2015-12-10T13:46:23-06:00 2015-01-31 990 2014-02-01 363486813 Covenant Ministries of Benevolence COVE 7739891610 5145 N California Ave Chicago IL 60625 Lawrence Anderson Executive VP 7739891610 2015-12-10 2014 2016-04-25 22:37:26Z Lawrence Anderson 5145 N California Ave Chicago IL 60625 8624512 0 2650 X www.covenantbenevolence.org X 1986 IL To support organizations serving the sick, disabled, aging, poor and vulnerable. 18 14 29 14 0 79755 451298 294732 6328219 6223294 146317 191238 734910 1913130 7660744 8622394 322722 166157 0 0 4765269 4952548 0 0 0 2184497 4062370 7272488 9181075 388256 -558681 23090254 31964478 4969012 14241426 18121242 17723052 X Our mission is to express the life giving and sustaining ministry of Jesus Christ through the development, advancement and governance of mission driven organizations serving people who are sick, disabled, aging, poor or vulnerable. 0 0 8774896 166157 8229389 Covenant Ministries of Benevolence (CMB) provides administrative management services for several affiliates which fall under the IRS guidelines as non-profit organizations, exempt under section 501(c)(3). The services provided to these organizations assists them in carrying out their missions or exempt functions. The affiliates for which Covenant Ministries of Benevolence provides these services include the following organizations:- Swedish Covenant Hospital FEIN 36-2179813; - LifeCenter on the Green, Inc. FEIN 36-3513941; - EMC Health, Inc. (formerly named Emanuel Medical Center) FEIN 94-2281314;- Covenant Initiatives for Care, Inc. FEIN 27-1841721;- Covenant Enabling Residences of Illinois FEIN 36-3731196; - Covenant Enabling Residences of Michigan, Inc. FEIN 38-3495889; - Covenant Enabling Residences of Minnesota FEIN 41-1879965; - Covenant Enabling Residences of Florida, Inc. FEIN 59-3399402; - Children's Home of Cromwell, Conn., Inc. FEIN 06-0646920; - Covenant Children's Home and Family Services FEIN 36-2167043; - Wellspring Center for Hope FEIN 36-3726743.- Covenant Retirement Communities, Inc. FEIN 36-3478388 and its affiliates: - Colonial Acres Home, Inc. FEIN 41-0841150; - Bethany Covenant Home FEIN 41-0706103; - Covenant Village of Florida, Inc. FEIN 52-1115870; - Covenant Home Illinois FEIN 36-2643638; - Covenant Healthcare Center, Inc. FEIN 52-1115873; - The Holmstad, Inc. FEIN 36-2835154; - Covenant Home of Chicago FEIN 36-3095932; - Covenant Home, Inc. Connecticut FEIN 13-1740015; - Covenant Retirement Communities West FEIN 95-3472345; - Covenant Village of Colorado, Inc. FEIN 84-1084331; - Covenant Village of the Great Lakes FEIN 38-3244636; - Windsor Park FEIN 36-3385581. - Covenant Retirement Services FEIN 27-2480652 8774896 1 1 0 0 0 0 0 0 0 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 13 0 1 29 1 1 1 1 BD 0 0 0 0 0 0 0 0 X 18 14 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X Lawrence Anderson 7739891610 C/O CMB 5145 N California Ave Chicago IL 60625 X Robert H Anderson Director 1.00 0.00 X 0 0 0 Ed Carey Director 1.00 0.00 X 0 0 0 Lisa Caridine Director 1.00 0.00 X 0 0 0 Barbara Coslow Director 1.00 0.00 X 0 0 0 Janet Creaney Director 1.00 0.00 X 0 0 0 David Danielson Director/Vice Chair 1.00 0.00 X 0 0 0 Jacqueline A de la Chapelle Director 1.00 0.00 X 0 0 0 Arthur B DeRooy Director 1.00 0.00 X 0 0 0 Wayne W Hansen Director 1.00 0.00 X 0 0 0 Robert Jackson Director/Treasurer 1.00 0.00 X 0 0 0 Safy Jacob Director 1.00 0.00 X 0 0 0 David Y Kim Director 1.00 0.00 X 0 0 0 Garth McGrath Director 1.00 0.00 X 0 0 0 Mark L Mohrweis Director 1.00 0.00 X 0 0 0 Richard P Nelson Director 1.00 0.00 X 0 0 0 Mary Palmer Director 1.00 0.00 X 0 0 0 Lee Richman Director 1.00 0.00 X 0 0 0 Linda Solie Director/Secretary 1.00 0.00 X 0 0 0 Richard Trautwein Director 1.00 0.00 X 0 0 0 Jennifer Larson Ex-Officio/Chair 1.00 1.00 X 0 0 0 Scott Macdonald Ex-Officio/Chair 1.00 1.00 X 0 0 0 David