NOVEMBER 2025 BOARD REPORT
MEETING AGENDA
a Joshua Hannah, term does not
b Conrad Lowe, term expired 12/31/2026
c Michael Burnette, term expires 12/31/2027
d Wayne Kirby, term expires 12/31/2028
e Bill Rose,
12/31/2029
PREVIOUS MINUTES
HCM BOARD | APRIL 24, 2025 | 8:30 AM | VIA
TEAMS
1. Call Meeting to Order
Josh called the meeting to order 8:37AM
2. Quorum
Directors Present: Josh, Conrad, Mike, Wayne, Bill was a few minutes late; CFO in attendance: Teresa
3. Approval of Agenda
All approved
4. Approval of Previous Minutes
Motion to approve previous minutes: Mike Burnette; Conrad Lowe seconded; All in favor
5. Leader Care Plan (Please note that sabbatical plan and physical evaluation will be attached to the email).
Josh talked about ECFA’s upcoming Leadership Standard and the need for leader care, presenting the following items.
a. Policy
b. Sabbatical Plan
c. Physical Evaluation
Motion to approve Leader Care Plan: Conrad Lowe; Mike Burnette seconded; All in favor
Motion to approve Preventative Healthcare Plan (Cooper Clinical $5,500) including tests, screening, etc.: Wayne Kirby; Conrad Lowe seconded; All in favor
Motion to approve Sabbatical Request from June 28th-July 23rd 2025: Wayne Kirby; Bill Rose seconded; All in favor
6. President’s Report
a. MNI Level Up
b. Stats
c. Startups 2025-2026
d. Vision Meeting
Josh gave the President’s report, including a report on MNI (measurable net income) and other big picture ministry items
7. CFO’s Report
Teresa gave the CFO’s Report
MNI is a little down YTD compared to last year
Motion to approve financials (October 2024-March 2025): Wayne Kirby, Mike Burnette seconded; All in favor
Motion to approve Board Resolutions (2024-12-002 to 2025-03-002): Mike Burnette, Josh Hannah seconded; All in favor
Motion to void a board resolution sent in error (2025-03-003): Mike Burnette; Josh seconded; All in favor
Motion to approve payroll band and scale increase for HR Director to $70,000 base pay: Conrad Lowe; Mike Burnette seconded; All in favor
8. Deferred Compensation Plan (409a)
Josh excused himself from the meeting before the board discussion on the 409a.
Motion to approve the 409a plan: Bill Rose; Wayne Kirby seconded; All in favor (with Josh absent/abstaining)
Motion to fully fund the program and not to add unnecessary restrictions to the plan: Conrad Lowe, Wayne Kirby seconded; All in favor (with Josh absent/abstaining)
9. 2025 Board Meeting Dates
a. November 20, 2025, 8:30-10:30am
All agreed on the next meeting date and time
b. As we continue to grow in transparency through our annual impact report, monthly newsletters, and consistent monthly reporting, we’re adjusting our meeting rhythm to better reflect this flow of information. Because we value you and your ongoing commitment, it is now recommended that we meet twice a year, in May and November.
10. Misc. Business
11. Adjourn
Meeting adjourned at 10:03AM
PRESIDENT’S REPORT
1,825 588 18%
155
1,652 37M
4
Ada, OK Florence, SC Roanoke, VA Pleasant View, TN
2024Celebrations Celebrations 2025Projections Projections
1,886 BAPTISMS
871 GRADUATIONS
160 EMPLOYEES
RECOVERY VOLUNTEERS
DEPARTURE RATE
GROSS REVENUE
NEW CENTERS
1,716
19%
39M
3
NC
OUR ACCOUNTABILITY
Dunn,
Maiden, NC Wilson’s Mills, NC
CFO REPORT
FINANCIAL REPORT YOY COMPARISON (YTD OCTOBER 2025 AND 2024)
CASH IN THE BANK
Total Cash on Hand
2025: $7,972,480; 2024: $12,528,302
Reserved for Startups and NC Expansion
2025: $847,349; 2024: $3,329,753
Available Cash
2025: $7,125,131; 2024: $9,198,549
SHORT-TERM INVESTMENTS
2025: $882,214
2024: $1,145,000
MEASURABLE NET INCOME (MNI)
2025: $5,348,916
2024: $5,748,589
FINANCIAL RATIOS (MONTHLY AVERAGE)
*Except for cash on hand all ratios are the same or improved since April
Net cash flow after debt service: $273,402
Debt service coverage: 2 63
Debt to income ratio: 5%
Payroll to income ratio: 30%
Program expenses ratio: 87%
Debt to total assets ratio: 31%
Cash on hand: 3 1 months total cash, 2 4 months available cash
ACCOUNTS RECEIVABLE (COLLECTIONS PROGRESS)
Accounts Receivable has improved, lowering to 6 4% as past due This is well under last year’s average
INTEREST EARNED YTD (HCM)
2025: $242,933
2024: $321,034
GROSS REVENUE YTD
2025: $32,526,205; 2024: $31,455,171
NC grant portion 2025: $2,163,374; 2024: $1,581,302
TOTAL EXPENSES YTD
2025: $34,225,232, including $8.9M in donations to DHI and $1M in kind.
