Report edition of Messenger, you will see how everyone at Bethesda creates connections between the people we support and their communities. You’ll see how Bethesda is helping people set, navigate and achieve personal goals based on their abilities and interests. You’ll understand how Bethesda helps spread the good news of Jesus Christ by helping people to live their faith and spiritual beliefs as they choose. Whether you know Bethesda, or are reading about us for the first time, my hope is that you find something you can connect to as you review this magazine. Bethesda is an amazing organization and becomes stronger every time a new connection is built amongst people of all abilities. Won’t you join us? There’s always room on Team Bethesda for passionate people looking to connect to a community that’s making a difference in someone’s life.
In God’s service,
Mike Thirtle President and CEO
Connecting people of all abilities
Future Focused; Making Connections It is Bethesda’s honor and privilege to create connections that support incredible people. Each year, Bethesda is part of the lives of 2,000 people with intellectual and developmental disabilities and 3,000 of their family members or guardians. Those core services are powered by Bethesda’s 3,340 employees who spend countless hours building relationships and tirelessly helping people with developmental disabilities pursue their life goals. People throughout the community have found ways to connect with Bethesda. In the 19 Bethesda Thrift Shops, about 800,000 purchases are made where proceeds help fund programs. More than 128,000 people like you read Messenger to learn more about Bethesda in your community. About 500 congregations, consisting of roughly 34,000 people, have formally partnered with Bethesda and offer worship and Bible studies for people we support. Throughout the course of the year, each of those roughly one million people connect with hundreds more in ways that have the potential to make the world better for everyone. Through those connections, men and women of all abilities across the country experience a very different day than they might have faced because of their connection to Bethesda. • A woman in Portland, Oregon, spends her day earning a living wage at a job that she might not otherwise have been offered. • A young man in Wichita, Kansas, volunteers as a clerk at a Bethesda Thrift Shop as a way of giving back to the organization that helps his younger brother live independently. • A person Bethesda supports in Indiana hands out programs to her congregation every week. • A woman in Littleton, Colorado, can take an evening off from caring for her adult son so she can get some grocery shopping done. • A family of four spends a week of their summer vacation helping to staff a Bethesda camp. Bethesda has a legacy of empowering people to enjoy a better quality of life, a stronger relationship with God, and a plan for tomorrow. Yet, there are many more people for whom Bethesda can connect resources and services in ways that can empower them to pursue their goals and desires. Today in the United States, roughly 87 percent of all people with intellectual and developmental disabilities receive no support or services from organizations like Bethesda, according to the Coleman Institute at the University of Colorado. These people, their families, and everyone they interact with are not connected with any network of supports and services that could increase and improve the quality of their lives. These people deserve to be connected to communities that can help them to live their lives fully. By finding new ways to engage, Bethesda can be that connection. That’s why in 2014 Bethesda struck a dynamic partnership with Protected Tomorrows, an advocacy firm that helps families of people with developmental disabilities create sustainable care plans. We also celebrated the first students who enrolled in the Bethesda College of Applied Learning, a program developed by Bethesda and Concordia University-Wisconsin to provide students who have developmental disabilities with a real college experience. Meanwhile, Team Bethesda continues to find new ways to reach, connect and support people of all abilities. For a million reasons, Bethesda continues to focus on connecting people of all abilities for the next 110 years, and beyond.
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Bethesda Today Bethesda Community Life is a central hub for connecting people of all abilities throughout their communities. With more than 300 locations across 14 states, Bethesda Community Life supports people with intellectual and developmental disabilities in homes, apartments and other structured settings. Bethesda’s Community Life programs create connections that give people with disabilities, their parents, guardians and friends the trust and comfort to realize their hopes, dreams and goals. Bethesda works to ensure people with disabilities are free to make decisions on the things that matter to them.
Over time, the positivity fostered through their own choices has an impact and empowers the people Bethesda supports to develop natural, independent support networks within their various communities. These stories play out, again and again, across the United States. • In Frankenmuth, Michigan, people supported by Bethesda selected their own roommates based on each person’s wants and needs. • In Fort Wayne, Indiana, people with disabilities built relationships with their new neighbors by baking them cookies.
Many of these decisions seem small at first for the people Bethesda supports: taking part in planning weekly menus, picking what church service they attend, deciding how they’d like to spend their evening or where they’d prefer to get their hair cut. From these small choices grows a greater independence. From these small choices, people supported by Bethesda can become active members of their community.
