2013 ANNUAL REPORT
Building connections.
Strengthening communities.
Transforming the future.
Our Mission We are called to strengthen communities by empowering people to respond to life’s challenges.
Our Vision We envision thriving communities where everyone has the opportunity to achieve their full potential regardless of background or disadvantage. Together with our partners, we inspire people to help one another reach beyond their current circumstances and realize new possibilities.
Our Values Faith in action: • Courage • Compassion • Integrity
A message from Board Chair Jeffrey Kinney and President and CEO Angela Bovill Dear Friends, What an incredible year of transformation! That word speaks so much about the work we do with individuals and families, but also about what we are doing internally at LSS. We are blessed to be able to do this work every day, thanks to you, our supporters. This year, we stepped back to reflect upon what we are called to do and how we do it. Together with our board, we spent time listening to what our partners, clients, donors, staff and other supporters had to say about our future direction. We gained valuable insight in focus groups held last fall that helped to shape our new mission, vision and strategic plan.
Jeffrey Kinney, Board Chair; Angela Bovill, President and CEO
Our new mission is both innovative and fundamental, as we combine our creativity with a renewed focus on the basic core of our work. We are indeed called to serve those in greatest need, and how we do it matters. We must create opportunities and systems that ensure those we serve are empowered to reach their greatest potential. Our commitment to develop sustainable solutions that extend beyond today’s traditional support systems will empower people to reach independence, where possible, and provide the opportunity to live fulfilling lives. A critical component of this approach is for people to be connected to each other in real and meaningful ways. As clients, volunteers, employees and partner organizations, we need to harness our collective knowledge and power to embrace those facing challenges and help them move forward. Unlocking the potential in all members of our community is critical to our collective success – from a health and wellness standpoint as well as our economic stability as a nation. This path will require both faith and courage as we learn new ways to solve age-old problems. Our goal is to lift each other up so that as individuals, families and communities we not only survive, but truly thrive. During 2013, we were fortunate to have new staff join us: Dana Ramish – Chief Operating Officer, Jodie Justofin – VP of Strategic Marketing and Communications, Candace Cramer – Chief Development Officer and Michael Alden – VP of Business Development. The gifts they bring to our work make us even more confident in our ability to achieve our bold new mission! We are filled with hope and optimism as we embark on this new chapter in our journey! We are so grateful to all of you who are on this adventure with us, as we work to discover new ways to realize our collective potential and make a positive impact in the lives of those we are called to serve. Onward!
Jeffrey Kinney Board Chair
Angela Bovill President and CEO 1
Who We Are
What We Do
Who We Serve
Founded in 1872, Lutheran Social Services (LSS) is one of the largest human service organizations in New England. With 1,400 employees, LSS serves 20,000 people annually in nearly 60 locations throughout New England, regardless of belief, background or disadvantage.
LSS empowers individuals
LSS assists children, youth and families; persons with developmental disabilities, mental illness and deafness; persons who are economically disadvantaged; refugees, including unaccompanied refugee minors; and older adults.
and families to become self-sufficient, competent and confident in their ability to reach beyond life’s challenges and thrive, through programs and services that address the holistic needs of our clients.
From Surviving To Thriving The true measures of our impact are the accomplishments achieved by the people we are privileged to serve. We are proud of the many ways our staff helps individuals and families connect with the people and resources they need to move forward and thrive. These inspiring stories illustrate the profound impact of our work.
Good News Garage Donor and Client Pay It Forward In 2013, Angel Johnson was an intern at the Vermont REACH UP Program, working hard to turn her life around. When her car blew a head gasket—a very expensive repair that could derail everything she was working for—her case worker recommended the Good News Garage (GNG) Vehicle Placement Program. Angel was approved to receive a car through the program which she says, “eliminated the worry of meeting car payments, higher insurance and unexpected car repairs.” She then did something quite remarkable. Instead of selling her old car and benefiting from the financial gain, Angel donated it to GNG. The vehicle was refurbished and given to another GNG client.