2024: $20,510,72,0, including $532,963 in kind
Capital Expenditures 2025: $3,705,455 acquired/$14,859,813 donated to DHI
Capital Expenditures 2024: $9,213,103
CFO REPORT
GALA RECORDS BROKEN IN 2025
RISK MANAGEMENT
Property Update
20 Properties have been donated to Discipleship Holdings, Inc (currently leasing 22 properties from DHI; 1 property was donated to DHI; 1 property was purchased by DHI)
4 properties are leased from others
2 properties are expected to be sold (1 is listed for sale and 1 will be leased by HCM after the sale)
30 properties are owned by HCM and will be donated to Discipleship Holdings, Inc within an estimated six months
DOL – still no response from them; the statute of limitations has passed
NCDOL / OSHA – Update on the three OSHA citations and a $46k fine related to an injury that occurred at New River Tire HCM disputes responsibility for safety measures at Vocational Training sites and attended an informal conference after which OSHA did not change its position, HCM has formally appealed the decision
Lawsuits – ultimately, our attorney will move for summary judgment on the Helena case and last I heard the same would be true of the dog bite case (both are paid by insurance and seem to be dragging on); all other known threats of litigation have been resolved or are inactive
Major Insurance Renewal and Claims
Our commercial lines insurance renewal (excluding workers' comp) saw a significant premium increase of 47.5% along with a deductible increase to $100K. We also had a reduction in coverage from $3M to $1M in excess/umbrella insurance. This change is primarily driven by auto exposure, and we are actively exploring strategies to reduce or eliminate that risk
The Clarksville fire rebuild is complete and the claim has been closed Amputation Claim – A settlement has been agreed upon
Another smaller claim is also being settled through legal negotiations by insurance
APPROVALS
Monthly Financials (May 2025-October 2025)
Board Resolutions Approvals
Board resolution pending approval: Donation to Hope Center Outpatient Services, LLC
2024 Audit
New LLC Entity Documents
2025 and 2026 Payroll Band and Scales
Enclosed:
Monthly Financials (May 2025-October 2025)
2024 Audited Financial Statements and NC Grant Audit
2025-03-003 to 2025-11-002 approved Board Resolutions 2025-11-003 pending approval Board Resolution
PROGRAM REPORT
Recovery
In October, we held our men’s and women’s Fall Spiritual Retreats. During those retreats, we had 213 baptisms, bringing the year’s total to 1,598 through October 2025. Another highlight in the recovery department is the decrease in employee turnover rate. In 2024, we had 49 percent of our Recovery Pastors leave the ministry. However, in 2025, our turnover rate has improved to 19 percent through October 2025.
Financials
We have seen a decrease in Measurable Net Income Vocational Training has taken a significant decrease in 2025 with only 72 percent of our second phase residents training full-time. Leadership within the program are exploring various model changes to increase this percentage. The MNI through October 2025 is $3.6M compared to $4M YTD in 2024.
Admissions
Hope Center’s Occupancy Rate has steady remained above the goal of 85 percent In September and October, our local Admissions Coordinators admitted more than 625 residents. We also relocated our Call Center to Eastern N.C., and placed this program under the direction of National Director, Stephen Palk.
DEVELOPMENT REPORT
Development Events
Total: $3,410,050 00
Total Savings in Procurement
Total: $305,000
VT Rate Increases
Total: $400,000+ Annually
Gift In Kind
Total: $1,144,689 26 1 4M has been received ministry-wide, but only the total above is being claimed by Development
Development Grants 2024
Total amount awarded in grants - $1,221,996 00
Cleveland Co Opioid Settlement: $378,000 00
Wayne Co Opioid Settlement: $440,496 00
Johnston Co Contracted Services: $396,000 00
Tri-County, NC: $7,500 00
TOTAL DEVELOPMENT EFFORTS: $7,542,338.12
COMMUNICATIONS REPORT
SYSTEM UPDATE
We are excited to report the launch of Dazos, our new Resident CRM platform, officially going live on July 22, 2025. This is a significant milestone as we transition away from Board411 and move toward a centralized system designed to better support the needs of our growing ministry.