• In Redding, California, a group of roommates supported in a Bethesda home banded together and collected donations for victims of a wildfire in a nearby town. People with disabilities want to make a difference; they want to be part of their cities and towns. That starts in their homes, apartments, groups and communities through Bethesda Community Life.
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What are your goals? Think back on your life experiences. How did you set your life goals? Maybe it was a conversation with a school guidance counselor, maybe it was parental advice or maybe it was just a discussion with a good friend. So, how does Bethesda know we’re supporting people the way they want to be supported?
Their life; our life’s work To be safe. To express your spiritual beliefs. To have friends. To be respected. To live to your highest potential. These are simple, universal human desires. At Bethesda, we believe it is critical that we work with the people we support to realize their personal hopes, dreams and desires. When Bethesda helps the people we support shape their lives in ways that move them closer to realizing their dreams, we know we’ve done our jobs well. The people Bethesda supports receive not only the highest quality medical care and attention, but are empowered to dream big, develop goals that move toward those dreams and are supported in their efforts to realize them. For each person, those goals are different. Ricky in Watertown wanted to move out of an institutional setting and into a home in his community. James in Colorado wanted to grow a vegetable garden. Malcolm in Illinois wanted to play in a basketball tournament. While Bethesda works with each person supported to help them achieve their goals, the accomplishments of the people Bethesda supports are uniquely their own. Malcom and his team earned second place in the basketball tournament. James is growing tomatoes in his back yard. Ricky moved into a home that he shares with roommates he chose. Bethesda helped them every step of the way, but the people supported are the ones who made decisions and reached their goals.
We ask them. It’s really that simple, but you’d be surprised how much goes into it. Bethesda uses tools developed by The Council on Quality and Leadership (CQL), an organization that is improving the quality of life for people who receive services and supports. CQL has developed a tool for assessing the quality of an individual’s life from their perspective, which is called Personal Outcome Measures. Bethesda asks the people we support to rate their experiences around their own view of his or her life. Then we ask them to set goals regarding what is important to them, and finally we measure whether the people we support are satisfied with the progress they’re making toward those goals. Bethesda was the first organization in the nation to achieve network accreditation from CQL in 2013, and continues to maintain that accreditation.
As Bethesda creates ways for people to shape their own lives, Bethesda creates opportunities for other connections to develop between the people supported, other organizations and new communities. Relationships blossom around the people supported as they reach for their dreams, whether they’re making new friends at church or facing off against a rival on the basketball court.
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Support is at the heart of Bethesda Bethesda’s direct support professionals, or DSPs, play an important role for the people Bethesda supports. A DSP’s satisfaction with their work environment has a direct impact on the people we support’s ability to meet their goals. DSPs work directly with people with disabilities in their homes, in the community and in the workplace. Sometimes that work is substantial, like giving medication or conducting health protocols. Other times that work includes going grocery shopping, playing a game or working on finances. DSPs who are appreciated, recognized and given opportunities for growth become empowered to create a stable, productive environment for the people we support. In turn, the people we support can be assured that they will have some of the greatest DSPs in the world.
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In 2014, Bethesda affirmed its commitment to its employees by becoming a member of the National Alliance for Direct Support Professionals, or NADSP. Every Bethesda employee is a member, and has access to educational materials, training resources and a network of peers to help foster best practices and a positive culture among direct support professionals across the nation. Bethesda is all about people. Taking care of our DSPs, who are the heart of our organization, will lead to even more professional, higher quality support for people with intellectual and developmental disabilities. By working with NADSP, Bethesda can create a world where people with intellectual and other disabilities live the life they want and are supported by a qualified direct support workforce that has the knowledge, skills and resources to turn hopes and dreams into reality.
Show your support through the Bethesda Fund The Bethesda Fund is one way that anyone can help Bethesda make a difference in the lives of the people we support. In the last year, 13,500 donors gave more than 23,000 life-enhancing gifts totaling more than $18 million to Bethesda. Every one of those donors helped a person we support take a step toward realizing their personal hopes, dreams and desires. When you make a financial donation to the Bethesda Fund, you’re helping the people Bethesda supports lead the kind of life they want to live. That help comes in very big and very small ways. A person we support who uses a wheelchair can enjoy easy access to the outdoors because a $5,000 gift helped add an accessible deck to their home. A volunteer can be counted on to drive the people we support to church on Sunday when he has access to a van with a wheelchair ramp, paid for with a $40,000 gift to the Bethesda Fund. Someone who wants to participate in their faith can have a new Bible—maybe their first one— for a gift of $15.