A Dwight Ex-Officio/President 40.00 1.00 X X 657813 0 38110 Gary Walter Ex-Officio 1.00 1.00 X 0 151200 113208 Harold Spooner EVP Outreach Ministries 20.00 20.00 X 0 211423 25161 Lawrence P Anderson EVP Finance/Asst Treasurer 40.00 0.00 X 591281 0 27429 David Erickson VP Legal/Asst Secretary 2.00 40.00 X 0 252953 49036 Kathryn Schiller Assistant Secretary 40.00 0.00 X 67442 0 2351 Rebekah Erickson Assistant Secretary 40.00 0.00 X 32471 0 2676 Rick K Fisk CRC President 1.00 40.00 X 657938 0 18152 Mark Newton SCH President 1.00 40.00 X 962414 0 19750 John R Sigsbury EMC President 1.00 40.00 X 702023 0 9846 Ronald Dixon Associate VP 40.00 0.00 X 133392 0 27706 3804774 615576 333425 6 0 1 0 Jeffrey Slocum & Associates Inc 43 Main Street SE Minneapolis MN 55414 Consulting 263680 McDermott Will & Emery LLP 227 W Monroe St Chicago IL 60606 Consulting 150963 2 294732 294732 Management Services 561000 6316259 6316259 -92965 -92965 6223294 193356 0 2118 193356 -2118 191238 191238 Related Party Transfer 900099 1198692 1198692 714438 714438 1913130 8622394 8229389 0 98273 166157 166157 1405143 1405143 2275311 2275311 673424 673424 500126 500126 98544 98544 1333000 1333000 114051 114051 64720 64720 229718 229718 6972 6972 46182 46182 9623 9623 130145 130145 26848 26848 50310 47291 3019 26783 26783 Related Party Transfer 2000000 2000000 Taxes 12285 12285 Admin & General 6553 6553 5180 5180 9181075 8774896 406179 0 1087277 690761 7484543 97155 78352 3134552 2758008 206700 51080 1230876 75679 8934 1155197 13026046 13727902 3970488 4396296 1559102 1622339 23090254 31964478 590411 662915 4378601 13578511 4969012 14241426 X 18024087 17644700 97155 78352 18121242 17723052 23090254 31964478 X -558681 160491 X 0 0 0 X X X 1 Evangelical Covenant Church 362167730 11 1 1467592 0 1 1467592 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 Part IV, Section A, Line 6 Refer to Schedule I for grants made to other organizations. Part IV, Section B, Line 2 CMB provides support to the affliates as listed on the Form 990, Part III, Line 4a (and continued on Schedule O). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 795000 795000 117070 26627 90443 318806 49052 269754 1155197 Mortgages 215641 F Domestic Equity 1105035 F International Equity 950143 F Hedge Funds & Derivatives 1286805 F Private Equity 562366 F Mixed Bonds 276306 F 4396296 Self Insurance Reserve - Workers Compensation 364426 Other Investments 1257913 1622339 Other Current Liabilities 11114207 Other Long Term Liabilities 259949 Related Company Payable 2204355 13578511 1 Emanuel Medical Center 825 Delbon Ave Turlock CA 95382 501(c)(3) 10000 Benefit Gala Swedish Covenant Hospital 5145 N California Ave Chicago IL 60625 501(c)(3) 75000 Pledge - Women's Health North Park University NPU - 3225 Foster Ave Chicago IL 60625 501(c)(3) 5000 Sponsorships Covenant Harbor Bible Camp 1724 Main Street Lake Geneva WI 53147 501(c)(3) 13500 Sponsorships Adelbrook 60 Hicksville Road Cromwell CT 06416 501(c)(3) 6000 Sponsorships Evangelical Covenant Church 8303 W Higgins Road Chicago IL 60631 501(c)(3) 15533 Sponsorships for different ministries CER of Illinois 15841 Terrace Drive Oak Forest IL 60452 501(c)(3) 5524 Sponsorships The Axelson Center for Nonprofit Management NPU - 3225 Foster Ave Chicago IL 60625 501(c)(3) 20000 Sponsorships for Axelson Symposium Part I, Line 2: Grants and donation requests and proposals are brought to Covenant Ministries of Benevolence(CMB)management by the affiliate's boards and senior management. The management then brings requests and proposals deemed appropriate to the CMB Board for approval. A check goes out to the affliate after the approval from the Board of Benevolence is received. X X X 1 1 X X X X X 0 1 0 0 0 0 0 1 0 David A Dwight Ex-Officio/President 499292 0 0 0 158521 0 7800 0 30956 0 696569 0 27119 0 Gary Walter Ex-Officio 0 151200 0 0 0 0 0 