Angel Johnson and son
Angel’s goals for a better life are coming to fruition, and she now works full time at the Vermont State Agency of Transportation. 2
A Win-Win Opportunity for Refugees and Local Business Owner Four years ago, Peter and Leslie Van Berkum, owners of Van Berkum Nursery in Deerfield, New Hampshire were struggling to find reliable seasonal employees. A colleague suggested employing the community’s newly resettled refugees. The idea of helping these families appealed to them, so Leslie contacted the LSS New Americans program in Concord. Since then, Van Berkum Nursery has employed up to seven Bhutanese refugees annually, and owners Peter and Leslie couldn’t be happier.
“People should know how easy it is to help someone. A couple of hours a week are all you need to make a difference in someone’s life!” – Leslie Van Berkum
Leslie Van Berkum with Congo refugee/employee
Refugees are hired by the nursery to do a variety of jobs including potting, filling orders and propagating plants. “We have found the refugees to be cheerful and hard workers,” says Leslie. “They are great role models for productivity and offer a wonderful perspective on their culture. Our employees are amazed at the positive outlook of their fellow staff members, given the extreme hardships they have come from.” Leslie was so inspired and enriched by her refugee employees that two years ago she began volunteering for LSS as an English tutor. Currently working with a family of seven from the Congo, Leslie describes her efforts as a dream job. “I go to their home once a week and we work on English for a couple of hours. We sometimes do an activity such as yoga or take a field trip to the library. They are so interested in learning English…my job is easy to do.” This year, Leslie is hoping to increase her volunteering at LSS. “People should know how easy it is to help someone. A couple of hours a week are all you need to make a difference in someone’s life!”
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HPOP Client Moves Forward and Gives Back to Others Motivated, determined and optimistic all accurately describe Rachel Wainaina. With a heart of gold and a passion for helping others, Rachel arrived in New Hampshire 11 years ago when she and her daughter left Kenya in search of a better life. Upon coming to the US, Rachel knew she wanted to work in a health-related field. She received her medical assistant degree and was hired as a mental health worker at a local hospital, but she had a dream of becoming a nurse.
“Rachel has successfully juggled employment, school and family and shows no signs of slowing down.” – Teresa Lengyel, HPOP education and employment specialist
Rachel Wainaina and her family
When she learned about the LSS Health Profession Opportunity Project (HPOP) job training program in New Hampshire, she applied and was accepted in a nursing program, a life changing decision. But Rachel’s involvement didn’t stop there. When it was discovered that Rachel could speak three languages, she was asked to work as an interpreter with the LSS Language Bank. Rachel now works part-time as a Swahili translator, helping to ease the transition for others who recently moved to the US. “Rachel has successfully juggled employment, school and family and shows no signs of slowing down,” raves Teresa Lengyel, her HPOP education and employment specialist. “She is determined to develop her professional skills to their fullest so that she can improve the lives of others. Rachel has an extremely optimistic outlook on life and embraces the opportunities that she has been given.”
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Living to Their Fullest Potential at Lutheran Home of Southbury The LSS mission, “strengthening communities by empowering people to respond to life’s challenges,” is an apt description of what Lutheran Home of Southbury (LHS) strives to do every day by helping residents live their lives to the fullest and providing their families with peace-of-mind knowing they are well cared for.
“The staff seems genuinely happy to be here and does a wonderful job.” – Joseph Galvin
Joseph Galvin, Nancy Galvin and daughter-in-law Barbara Galvin
At the end of his wife Nancy’s short-term rehabilitation stay at LHS, Joseph Galvin realized that the care she would require was beyond what he could provide at home. Seeing how happy, peaceful and well cared for she was, he decided that Nancy should remain at LHS. Joseph now enjoys Nancy’s company and her beautiful smile during his daily visits, without the stress and responsibility of providing for her physical needs. Last year, they made new memories together, celebrating their 60th wedding anniversary at LHS. Joseph appreciates the wide variety of activities available at LHS, as well as the ability to simply enjoy a quiet moment with Nancy in the sunny parlor. He is grateful for the comfort and support LHS offers in this new chapter of their lives, and for providing a “very comfortable and easy going home” for Nancy where “the staff seems genuinely happy to be here and does a wonderful job.”
