Masonic Home of Missouri Annual report 2013

2 0 1 3 Annual Report Masonic Home of Missouri

Contents

Board of Directors

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David L. Ramsey, Chairman/GM Jon B. Broyles, President David W. Haywood, Vice President C. Brent Stewart, Secretary Richard L. Smith, Treasurer William J. Bowser Barry V. Cundiff Steven D. Duncan Chris T. Harrelson Jeffrey D. Lee H. Lee Stallings Charlie Wiegert William E. Zimmerman

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Executive Director Barbara Ramsey

Director of Finance Jodi Blake

Editor

Rhonda Stone Lightfoot

Masonic Home of Missouri 6033 Masonic Drive, Suite A Columbia, MO 65202 573.814.4663 Phone 1.800.434.9804 Toll Free 573.814.4660 Fax mohome.org

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Annual Report

Moving Forward Barbara Ramsey, Executive Director

Organizational Chart

Missouri Outreach Programs Barbara Ramsey, Executive Director

Finanical Assistance by Region

Creating-A-Partnership by Region

Financial Report 2013 Jodi Blake, Director of Finance

Independent Auditor’s Report Williams Keepers, LLC

Fiscal Year 2013 Financial Statements

Notes to the Financial Statements

Masonic Home of Missouri

Moving Forward Barbara Ramsey Executive Director

The Masonic Home of Missouri began the Fiscal Year of July 1, 2012 to June 30, 2013 with stability in leadership and staffing, continued success in the Outreach Programs, and a focus on the Masonic Home’s Development program. The end of the Fiscal Year left us with a transition in leadership as we said goodbye to our Executive Director Keith Neese, and an opportunity to reflect on the many accomplishments achieved throughout the year.

The most significant change in the Outreach Program this year has been the addition of the much anticipated Financial Counseling Program.

The program began assisting our Outreach clients with things such as budgeting and debt management. It is rewarding for both the client and the staff when working together we are able to help the client achieve financial stability and independence. Another goal this year was to change how the Masonic Home worked with the Lodges to provide education on the Outreach Programs. During this past year, the Masonic Home provided new tools for the Masonic Home Representatives to help provide education on the Outreach Programs. The Masonic Home provided updated brochures and created a video the Lodge could use for educational purposes on the Programs.

In addition, many Lodges hosted ladies luncheons, teas and dinners with the Masonic Home invited to speak.

This provided an opportunity to bring the widows, wives and ladies of the Order of the Eastern Star together to learn more about what the Masonic Home can provide should they ever be in need of assistance. We saw continued growth in our Creating A Partnership program. We saw an increase in the number of lodges and chapters participating this year, and the funds matched between the Lodges/Chapters and the Masonic Home increased by over $30,000.00. It is inspiring to see the wonderful work the Lodges and Chapters are doing in their communities to help children in need.

The Board of Directors made the Masonic Home of Missouri’s Development program a priority for the year.

Although the Masonic Home has a very successful Annual Giving Program with the corresponding donor recognition society, the Truman Club, the Masonic Home was lacking an overall Development Plan and someone to build long-term donor relationships whose passion for the mission of the Masonic Home may translate into major gifts and/or planned giving. The Masonic Home’s new Donor Development Plan recognizes that the mission of the Masonic Home is to enrich and improve the lives of eligible adults and children who are in need through the Outreach Programs of the Masonic Home of Missouri, by practicing the principles of Freemasonry.

The Masonic Home wants to build strong relationships with our donors who are passionate about Masonry and the programs we provide. This donor-centric approach recognizes that donors are essential to the success of our mission. As we move forward into the next Fiscal Year, we are looking forward to having Todd Bennett, Major Gifts Officer, join Julie Kirchhoff, Annual Giving Officer, as part of our Development team to implement our new Donor Development Plan.

As we reflect upon the accomplishments of the past year, it is impossible not to be excited for the year to come. The Masonic Home has a strong foundation upon which it can continue to build. The coming year will also provide us with an opportunity to reflect back and celebrate the Masonic Home of Missouri, as we commemorate our 125th Anniversary in 2014. The Masonic Home no longer exists in just one or two locations; rather it exists in every community in the state where someone’s life is touched by one of the Outreach Programs…..We Are Where You Are.

