2017-04-13T18:12:49-05:00 2016-08-31 390859910 Baker Tilly Virchow Krause LLP 777 E Wisconsin Avenue 32nd Floor Milwaukee WI 53202 990 2015-09-01 390806446 Bethesda Lutheran Communities Inc BETH 9202613050 600 Hoffmann Drive Watertown WI 53094 David Griebl Chief Financial Officer 9202613050 2017-04-13 1 Troy Marine CPA P00187863 4147775500 2017-04-13 2015 2021-01-29 14:40:06Z Dr Michael Thirtle 600 Hoffmann Drive Watertown WI 53094 128849036 0 X www.bethesdalutherancommunities.org X 1903 WI See Schedule O. 15 15 4848 2526 391529 55168 87566237 86719707 38382685 36934290 363908 1173592 1712697 2016869 128025527 126844458 118330 85544 0 0 111711281 117823153 274733 241456 1901088 42237407 45817057 154341751 163967210 -26316224 -37122752 282221698 243887034 78811795 90773013 203409903 153114021 To enhance the lives of people with intellectual and developmental disabilities through services that share the good news of Jesus Christ. 0 0 124215086 85544 38426622 Bethesda provides homes and other services for more than 2,000 people with intellectual and developmental disabilities in 300 programs across the nation. This includes day programs, spiritual support services, vocational training, and thrift shops. Helping people with living the lives they want drives Bethesda's mission. More than 500 congregations around the country have formally partnered with Bethesda and offer worship and Bible studies for people with developmental disabilities. 124215086 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 1 0 0 0 1 0 1 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 1 580 0 1 4848 1 1 1 0 0 0 0 1 1 0 0 0 0 X 15 15 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 0 1 1 0 AR CA CO CT FL HI KY LA MD MA MI MN MS NC ND NH NJ NM NY OK OR PA SC TN VA WA WI WV X X X David Griebl 9202613050 600 Hoffmann Drive Watertown WI 53094 Dr F Paul Carlson Chairman 1.00 1.00 X X 0 0 0 Dr Virginia Miller Vice Chairman 1.00 1.00 X X 0 0 0 Catherine Brondos Secretary 1.00 1.00 X X 0 0 0 Norman Sell Treasurer 1.00 1.00 X X 0 0 0 Rev Quinten Buechner Director 1.00 X 0 0 0 David Kahle Director 1.00 X 0 0 0 Ardis Loeber director 1.00 X 0 0 0 Tiffany Manor director 1.00 X 0 0 0 Thomas Mcrae director 1.00 X 0 0 0 Frederick Mundt director 1.00 X 0 0 0 Kurt Rutzen director 1.00 X 0 0 0 Rev Ryan Tietz director 1.00 X 0 0 0 Dr David Thomas director 1.00 X 0 0 0 Dr Michael Thirtle President & CEO 39.00 1.00 X 365777 0 18524 Jeffrey Kaczmarski EVP & VP Legal 39.00 1.00 X 266095 0 18524 Jack Tobias Termed 4/5/16 VP Finance 39.00 1.00 X 263534 0 15137 Lori Anderson VP Residential Services 39.00 1.00 X 131494 0 7680 Dr John Bauer Termed 9814 Former President and CEO 39.00 1.00 X 240521 0 0 John Twardos Termed 63015 Former VP of Operations 39.00 1.00 X 253342 0 9105 John Nickels Director of Leadership relations 39.00 1.00 X 168415 0 18476 Debborah Zubke Division Operating Officer 39.00 1.00 X 178102 0 8502 Kelly Thran Termed 10/11/16 VP Quality 39.00 1.00 X 168123 0 9558 Mike Hoffman Termed 4/13/15 Former VP HR 39.00 1.00 X 165065 0 5952 David Morstad termed 61115 Exec Dir Bethesda Institute 39.00 1.00 X 156937 0 7270 2357405 0 118728 13 0 1 0 Forney Construction 8945 Long Point Ste 200 Houston TX 77055 Construction 3481509 EM West LLC In Your Home 16868 SW 65th Ave Ste 332 Lake Oswego OR 97035 contracted Maintenance 526166 Brixmor Operating Partnership LP PO box 645349 Cincinnati OH 45264 Rent 353828 Washington Furn Sales LLC PO Box 540 Pontotoc MS 38863 furniture 245907 Thiel Design LLC 320 E Buffalo St Milwaukee WI 53202 Website Design 199073 16 520 29471 73216605 13473111 5724106 86719707 Medicaid Payments 623990 25741402 25741402 PRIVATE CLIENT CARE REVENUE 623990 11192888 11192888 36934290 179526 179526 345515 212507 133008 133008 133008 2072789 1078723 994066 994066 994066 11235 29471 11235 0 1093642 702113 391529 391529 miscellaneous Revenue 900099 1425687 1425687 EDUCATIONAL RESOURCE SALES 900099 66645 66645 1492332 126844458 38426622 391529 1306600 35544 35544 50000 50000 1461084 1461084 89374740 72939165 15321745 1113830 