And, the Bethesda Fund doesn’t just buy things. A man in New Jersey can afford to make it to church regularly, and is therefore able to take on the role of usher at his church, through the generous gifts of our donors. A group of roommates in Colorado can afford to take an outing into the mountains for a picnic. Hundreds of people with disabilities are able to live fuller, more independent lives through donor support. Connecting people with disabilities with communities and technologies that empower them to make real choices, live independently, gain meaningful employment, and receive an education, does not come without expense. By supporting the Bethesda Fund, our donors help the people we support dream big, develop goals that progress toward those dreams and have help in their endeavors to realize them.
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Donate today by visiting BethesdaLutheranCommunities.org/donate. Page 6
Building connections through faith Many of the people we support tell us their connection to their communities began in their congregation. For many, church was the first time they’d ever experienced a sense of being part of something bigger, being empowered to give back to the community or had the feeling of oneness that comes when a person is a respected and equal member of a community.
and that congregation knows that it can count on Bethesda for guidance in ministering with that person. Bethesda Ministries also uses Bethesdadeveloped resources crafted especially for any group ministering with people with disabilities, including the “Time with God” series of devotionals; “Building on the Rock,” a tool for helping people with disabilities prepare for their first communion; and “Cross Road Journey,” an 18-course study guide of interactive Bible-based lessons for people with disabilities.
Because Bethesda is a Christian organization, called by its mission to spread the good news of Jesus Christ, we dedicate significant resources to helping people have those kinds of experiences within a congregation.
When people with disabilities are accepted as equals into congregations, connections between people of all abilities form. For example, thousands of Lutheran women across the country are members of the Bethesda Auxiliary. They have collectively raised millions of dollars for projects that directly affect spiritual lives of people we support. Other congregational members have donated thousands of hours as volunteers at Bethesda Thrift Shops across the country. The Thrift Shop’s employment model provides opportunities for people with disabilities to work in a retail environment and, with the help of dedicated volunteers, produces more than a million dollars of profits that directly benefit the lives of people we support.
To achieve this, Bethesda’s ministry consultants create opportunities for people with disabilities to find faith communities of their own. We work with congregations all across the nation. In Maryville, Missouri, that means a local pastor hosts a weekly Bible study for a group of roommates. In St. Louis, that means Bethesda finds a volunteer to drive a young woman across town so she can go to “her” church. In Ohio, that means a young woman’s distinct and beautiful voice is missed by the community when she’s not there to sing. Ministry consultants are charged with growing Bethesda’s network of congregations. These are congregations that have pledged to provide spiritual opportunities for people with intellectual and developmental disabilities. When a person with a disability is looking for a faith community, they know they’ll be welcome at a Bethesda Network Congregation,
People we support are looking for congregations and communities in which they can be a part. Join our network. Help make the connection.
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Finding a common camp ground While at a Bethesda camp, people of all abilities have an opportunity to find common ground in an inclusive community, discover and build meaningful friendships and practice their faith. Bethesda Camp Ministries provide opportunities for youth and adult volunteers, college-aged interns and people with intellectual and developmental disabilities to connect. Our camps are nestled in three locations throughout the United States: the forests of Wisconsin, the woods of Texas and the parks of Indiana. Hundreds of people with disabilities come to camp every year to discover and build meaningful friendships and practice their faith. Some come to camp for the the first time each year; some return again and again. They leave with much more than memories of a week spent in the great outdoors. Bethesda’s summer-long camp intern program helped Courtney Maloney, 19, discover her leadership skills.
During his week at Camp Matz, in Watertown, Wisconsin, Chase, a person Bethesda supports who had not been camping in more than 10 years, quickly connected with others and remembered that here he was valued equally, where everyone was together and having a disability didn’t matter. Each Bethesda camp location is unique, but has ample opportunity for outdoor fun and recreation, including a wheelchair-accessible swimming pool at one facility and a one-of-akind treehouse with ramps at another. At every camp, year after year, interns, missionary volunteers and people of all abilities have an opportunity to experience a life-changing event. People who have a transformative experience at camp realize that a truly inclusive community is made of people of all abilities. When they return home, they’ll start seeing all the ways to connect others in their home communities. And it all begins on common ground.
