2017-11-13T07:38:25-06:00 2016-12-31 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2016-01-01 810459472 St John's Foundation STJO 4066555600 3940 Rimrock Road Billings MT 591020199 Jerry Pearsall Vice President of Finance 4066555600 2017-11-10 1 Kim Hunwardsen CPA P00484560 6122536500 2017-11-10 72.175.213.18 2017-11-10 10:57:36 MS P 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 B1517DAAED479AA3B0236E79C14EA2E11B9BE589 2016 2017-02-10 21:41:12Z David Trost 3940 Rimrock Road Billings MT 591020199 663135 0 X WWW.SJLM.ORG/FOUNDATION.HTML X 1989 MT To support the mission of St. John's Lutheran Ministries, Inc. 12 12 0 100 0 0 583888 440114 0 0 247209 223021 0 0 831097 663135 132992 158132 0 0 0 0 0 0 28004 92685 109589 225677 267721 605420 395414 5662658 5984413 412985 464239 5249673 5520174 X Our mission is to inspire philanthropic action to support the mission of St. John's Lutheran Ministries, Inc. 0 0 200217 158132 The primary exempt purpose of St. John's Foundation is to generate and provide support, financial and otherwise, that furthers the mission and ministry of our corporate member, St. John's Lutheran Ministries, Inc., a not-for-profit 501(c)(3) corporation.St. John's Foundation was established in 1989 in order to bring focus to fund-raising efforts, special campaigns, annual appeals, capital structures, special events and community relations. Those components have proven to be essential in serving to link the needs of the community of St. John's with internal and external resources.(Continued on Schedule O)St. John's needs the financial support of those who share our vision of quality care to all people, regardless of their financial status. Underlying that commitment is our Lord's passion to care and serve those that are most in need. Through the prudent management of gifts, 2016 was a very successful year that allowed the Foundation to support the St. John's mission of "providing living opportunities within nurturing environments of hope, dignity, and love."Support to ResidentsAs a ministry of the church and a not-for-profit corporation, St. John's is committed to providing a continuum of housing opportunities and supportive services primarily to the elderly. A commitment that St. John's has made is that no one will be turned away or asked to leave because of their inability to pay. We served 1,161 seniors on our campus here in Billings in 2016. The below are examples of that support:1) Many residents are exhausting their financial resources sooner than anticipated. The Annual Fund is used to support those residents who cannot meet their financial needs. In 2016, resident subsidies included:* $14,534 rent subsidy for Chapel Court residents(including $474 for visits to the onsite beauty shop),* $8,627 in subsidies for resident needs.2) One of the great works of St. John's is our remarkable Pastoral Care program. Spiritual support, worship, and bible study are at the heart of our ministry to residents. In 2016, the Foundation provided $54,243 to support the cost of Pastoral Care activities across campus. St. John's believes we must provide our elderly residents with more than just room and board. In that regard, we have ministers and chaplains on staff to meet both the spiritual and emotional needs of our residents and staff.3) The majority of our residents are limited in their ability to leave campus and participate in meaningful activities. St. John's Activities program provides entertainment, neighborly interaction and helps keep minds stimulated and healthy. The Foundation provided $60,890 in 2016 to help cover the cost of our activities program. This support allowed for funding trips to local attractions and shopping malls, and giving the residents an opportunity to experience the community outside of the campus. This funding also provided numerous games, videos, and events on site to stimulate the interests of our elderly. 4) During the last three years, our fundraising efforts have focused on the Legacy of Love (LOL) Campaign. Gifts of $458,439 were earmarked to remodel the rooms of our dementia wing to improve the lives of our residents afflicted with this terrible disease by affording them a more functional living situation. We began construction in 2015 and to date have spent $136,701 remodeling these rooms ($86,265 in 2016).Support to EmployeesSt. John's employees are the heart and soul of our organization. Employees work in environments that can be both mentally and physically challenging. They are caring for a very vulnerable population 24 hours per day. 1) The Foundation wishes to offer financial support to those staff members and their dependents who commit themselves to personal and career growth. In 2016, the Foundation awarded 12 scholarships (tuition reimbursements) in the amount of $15,236 to employees continuing their education at an accredited two or four-year institution. 