Masonic Home of Missouri

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Masonic Home of Missouri Organizational Chart Masonic Home Board of Directors

Tiffany Estes Receptionist

Barbara Ramsey Executive Director

John Hendrickson Building Services Engineer Todd Bennett Major Gifts Officer

Michelle Phillippe Administrative Assistant

Debbie Summers Outreach Financial Assistance Caseworker

Dana Morgenthaler Outreach Financial Assistance Caseworker

Tisha Woodard Social Services & Creating-A-Partnership Caseworker

Chantana Irvin Masonic Family Cares & Widows Program Coordinator

Rhonda Stone Lightfoot Membership Relations Coordinator

Carly Dibben Financial Counseling Caseworker

Jodi Blake Director of Finance

Andrea Thacher Accountant

Lara Dieringer Accountant

Julie Kirchhoff Annual Giving Officer

as of 09/21/2013

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Masonic Home of Missouri

Missouri Outreach Programs Barbara Ramsey Executive Director

Financial Assistance Programs The Masonic Home of Missouri provided $1,027,135.88 in direct financial assistance to 156 Missouri Master Masons, their wives, widows, female members of the Order of the Eastern Star, and children. An additional $109,535.39 of direct assistance was provided through the Creating-A-Partnership Program. The total assistance provided in Fiscal Year 2013 was $1,136,671.27 through the Outreach Programs.

Long-Term Financial Assistance The Long-Term Financial Assistance program provides financial assistance for primarily elderly Missouri Masons, their wives, widows and female members of the Order of the Eastern Star. This assistance can help each month for someone living in a facility, such as an assisted living facility or independent living facility, or for someone living in their home or apartment. In the Masonic Home’s Fiscal Year 2013, the Home provided monthly financial assistance to 63 clients living in facilities throughout the state of Missouri and 4 clients in facilities in other states.

The monthly assistance to clients in facilities totaled $840,302.67. The Home also provided monthly assisted to enable 7 clients to remain in their homes, totaling $47,557.84. Without this monthly assistance, these clients would not have been able to remain in their homes or facilities. They would not have been able to receive the level of care they needed, and may have been forced to prematurely move to an unnecessary level of care.

In addition to providing monthly assistance, the Home can provide clients assistance through one-time payments.

Clients can receive multiple one-time payment assistance and/or monthly assistance. For example, a client might receive assistance to remain in his home to pay for things such as utilities and medication each month. That same client could also receive assistance for a one-time payment to help pay an unexpected medical bill. The Masonic Home assisted 39 Long-Term assistance clients with one-time payments totaling $83,035.25. Many of these clients also received monthly financial assistance.

Short-Term Financial Assistance The Short-Term Financial Assistance program provides monthly financial assistance primarily to younger Missouri Masons, their wives, widows and female members of the Order of the Eastern Star. This program recognizes that members of the fraternity may need assistance during unexpected hardships, such as an unexpected medical problem. Typically, Short-Term Assistance lasts 6 months or less, and qualified applicants may receive monthly assistance, one-time payments, or a combination of monthly and one-time payment assistance. In Fiscal Year 2013, the Masonic Home assisted 4 clients in their homes with monthly assistance totaling $4,877.40. In addition, the Home assisted 23 clients with one-time payments totaling $44,556.72. Two of the short-term assistance clients received both monthly assistance and one-time payments.

Children’s Outreach Program The Children’s Outreach Program provides financial assistance to legal dependents of Missouri master Masons or Missouri female members of the Order of the Eastern Star. The Home provided assistance to 2 children totaling $6,436.00. This assistance helped parents ensure their children received necessary dental work.

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Masonic Home of Missouri Monetary Assistance by Region FY2013 $16,473.56 $48,792.48

$64,860.51 Out of State

$265,766.20 $207,225.59 $221,604.27

Regions A B C D E F G

$157,632.29

$44,780.98

$1,027,135.88 Total Assistance *

*(does not include Creating-A-Partnership Program page 5

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Masonic Home of Missouri

Financial Assistance Programs Client Demographic 1%

13%

13% Masons

14%

Couples

19%

Widows OES Widows/OES Children 40%

Financial Assistance Distribution Short-Term Assistance

Financial Assistance Distribution Long-Term Assistance

0% 15%

35%

59%

Medical

Medical

Home

Home

Facilities

85%

Facilities

6%

Creating-A-Partnership (CAP) Program The Creating-A-Partnership Program (CAP) is a matching funds program that creates a partnership between the Masonic Home and the Lodges/Chapters to assist children in need in their communities. In Fiscal Year 2013, the Masonic Home and 54 Lodges partnered together to provide $105,273.39 to children in need throughout the state, and the Home partnered with 7 Chapters to provide $4,262.00. Through this partnership, Lodges and Chapters made a difference in the lives of thousands of children statewide by providing clothing, glasses, and school supplies.