Ryan Cabitac, 16, had never met anyone with a disability before he arrived at camp. After a week of volunteer service at Camp Bethesda, in Tomball, Texas, Ryan made dozens of friends with disabilities and decided to stay for two more weeks.
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Tomorrow: Connected and Protected Navigating and understanding the wide range of resources available for people with disabilities can be daunting. The process for arranging life-long assistance can be difficult and confusing. Families of people with disabilities often have many questions about supporting their loved one: How will I ensure my child has what he or she needs when I’m gone? Who can I ask to take on the social and financial responsibilities? What do I need to do legally to protect the assets of my loved one? How can I help my child live independently? Where can I get help? Through Protected Tomorrows, an advocacy community that helps families and caregivers plan for the future of their loved ones with disabilities, Bethesda can help find the answers. Protected Tomorrows helps people create concrete plans to ensure their loved ones will have the resources for a better, brighter future.
Many families are not aware of the benefits that may be available to them to help their loved one live the kind of life they want to live. In some cases, people don’t know that help and support is out there and how to go about arranging it. That is exactly why Bethesda has partnered with Protected Tomorrows. Bethesda’s Family Resource Coordinators connect families and people with disabilities with legal, financial, or counseling services within their communities that help create the assurances of the kind of life they want to live. Bethesda’s partnership with Protected Tomorrows began in 2014. We are committed to being a better resource to families and to people with disabilities throughout their whole life, whether they are supported by Bethesda or not. Protected Tomorrows is one of the many ways Bethesda helps people with disabilities and their families take steps toward securing their hopes and dreams—to realize personal goals and live a full life.
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Bethesda College: Connecting on campus People with developmental disabilities often struggle to find education options after they finish high school. Many people with disabilities dream of going to college. They want to have an opportunity to continue growing and learning after high school and throughout their whole lives. The Bethesda College of Applied Learning is how Bethesda connects people of all abilities who want and deserve to go to college. Combining a liberal arts focus with skills development coursework, Bethesda College’s curriculum is designed for students with developmental disabilities who are seeking to grow intellectually, vocationally, socially, personally and spiritually. Bethesda College is currently offered through a joint effort between Bethesda and Concordia University Wisconsin (CUW) in Mequon, Wisconsin. This partnership is a natural fit for the two organizations that share a century-long Lutheran heritage. Bethesda College is the only postsecondary program in Wisconsin that blends the best practices of a nationwide service provider for people with developmental disabilities with the learning environment and resources of an accredited university. Bethesda College’s two-year curriculum centers on formal instruction in four areas: academics, career preparation, adult living skills and campus/community life. Students enrolled at Bethesda College live in a residence hall alongside other students at CUW.
students at CUW, they help others make new connections with Bethesda. In September of 2014, Rachel “Rach” Hoffman was one of seven members of Bethesda College’s inaugural class. The connections she made living on campus with fellow students made a big difference for her. “Meeting new friends is so awesome and amazing,” Rach said. “In high school, everyone treated me like I was different. People here treat me the same as everyone else.” Bethesda College offers many opportunities for students to be active. Rach, who is quick with a smile and loves to play good-natured jokes on friends, is a Best Buddies Role Model, regularly attends worship and sporting events, and works an internship in food services at the CUW dining hall.
Bethesda College is one of many ways that Bethesda is helping people with disabilities live the fulfilling lives they want to live. As students at Bethesda College make connections with each other and the
Bethesda College is currently enrolling students for the 2015/16 school year. For more information, visit Bethesda-College.org. Page 10
Reaching Forward in Faith, Serving in Love The Bethesda Auxiliary is a network of people of all abilities brought together to provide spiritual and financial support for people with intellectual and developmental disabilities within Bethesda. The Auxiliary fosters Bethesda’s mission of sharing the good news of Jesus Christ. The talents of more than 3,400 members create connections—in the church and in the community—that help the incredible people supported by Bethesda. In Oregon, the Auxiliary volunteers with Bethesda’s ministry consultants to run Bible studies for people Bethesda supports who have requested them. In Washington, the Auxiliary coordinates a massive soup label collection. The soup labels are exchanged for gift cards that are used to buy items that the people Bethesda supports can use to live the kind of lives they want.
