2014-15
ANNUAL REPORT
Together, the best life
is possible. Bethesda is a Christian organization
that provides homes and other services for people with developmental disabilities to help them live the lives they want.
We belong together Nothing thrills my spirit quite like the joy of shared ministry. From the visionary folks who initially followed the Lord’s lead to found Bethesda, to the many leaders, parents and guardians, staff members, volunteers, congregations and donors who have sustained us over the last 111 years, to today’s dedicated team and support networks across the country, I say thank you from the deepest place in my heart.
We belong... together
The Bethesda community is remarkable. It begins in homes and neighborhoods across the country. It’s focused on 2,000 people with intellectual and developmental disabilities who are served by 3,800 staff members. It’s encouraged and strengthened by thousands of people who invest their time, dollars and souls in countless acts of love and caring. Wherever people intersect with this ministry, they find a place to belong and a place to serve. For example, congregations who offer disability ministries provide more than Bible studies, activities or outings. They reach people with the good news of Jesus Christ, make available a meaningful place for Christian service and create a gateway into the larger community for the people we support. As a Christian organization that provides homes and other services to people with developmental disabilities to help them live the lives they want, Bethesda holds those kinds of vibrant community connections at the core of our identity. This annual report captures stories of people who represent so many others linked with us in ministry. I trust your spirit will resonate—as mine does—with their passion for Bethesda and the singular community they experience here. If you’re newer to this community, you are welcome here! If you’re a longtime friend, I extend our gratitude. Together, we share the joyful task of loving and respecting each other. It’s the best kind of community I know. Your partner in ministry,
Mike Thirtle President and CEO
3
Wisconsin Historical Society
Support begins “All these people gave their gifts out of their wealth; but she out of her poverty put in all she had to live on.” —Jesus, Luke 21:4
Support begins... with you
Generosity. It’s a reflection of one’s spirit more than of one’s pocketbook. Bethesda’s donors understand this approach to giving. That’s why we appreciate them so much. Among our many generous donors, Meinhardt Raabe exemplifies the unselfish spirit that prompts the kind of giving Jesus recognized in the widow’s offering in Luke 21. Meinhardt was known first for his role as the Coroner in “The Wizard of Oz,” then as Little Oscar, a spokesman for Oscar Mayer who rode around the country in the 1950s in the Wienermobile. Because he grew up near Bethesda’s headquarters in Jefferson County, Wisconsin, Meinhardt was familiar with Bethesda and our work in supporting people with intellectual and developmental disabilities. And because he experienced discrimination and prejudice based on his appearance and perceived abilities, like many of the people we support, he gave to Bethesda with an open hand and an open heart. In his book, “Memories of a Munchkin”, Meinhardt recalls seeking a job after he graduated with an accounting degree from the University of Wisconsin-Madison. A corporate recruiter not only turned Meinhardt down for a job—he told him he belonged in a carnival. At Bethesda, our donors know the people we support have dreams, goals, interests and abilities. Our donors love and respect the people we support, and want them to make their own decisions about what matters to them. That’s what Meinhardt wanted for himself, and for others. Blessed by his career in show business, Meinhardt donated more than $3.5 million to Bethesda through estate gifts and legacy donations before he passed away in 2010. In summer 2015, his estate donated another $1 million to Bethesda. Not all of our donors are able to give as Meinhardt did, but all are just as generous. Gifts extended from a heart of love are always bountiful.
Join the Legacy Society! Call us at 800-369-4636 or contact us at BethesdaLutheranCommunities.org/Legacy, and a development director will share information on leaving your legacy for Bethesda.
5
Faith surrounds Faith surrounds... our ministry
“This righteousness is given through faith in Jesus Christ to all who believe.” —The Apostle Paul, Romans 3:22 Arvid Schwartz has long carried a vision for sharing the gospel of Christ with all people. “Go and tell!” is his clear message—and one he’s lived out in his home, with his family, in his congregation, and through his long, satisfying relationship with Bethesda. “Go and tell is what we’re supposed to do,” Arvid says. “And it’s not go and tell everyone except this group. We’re to tell everyone, including people with intellectual and developmental disabilities. It shows our Christian love. We can be the person who tells someone else about Jesus!” In 2015, Bethesda recognized Arvid and his wife, Judy, with the Christian Service Award. The award recognizes those who serve the Lord through the Christian nurture of people with intellectual and developmental disabilities. For the Schwartzes, the award reflects appreciation for Arvid’s board service to Bethesda, as well as the couple’s deep commitment to sharing faith with others. “Our whole life revolves around people with intellectual and developmental disabilities,” Judy says. “God has blessed us with this opportunity. If Arvid had not had polio, our lives would be completely different. It’s caused us to be so dedicated to this calling.” Arvid’s experience with polio as a child demonstrates how God uses faith to achieve his larger purposes. “Many people don’t want to work with people with intellectual and developmental disabilities because they feel uncomfortable or don’t know what to do,” Judy says. “You don’t have to! They help you and make you feel so welcome. Start a disability ministry in your church! There’s nothing to fear.” Among their many volunteer activities with people with disabilities, Arvid and Judy are active in their congregation’s disability ministry, which draws up to 32 people. They call their group Jesus Cares. It’s easy to see why.
