Annual report 2014 jb

2 0 1 4 Annual Report Masonic Home of Missouri

Celebrating 125 Years

Contents

Board of Directors Jon B. Broyles, Chairman/GM David W. Haywood, President C. Brent Stewart, Vice President Richard L. Smith, Secretary Ronald D. Jones, Treasurer Keith M. Bail William J. Bowser Steven D. Duncan Chris T. Harrelson Jeffrey D. Lee H. Lee Stallings Dan Ward Charlie Wiegert

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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2 3 4 5 7 10 12 13 17 Annual Report

Celebrating 125 Years Barbara Ramsey, Executive Director

Organizational Chart

Missouri Outreach Programs Barbara Ramsey, Executive Director

Finanical Assistance by Region

Creating-A-Partnership by Region

Financial Report 2014 Jodi Blake, Director of Finance

Independent Auditor’s Report Williams Keepers, LLC

Fiscal Year 2014 Financial Statements

Notes to the Financial Statements

Barbara Ramsey Executive Director

The Masonic Home of Missouri reached an incredible milestone during Fiscal Year 2014 – 125 years of charitable service to the membership.

The Masonic Home will continue to celebrate this milestone throughout the year, as it provides an opportunity to reflect on the past which has brought us to where we are today.

The first person to ever receive assistance from the Masonic Home of Missouri was a child by the name of Della Gale Farthing, age 12. She was admitted to the Masonic Home on July 12, 1889. The Masonic Home continues to assist children in need today through two Outreach Programs. Just as the Home provided help to Della Farthing 125 years ago, the Children’s Outreach Program assisted a little girl in need this year. This particular child of a Mason, has ongoing medical issues, and through the Children’s Outreach Program, we are able to provide financial assistance thereby making it possible for her to receive the medical supplies she needs. During the height of the Depression, the population at the Masonic Home on Delmar soared to 451 residents with 33% being children in need. The Home helped to feed and clothe those children in need. Today, through the Creating-A-Partnership Program, the Masonic Home was able to partner with local Lodges and Chapters to help feed and clothe over 7,000 children statewide. The Masonic Home has 125 years of remarkable history of Masons and Eastern Star members not just voicing concern for children, but actually making a difference in the lives of children in need.

Although the first resident was a child, the Masonic Home quickly began to care for the membership’s elderly population in need. By the 1950’s, the population had shifted in the Home, as fewer children were assisted, and the majority of the residents living in the Home were women – 65%. If you look at the Long-Term and ShortTerm Financial Assistance Outreach Programs today, you will find that 68% of the clients assisted were women.

However, there is an important difference today; the Outreach Programs are now able to assist those clients in their own homes and their own communities. This means that the Masonic Home is now able to assist clients statewide, and even a few members that have moved out of state to live closer to family but maintained their Missouri membership.

This Anniversary has also provided an opportunity to celebrate the remarkable men, women, and Masonic organizations that created this charity and gave their time, talents and financial support to make it the strong viable charity it is today. One very visible reminder of this is the beautiful stain glass from the Order of the Eastern Star chapels that had been located on Delmar. In honor of this 125th Anniversary, the Masonic Home requested assistance in funding the restoration of 9 pieces of stain glass, which are now on permanent display at the Masonic Complex. These pieces of art glass are truly beautiful, but they are also a reminder of our shared history and the true unity of the Masonic family. The pieces were originally sponsored by Lodges, Chapters, Masonic Appendant Bodies and individual donors. Some of them honor the men and women who gave their time and talents to the Home. I cannot thank enough the sponsors who helped bring them back out into the light – the Lodges, Chapters, Youth Organizations, Masonic Appendant Bodies and individual donors.

It has been an amazing year celebrating this remarkable charity. I hope you will join with the Masonic Home as we continue to celebrate and recognize all this charity has accomplished in its 125 years. In addition, we celebrate that the Masonic Home is now part of every town, city and community where one of the Outreach Programs is making a difference in the life of a Mason, his wife or widow, a female member of the Order of the Eastern Star or a child in need.

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Missouri Outreach Programs

Masonic Home of Missouri Organizational Chart

Barbara Ramsey Executive Director

Financial Assistance Programs

Masonic Home Board of Directors

The Masonic Home of Missouri provided $931,709.14 in direct financial assistance to 107 Missouri Master Masons, their wives, widows, female members of the Order of the Eastern Star, and children. An additional $149,639.87 was provided to nonaffiliated children in need through the Creating-A-Partnership Program statewide.