Last year, the CAP program was expanded to fund projects, in addition to assistance for an individual child or children. In Fiscal Year 2013, there were 33 Lodges/Chapters that utilized the Project aspect of the program. The primary project lodges and chapters funded were “Buddy Backpack� food programs. These programs are designed to send food home over the weekend for low income children. Because of the joint efforts of the Lodge/Chapters partnering with the Masonic Home of Missouri, there were an untold number of children across the state that did not have to go hungry. The CAP program was introduced at Grand Lodge Annual Communication 10 years ago. In that initial year, 13 Lodges participated in the program. In Fiscal Year 2013, of the 61 Lodges/Chapters participating, 8 lodges and 6 chapters were participating in the CAP program for the first time. In addition, there are 20 lodges/chapters that have participated in the program 5 years or more. This program makes a difference in the life of a child that would otherwise go without the things that so many of us take for granted, like a warm winter coat or food to eat during the weekend.

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Masonic Home of Missouri Creating-A-Partnership (CAP) Program

by Region FY2013

$5,969.86 5 Lodges/Chapters

$6,318.60 6 Lodges/Chapters

$9,801.90 6 Lodges/Chapters $13,105.66 10 Lodges/Chapters Regions A B C D E F G

$22,183.64 11 Lodges/Chapters $31,089.59 13 Lodges/Chapters

$21,066.14 10 Lodges/Chapters page 6

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$109,535.39 Total Assistance 61 Lodges/Chapters

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Masonic Home of Missouri

Non-Financial Programs Social Services Program The Masonic Home of Missouri helps individuals locate services throughout the state. When Missouri Masons, their wives, widows, and female members of the Order of the Eastern Star apply for help through the Financial Assistance Programs, the staff completes an application with the client. In addition to determining financial need, the caseworker helps the client identify additional assistance available through other organizations and agencies. This information is also available to those individuals that do not require financial assistance but may need help locating services. The Masonic Home maintains a list of agencies and resources specific to each county statewide, and this information is provided on the Masonic Home’s website at www.mohome.org. It is located in the Outreach Programs section under the Social Services Program.

Widows Program For years, the Masonic Home has sent out condolence cards to families when a Missouri Mason passes away. In Fiscal Year 2013, the Masonic Home sent out 337 condolence cards to grieving families. If the Home is able to identify a Masonic widow, then a letter, a widow’s pin, and a widow’s card is sent to the Widow with her deceased husband’s Masonic information. Should she ever need assistance through the Financial Assistance programs, this widow’s card contains all the Masonic information a caseworker would need to verify membership requirements.

The Masonic Home sent out 223 letters and widow’s cards. At least once a year, the Masonic Home shares the list of widows with the local lodge. This helps to ensure that the list can be updated by both the local lodge and the Masonic Home.

This past year the Masonic Home was invited to come speak at 22 ladies luncheons, teas, and dinners. We encourage our Masonic widows to wear their pins to these events. The Masonic Home would like to thank the lodges hosting these events and inviting the Masonic Home to come speak and share with the ladies the wonderful programs the Masonic Home has to offer. For many of the ladies, it was the first time they learned about the assistance that could be available to them should they ever need assistance.

Masonic Family Cares Program The Masonic Family Cares Program helps facilitate connections between lodges, chapters, youth organizations and the Masonic brothers and sisters in their communities. Sometimes the Masonic Home receives requests from Masons or Order of the Eastern Star members, but the assistance needed is really a helping hand from the local lodge or chapter. The Masonic Home can act as a liaison between the member and the lodge or chapter, getting the two connected. Many lodges and chapters already provide this helping hand to their widows or elderly members, and the Masonic Home would like to help share those stories. We can all learn from each other, as we work toward making a difference in each other’s lives.

Financial Counseling Program Over the years, it became evident that sometimes financial education is needed in conjunction with financial assistance. In Fiscal Year 2013, the Masonic Home of Missouri began the Financial Counseling Program to help our members learn skills, such as budgeting and debt management. The Financial Counseling Program can also assist members and widows planning to make major changes to their lifestyles, such as moving to an assisted living facility, by helping to look at income, assets, and possible additional sources of income. This fiscal year, the Masonic Home opened 26 new cases in this program. We look forward to the success of this program as it continues to grow in the years to come.