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A Life Transformed To say that Brenda Neal has come a long way is an understatement. Born in Iowa and raised by foster families in Maine, she suffered an abusive and traumatic childhood. At the age of 17, Brenda was in a devastating car accident that left her with severe brain injuries and epilepsy. After three turbulent decades—that included numerous hospitalizations and an abusive marriage—Brenda started a new life when she was referred to a LSS group home in Lewiston, Maine. Upon her arrival at LSS in 2007, Brenda was deteriorating physically and mentally. She was so weak that staff needed a stabilizing belt to help her to stand or walk. Brenda was also fixated on eating the same one food and therefore wasn’t consuming regular meals or receiving proper nutrition. Fast forward seven years and Brenda has transformed into a new person thanks to LSS programs and staff.
“LSS has been my home for a long time. I love it here and the staff is the best family I’ve ever had!” – Brenda Neal
Brenda Neal
She currently works two jobs – cleaning the LSS Auburn offices and a diner in Lewiston. She is described by Heather Low, her team leader, as “a motivated, strong and empowering person” who attends church two to three times a week, is an immaculate housekeeper, enjoys playing Bingo and socializing with friends and walks two miles a day. An animal lover, Brenda adores her cat and goes horseback riding weekly. Brenda is now working towards independence and her own apartment. She is able to administer her own medication and is attending cooking and life skills classes. She meets 100% of her monthly goals. Brenda’s incredible progress is a testament to her determination and her supportive staff. “LSS has been my home for a long time,” says Brenda. “I love it here and the staff is the best family I’ve ever had!” 6
Transforming the Future: Setting the Stage for a Bold, New Model of Care 2013 Highlights New Mission, Vision and Values Last fall was a very busy time at LSS, as we worked on our new strategic direction. President and CEO Angela Bovill led numerous town hall meetings and community focus groups to introduce our new mission, vision, values and client-centered model of care to our employees and select external audiences. Through engaged and constructive dialogue, LSS received favorable feedback on the future direction of the organization. We publicly launched our new mission, vision and values in January 2014.
Renewed Focus on Quality, Outcomes and Impact During 2013, LSS renewed its commitment to service quality, client outcomes and overall impact. As a result, LSS began restructuring the process for setting quality goals, determining client outcomes and measuring the impact of our work in the lives of those we serve. Evaluating outcomes from a holistic, client-centered approach is helping us to answer the question, “What does success mean for our clients?” LSS will classify and consolidate client outcomes data relative to the Full Frame Initiative’s Five Domains of Wellbeing: Safety, Stability, Social Connectedness, Mastery and Meaningful Access to Relevant Resources, from which overall impact can be measured.
Five Domains of Wellbeing
Source: The Full Frame Initiative
New Strategy: Client-Centered Model for Holistic Care At the heart of LSS’ new strategy is our focus on how we provide care to our clients. We are shifting the paradigm in social services, moving from a programmatic agency to a client-centered organization. Our goal is to meet the needs of those we serve in a more holistic way and move people forward in all aspects of their lives. In 2013, LSS began work on a new business model and operational infrastructure to support our goal. Planning is underway for the creation of our first community center – a welcoming facility situated in a neighborhood community of Worcester, Massachusetts. The new center, scheduled to open in 2014, will pilot our new client-centered model of care. A centralized intake process, new client management system and co-location of services will provide the foundation for this new model.