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In Texas, members of the Good Samaritan Auxiliary support an annual golf tournament and rally donors to help raise money for Bethesda. The Auxiliary’s reach expands beyond the states in which Bethesda provides residential services. There are even Auxiliary units in Alaska and Hawaii that raise money, donate goods to Bethesda Thrift Shops, craft raffle items and pray for the people Bethesda supports. Auxiliary members also engage people at conventions and pastoral conferences across the country. New Auxiliary members are always welcome. They can become ambassadors in their congregations. New congregations become empowered to join the Bethesda community, make financial donations, organize volunteer days, create disability ministries, and help the people Bethesda supports reach for bigger, brighter lives. If you are interested in learning more about the Auxiliary or wish to join, call Joyce Schultz, Auxiliary President, at 509-493-2909, or email joic49@embarqmail.com.
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The Bethesda Auxiliary funded the development of “Cross Road Journey,” a teaching and study guide specifically written to help adults with limited reading abilities experience and understand key lessons contained in the Bible. The curriculum is used by Bethesda’s ministry consultants to spread the good news of Jesus Christ.
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Vital Connections to the Community The 19 Bethesda Thrift Shops not only provide an opportunity to scoop up a bargain on new or previously owned items, but they are an important way that Bethesda makes connections between people of all abilities.
Operations. The shops provide an important service in the form of affordable shopping, volunteer engagement, as well as employment for people with disabilities. Each thrift shop has its own unique culture and climate. Those who staff the thrift shops and donation centers come from their local communities; they see firsthand all the ways Bethesda helps people with disabilities lead brighter, fuller lives. Volunteers share those stories in their communities, strengthening Bethesda’s relationships, helping Bethesda spread the reach of its ministries and community life services.
When you shop, donate to or volunteer at a Bethesda Thrift Shop, you are joining with Bethesda to support people with intellectual and developmental disabilities. The income generated by our thrift shops helps the people we support lead fuller lives. A sale made in our thrift shop in Wichita, Kansas, could help a man in New Jersey spend more time gardening by paying for a needed upgrade to his wheelchair. The proceeds from new furniture sold in Horicon, Wisconsin, could mean that a young woman in California can finally afford to attend a Bethesda Camp.
It’s been part of Bethesda’s culture since the first thrift shop opened in the 1950’s, staffed by volunteers from churches and other community groups. They have since been an important place for people of all abilities to interact with Bethesda and with each other.
That’s because 100 percent of the net profits from the shops go directly to people with intellectual and developmental disabilities. Annually, the shops have provided $1.2 million in revenue to Bethesda. But the retail experience is only part of it. “A lot of people learn about Bethesda and our mission through our thrift shops,” said Jack Vater, Bethesda’s Corporate Director of Retail
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By being part of the community in such a visible and economically significant way, Bethesda’s Thrift Shops help Bethesda build vital relationships with the community and the people who we support. By donating, shopping or volunteering at Bethesda Thrift Shops, you’re becoming part of that network of connections.
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Thrift Shops operate in eight states. Find out if there is a Bethesda Thrift Shop in your community by visiting BethesdaThriftShop.org. Page 12
2013-2014 Financial Report BETHESDA LUTHERAN COMMUNITIES, INC., AND AFFILIATES CONDENSED STATEMENT OF FINANCIAL POSITION AUGUST 31, 2014 AND 2013 ASSETS
2014
2013
Current Assets
$20,030,028
$24,960,853
Investments (Note 1)
185,018,317
165,607,226
2,832,329
2,289,613
19,675,921
18,781,809
44,809
45,490
Assets Whose Use is Limited or Restricted Assets Relating to Split-interest Agreements and Trusts Other Assets Land, Buildings and Equipment
84,443,963
85,265,582
$312,045,367
$296,950,573
2014
2013
$26,790,640
$27,198,014
Pension Plan Liability (Note 3)
18,524,186
18,129,443
Due to Beneficiaries and Others under Split-Interest Agreements and Trusts
14,709,230
13,404,653
Bonds Payable (Note 2)
5,730,276
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Funds Held On Behalf Of Clients
1,052,130
1,060,141
Other Long-Term Liabilities
2,411,867
2,539,777
Total Liabilities
69,218,329
62,332,028
Unrestricted Temporarily Restricted Permanently Restricted
225,441,656 9,351,658 8,033,724
216,966,513 9,626,000 8,026,032
Total Net Assets
242,827,038
234,618,545
$312,045,367
$296,950,573
TOTAL ASSETS LIABILITIES AND NET ASSETS Current Liabilities
Net Assets:
TOTAL LIABILITIES AND NET ASSETS Note 1
Under generally accepted accounting principles, Bethesda is required to record both realized and unrealized investment gains and losses on both fixed and equity investments.