Learn more about how to start a disability ministry and about congregations that have disability ministries at BethesdaLutheranCommunities.org/Congregations. 7
Acceptance builds... a community
Acceptance builds
“Accept one another, then, just as Christ accepted you, in order to bring praise to God.” —The Apostle Paul, Romans 15:7
Every human heart longs to be in a community, and an authentic Christian community liberates people to live joyfully and confidently. Take John, for example. John moved into a Bethesda apartment in Littleton, Colorado, after his parents passed away in the spring of 2015—when he was 64 years old. John had lived his entire life with his family, who deeply loved him. It’s no surprise he was nervous when he first arrived at the apartment complex where he would be living alone in his own apartment. What’s remarkable is how quickly he became an integral part of the community. With encouragement from Bethesda staff, John joined Bethesda’s community-based program and began to meet people. In a short time, Ed, knocked on John’s door, and the two hit it off. The men quickly became friends, and enjoyed going out to eat, specifically for Italian food. “Ed’s a really nice guy,” John says. “He’s a really nice guy. I’m not kidding you!” John is a people person, and spends his days engaging with others. He plays cards with another friend. He hangs out at the pool, talking with neighbors. He visits the courtyard where he chats with children and enjoys the playful dogs. He goes to the library next door. John lives a joy-filled life. John’s easy-going nature, quick laugh and steady smile have eased his way into this new life. He has also experienced warm acceptance from Bethesda staff, volunteers and neighbors. The reciprocal friendliness, genuine interest and family atmosphere aptly describe this community—like so many others that carry the Bethesda name. God is indeed glorified.
John and other people Bethesda supports rely on the generosity of friends like you to build the caring communities that give them life, independence and connections. Donate to help people like John at BethesdaLutheranCommunities.org/Donate. 9
Compassion empowers... at Bethesda
Compassion empowers “Therefore…clothe yourselves with compassion, kindness, humility, gentleness and patience.” —The Apostle Paul, Colossians 3:12
The routine of daily life reveals true compassion. Most people can command compassion in a crisis, or dig down deep in the emotion of a moment. For Direct Support Professionals (DSPs) at Bethesda, compassion is an everyday hallmark. Meet Lorie. She’s a remarkable Lead DSP in Fort Wayne, Indiana. She’s been supporting Lenny for four years, day in and day out. Compassion characterizes her attitude, her behavior, her heart and her teachable mindset. “What we do for the people we assist in their daily living is probably one of the most important parts of our job,” Lorie says. “The people I support have taught me patience and how to show kindness. They’ve taught me how to love them as people. They teach us just as much as we teach them!” Whether it’s fishing at a nearby lake, emptying the dishwasher, taking out the garbage, or simply swinging on the porch, Lorie and Lenny, a person she supports, are quite a pair. They’re good natured and relaxed in one another’s company, each appreciating the other. “I don’t know what I would do without Lenny,” Lorie says. “Working with him is very fulfilling.” When Lorie asks Lenny if he’s her friend, he replies enthusiastically, “Yeah! And you always will be!” Their story is compassion in action, and it happens every day, all day, at Bethesda.