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New Partnerships: The Key to Client-Centered Care Our new client-centered model will change how we work together to provide care. It will require us to strengthen our existing strategic partnerships, and form new ones so that we can wrap a full continuum of services around the people we serve. LSS is actively pursuing three types of partnerships considered vital to achieving this goal: Corporate bridges enable companies to partner with LSS via sponsorship and volunteer opportunities for employees to share their knowledge and skills for the benefit of our clients. In 2013, LSS and Wells Fargo developed a financial literacy training program, and for the past three years, the Wells Fargo Foundation has provided annual capacity-building grants. This is just one example of how LSS is developing a new standard for how for-profit companies can engage with nonprofit organizations in their communities to create positive impact for all. Community collaborations enable LSS to partner with complementary community organizations to create synergy around more efficient service delivery, and to enhance the spectrum of services offered to clients. In 2013, student volunteers from College of the Holy Cross in Worcester, Massachusetts provided tutoring sessions for our unaccompanied refugee minor teens and also worked with LSS case managers to implement a formal curriculum developed by the Massachusetts Department of Social Services. Interfaith joint social ministries help LSS to expand our relationships with faith-based communities. Through these ministries, we increase opportunities for individuals of all faiths to connect with our clients, who can benefit from a sense of belonging to a supportive community. Over the past year, LSS had the privilege of collaborating with many Lutheran congregations, as well as other churches and faith-based organizations. The connections we’re building will enhance the lives of members and clients through family sponsorships, mentorships and volunteer opportunities.
“Join the Conversation� Community Focus Groups More than 130 friends of LSS participated in focus groups held across New England in November. They provided input in five key areas that was invaluable in helping LSS shape its new direction and strategy: New client-focused model: Participants were excited about the model, but also recognized the implementation challenges. They noted that ongoing conversations and collaborations with donors, congregations and community partners are key to effective and sustainable implementation.
Focus group in Manchester, NH
Critical community needs: Workforce development, transportation, language services, financial literacy services, affordable childcare, transitional assistance, mental health services and affordable housing were identified as critical needs in their communities.
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Most logical community partners: Churches and other faith-based organizations, corporations and local businesses, colleges and universities, foundations and other nonprofits were noted as being the most logical community partners for LSS. How LSS is perceived: Participants felt that LSS is not well known, and that building brand awareness and improving its community presence will help increase visibility and recognition. Best way for LSS to engage and communicate with partners and donors: Attendees felt that LSS needs to: Continue to engage donors and the larger community with focus groups or a similar model; identify and seek out critical community partners and build relationships; create new collateral and messaging; develop a group of active ambassadors; host awareness building events.
It Takes Many Hands: Get Involved… Make an Impact! Individuals • Volunteer: Share your talents, skills and expertise with LSS and help children, families and older adults realize new possibilities and thrive. • Change lives through the Annual Fund: Invest in the Annual Fund and provide LSS with the flexibility it needs to empower clients and underwrite mission-critical activities. • Match your gift: Increase the value of your gift, at no cost to you, by participating in your company’s matching gift program. • Make a planned gift: Include LSS in your will or other planned gift and leave a legacy of hope and opportunity. College Students • Broaden your education: Participate in a relevant and educational internship or service learning opportunity. Congregations and Service Organizations • Invite an ambassador: Schedule a speaker from LSS to raise awareness and strengthen partnerships. • Engage and empower: Discover how your congregation or service organization can help LSS clients move toward self-sufficiency. Strengthen your local community by working together in service for others. • Provide heartfelt donations: Collect holiday gifts for children, provide personal care kits for teen moms, or donate household essentials for incoming refugee families. Companies • Invest in communities where your employees work and live: Change lives and improve community life through product donations, financial support and employee volunteer engagement at LSS. • Partner with LSS in social enterprise initiatives to advance shared interests. 9
LSS and Wells Fargo Join Forces to Develop Financial Literacy Program Last fall, Wells Fargo contacted LSS with an invitation - join them in the fourth annual Super Service Challenge. The national competition is sponsored by Companies With A Mission, aided by the Drew Brees Foundation. The Challenge encourages volunteerism and provides additional funding to deserving nonprofits. In November, five Wells Fargo “Red Team” volunteers spent the day at LSS headquarters, learning about the financial challenges many LSS clients face and The Wells Fargo Red Team of Volunteers discussing how Wells Fargo could contribute its expertise. Educational resources, tools and curriculum were evaluated and a financial literacy training program was developed. LSS was awarded seed funding to start this program in 2014. But there was another success that day: the connections made with people. “I think they realize that there are people who do care, because we do,” says Patricia Ostrowski of Wells Fargo. “We’ll do anything that we can to help this organization and all the good work that they do.”