The total direct assistance provided to individuals in need in the Fiscal Year 2014 was $1,081,349.01 through the Outreach Programs.

Barbara Ramsey Executive Director Tiffany Estes Receptionist

Michelle Phillippe Administrative Office Coordinator

Richard White Building Services Engineer

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 provides monthly financial help for someone living in a facility, such as an assisted living facility or independent living facility, or for those living in their home or apartment. In the Masonic Home’s Fiscal Year 2014, the Home provided monthly financial assistance to 54 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 $757,734.18. The Home also provided monthly assistance to enable 5 clients to remain in their homes, totaling $35,400.00. 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.

Jodi Blake Director of Finance

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

Andrea Thacher Accountant

Julie Kirchhoff Annual Giving Officer

Norma Carmody Accountant

Vacant Major Gifts Officer

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 24 Long-Term assistance clients with one-time payments totaling $47,284.87. Many of these clients also received monthly financial assistance. as of 09/29/2014

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Masonic Home of Missouri Monetary Assistance by Region FY2014 $20,890.74 $33,090.31

Short-Term Financial Assistance The Short-Term Financial Assistance program provides 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.

Short-Term Assistance typically 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 2014, the Masonic Home assisted 6 clients in their homes with monthly assistance totaling $14,383.00. In addition, the Home assisted 30 clients with one-time payments totaling $71,032.09. Five of the short-term assistance clients received both monthly assistance and one-time payments.

$47,209.50 Out of State

$237,714.43 $141,711.96 $189,551.76

Regions A B C D E F G

$178,158.95

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 $5,875.00. This assistance helped one child with needed dental work, and the other child received assistance for medical necessities not covered by insurance.

$83,381.49

$931,709.14 Total Assistance *

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

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

by Region FY2014

$13,121.29 11 Lodges/Chapters

Creating-A-Partnership 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 2014, the Masonic Home and 74 Lodges partnered together to provide $142,051.79 to children in need throughout the state, and the Home partnered with 6 Chapters to provide $7,588.08. Through this partnership, Lodges and Chapters made a difference in the lives of over 7,000 children statewide by providing clothing, glasses, school supplies, and funding various projects to help children in need. The primary projects Lodges and Chapters funded were the “Buddy Backpack” programs. Buddy Backpack 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 thousands of children across the state that did not have to go hungry. The CAP program was introduced at Grand Lodge Annual Communication 11 years ago. In Fiscal Year 2014, of the 80 Lodges/ Chapters participating, 15 Lodges/Chapters were participating in the CAP program for the first time. There were 23 Lodges/Chapters participating this year that had 5 years or more years of total participation. In addition, there are now 4 Lodges that have reached 10 years of participation. This program makes a difference in the lives of children who 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.

$10,804.05 7 Lodges/Chapters

Non-Financial Programs

$7,849.80 6 Lodges/Chapters

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.

$16,927.88 12 Lodges/Chapters Regions A B C D E F G

$27,445.74 14 Lodges/Chapters $43,518.64 16 Lodges/Chapters

$29,972.47 14 Lodges/Chapters page 6

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$149,639.87 Total Assistance 80 Lodges/Chapters

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Widows Program For years, the Masonic Home has sent out condolence cards to families when a Missouri Mason passes away. In Fiscal Year 2014, the Masonic Home sent out 410 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.

This year, the Masonic Home sent out 340 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 is updated by both the local Lodge and the Masonic Home.

This past year the Masonic Home was invited to come speak at 24 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 our staff 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

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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 Report 2014

Financial Counseling Program Over the past few years, it became evident that financial education was needed in addition to financial assistance for many clients. 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 majority of the participants of this program are referred by the Financial Assistance programs. Since members do not need to meet Age and Length of Membership qualification or demonstrate a financial need to participate, this program is also available to those who either do not qualify for or do not require financial assistance. The Financial Counseling Program can assist members and widows planning to make major changes to their lifestyles, such as moving to an assisted living facility, or who are facing financial crisis, such as foreclosure or excessive debt. Financial Counseling staff can assist participants by outlining options for their specific financial situation, locate resources in their area, and help identify other benefits or other potential income sources. During Fiscal Year 2014, 32 new cases were opened in this program, 29 of which were referred from the Financial Assistance programs and 3 were self-referred.

Currently there are 35 active cases helping 9 Masons, 18 couples, 7 widows, and 1 Order of the Eastern Star member.

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 published in the Masonic Home Annual report and made available on the Masonic Home 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, or by contacting the Masonic Home. For the year ended June 30, 2014, 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 respects, and in conformity with U.S. Generally Accepted Accounting Principles (GAAP).