Visit BethesdaLutheranCommunities.org and search “Lorie finds her passion working for Bethesda” to see the video story of Lorie and Lenny. If compassion tugs at your heart, perhaps you have a calling to work at Bethesda. Check out the Careers section on the website—BethesdaLutheranCommunities.org/Careers. 11
Empathy leads... the hearts of our friends
Empathy leads “…I will give you shepherds after my own heart, who will lead you with knowledge and understanding.” —The Prophet Jeremiah, Jeremiah 3:15 When God calls, receptive hearts follow. At Bethesda, volunteers from all parts of the country heed that call by engaging the people we support in many ways, including spiritual growth. In Hillsboro, Oregon, a suburb of Portland, a group of faithful people facilitates a monthly Bible study for the people Bethesda supports in their own home. “It’s a privilege and an honor to communicate and have these relationships,” says Lindy Tysor, one of the facilitators. “Each person is a blessing.” It all began in 1990, when Helen Huffman, a longtime Bethesda Auxiliary member, began volunteering at the Bible study. Although the meeting location changed several times, Helen’s empathy for the people we support remained strong and her energy and commitment drew others—including local teens—into volunteer roles. The group gathers around the dining room table and begins each Bible study with a song. Everyone joins in! Each study has a theme, and each volunteer partners with a person who lives in the house to go through the material together and engage in conversation. The study also includes an arts and crafts session and the sharing of a season-specific greeting card each volunteer brings for a resident of the home. After the closing prayer, which includes special requests for each person, the group sings “The Blessing Song” over each person’s head. It’s a beautiful and meaningful time for sharing the love of Jesus, and the love of friends. It’s what happens when empathy leads.
Are you interested in starting a Bible study for people with disabilities in your congregation? Learn more about materials and resources you can use to get started at BethesdaLutheranCommunities.org/Resources. 13
Respect lives
“Show proper respect to everyone, love the family of believers, fear God, honor the emperor.”
Respect lives... at Bethesda
—The Apostle Peter, 1 Peter 2:17 The first time Alex Napolitano visited Bethesda, a person we support said to him, “You’re really going to like it here.” When he left 23 years later, Alex had demonstrated not only his deep affection for Bethesda, but also his deep respect for the organization, its Christian mission, and those it serves and partners with. Alex recently returned to Bethesda and reminisced about his time here. Alex served Bethesda from 1975 to 1998 as the organization’s first executive director professionally trained in the care of people with intellectual and developmental disabilities. Alex recently returned to Bethesda for a visit. It was his first visit since retiring in 1998. He led Bethesda through challenging times—when views about where people with developmental disabilities should live prompted increased government involvement in care, when new technologies stimulated significant changes in operations, and when funds ran so short there were times when staff were not paid. Whatever swirled around him, he held up Bethesda’s mission as the key to the future. “I latched onto the founders’ original mission,” Alex says. “In 1904, when a group of churches and families got together to consider where their developmentally disabled loved ones could be cared for, more than anything else they wanted that care in a Christian setting, and education in the Lutheran faith.” That kind of respect for Bethesda’s fundamental calling allowed this leader to rally everyone—the board, staff, churches, pastors, donors, volunteers—to pull in the same direction. The result was stronger relationships, a revived commitment to the mission, a solid balance sheet and a national reputation for quality care. “The place grabs you,” Alex says. “That’s what respect can do.”
We want you to reconnect with Bethesda like Alex did! Go to BethesdaLutheranCommunities.org/Join to give us your email address so we can stay in touch. Share your stories about Bethesda by visiting BethesdaLutheranCommunities.org/Share. 15
2014-2015 Financial Report BETHESDA LUTHERAN COMMUNITIES, INC., AND AFFILIATES CONDENSED STATEMENT OF FINANCIAL POSITION AUGUST 31, 2015 AND 2014 ASSETS
2015
2014
Current Assets
$23,562,096
$20,030,028
Investments (Note 1)
162,457,654
185,018,317
3,155,033
2,832,329
12,624,942
19,675,921
Assets Whose Use is Limited or Restricted Assets Relating to Split-interest Agreements and Trusts Other Assets
43,755
44,809
88,842,043 $290,685,523
84,443,963 $312,045,367
2015
2014
$50,687,263
$26,790,640
24,880,091
18,524,186
8,005,191
14,709,230
-
5,730,276
Funds Held On Behalf Of Clients
1,096,107
1,052,130
Other Long-Term Liabilities
2,606,965
2,411,867
Total Liabilities
87,275,617
69,218,329
Unrestricted Temporarily Restricted Permanently Restricted
189,857,277 5,510,794 8,041,835
225,441,656 9,351,658 8,033,724
Total Net Assets
203,409,906
242,827,038
$290,685,523
$312,045,367
Land, Buildings and Equipment TOTAL ASSETS LIABILITIES AND NET ASSETS Current Liabilities Pension Plan Liability (Note 3) Due to Beneficiaries and Others under Split-Interest Agreements and Trusts Bonds Payable (Note 2)
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. The bonds were paid in full in January of 2015.