27400 0 85808 0 264408 0 0 Harold Spooner EVP Outreach Ministries 0 168660 0 0 0 42763 0 5532 0 20234 0 237189 0 0 Lawrence P Anderson EVP Finance/Asst Treasurer 396339 0 84558 0 110384 0 7800 0 29412 0 628493 0 0 0 David Erickson VP Legal/Asst Secretary 0 184311 0 35100 0 33542 0 23997 0 30340 0 307290 0 0 Rick K Fisk CRC President 454993 0 94523 0 108422 0 7800 0 17807 0 683545 0 3765 0 Mark Newton SCH President 602447 0 176806 0 183161 0 7800 0 12596 0 982810 0 0 0 John R Sigsbury EMC President 301142 0 88267 0 312614 0 7800 0 9752 0 719575 0 216684 0 Ronald Dixon Associate VP 97937 0 0 0 35455 0 3418 0 24763 0 161573 0 27634 0 Part I, Line 1a The following modest benefits were treated as taxable compensation and were determined by the Executive Compensation Committee (of CMB's Board) to be reasonable: - Travel for companions paid for two (2) senior-level employees. - Social club membership paid for one (1) senior-level executive. - Tax and financial planning services paid for one (1) senior-level employee. Part I, Line 3 See Schedule O explanation for Form 990 Part VI Section B Line 15 for the methods used to determine CEO compensation. The review and approval process is designed to satisfy and qualify for the rebuttable presumption of reasonableness under the Internal Revenue Code Section 4958. Part I, Line 4b Executive Benefit Plan Covenant Ministries of Benevolence (CMB) provides certain supplemental retirement benefits to its officers and key employees. These benefits are provided through a nonqualified deferred compensation plan, under which a portion of the benefits being earned are subject to a "substantial risk of forfeiture." The supplemental retirement benefits are structured to provide a retention incentive that has been determined by the Executive Compensation Committee of CMB's Board ("Committee") to be of substantial value to the organization. The Committee approves all retirement benefits, together with all other forms of compensation and benefits for these and other executives, in a manner intended to qualify for the rebuttable presumption of reasonableness under the intermediate sanctions rules of federal income tax law. The Committee has determined that total compensation for each such executive is reasonable. Contributions were made to the deferred compensation plan for the following participants: Lawrence Anderson - $64,289 David Dwight - $64,365 David Erickson - $23,665 Rick Fisk - $53,279 Mark Newton - $76,024 John Sigsbury - $44,261 Harold Spooner - $21,160 Additionally, the following listed individuals received distributions from the deferred compensation plan. These amounts are taxable and are included in Column B(iii). David Dwight - $27,119 Rick Fisk - $3,765 John Sigbury - $216,684 Ronald Dixon - $27,634 Part I, Line 7 The Committee follows a prescribed method for calculating incentive compensation awards. The calculation is based on measurable targets determined at the beginning of the year. The Committee has the ability to adjust the dollar value of the calculated awards by up to 10%. The adjustment can be an upward or downward adjustment based on various performance factors or on factors that will assure that final incentive compensation awards are in the best interest of the organization and appropriately reflect the performance of the organization. Refer to additional information on the Committee included in Schedule O. Part II, Column B (ii): Bonus and incentive compensation - Certain key persons employed by CMB are eligible for incentive compensation as determined by the Committee. Incentives paid in 2014 relate to the achievement of targets for the fiscal year ended 1/31/2014. Part II, Column D: Nontaxable benefits include health insurance premiums paid by the employer and employee. Form 990 Part IV - Line 12 & Part XII - Line 2a-d CMB does not receive an independent