BBB Wise Giving Report for
Bethesda Lutheran Homes and Services

BBB Wise Giving Report issued April 2010
BBB Wise Giving Report expires April 2012


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: Bethesda Lutheran Homes and Services
Address: 600 Hoffmann Drive
  Watertown, WI 53094-6233
Phone: 800-369-4636
Web Address: www.blhs.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1904, Wisconsin
Affiliates: Bethesda Lutheran Home Foundation, Good Shepherd Lutheran Home of the West, Faith Village, Inc., and Faith Village IV, Inc.

Stated Purpose: "to enhance the lives of people with intellectual and developmental disabilities through services that share the good news of Jesus Christ."

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Evaluation Conclusions

              

Bethesda Lutheran Homes and Services (Bethesda) does not meet the following 2 Standards for Charity Accountability.

Standard 6: Board Policy on Effectiveness - Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

Bethesda does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

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.

Bethesda does not meet this Standard because the organization's website, www.blhs.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

  • Total income.
  • Total program expenses.
  • Total fund raising expenses.
  • Total administrative expenses.
  • End of year net assets.
  • Electronic access to the organization’s most recent IRS Form 990.
Bethesda meets the remaining 18 Standards for Charity Accountability.
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Programs

              

Through its programs, Bethesda aims to serve the physical and spiritual needs of men, women and children who have intellectual and developmental disabilities. It carries out these programs through its nationwide network of homes, facilities, and workshops. Furthermore, the organization reports that it serves about 2,000 people each day through its programs.

For the fiscal year ended August 31, 2009, Bethesda's program expenses were:

  
Program services 105,424,863
Total Program Expenses: $105,424,863
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Governance

              

Chief Executive : Dr. John E. Bauer, President and Chief Executive Officer
Compensation*:

Chair of the Board: Ed LeFevre
Chair's Profession / Business Affiliation: Retired CPA

Board Size: 15

Paid Staff Size: 3138

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. The charity did not disclose the CEO's compensation.
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Fund Raising

              

Method(s) Used:

Direct mail, telemarketing, special events, grant proposals, Internet appeals, planned giving, and membership appeals.
Fund raising costs were 24% of related contributions. (Related contributions, which totaled $11,932,640, 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 Bethesda's audited financial statements (consolidated with affiliates) for the fiscal year ended August 31, 2009.

Source of Funds  
Program service revenue, net 103,120,695
Contributions and legacies 10,261,954
Retail operations income 3,815,110
Restricted contributions 1,670,686
Other 1,015,192
Restricted investment income 173,642
Rental income 139,284
Actuarial change in split interest annuity liability -139,945
Loss on sale of property and equipment -347,731
Investment loss -21,805,605
Total Income $97,903,282


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Uses of Funds as a % of Total Expenses

Programs: 80%  Fund Raising: 2%  Administrative: 18% 

Total income   $97,903,282
  Program expenses $105,424,863
  Fund raising expenses 2,866,656
  Administrative expenses 23,508,799
 
Total expenses   $131,800,318
Expenses in Excess of Income   (33,897,036)
Beginning net assets   283,768,404
Other Changes in Net Assets (11,452,353)
Ending net assets   238,419,015
Total liabilities   42,907,267
Total assets   $281,326,282

Note: In the above financial summary, "other changes in net assets" includes market adjustment for fixed income investments ($481,237) and adjustment to unfunded pension liability ($-4,385,928).

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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.

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