Better Business Bureau Report for
Misericordia Home- Heart of Mercy Center

Better Business Bureau Report issued February 2012
Better Business Bureau Report expires February 2014


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Misericordia Home- Heart of Mercy Center
Address: 6300 N. Ridge Ave
  Chicago, IL 60660
Phone: (773) 973-6300
Web Address: www.misericordia.org
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Better Business Bureau Comments

Year, State Incorporated: 1954, Illinois
Affiliates: None
Stated Purpose: Misericordia offers a community of care that maximizes potential for persons with mild to profound developmental disabilities, many of whom are also physically challenged. By serving society’s most vulnerable citizens, Misericordia also serves the families who want the best for them, yet cannot provide it at home. Through a spectrum of residential options on its 31-acre Chicago campus and in the community, and with a wide variety of programs, Misericordia currently serves more than 600 children and adults from diverse racial, religious and socio-economic backgrounds. Twenty percent of our residents either come from poverty families or have no families and are wards of the State.

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Evaluation Conclusions

              

Misericordia Home- Heart of Mercy Center does not meet the following 3 Standards for Charity Accountability.

Standard 4: Compensated Board Members - Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

Misericordia Home- Heart of Mercy does not meet this Standard because:

  • The treasurer of the board of directors is compensated either directly or indirectly.

Standard 16: Annual Report - Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

Misericordia Home- Heart of Mercy does not meet this standard because the most recent annual report did not include:

  • Total income.
  • Total program expenses.
  • Total expenses for each program in the same categories that appear in the organization’s financial statements.
  • Total fund raising expenses.
  • Total administrative expenses.
  • Total end of year net assets.

Standard 17: Web Site Disclosures - Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

Misericordia Home- Heart of Mercy does not meet this Standard because the organization's website, www.misericordia.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

  • A roster of the board of directors.
  • Total income.
  • Total program expenses.
  • Total fund raising expenses.
  • Total administrative expenses.
  • End of year net assets.
Misericordia Home- Heart of Mercy Center meets the remaining 17 Standards for Charity Accountability.
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Programs

              

Misericordia believes that all people—disabled or not—should have the opportunity to be meaningful members of their community every day. Each resident at Misericordia works closely with support staff to develop an annual plan to reach individual goals. There are many elements integral to leading a happy and fulfilling life, and Misericordia is dedicated to addressing all of these in each resident’s personal plan. In Illinois, children with developmental disabilities are supported through both inclusive and special educational settings, depending on their needs. Thankfully, most students thrive in elementary and high school, enjoying their time in the classroom and extra-curricular activities and building friendships with their fellow students. Illinoisans with developmental disabilities can attend school until the age of 22. Unfortunately, it is at this age when many people with disabilities see a dramatic drop in programmatic support. Since offering services for adults in the late 1970s, Misericordia has created and refined programs focused on job and independent living skills. Each adult, along with their parent/guardian, meets with support staff to determine the best match between their interests and program opportunities. Misericordia is different from many organizations in the field in that we support adults with severe and profound developmental disabilities, meaning most are between three months and three years of age on a cognitive level. In fact, approximately 60% of Misericordia’s clients have severe and profound disabilities. Therefore, Misericordia has developed numerous opportunities to meet each person’s needs, from an adult with profound disabilities who works on eye contact in the on-campus puppetry workshop to someone who thrives in an independent setting in the community at-large. As described below, every individual at Misericordia is engaged in appropriate combinations of education, employment, therapy, and recreational activities.

For the fiscal year ended June 30, 2011, Misericordia Home- Heart of Mercy Center's program expenses were:

  
Salaries 28,196,426
Employee Benefits 5,183,066
Supplies 4,544,627
Depreciation 4,302,796
Occupancy 2,927,353
Payroll taxes 2,131,442
Professional Fees 391,440
Equipment 379,447
Insurance 340,656
Other Expenses 337,021
Telephone 151,961
Local Transportation 149,235
Postage and Shipping 56,948
Printing and Publications 37,816
Other Employeee Expenses 15,656
Dues and Subscriptions 12,247
Total Program Expenses: $49,158,137
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Governance

              

Chief Executive : Sister Rosemary Connelly, RSM, Executive Director
Compensation*: 
$62,557

Highest Paid Executive: Kevin Connelly,Chief Financial Officer
Compensation*: $159,487

Chair of the Board: Rev. Monsignor Michael M. Boland
Chair's Profession / Business Affiliation: Department Director, Human Services, Catholic Archdiocese of Chicago

Board Size: 7

Paid Staff Size: 978

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

direct mail, invitations to fund raising events, radio, grant proposals, internet, planned giving arrangements, membership, texting and canning
Fund raising costs were 7% of related contributions. (Related contributions, which totaled $28,575,478, are donations received as a result of fund raising activities.)
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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on Misericordia Home- Heart of Mercy's audited financial statements for the fiscal year ended June 30, 2011.

Source of Funds  
Fees and Grants from Government Agencies 37,342,226
Contributions 25,718,925
Net Assets Released from Restriction 10,223,411
Program Fees 4,855,409
Special Event Contributions 2,856,553
Other Operating Incom 2,007,512
Interest and Dividents 141,864
Insurance and Legal Proceeds 4,687
Net Realized Loss on Investments -90,812
Provider Participation Fee-IL Dept. of Public Aid -1,718,188
Total Income $81,341,587


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Uses of Funds as a % of Total Expenses

Programs: 89%  Fund Raising: 4%  Administrative: 7% 

Total income $81,341,587
Program expenses $49,158,137
Fund raising expenses 2,045,546
Administrative expenses 3,648,142
Total expenses $54,851,825
Income in Excess of Expenses 26,489,762
Beginning net assets 99,663,476
Other Changes in Net Assets (24,217,664)
Ending net assets 101,935,574
Total liabilities 5,791,712
Total assets $107,727,286


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