2) Often times, through no fault of their own, employees may find themselves in an unexpected crisis. At any time, an employee may seek the resources of the Employee Crisis Fund through the Pastoral Care department with no questions asked. In 2016, 73 employees received $13,229 of support to help with such items as rent and utility assistance, prescription costs, vehicle repairs or school supplies for a child. 3) At Christmas, those employee families who do not have the means to enjoy the season are "adopted" by other employees, through our Share the Joy program, and given food and gifts to insure that they too have a wonderful Christmas. During 2016, 20 employee families were adopted through this program.Support to the CommunitySt. John's is a ministry serving more than just our staff and residents. We are committed to serving our community and those communities around us in any capacity we can. An example of that support is the Summer Concert Season: The Foundation's signature event is the Summer Concert Series. For five weeks each summer, free concerts are offered for our residents and the community at the Fred & Marie Miller Pavilion on the campus of St. John's. From its humble beginnings in 1998 to a thriving series going strong for the last 19 years, the concerts have become a summer tradition for many. It is common to have close to 2,500 music lovers each week at the concerts and an average annual attendance of 10,000 people. The Foundation could not undertake this endeavor alone and relies on the support of countless staff, volunteers and sponsors to help ensure its success. Direct costs, paid with sponsor contributions, allow the concerts to remain free for the community. Concerts have expanded to the Crossings and Willows campuses in recent years. One of the unique features of the Summer Concert Series is the partnership with other area non-profits. Each week, a local non-profit organization volunteers to work the concession stand at the concerts. A portion of the revenue received from the sale of ice cream and other treats is donated back to the volunteer group. In 2016, St. John's Foundation distributed $6,066 to five non-profits for their help at the concession stand.Other Ministry SupportPreviously the St. John's Foundation Board voted to distribute endowment earnings equivalent to 5-6% of endowment value annually, paid on a quarterly basis, to St. John's Lutheran Ministries, Inc. During 2016 the Foundation distributed $170,992 to St. John's to help cover nursing home operating expenses, specifically the gap between our current cost of care and the Medicaid daily rate. Lutheran Social Services (LSS) of Montana is another ministry of St. John's. LSS is committed to bringing hope to those in need with adoption support services. These include birthparent counseling, adoptive family preparation, mental health counseling, search and reunion services, and post-adoption counseling. Donations designated for LSS are used to offset these costs. In 2016, LSS served 341 people and had a role in the placement of seven children in forever homes. St. John's continues to make a difference in the lives of families, residents, employees and our community every day. St. John's is a place where all people are recognized and celebrated as both givers and receivers of love, so the difference that is made in one person's life creates an enriching experience for someone else. Without the wonderful support of the community and donors, St. John's Foundation would not be able to exist. St. John's is truly grateful for the support given by talented and resourceful people that helps us remain one of the premier Senior Living and Long-Term Care facilities in the Northwest. 