audit. CMB's financial statements are included in a consolidated compilation report prepared by independent accountants. CMB's information is consolidated with other related parties' financial information for the compilation report. This report has not been finalized and is in process at the time of filing. Form 990, Part VI, Section A, line 6 The sole member is Evangelical Covenant Church (ECC). Form 990, Part VI, Section A, line 7a Appointed delegates of the Evangelical Covenant Church elect the Board of Directors in addition to those who serve as Ex-Officio. Form 990, Part VI, Section A, line 7b Bylaws include reserved powers to the [individual] members such as the election of the president of Covenant Ministries of Benevolence(CMB), changes to mission and strategic plan, approval of certain acquisitions, dispositions and financings, changes to articles and bylaws. Form 990, Part VI, Section B, line 11 Management Review: The draft Form 990 was reviewed by multiple levels of management including the President of CMB and the Executive Vice President of Finance Board Review: Prior to filing, key provisions of the Form were discussed with the Executive Committee of the Board of Directors and the final Form 990 was provided to each Board member. Form 990, Part VI, Section B, line 12c Covenant Ministries of Benevolence (CMB) has two conflict of interest policies. One is a general conflict of interest policy for the board members and the other is the compensation conflict of interest policy which is completed by the Executive/Compensation Committee members. Annually, conflicts of interest are reviewed with the board members or the Executive/Compensation Committee members. They individually declare if a conflict exists or not. Each member then signs an acknowledgment form. In addition to the above, a separate and more comprehensive questionnaire is sent to the board members, officers, key employees and other interested persons. The completed questionnaires are reviewed by CMB's legal counsel to determine if any actual or potential conflicts exist. If a person becomes an interested person, he or she may be considered in determining whether a quorum is present. The interested person may make a short statement relating to the transaction or arrangement in question, but shall not be present during the discussion and shall not vote on the motion addressing the actual or potential conflict. Form 990, Part VI, Section B, line 15 CMB's Board of Directors has duly appointed an Executive Compensation Committee (the "Committee"), which is responsible for the review and approval of all compensation and benefits provided to CMB's executive management. The Committee has adopted a written Executive Compensation Philosophy Statement and an Executive Compensation Committee Charter governing the work and review process of the Committee. The Committee follows the procedures described in the Philosophy Statement and the Charter when it reviews and approves the compensation and employee benefits provided to the CMB's senior management. The Committee's review analyzes every element of compensation, including current and deferred compensation, and benefits, including qualified and non-qualified benefits. The Committee conducts its review and approval process at least annually, and approves compensation and benefits only to the extent that the Committee has concluded that the compensation and benefits constitute no more than reasonable compensation for each executive. The Committee consists entirely of disinterested members of the Board, and the Committee works with an independent compensation consultant to prepare and review in advance comprehensive data showing the compensation provided by similarly situated organizations for functionally similar positions. The Committee also prepares a timely and thorough written record of its