Bethesda Board and Directors Dr. F. Paul Carlson
Dr. Virginia Miller
Norman D. Sell
Frederick D. Mundt
Bethesda Communities Board Chair
Bethesda Foundation Board Chairman/Bethesda Communities Treasurer
16
Bethesda Communities Vice Chair Bethesda Foundation Vice Chair
Catherine Brondos
Bethesda Communities Secretary
Jon R. “Jack” Schumacher Foundation Secretary
Merle Freitag
Foundation Treasurer
Karen Carter
Auxiliary Advisory Director
BETHESDA LUTHERAN COMMUNITIES, INC., AND AFFILIATES CONDENSED STATEMENT OF ACTIVITIES FOR YEARS ENDED AUGUST 31, 2015 AND 2014 2015 Amount
Net Client Program Service Revenue Contributions and Legacies
Percent
Amount
Percent
$110,590,729
87%
$106,901,205
69%
12,132,322
10%
14,353,713
9%
Bethesda Enterprises (Thrift Shops)
6,975,000
6%
6,840,103
5%
All Other Income
2,834,110
2%
1,168,218
1%
(5,773,242)
-5%
25,072,186
16%
$126,758,919
100%
$154,335,425
100%
Investment Income (Loss) (Note 1) TOTAL REVENUES
2015 EXPENSES
Amount
Program Management & General
2014 Percent
Amount
Percent
$121,134,378
73%
$116,052,569
79%
25,872,869
15%
19,607,051
14%
Pension (Note 3)
9,141,740
6%
394,743
0%
Depreciation
7,940,302
5%
7,539,423
5%
Fundraising
2,086,762
1%
2,533,146
2%
$166,176,051
100%
$146,126,932
100%
(Includes human resources, IT, finance, communications, legal, project management and audit fees)
TOTAL EXPENSES INCREASE (DECREASE) IN TOTAL NET ASSETS
$(39,417,132)
Financial report... 2014-15
REVENUES
2014
$8,208,493
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, 2014, the unfunded liability was estimated at $18.5 million, which represented a $400,000 increase from the prior year. This resulted from a decrease in assumed interest rates 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. At August 31, 2015, the unfunded liability was calculated to be significantly higher at $24.9 million and resulted in recording a $9.1 million additional expense on the statement of activities. This change resulted from interest rates increasing from 4.1% to 4.4%, which typically would have resulted in a decrease in the unfunded liability, but the increase in interest rates was offset by a change in the mortality table released by the Society of Actuaries, increasing life expectancies used to calculate the unfunded liability.
Rev. Dr. Alan H. Bachert
Dr. E. Gayle Grotjan
Dr. Roger L. Burtner
David M. Kahle
Rev. Quinten A. Buechner
Brenna Nunes
David Cook
Kurt D. Rutzen
Rev. William F. Ellis
Dr. David C. Thomas
17
How to make a gift Pledge
Spread your gift payments to Bethesda over several years.
Real Estate
Consider real estate gifts that you want Bethesda to sell. Proceeds go directly to Bethesda. Examples include first and second homes, apartments and retail buildings.
Stocks, Bonds and Mutual Funds
Gifts of securities such as stocks, bonds and mutual funds are especially advantageous if you hold a security, such as stock, that has increased in value since you acquired it. By making a gift of stock held longer than one year, you completely avoid paying capital gains tax.
Matching Gifts
Maximize your giving. Check with your employer to see if they participate in a matching gifts program and double the power of your gift.
Cash
Visit our website at BethesdaLutheranCommunities.org/Donate to make a gift or send a check to: Bethesda, 600 Hoffmann Drive, Watertown, WI 53094.
For more information or if you have any questions about how you can help Bethesda’s mission, please call Jedd Lapid at 1-800-369-4636, ext. 4410.
18
Bethesda leadership President and Chief Executive Officer
Lori Anderson
Vice President of Residential Services
Team Bethesda... shared vision
Mike Thirtle
Jeff Kaczmarski
Executive Vice President and Vice President of Legal Affairs
Rev. Jim Pressnell Vice President of Religious Life and Church Relations
Jennifer Becher Vice President of Human Resources and Organizational Development
Kelly Thran
Vice President of Quality
Julie Timm Dave Griebl
Chief Financial Officer
Vice President of Marketing and Communications
Jedd Lapid
Vice President of Development 19
Our mission Enhance the lives of people with intellectual and developmental disabilities through services that share the good news of Jesus Christ.
BethesdaLutheranCommunities.org