1542659 1172826 345456 24377 18355453 14662705 3562831 129917 7089217 5745846 1267461 75910 432857 430750 2107 117800 117800 241456 241456 5303138 4055788 1247350 91274 9 91265 3729213 1591358 2020183 117672 2082272 326155 1752497 3620 8689444 4732906 3953426 3112 4064587 2089102 1812622 162863 243982 62884 175726 5372 8249816 6313176 1934160 2480 1853136 1412847 428892 11397 FACILITY SUPPLIES & MIN 4364795 3674122 690246 427 DIETARY SUPPLIES 2548906 2513207 35699 Other Client Ser/Recrui 1785130 777041 1001947 6142 MEDICAID ASSESSMENT FEE 1470696 1470696 790011 589709 199896 406 163967210 124215086 37851036 1901088 3256676 7389680 843152 313654 11011604 11337278 403702 450184 1059710 1053431 185748128 101539377 86054842 84208751 2540740 3158282 177051272 135975774 282221698 243887034 40401705 51895058 130 10 35004904 35003871 3405056 3874074 78811795 90773013 X 189857274 138665586 5510794 6308763 8041835 8139672 203409903 153114021 282221698 243887034 X -37122752 -13173130 X 0 1 X 1 1 1 X 76874465 78569926 83266136 87566237 86719707 412996471 39693664 40499856 41884839 38382685 36934290 197395334 116568129 119069782 125150975 125948922 123653997 610391805 2128460 4609562 4328670 2996250 1512812 15575754 27485640 28435700 29092783 25601252 24480774 135096149 29614100 33045262 33421453 28597502 25993586 150671903 459719902 276356 314588 345150 467144 525040 1928278 276356 314588 345150 467144 525040 1928278 135062 317854 396637 439867 391529 1680949 960078 776847 776492 1115990 1492332 5121739 117939625 120479071 126669254 127971923 126062898 619122771 0.74250 0.73630 0.00310 0.00280 X Schedule A, Part III, Line 12: Mail Order/Training Materials Sales/Miscellaneous Revenue RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 1 208 0 0 1 12081 1 1732 1 29108 43129 0 Part II-B, Line 1: Schedule C, Part II-B, Line 1 - Line 1d: We have not used the US mail for any direct lobbying or advocacy activities. All communications with Federal, state, and administration officials has been conducted using email, websites or face-to-face meetings. The only use of the mail service has been to communicate directly with parents and guardians regarding advocacy efforts. Line 1g: Direct contact with legislators and staff has been primarily regarding passage of fixes to the Achieving a Better Life Experiences Act (ABLE Act), access to Medicaid-funded acute care, Medicaid funding, waiting lists, and implementation of Home and Community-Based Services rules promulgated by the Centers for Medicare and Medicaid Services. Staff has also visited with officials from the US Treasury Department, and the Department of Labor to discuss revisions to the overtime exemption rule and administration of the ABLE Act. Staff and advocates have met with state officials in Illinois, Wisconsin, Minnesota, Texas, Oregon and California to discuss disability funding issues and access to Medicaid-funded health services. Line h: Bethesda has participated in Lutheran Day with other human services providers in Illinois and funding campaigns in Minnesota, Oregon, California, and Wisconsin. Bethesda has also conducted numerous advocacy trainings for staff, parents and self-advocates. Line 1I: Bethesda maintains an Engage site to encourage email and phone contacts between advocates and their elected officials, a netcommunity website that contains up-to-date issue information and advocacy resources and contributes to Bethesda's social media sites. 