200217 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 10 0 1 0 0 0 0 0 0 0 0 0 0 0 X 12 12 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 0 0 0 X X Mark Beadle Controller 4066555601 3940 Rimrock Road Billings MT 59102 Claudia Baker President 2.00 0.00 X X 0 0 0 Paige Spalding Vice President 2.00 0.00 X X 0 0 0 Bill Simmons Secretary 2.00 0.00 X X 0 0 0 Troy Nearpass Treasurer 2.00 0.00 X X 0 0 0 Ann Christ Director 2.00 0.00 X 0 0 0 Mike Follet Director 2.00 0.00 X 0 0 0 Harlan Krogh Director 2.00 0.00 X 0 0 0 Dave Movius Director 2.00 0.00 X 0 0 0 Rachel Simonson Director (ending 10/24/16) 2.00 0.00 X 0 0 0 Rod Wilson Director 2.00 0.00 X 0 0 0 Jim Ochiltree Director (ending 5/1/2016) 2.00 2.00 X 0 0 0 Clair Opsal Director (beginning 5/1/2016) 2.00 2.00 X 0 0 0 James Walker Director (beginning 5/1/2016) 2.00 0.00 X 0 0 0 Michael Fischer Director (beginning 5/1/2016) 2.00 0.00 X 0 0 0 David Trost President/CEO (beginning 5/1/16) 5.00 35.00 X 0 127715 35403 Jerry Pearsall Vice President of Finance 5.00 35.00 X 0 81321 29136 Kent Burgess President/CEO (ending 4/30/16) 5.00 35.00 X 0 165235 16859 0 374271 81398 0 0 1 0 0 440114 44028 440114 183931 183931 39090 0 39090 39090 39090 663135 0 0 223021 X 115133 115133 42999 42999 297 297 28396 28396 28004 28004 1093 1093 5700 5700 3770 3770 15 15 2582 2582 Community Benefit 26744 26744 Community Development 9641 9641 Real Estate Taxes 3347 3347 267721 200217 39500 28004 405321 362365 14057 654031 34098 619171 619933 4638166 4985399 0 2659 5662658 5984413 24070 34916 388915 429323 412985 464239 X 3105638 3342472 671161 610994 1472874 1566708 5249673 5520174 5662658 5984413 X 395414 176302 -301215 X 0 1 X 1 0 X X 1 St John's Lutheran Ministries Inc 810288768 10 1 158132 42085 1 158132 42085 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 4616181 380749 368108 402448 4962590 4751488 140879 -20872 255314 4616181 4564293 384819 198286 395910 4751488 4017623 374539 453384 281253 4564293 3329633 407448 344587 64045 4017623 0.68430 0.31570 0.00000 0 0 607152 607152 46879 34098 12781 619933 Estimated Liability to Annuity Beneficiaries 423783 Due to affiliate 5540 429323 X 484717 61914 61914 422803 240332 240332 663135 267721 0 267721 0 267721 Part V, Line 4: St. John's Foundation has established several Board managed funds whose earnings will provide an income stream to support the mission of St. John's for years to come. The Board of Directors of St. John's Foundation is responsible for approving expenditures from these funds. The Board Managed Funds are as follows: The Nelles Staff Development Fund - Established in 2008 with a major gift from Ralph Nelles. Earnings from this endowment assist with staff education and development. The McCann Nurse Scholarship Fund - Established in 2010 with a gift from Paul McCann. It is to be used for the continuing education of our campus nurses. The Diteman House Maintenance Fund - Established in 2009 with a large gift from the estate of Hall Diteman. Earnings from this endowment will be used for maintenance of the house given to the Foundation by Mr. Diteman. Lillis Chapel Maintenance Fund - Established with a gift from Bert Lillis, this fund is restricted to maintain the Kathy Lillis Chapel. Inga Rygg Special Needs Fund - Established to cover special needs for the children/birth mothers of Lutheran Social Services of Montana (LSS). St. John's Foundation solicits gifts to our endowments, both as cash gifts and planned gifts. Planned gifts have been primarily in the form of Current and Deferred Gift Annuities; many of these planned gifts to St. John's Foundation Endowments are eligible for the Montana Qualified Endowment Tax Credit. The Foundation has established endowment funds whose earnings will provide an income stream to support the mission of St. John's for years to come. The Board of Directors of St. John's Foundation is responsible for approving expenditures from these endowment funds. The Foundation's Endowments are as follows: Norman L & Mary Lou Sulenes Alzheimer's Endowment - Established in 2005, the Alzheimer's Endowment will support those affected by Alzheimer's or dementia and the staff who care for them. Mission Endowment - Proceeds from this endowment fund are to be used to support needs identified within the community. Currently, investment earnings are used to support residents living at St. John's who can no longer afford to live here. Spiritual Endowment Fund - To support Pastoral Care at St. John's and to help ensure that St. John's continues to be a spiritual home for our residents and staff. Faith and Leadership Endowment To support the educational needs of leaders within the organization. Part X, Line 2: St. John's Foundation is organized as a Montana nonprofit corporation and has been recognized by the Internal Revenue Service (IRS) as exempt from federal income taxes under Internal Revenue Code Section 501(c)(3). St John's