Devoted LSS Supporters Are Helping People to Help Themselves Ed and Gail Bucher are guided by the principle, “helping people to help themselves,” and are passionate about giving back to their community. A retired Gillette scientist, Gail began volunteering for LSS in 2002. For the past 12 years, Gail has worked tirelessly for LSS, serving on several boards and committees, including the board of directors and its foundation. Ed and Gail not only volunteer, they have helped to fund numerous LSS initiatives. “We’ve been blessed and we give to organizations where we feel our gifts will make a difference and improve the lives of those who are served,” says Gail.
Gail and Ed Bucher
“We look at how well an organization is managed, their vision and their impact on society,” comments Ed. “For us, two LSS programs, the Ruth House and Good News Garage, touch us because they offer hope.” In addition to current gifts, part of the Bucher’s estate planning includes LSS. A devoted supporter who has helped shape LSS’ past, Gail is focused on the future. “Government programs help people, but they stop short in moving people forward to achieve their full potential,” she notes. “Ed and I are excited about a client-centered model at LSS and its potential for helping people to thrive rather than just survive.” Gail and Ed embrace “community” and a world where we are all connected. We admire them as role models for their generosity and kindness. We are blessed to have them in the LSS family. 10
By the Numbers: A Message from CFO Lisa Cohen During the past few years, LSS has worked diligently to solidify the organization’s financial position. The fiscal year ending June 30, 2013 resulted in further financial stability and LSS is now poised to move forward and thrive. We continued to build a position of readiness by divesting of idle assets and underperforming service lines, and by developing a fiscally responsible strategic plan. Looking ahead, necessary investments must be made to ensure that our systems are scalable and flexible for future growth. Operationalizing our growth is challenging to do with limited Lisa Cohen, CFO resources. Public dollars often have restrictions attached and do not always fully meet the needs of those we serve. The availability of flexible resources is necessary to help build strong, supportive communities that enable our clients to thrive. Donor investment, coupled with the reinvestment of prior operating profits, has helped moved LSS in this direction. Additionally, we are forming strategic partnerships with stakeholders in an effort to overcome our funding challenges. Your investment has already helped us achieve some remarkable things. During the past year, LSS was able to implement a single, standard accounting system across our regional offices, and we’re developing a client management system to track all aspects of a client’s health, history, goals and achievements. While we continue to measure performance using financial metrics, LSS is ready to define success in an equally important way – by measuring impact. You can be part of this exciting journey. I encourage you to review our financial performance on the next page and to invest in our future. Together we will empower people to reach beyond their current circumstances and realize new possibilities. Thank you for your continued support.
Lisa Cohen Chief Financial Officer
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FY 2013 Financial Highlights (July 1, 2012 – June 30, 2013) Revenue sources
2013
Contributions, gifts and grants
1,478,333
Program service revenue
55,785,494
Gifts-in-kind
2,091,853
Other income, net
1,071,863
Total revenue
$60,427,543
Operating expenses
2013
Total program services
52,422,233
Fundraising
258,559
Management and general
7,132,094
Total operating expenses
$59,812,886*
*Does not include one-time non-cash impairment expense of $998,971. Revenue sources 2.4%
Contributions, gifts and grants
92.3%
Program service revenue
3.5%
Gifts-in-kind
1.8%
Other income, net
Operating expenses 87.7%
Total program services
0.4%
Fundraising
11.9%
Management and general
In 2013, nearly 88 percent of total operating expenses were directly used for programs that benefit the clients we are serving. 2010
LSS Net Operating Income
2011
$814,462
FY 2010-2013
$0 -$408,169
*Does not include non-recurring/impairment items. 12
2012*
-$2,186,409
2013* $614,657