1771829 1771829 1771829 1771829 1771829 1771829 1771829 1771829 1771829 1771829 1.00000 1 0 11961488 11961488 128812494 63921926 64890568 1061439 657414 404025 34199812 28995642 5204170 9712895 7964395 1748500 84208751 Beneficial Interest In Net Assets of BLF and HUDS 126296186 Beneficial interest in SIA PIF 3864865 Other Receivables 3647696 Funds Held on behalf of clients 1793413 Cash Surrender Value of Life Insurance 333982 GSC 403B Loan Repayment 39632 135975774 Due to beneficiaries under SIA Annuities 2002184 funds held on behalf of clients 1083509 Fixed Asset Retirement Liability 788381 3874074 Part V, Line 4: The endowment funds are used to support the operations of a portion of Bethesda's programs which were formerly the programs of Good Shepherd Lutheran Home of the West. 0 0 0 0 0 0 0 0 0 0 Central America and the Caribbean See part IV 10000 WIRE TRANSFER Europe (Including Iceland and Greenland) See Part IV 40000 wIRE TRANSFER 2 0 0 0 0 0 0 PART II, LINE 1 (1), COLUMN (D) CENTRAL AMERICA AND THE CARIBBEAN: General support of the lutheran church - Missouri synod's board for Mission Services Dominican Republic Mission Partnership. PART II, LINE 1 (2), COLUMN (D) Europe (Including Iceland and Greenland): Integration of children with disabilities into the preschool program. Funds used to cover tuition reimbursement, instructional materials, substitute teachers and other expenses. X X X X X X 1 Meyer Partners LLC 1701 west woodfield rd ste 425 shaumburg IL 60173 All direct mail appeals 0 926762 146034 780728 926762 146034 780728 AL AR AZ CA CO CT DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX VA VT WA WI WV WY Golf Outing-TX 38206 26971 11235 796 2260 4718 3461 38206 26971 11235 796 2260 4718 3461 11235 0 1 SCHOLARSHIP - STUDENTS 10 20000 SCHOLARSHIP - Employee 26 15544 Part I, Line 2: Scholarships for individual students: The scholarship funds are sent directly to the educational institution of the student and applied toward their tuition costs. Scholarships for employees: The scholarship is awarded upon verification of successful completion of the course. All recipients agree to remain employed with the organization for one year after receipt of the scholarship. If the recipient terminates employment before one year is complete, the recipient agrees to return a prorated portion. X 1 1 X X X X 1 0 0 0 0 0 0 0 0 Dr Michael Thirtle President & CEO 365777 0 0 0 0 0 0 0 18524 0 384301 0 0 0 Jeffrey Kaczmarski EVP & VP Legal 266095 0 0 0 0 0 0 0 18524 0 284619 0 0 0 Jack Tobias Termed 4/5/16 VP Finance 263534 0 0 0 0 0 0 0 15137 0 278671 0 0 0 Lori Anderson VP Residential Services 131494 0 0 0 0 0 0 0 7680 0 139174 0 0 0 Dr John Bauer Termed 9814 Former President and CEO 240521 0 0 0 0 0 0 0 0 0 240521 0 0 0 John Twardos Termed 63015 Former VP of Operations 253342 0 0 0 0 0 0 0 9105 0 262447 0 0 0 John Nickels Director of Leadership relations 168415 0 0 0 0 0 0 0 18476 0 186891 0 0 0 Debborah Zubke Division Operating Officer 178102 0 0 0 0 0 0 0 8502 0 186604 0 0 0 Kelly Thran Termed 10/11/16 VP Quality 168123 0 0 0 0 0 0 0 9558 0 177681 0 0 0 Mike Hoffman Termed 4/13/15 Former VP HR 165065 0 0 0 0 0 0 0 5952 0 171017 0 0 0 David Morstad termed 61115 Exec Dir Bethesda Institute 156937 0 0 0 0 0 0 0 7270 0 164207 0 0 0 Part I, Line 1a Director spouse travel is reimbursed upon request for up to two (out of four) board meetings per year. Directors receive no compensation of any nature for their services as directors. The reimbursement is intended to permit director spouses to attend (1) the november organization annual meeting held in wisconsin and (2) one other regular board of directors meeting held away from wisconsin, at which director spouses are expected to participate in organized program volunteer work, fundraising events where donors and potential donors and their spouses are invited, and other business related functions. Part I, Line 4a Severance payments were made to the following: John Twardos $93,658 David Morstad $62,045 Michael Hoffman $77,730 Severance payment and payout of accrued vacation: Dr. John Bauer $240,521 X 5724106 Resale Value X 5 83934 Fair Market Value 0 1 1 Part I, Line 32b: Bethesda uses a brokerage firm to sell all gifts of donated securities. Form 990, Part I, Line 1: Bethesda Lutheran Communities is a Christian organization providing homes and other services to people with developmental disabilities to help them live the lives they want. Bethesda provides homes, apartments, and other structured settings for the people it supports in 300 programs across the United States. These homes can include community-based group homes, host homes or family caregiver