A new addition to the Financial Counseling Program during Fiscal Year 2014 was the introduction of a financial education presentation for the Masonic youth groups and other Masonic sponsored youth organizations. The presentation is geared towards Junior High and High School students and covers the basics of personal finance and money management. Topics discussed include how to generate an income, explanation of taxes, how to prioritize saving and spending, tracking and budgeting money, explanation of credit and interest, credit reports and scores, and types of student loans.

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.”

Jodi Blake Director of Finance

The financial position of the Home continues to be positive. As a result of the equities market, the Home’s financial position grew to over $135 million in net assets by the end of the 2014 Fiscal Year. Investments comprise almost 92% of these assets and over half of those investments are restricted, which means that access is either not allowed or is limited. Twenty-six 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 20% 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 2014, investment income accounted for almost 74% of total operating revenues, while donations totaled only 25%. Per capita fees from the Grand Lodge and Grand Chapter memberships are included in the total donation percentage and account for 2.7% of overall revenues. A small amount of miscellaneous income rounded out the revenues at 1%. The Masonic Home has come to rely greatly on investment income as the main source of funding. As a result of low interest rates, we have seen a decrease in income from our bonds as we see high-interest-paying bonds maturing, some of which are being replaced with lower yielding bonds. The Home continues to work diligently to find solutions to replace this lost income. This has been done with the help of our investment managers by increasing other sources of investment income. We are also working to revitalize our fundraising efforts. 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.

The ability of the Masonic Home to provide assistance to the membership and thousands of children throughout the state now and for years to come requires the continued 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. Support from individual donors, lodges and chapters increased by an astounding 63% during 2014! This was the result of various fundraising efforts, specifically those focused around the celebration of the Home’s 125th Anniversary. Although donor support was a small percentage of our total revenues, the support we received from individual donors, lodges and chapters in response to the 125th Celebration was inspiring! We are so grateful to have the support of so many throughout the state! Overall revenues decreased by approximately 3% as a result of a substantial decrease in contributions received from estates and trusts. These are contributions received from individuals who generously included the Masonic Home in their wills. This is not a consistent revenue, but it is appreciated deeply and can make quite a difference during the years in which it is received. Ten years ago, contributions received from estates and trusts were the Home’s

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largest source of income, surpassing investment income. Please consider adding the Masonic Home to your estate planning. You can make a major impact in our future!

Each year, when we file our IRS Form 990, we disclose the past five years of revenue and calculate a percentage that is considered “public support”. This is called the “Public Support Test”. The IRS requires that non-profit 501(c)(3) organizations complete this test and prefers that the organization receives at least 33 1/3 of its income over that five-year period from donations, excluding unusually large gifts, in order to maintain its Public Charity status. If an organization falls below this threshold for two consecutive years, the IRS allows the organization to attempt to qualify by submitting a written explanation to the IRS illustrating why the organization should be defined as a Public Charity, rather than a Private Foundation. It is in the best interest of the Masonic Home and its clients to be classified as a Public Charity, as classification as a Private Foundation comes with additional reporting requirements and tax implications. For several years, the Masonic Home has ended each year with 30% to 35% of its revenue considered public support.

This is due to the large percentage of investment income and the comparatively low percentage of donations. As donations have decreased over the past several years, investment income has become increasingly necessary to allow the programs of the Masonic Home to function; however, this is one more example that shows that we cannot carry out our mission without donor support.

Overall operating expenses, excluding direct assistance provided, increased by 3.8%. The major contributing factors are an increase in building expenses, one-time expenses relating to the 125th Anniversary Celebration, and fundraising event changes (two golf tournaments in Fiscal Year 2014 versus zero in Fiscal Year 2013). This slight increase, coupled with a decrease in direct financial assistance caused a corresponding decrease in the overall percentage of expenses allocated to programs. Donations, excluding estate and trust contributions, provided the funding for almost 61% of the direct assistance provided. As a result, 100% of every unrestricted dollar went directly to fund programs this year. The remainder of assistance, other program-related expenses, and all administrative and fundraising expenses were funded by investment income.

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 continue to strive to protect and preserve the assets of the Home, while looking for ways to secure additional revenue and operate more efficiently. The Home’s strong financial position and commitment to serve the membership is made possible by all those who are involved with the Home. Whether you contribute through donating, participating in Creating-A-Partnership or referring your brothers and sisters in need, we appreciate your continued support. Thank you!

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Annual Report 2014

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