deliberations and conclusions. As a result, the Committee's review process is designed to satisfy the procedural criteria necessary to qualify for the rebuttable presumption of reasonableness under the federal income tax law intermediate sanctions rules. The resources utilized by the compensation Committee include: 1) independent compensation consultant; 2) written employment contract; 3) compensation survey or study; 4) approval by the board or compensation committee. Form 990, Part VI, Section C, line 18 A copy of the organization's Form 990 and Form 990-T are available upon request by contacting 773-989-1610. Form 990, Part VI, Section C, line 19 The governing documents, conflict of interest policy and financial statements are available upon request by contacting 773-989-1610. Form 990 - Part VII - Section A Column B Officers and Directors devote approximately 1 hour per week to related organizations except for those individuals that are employees of these related organizations; those individuals devote approximately 40 hours to the organizations at which they are employed. Form 990, Part XI, line 9: Change in Temporarily Restricted Net Assets not included on Income Stmnt -18,802. Change in Unrestricted Net Assets not included on Income Stmnt 179,293. Evangelical Covenant Church 8303 West Higgins Road Chicago IL 60631 362167730 Church IL 501(c)(3) Line 1 N/A 1 Swedish Covenant Faculty Group (SCFG) 5145 North California Avenue Chicago IL 60625 363686216 Patient Treatment/Education IL 501(c)(3) Line 11a, I Swedish Covenant Hospital 0 Swedish Covenant Hospital 5145 North California Avenue Chicago IL 60625 362179813 Hospital IL 501(c)(3) Line 3 Covenant Ministries of Benevolence 1 Swedish Covenant Hospital Foundation (SCHF) 5145 North California Avenue Chicago IL 60625 205055155 Supporting Organization of SCH IL 501(c)(3) Line 7 Swedish Covenant Hospital 0 SC Insurance Company 6970 E Chauncey Lane Suite 100 Phoenix AZ 85054 273312053 Insurance AZ 501(c)(3) Line 11a, I Swedish Covenant Hospital 0 Covenant Village of Portland LP 420 NE Mason St Portland OR 97211 364356838 Assisted Living Community OR N/A N/A 0 0 Swedish Covenant Surgery LLC 5215 N California Avenue Chicago IL 60625 272485300 Outpatient Medical Services IL N/A N/A 0 0 Covenant International Insurance Company Ltd Crawford House 50 Cedar Avenue Hamilton BD Insurance BD Covenant Ministries of Benevolence 0.50000 0 Covenant Trust Company 8303 West Higgins Road 6th Floor Chicago IL 60631 363583163 Financial Services IL N/A C 0 Swedish Covenant Management Services Inc (SCMS) 5145 North California Avenue Chicago IL 60625 364073303 Physician Practice Management IL N/A C 0 Swedish Covenant Managed Care Alliance (SCMCA) 2740 West Foster Avenue Suite 409 Chicago IL 60625 364118659 Physician - Hospital Organization IL N/A C 0 St Francis Health Care Ltd 2740 West Foster Avenue Suite 002 Chicago IL 60625 363208131 Independent Group of Physicians IL N/A C 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 Covenant Enabling Residences of Illinois Q 1035651 Covenant Enabling Residences of Minnesota Q 268475 Covenant Home Services Inc R 72500 Covenant Retirement Communities West J 125000 Covenant Retirement Communities Inc L 2200000 Covenant Retirement Communities Inc M 71822 Covenant Retirement Communities Inc P 40021 Covenant Retirement Communities Inc R 11849389 Covenant Trust Company M 132344 Covenant Trust Company Q 209323 Covenant Trust Company S 169784 Emanuel Medical Center L 1013250 Emanuel Medical Center Q 68259 Emanuel Medical Center R 167709 EMC Health Inc Q 433861 EMC Health Inc S 392710 Evangelical Covenant Church M 1467592 Swedish Covenant Foundation R 97281 Swedish Covenant Hospital B 75000 Swedish Covenant Hospital R 229533 Covenant Children's Home and Family Services R 331261 Evangelical Covenant Church R 2000000 Emanuel Medical Center S 1198691