programs. The organization extends God's love by dedicating a significant amount of its resources to provide day programs, spiritual support services, vocational training and other personal growth opportunities for the people it supports. In Fall of 2016, Bethesda began building on its Shared Home Living product line. Bethesda seeks people whose hearts prompt them to open their homes to others. The Shared Living programs match families who want quality care for their loved ones with the best homes for their needs. Visit www.SharedHomeLiving.org for more information. Since Bethesda's first thrift shop opened in the 1960s, the stores have been a direct way for members of the community to support and connect with our mission. Our specialty and boutique shops added to the strength of Bethesda's Thrift Shop brand in 2016, by continuing to provide local, affordable shopping options to families in the communities we serve and employment opportunities for people of all abilities. When people shop at, donate to or volunteer at a thrift shop, they help fulfill Bethesda's mission to enhance the lives of people with intellectual and developmental disabilities. Form 990, Part VI, Section A, line 6 THE ARTICLES OF INCORPORATION OF BETHESDA LUTHERAN COMMUNITIES, INC. (THE "CORPORATION") PROVIDES FOR BOTH INDIVIDUAL AND CONGREGATIONAL MEMBERSHIPS. ANY INDIVIDUAL WHO IS A COMUNICANT MEMBER OF A CONGREGATION AFFILIATED WITH THE LUTHERAN CHURCH- MISSOURI SYNOD, THE WISCONSIN EVANGELICAL LUTHERAN SYNOD, OR THE EVANGELICAL LUTHERAN SYNOD MAY BECOME A MEMBER OF THE CORPORATION UPON APPLICATION AND PAYMENT OF MEMBERSHIP DUES AS FIXED IN THE BYLAWS. ANY INDIVIDUAL MEMBER OF THE CORPORATION AS DESCRIBED ABOVE WHO SHALL NOT BE MORE THAN SIX (6) MONTHS IN ARREARS IN DUES AND SHALL HAVE ATTAINED THE AGE OF EIGHTEEN (18) SHALL BE ELEGIBLE TO VOTE; AND ANY VOTING MEMBER WHO SHALL HAVE ATTAINED THE AGE OF TWENTY-FIVE (25) SHALL BE ELEGIBLE TO BE ELECTED AS A DIRECTOR OF THE CORPORATION. ANY CONGREGATION AFFILIATED WITH THE LUTHERAN CHURCH - MISSOURI SYNOD, THE WISCONSIN EVANGELICAL LUTHERAN SYNOD, OR THE EVANGELICAL LUTHERAN SYNOD MAY HOLD A CONGREGATIONAL MEMBERSHIP IN THE CORPORATION UPON APPLICATION AND PAYMENT OF CONGREGATIONAL MEMBERSHIP DUES AS FIXED IN THE BYLAWS; A MEMBER CONGREGATION MAY BE REPRESENTED AT THE CORPORATION MEETING BY ONE (1) ELECTED REPRESENTATIVE. ANY CONGREGATION WHICH IS NOT MORE THAN SIX (6) MONTHS IN ARREARS IN DUES SHALL BE ENTITLED TO HAVE ITS REPRESENTATIVE VOTE. Form 990, Part VI, Section A, line 7a See narrative for Form 990, Part VI, Section A, line 6. Form 990, Part VI, Section A, line 7b BETHESDA LUTHERAN COMMUNITIES, INC. ("BETHESDA") MEMBERS HAVE THE FOLLOWING POLITICAL RIGHTS IN BETHESDA: MEMBERS HAVE THE RIGHT TO VOTE IN DIRECTOR ELECTIONS; ANY SUBSTANTIVE AMENDMENTS TO BETHESDA'S ARTICLES OF INCORPORATION MUST BE APPROVED BY ITS MEMBERSHIP, WIS. STAT. SECTION 181.1002 & .1003; BETHESDA MEMBERS MAY COMPEL A SPECIAL MEETING OF THE MEMBERSHIP, IF REQUESTED BY 25 MEMBERS; EVERY DIRECTOR IS REQUIRED TO BE A MEMBER IN GOOD STANDING; AND BETHESDA MEMBERS MAY AMEND THE BYLAWS AT A REGULAR ANNUAL OR SPECIAL MEMBERSHIP MEETING. Form 990, Part VI, Section B, line 11 The Form 990 was prepared by staff and reviewed and approved by the Chief Financial Officer. The Form 990 was then presented to the Board of Directors for review. Form 990, Part VI, Section B, line 12c Annually each November, every director is required to assess the portential for any conflicts of interest and sign a form that discloses whether the director has any potential conflicts of interest. The organization's Compliance and Risk Management team audits whether every director has submitted a signed conflicts of interest disclosure form, and ensures that this is done annually for every director. Form 990, Part VI, Section B, line 15 THE BOARD OF DIRECTORS EXECUTIVE COMMITTEE SERVES AS A COMPENSATION COMMITTEE WITH THE DUTY TO REVIEW AND MAKE FINDINGS AS TO THE REASONABLENESS OF (I) THE COMPENSATION PAID AND BENEFITS PROVIDED TO