Note 2
Bethesda entered into a tax-exempt bond financing agreement in November of 2013 in order to facilitate capital expansion of operations and retail operations.
Bethesda Board of Directors Dr. F. Paul Carlson, Chairman Dr. Virginia M. Miller, Vice Chairman Rev. Dr. Alan H. Bachert, Secretary Dr. Roger L. Burtner, Treasurer
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Catherine V. Brondos David C. Cook Rev. William F. Ellis Dr. E. Gayle Grotjan Brenna Nunes
Kurt D. Rutzen Arvid W. Schwartz Dr. David C. Thomas Rev. Walter C. Tietjen Roger H. Wolff
BETHESDA LUTHERAN COMMUNITIES, INC., AND AFFILIATES CONDENSED STATEMENT OF ACTIVITIES FOR YEARS ENDED AUGUST 31, 2014 AND 2013 2014 REVENUES
Amount
Net Client Program Service Revenue
2013 Percent
Amount
Percent
$106,901,205
69%
$102,056,403
74%
Investment Income (Loss) (Note 1)
25,072,186
16%
14,979,439
11%
Contributions and Legacies
14,353,713
9%
12,945,206
9%
Bethesda Enterprises (Thrift Shops)
6,840,103
5%
6,711,842
5%
All Other Income
1,168,218
1%
1,377,563
1%
154,335,425
100%
$138,070,453
100%
TOTAL REVENUES
2014 EXPENSES
Amount
Program
2013 Percent
Amount
Percent
$110,358,940
76%
$101,553,264
86%
25,300,680
17%
26,869,584
23%
Depreciation
7,539,423
5%
7,161,805
6%
Fundraising
2,533,146
2%
2,130,592
2%
394,743
0%
(19,837,012)
-17%
TOTAL EXPENSES
$146,126,932
100%
$117,878,233
100%
INCREASE (DECREASE) IN TOTAL NET ASSETS
$8,208,493
Management & General (Includes human resources, IT, finance, communications, Bethesda Enterprises, legal, utilities, insurance and audit fees)
Pension (Note 3)
$20,192,220
Note 3
Federal regulations require that an annual actuarial computation be performed to determine an estimate of future payment obligations under Bethesda’s defined benefit pension plan. The results of that computation are then compared to the assets currently in the plan and any asset shortfall is recorded as a liability on the balance sheet. As part of that computation, regulations that became effective in 2010 mandate that short-term interest rates be used to project future investment earnings on the assets of the plan. Prior to that change, actuaries were free to use historic, long-term investment performance rates to compute future earnings in the plan. The recent volatility of short-term interest rates has resulted in significant changes in the results of the computations from one year to the next. At August 31, 2013, the unfunded liability was estimated at $18.1 million, which represented a $19.8 million decrease from the prior year. This resulted from an increase in assumed interest rates from 4.0% to 4.9%. That $19.8 million change was recorded as a credit (reduction of expense) on the statement of activities. At August 31, 2014, the unfunded liability was calculated to be marginally higher at $18.5 million and resulted in recording a $400,000 additional expense on the statement of activities. This change resulted from interest rates decreasing from 4.9% to 4.1%, which typically would have resulted in a significant increase in the unfunded liability, but the reduction in interest rates was offset by improved market values of the plan assets.
Bethesda Lutheran Foundation Board of Directors Rev. Dr. Alan H. Bachert Rev. Quinten A. Buechner Dr. Roger L. Burtner Dr. F. Paul Carlson
Merle Freitag David M. Kahle Dr. Virginia M. Miller Frederick D. Mundt
Jon R. Schumacher Arvid W. Schwartz Norman D. Sell
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