Foundation is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. St John's Foundation has determined they are not subject to unrelated business income tax and have not filed an Exempt Organization Business Income Tax Return (Form 990T) with the IRS. St. John's Foundation believes they have appropriate support for any tax positions taken affecting their annual filing requirements, and as such, do not have any uncertain tax positions that are material to the financial statements. St. John's Foundation would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. Part XI, Line 2d - Other Adjustments: Net assets released from restrictions for operations 61,914. Part XI, Line 4b - Other Adjustments: Contributions included in fund balance on consolidated financial statements 184,414. Investment income included in fund balance on consolidated financial stmts 55,918. 1 St John's Lutheran Ministries Inc 3940 Rimrock Road Billings MT 59102 810288768 501(C)(3) 115133 To support mission of St. John's Lutheran Ministries, Inc. 1 0 Scholarships 10 15236 Resident Assistance 12 14534 Employee Assistance 73 13229 Part I, Line 2: Disbursement of scholarships is made directly to the institute of higher education for the benefit of the particular grantee. Grantees are required to supply a transcript each semester or quarter to the St. John's Foundation to prove the grantee has completed the term the grant applied to. The organization also provides Grants to a related exempt organization and ensures the use of the funds are to further the exempt purpose of the organization. The board approves the grant to St. John's Lutheran Ministries, Inc. The purpose of this grant is to support the mission of St. John's Lutheran Ministries, Inc. Form 990, Schedule I, Part III: There were 12 scholarships given to 10 recipients. 0 0 0 0 0 0 0 0 0 David Trost President/CEO (beginning 5/1/16) 0 125861 0 0 0 1854 0 26756 0 9216 0 163687 0 0 Kent Burgess President/CEO (ending 4/30/16) 0 163631 0 0 0 1604 0 3479 0 13949 0 182663 0 0 Schedule J, Part I, Line 3: Compensation is paid to the CEO by a related organization. The related organization has a process in place for determining compensation using the methods described in Line 3. X 3 44028 FMV 0 0 1 1 Part I, Line 32b: Stock sales are sold through a third party. Form 990, Part VI, Section A, line 6 The sole member of the organization is St. John's Lutheran Ministries, Inc. Form 990, Part VI, Section A, line 7a Board members are nominated by Nominating Committee (made up of Ownership Congregation delegates/Board members) and voted on by Ownership Congregation delegates at Annual Meeting. Form 990, Part VI, Section A, line 7b Governance decisions can be made by the sole member of the Foundation, St. John's Lutheran Ministries, and its board members. Form 990, Part VI, Section A, line 8b There are no committees with the authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11b Form 990 will be presented to the Finance Committee who will carry a recommendation to the full Board for approval. Form 990 is presented electronically to the full board prior to filing. Form 990, Part VI, Section B, line 12c Compliance with policy is monitored by overall awareness of directors interests. The Board of Directors and Officers are covered under this policy. All conflicts are reviewed by the board. Voting restrictions are imposed on directors and officers who have a conflict of interest. Form 990, Part VI, Section B, line 15 David Trost and Jerry Pearsall are compensated by St. John's Lutheran Ministries for services provided to St. John's Lutheran Ministries and St. John's Foundation. St. John's Lutheran Ministries has a process in place to determine the individuals' compensation. Form 990, Part VI, Section C, line 19 The organization makes its governing documents, financial statements, and the conflict of interest policy available to the public upon written request. Form 990, Part IX, line 11g Consulting fees: Program service expenses 0. Management and general expenses 28,396. Fundraising expenses 0. Total expenses 28,396. Form 990, Part XI, line 9: Change in Value of Split Interest Agreements -31,215. Transfers Between Divisions -270,000. St John's Lutheran Ministries Inc 3940 Rimrock Road Billings MT 59102 810288768 Provision of healthcare services MT 501(c)(3) Line 10 N/A 0 Home-Based Services Initiative LLC 2429 Mission way Billings MT 59107 455209647 Home health care MT N/A 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 1 1 1 0