The Outreach Programs are all built around helping people in communities throughout the state, and the Masonic Home of Missouri exists in every community that participates in any one of the eight Outreach Programs. It is because of the local lodges and chapters that the Masonic Home is able to fulfill our mission “To assist eligible adults and children in need by practicing the principles of Freemasonry.”

Masonic Home of Missouri

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Financial Report 2013 Jodi Blake Director of Finance

The following are the audited financial statements of the Masonic Home of Missouri and the related disclosures.

The financial statements are audited annually by Williams-Keepers, LLC located in Columbia, MO. They are presented each year at Grand Lodge Annual Communication and subsequently published in the Grand Lodge of Missouri Annual Proceedings. They are also made available on the Masonic Home of Missouri website at www. mohome.org and upon request by contacting the Masonic Home of Missouri at 6033 Masonic Drive, Suite A, Columbia, MO 65202 or 800-434-9804. In addition, the IRS Form 990, which is prepared based on these statements, is also available on the Home’s website, on the GuideStar website at www.guidestar.org, org or by contacting the Masonic Home. For the year ended June 30, 2013, the Masonic Home has received a clean audit report, meaning that it is the opinion of the auditors that the financial statements are presented fairly, in all material aspects, and in conformity with Generally Accepted Accounting Principles (GAAP).

The financial position of the Home continues to be a positive one. Due to the increase in value of our investments, our financial position has improved since 2012 to just more than $122 million in net assets. Investments comprise approximately 90% of these assets and over half of those investments are restricted, which means that access is either not allowed or is limited. Twenty-nine percent of the Home’s investment assets are permanently restricted (i.e. endowments), which means that the Home cannot use any portion of those funds and relies only on income generated to fund operations. An additional 17% of the Home’s investments are temporarily restricted, per board policy, and would require a catastrophic need to allow access to the funds. Another 6% of the total investments is temporarily restricted based on donor requests. During Fiscal Year 2013, investment income made up almost 68% of operating revenues, while donations totaled almost 31%. As I wrote last year, this level of investment income cannot be expected to continue. Due to low interest rates, investment income has already begun to drop and will continue to do so over the next couple of years as many of our bonds will mature and be replaced with lower yielding securities. The Home is working diligently to find solutions to replace this lost income. The Home’s balance sheet is a healthy one due to the large investment portfolio, but the income earned remains a critical component of the revenue stream to help fund the Home’s charitable work.

Maintaining the ability to provide assistance to the membership does not end with keeping large investment portfolios that will draw income. It continues to require the support of donors who share our passion to fund the services provided, staff to keep operating expenses to a minimum, a board committed to helping their brothers and sisters in need, program staff dedicated to carrying out the mission of the Home, and the entire Masonic family enthusiastically partnering with the Home to reach as far into each community as possible. The Home continues to be blessed to have all of these. Due in large part to increased contributions from estates and trusts, total donor support increased by over 25% during 2013. We are pleased, and very grateful, to report that individual giving accounted for over 10% of the increase from 2012 to 2013. An increase in donor support, offset by a decrease in investment income, contributed to an increase in overall operating revenues of 5%. Overall operating expenses decreased by almost 13%. A reduction in operational costs accounted for over 57% of the decrease, while a decrease in the total amount of direct assistance provided accounted for the remainder. In addition, 72% of overall expenses were program-related expenses.

The staff and Board of Directors of the Masonic Home recognize the fiscal responsibility that we have to our clients, our donors and the entire Masonic family. We strive to protect and preserve the assets of the Home, while looking for ways to secure additional revenue and reduce operational costs. During the 2013 Fiscal Year, we did just that. With the help of our donors, overall revenue was up, in spite of a decreasing interest rate environment.

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Masonic Home of Missouri

At the same time, we found more economical ways to operate the Home, accounting for the majority of the reduction in overall expenses. The success of the Masonic Home is made possible by all those involved in supporting the Masonic Home. We cannot present the following representation of our financial situation without extending a genuine Thank You for your support!

Total Operating Income Sources Estates & Trusts

0.9%

21%

38%

Unrestricted Contributions 8%

Grand Lodge per capita

2% 0.4%

OES per capita Endowment Investment Income Investment Income

30%

Other Income

Total Operating Expense Distribution 13.7% 14.0%

Outreach Services Museum & Library

4.2%

Management & General 68.1%

Masonic Home of Missouri

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ANNUAL REPORT 2013

Masonic Home of Missouri