LSS Board of Directors “Just as we have invested in new senior staff, the board continually evaluates its needs, and has brought on several very talented and passionate people to complement those who have served faithfully for many years. We fully intend to continue to diversify our board to better reflect the needs of our clients and constituents.” – Jeffrey Kinney, Board Chair Officers: Jeffrey Kinney, Chair Senior Vice President, Wells Fargo Bank
William Mayo (New 9/13) Sr. Director of Information Technology – Development and Delivery, Biogen Idec
Angela Bovill President and CEO, Lutheran Social Services
Barbara Ruhe (New 3/13) Ruhe and Ruhe Attorneys At Law
Gail Phillips Bucher, Vice Chair Chaplain, MCPHS University Karen Gaylin, Secretary Philips Healthcare (retired) Garth Greimann, Financial Secretary Berkshire Partners LLC Directors: The Rev. Canon Hannah Anderson (New 9/13) Episcopal Diocese of New Hampshire The Rev. Carl Anton (Term expired 6/13) LCMS pastor (retired) Michael Balinskas (New 9/13) General Manager, PowerHawke, Inc.; Director of Business Development, McPhee Electric, Ltd. Dr. Wisam Breegi President and Founder, Mandaean Refugee Resources Project
William Swanson Businessman (retired) Dr. Donald Sweet Principal, Vital Growth Consulting Group Ex-Officio: The Rev. James Hazelwood Bishop, New England Synod, Evangelical Lutheran Church in America The Rev. Timothy Yeadon President, New England District, Lutheran Church-Missouri Synod LSS Executive Leadership: Angela Bovill President and CEO Alana Geary Executive Assistant Lisa Cohen Chief Financial Officer
David Forsberg (Term expired 6/13) Dean, School of Business, Anna Maria College
Dana Ramish (New 6/13) Chief Operating Officer
Ralph Gerenz Businessman (retired)
Candace Cramer (New 12/13) Chief Development Officer
The Rev. Ross Goodman (New 3/13) Pastor, St. Paul Lutheran Church, Arlington
Jean Jackson Vice President, Human Resources
Sonja Hegymegi CPA (retired)
Jodie Justofin (New 7/13) Vice President, Strategic Marketing and Communications
Juliana Badaro Langille Executive Director, Community Connections of Brockton
Michael Alden (New 1/14) Vice President, Business Development
NON-PROFIT US POSTAGE PAID PERMIT #143 WORCESTER MA
Lutheran Social Services 14 East Worcester Street, Suite 300 Worcester, MA 01604
2013 Key Accomplishments 28,641 Rides scheduled through our Ready 2 Go program in Vermont. This program provides rides for clients to access essential life activities, including jobs, training and childcare.
221 Vehicles placed in Vermont, New Hampshire and Massachusetts through our Good News Garage program, one of the first non-profit social enterprise car donation programs in the US. Since the program’s founding in 1996, more than 4,000 reliable vehicles have been placed with families in need.
39,416 Pounds of produce harvested through New Lands Farm, which provided agricultural opportunities to 119 refugee and immigrant farmers from Bhutan, Burma, Iraq and other countries. Families learned to grow traditional New England produce along with familiar ethnic vegetables, and sold more than $40,000 of produce at local farmers markets, restaurants, grocery stores and through a communitysupported agriculture (CSA) program.
348 Maine adults with mental illness or developmental disabilities who were served by our staff.
25,104 Appointments completed by our Language Bank staff, including interpretations and translations in more than 60 languages.
829 Refugees resettled in New Hampshire and Massachusetts by our Services for New Americans Program. In Massachusetts, the majority of these were employed within 90 days of arrival. In New Hampshire, more than 75 percent of these resettled households were economically self-sufficient within six months of arrival.
76 Children found safety and security in a stable home setting through our Foster Care Programs in New Hampshire and Massachusetts.
181 Children found safety and support through our Unaccompanied Refugee Minor and Unaccompanied Children Programs. These children came from 20 different countries, including Mexico, Guatemala, Iraq, Sudan and El Salvador.
43 Volunteer attorneys, along with 14 legal interns, provided pro bono services for unaccompanied minors as a part of our Immigration Legal Assistance Program.
290,966 Hours of care provided by our In-Home Care Program staff in New Hampshire, serving more than 550 clients in nine of the state’s ten counties.
1,200 Volunteers donated more than 40,000 hours of service.