Dazos is a continuous work in progress. Our team is actively developing, refining, and expanding its capabilities to support:
Better cross-departmental communication
Real-time visibility into resident progress
Scalable tools that grow with our ministry needs
As development continues, Dazos will empower center staff with more accurate and accessible information, reduce administrative burden, and create a more consistent and unified experience across all Hope Center locations
IMPACT STORIES
Harold Dalton’s Story
This story captures the impact of faithful volunteers who celebrate life change, support residents through difficult moments, and find profound purpose in being part of their restoration journey
Lucas Barnett’s Story
This video highlights a powerful story of redemption as a father reflects on his journey from brokenness to serving others, while his child shares the impact of seeing him restored and alive again
Joanne Deans Story
This video shares a powerful story of restoration, showing how one woman found freedom, hope, and a renewed sense of purpose through her recovery journey
2025 Ministry Overview
A heartfelt overview of our ministry, this video captures why we exist: to walk with people in their hardest moments and help them rebuild a life filled with purpose, stability, and hope
Missions Overview
A powerful look at a global story of restoration, this video reveals how Hope Center Ministries and our strategic partners are bringing hope to the nations and transforming lives through compassion, support, and unwavering community
OCTOBER2025
RESIDENT SPIRITUAL RETREATS AND
POWEFUL LIFE CHANGE
Every fall, Hope Center Ministries takes time to step away from the routine and gather for our Resident Spiritual Retreats. A weekend to recharge, reflect, and experience real life change. This October, each region across the country came together for powerful moments of renewal and connection.
Both the men’s and women’s retreats carried the same heartbeat: creating space to encounter hope, find freedom, and rediscover joy
The men’s retreats were filled with laughter and energy, basketball and football tournaments, good food, and a talented grill master who kept the fellowship going around the fire It was a weekend that perfectly captured one of our core values: We hav adventure
The women’s retreats ha and sisterhood Between kickball and volleyball g tournaments, Bible Jeop laughter, pampering, an everyone was well-fed a
Beyond the fun, every re worship and teaching. P ministry led heartfelt se hearts were healed, and
One of our residents fro shared,“My way didn’t w I’m gonna do it God’s w can come here and resta thankful to be in a place admit I have a problem, help, and that I can’t do without God It’s hard, b God has sustained me
His grace is sufficient without it, I wouldn’t be standing here today ”
Stories like this are what these weekends are all about Across the country, men and women found freedom, peace, and a new beginning
Because of your generosity, more than 1,500 residents and staff experienced renewal and restoration during these retreats. Thank you for making life change like this possible.
Together, we are Restoring Lives, Restoring Families, and Restoring Communities
One story at a time.
“MY WAY DIDN’T WORK OUT FOR ME, SO NOW I’M GONNA DO IT GOD’S WAY.”
HOPE IS RISING IN SOUTH AFRICA
A NEW CHAPTER IN HOPE CENTER WORLD MISSIONS
“They’ve already carved out a place with a building for a women’s center. We’ll open the men’s first, then the women’s. The judicial system has already agreed to work with us, and everything is falling into place it’s moving fast! All of this came together within just a few days while I was there.”
Josh Hannah, President and Founder
Sometimes, God moves so clearly that all you can do is step back and say, “Only He could have done this ” That’s exactly what’s happening in South Africa
In a matter of days, doors began opening in ways that only God could orchestrate What started as a single introduction has grown into a powerful partnership that’s already laying the groundwork for a new Hope Center halfway around the world
Through a mutual friend, Josh Hannah and Executive Leader of World Missions Gary Grace were introduced to Jacques, a ministry leader in South Africa whose heart for people mirrors our own Jacques leads a ministry called Reaching a Generation, which is transforming communities across South Africa by sharing the gospel and empowering local leaders to reach children and families
From the very first conversation, it was clear this wasn’t coincidence, it was calling Before Jacques ever visited the U S , everyone involved recognized that their hearts were aligned and their vision was the same: to bring hope and recovery to those who need it most
When Jacques later traveled to the States on a previously planned trip, we had the privilege of sitting down with pastors, business leaders, and friends of the ministry Jacques shared firsthand about the impact Reaching a Generation is having in South Africa how God is using his team to feed children, equip teachers, and reach a generation with the message of hope
“What’s happening there isn’t just another internation nets, building relationships, and believing that God wants to reach a generation in South Africa through the same hope that’s changed thousands of lives here.”
Gary Grace, Executive Leader of World Missions