THE PRESIDENT AND CHIEF EXECUTIVE OFFICER, AND (II) THE RECOMMENDATIONS OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER FOR THE COMPENSATION RANGES AND BENEFIT LEVELS FOR THE EXECUTIVE VICE PRESIDENT, THE CFO, THE COO AND ALL OTHER PERSONS WHOM IT DETERMINES TO BE IN A POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER THE AFFAIRS OF THE CORPORATION WITHIN THE MEANING OF SECTION 4958 OF THE INTERNAL REVENUE CODE ("DISQUALIFIED PERSONS"). IN DOING SO IT (1) IDENTIFIES ALL DISQUALIFIED PERSONS, AND ANNUALLY REPORTS THE IDENTITY OF SUCH PERSONS TO THE BOARD OF DIRECTORS; (2) PERIODICALLY (AT LEAST IN EVERY ODD-NUMBER YEAR) REVIEWS AND DETERMINES THE REASONABLENESS OF THE COMPENSATION AND BENEFIT LEVELS OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER; (3) PERIODICALLY (AT LEAST IN EVERY ODD-NUMBER YEAR) REVIEWS AND DETERMINES THE REASONABLENESS OF THE RECOMMENDATIONS OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER FOR THE COMPENSATION RANGES AND BENEFIT LEVELS OF OTHER DISQUALIFIED PERSONS; (4) CONSIDERS ALL INCENTIVES, PERQUISITES, DEFERRED COMPENSATION AND ANYTHING OF VALUE WHEN CONSIDERING THE REASONABLENESS OF COMPENSATION OR BENEFIT LEVELS; (5) OBTAINS FROM SOURCES OUTSIDE THE CORPORATION OBJECTIVE, MARKET COMPARABLE COMPENSATION AND BENEFIT LEVEL DATA; (6) DOCUMENTS ITS CONSIDERATIONS AND DETERMINATIONS IN WRITTEN REPORTS; AND (7) AT LEAST ANNUALLY REPORT ITS ACTIVITIES AND FINDINGS TO THE BOARD OF DIRECTORS. Form 990, Part VI, Section C, line 19 The Corporation's governing documents including conflicts of interest policy, 990 tax returns and current audited financial statements are available on the organization's public web site (http://bethesdalutherancommunities.org) and to the public upon request. Form 990, Part XI, line 9: Change in net assets of Foundation and HUD Corporations (unrestricted) -41,726,391. Change in net assets of Foundation (restricted) 98,409. market adjustment on investments (Unrestricted) -35,101. actuarial change in split interest agreements (Unrestricted) -206,829. restricted investment income 28,020. market adjustment on fixed income investments -1,779,932. adjustment to unfunded pension liability -14,751,306. transfer of assets from foundation 45,200,000. bethesDA LUTHERAN FOUNDATION Inc 600 HOFFMANN DRIVE WATERTOWN WI 53094 391336413 rAISE FUNDS FOR BETHESDA LUTHERAN COMMUNITIES, INC. WI 501(c)(3) 11, TYPE I BETHESDA LUTHERAN Communities Inc 1 good shepherd rESIDENCE INC (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 942576886 LOW INCOME HOUSING CA 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 GOOD SHEPHERD OF WASHINGTON (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 911323920 LOW INCOME HOUSING WA 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 GOOD SHEPHERD OF WASHINGTON II (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 911369875 LOW INCOME HOUSING WA 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 GOOD SHEPHERD CORPORATION OF OREGON (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 943043530 LOW INCOME HOUSING OR 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 OREGON GOOD SHEPHERD LUTHERAN HOME INC (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 943043533 LOW INCOME HOUSING OR 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 GOOD SHEPHERD OF COLORADO I (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 742676369 LOW INCOME HOUSING CO 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 creATING POSSIBILITIES INC (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 841261170 LOW INCOME HOUSING CO 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 FAITH VILLAGE INC (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 480919671 LOW INCOME HOUSING KS 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 FAITH VILLAGE IV INC (HUD) 600 HOFFMANN DRIVE WATERTOWN WI 53094 481066940 LOW INCOME HOUSING KS 501(c)(3) 9 BETHESDA LUTHERAN Communities Inc 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 BETHESDA LUTHERAN FOUNDATION INC C 45200000 Cash Transfer