2016-11-08T10:40:47-06:00 2015-12-31 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2015-01-01 810459472 St John's Foundation STJO 4066555600 3940 Rimrock Road Billings MT 591020199 Jerry Pearsall Vice President of Finance 4066555600 2016-11-03 1 Kim Hunwardsen CPA P00484560 6122536500 2016-11-03 2015 2017-02-10 21:41:12Z David Trost 3940 Rimrock Road Billings MT 591020199 831097 0 X WWW.SJLM.ORG/FOUNDATION.HTML X 1989 MT To support the mission of St. John's Lutheran Ministries, Inc. 11 11 0 100 0 0 606897 583888 0 0 242506 247209 -1400 0 848003 831097 117194 132992 0 0 0 0 0 0 26416 76259 92685 193453 225677 654550 605420 5357471 5662658 691634 412985 4665837 5249673 X Our mission is to inspire philanthropic action to support the mission of St. John's Lutheran Ministries, Inc. 0 0 173102 132992 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.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, 2015 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. 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 2015, resident subsidies included:* $18,754 rent subsidy for Chapel Court residents,* $4,645 of subsidies for resident needs including visits to the onsite beauty shop.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 2015, the Foundation provided $49,086 to St. John's to support the cost of Pastoral Care activities across campus. St. John's believes we should 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) Most of the 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 $55,076 in 2015 to St. John's to help cover the cost of our activities program. This support allowed for funding trips to local attractions and historical sites, 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 two years our fundraising efforts have been focused on the Legacy of Love (LOL) Campaign. Funds in the amount of $432,706 have been raised 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. In 2015 we started construction and spent $50,436 remodeling these rooms.Support to EmployeesSt. John's employees are the heart and soul of our organization. They are often faced with very physically and mentally challenging work environments. Day in and day out they are caring for a very vulnerable population. 1) The Foundation wishes to financially support those staff members and their dependents who commit themselves to personal and career growth. In 2015, the Foundation awarded 9 scholarships in the amount of $10,076 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 situation. At anytime an employee may seek the resources of the Employee Crisis Fund through the Pastoral Care department with no questions asked. In 2015, 95 employees received $17,945 of support to help with such items as rent and utility assistance, prescription costs or school supplies for a child. 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 that we can. Examples of that support are: 1) 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 18 years, the concerts have become a summer tradition for many. It is not uncommon to have 2,000 - 2,500 music lovers each week at the concerts and an average annual attendance of 8,500 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. 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 in the concession stand at the concerts. A portion of the revenue received from the sale of ice cream and other treats is given back to the volunteer group. In 2015, St. John's Foundation distributed $5,540 to five non-profits for their help at the concession stand. 2) Twice a week St. John's offers free yoga classes to the community and our employees. This is a great benefit that we can offer our employees as a way to re-charge and re-energize. In 2015, approximately 1,000 people were served through our yoga classes with the Foundation subsidizing the yoga instructor fees. Other ministry supportDuring 2013, the Foundation Board voted to distribute endowment earnings equivalent to 5-6% of endowment value annually, paid on a quarterly basis. During 2015 the Foundation transferred $165,236 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 through adoption support services that include: birthparent counseling, adoptive family preparation, mental health counseling, search and reunion services, and post-adoption counseling. Donations received for LSS are used to offset these costs. In 2015, LSS served 412 people and had a role in the placement of 9 children in forever homes. St. John's continues to make a difference in the lives of families, residents, employees and our community each and 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 that is received from people who give of their talents and resources that help make us one of the premier Senior Living and Long-Term Care facilities in the Northwest. 173102 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 8 0 1 0 0 0 0 0 0 0 0 0 0 0 X 11 11 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 Stan Hill President (thru April 2015) 2.00 0.00 X X 0 0 0 Claudia BakerPresident as of May 2015)/Vice President (thru April 2015) 2.00 0.00 X X 0 0 0 Paige SpaldingVice President (as of May 2015/Secretary (thru April 2015) 2.00 0.00 X X 0 0 0 Bill SimmonsSecretary as of May 2015)/Director (thru April 2015) 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 Mary Mosdal Director (thru April 2015) 2.00 0.00 X 0 0 0 Dave Movius Director (as of May 2015) 2.00 0.00 X 0 0 0 Rachel Simonson Director (as of May 2015) 2.00 0.00 X 0 0 0 Rod Wilson Director 2.00 0.00 X 0 0 0 Jim Ochiltree Director 2.00 0.00 X 0 0 0 Kent Burgess President/CEO 5.00 35.00 X 0 182575 26172 Jerry Pearsall CFO 5.00 35.00 X 0 85768 12030 0 268343 38202 0 0 1 0 0 583888 124206 583888 225289 225289 21920 0 21920 21920 21920 831097 0 0 247209 104162 104162 28830 28830 9135 9135 299 299 1828 1828 26416 26416 697 697 4887 4887 3622 3622 2344 2344 Community Benefit 38014 38014 Real Estate Taxes 3347 3347 Community Development 2096 2096 225677 173102 26159 26416 490850 405321 5935 650688 31517 11425 619171 4769141 4638166 80120 0 5357471 5662658 6586 24070 685048 388915 691634 412985 X 2877296 3105638 530478 671161 1258063 1472874 4665837 5249673 5357471 5662658 X 605420 -282265 260681 X 0 1 X 1 0 X X 1 St John's Lutheran Ministries Inc 810288768 9 1 104162 0 1 104162 0 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 4751488 140879 -20872 255314 4616181 4564293 384819 198286 395910 4751488 4017623 374539 453384 281253 4564293 3329633 407448 344587 64045 4017623 3148918 286957 23401 129643 3329633 0.68000 0.32000 0.00000 0 0 607152 607152 43536 31517 12019 619171 Estimated Liability to Annuity Beneficiaries 372757 Due to affiliate 16158 388915 X 29069800 28636203 28636203 433597 397500 397500 831097 30178559 29952882 29952882 225677 0 225677 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: Related organization revenue included in consolidated financial statements 28,636,203. Part XI, Line 4b - Other Adjustments: Contributions included in fund balance on consolidated financial statements 411,684. Investement income included in fund balance on consolidated financial stmts -14,184. Part XII, Line 2d - Other Adjustments: Related organization expenses included in consolidated financial statements 29,952,882. 1 St John's Lutheran Ministries Inc 3940 Rimrock Road Billings MT 59102 810288768 501(C)(3) 104162 To support mission of St. John's Lutheran Ministries, Inc. 1 0 Scholarships 8 10076 Resident Assistance 10 18754 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. 0 1 0 0 0 0 0 0 0 Kent Burgess President/CEO 0 165441 0 15472 0 1662 0 17047 0 9694 0 209316 0 3431 Part I, Line 4b Deferred Compensation Plan in effect - 2015 contributions made for Kent Burgess ($13,621). The plan covers executives in which an amount up to 8% of the participants' salary upon board approval. After a five year period, the participant receives a percentage of account assets as taxable wages in that year. In 2015 100% was distributed and the plan ended. Schedule J, Part I, Line 3: Compensation is paid to the CEO and CFO by a related organization. The related organization has a process in place for determining compensation using the methods described in Line 3. X 2 15873 FMV X 1 108333 FMV 0 0 1 0 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 11 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 Kent Burgess 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 XI, line 9: Change in Value of Split Interest Agreements 260,681. St John's Lutheran Ministries Inc 3940 Rimrock Road Billings MT 59102 810288768 Provision of healthcare services MT 501(c)(3) Line 9 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