Dear Friends,

In the face of one of the greatest economic challenges this country has ever experienced, I am proud to say that the coworkers, the volunteers, the board members and the donors of Mercy Home for Boys & Girls rose to the occasion.

Thanks to the ingenuity and endless compassion of so many throughout this year, Mercy Home was able to

deliver the very best-quality care, support and opportunity for more than 600 young men and women. For all of this, and for God’s abundant grace, I am deeply grateful.

As the results in this report show, we are at our strongest when we unite for a common purpose — and through this shared mission, we change the lives of young men and women.

Blessings,

Rev. L. Scott DonahuePresident & CEO,Mercy Home for Boys & Girls

“This report covers Mercy Home’s fiscal year, which ran from July 1, 2008 through June 30, 2009.”

A Solution for Kids in CrisisMercy Home for Boys & Girls 2009 Annual Report*

Kids In Crisis

PovertyThe percentage of young people who came to Mercy Home from families below the poverty line jumped dramatically during the recession:

*According to data provided by US Dept. of Health and Human Services

*According to data provided by the US Census Bureau

Family ChallengesChildren come to Mercy Home from some of the most difficult circumstances. At the time of admission, our young people reported:

Family Challenges

Poverty

Abuse

Impact on EducationChaos and instability in a child’s home severely impact performance in school. Upon admission to Mercy Home:

Impact on Education100

80

60

40

20

0

Mercy Home

U.S.*

78%

19%

Tested 1+ year behind grade level in reading

Tested 1+ year behindgrade level in math

Repeated a grade

Had poor attendance

0 25 50 75 100

49%

51%

26%

26%

Upon admission to Mercy Home

Before entering Mercy Home, each child receives a thorough assessment to help us create an individualized treatment plan with goals and timetables. The data that results from this process tells us the following about the challenges so many kids face.

Abuse Before they come to live at Mercy Home, 76% of our young people had suffered some form of abuse:

*

100

75

50

25

0

PhysicalSexual Emotional

Mercy HomeU.S.

25%

71%

41%

9.1%16.1%

7.3%

100

80

60

40

20

0

No biological father in the home

No biological parent as guardian

87%

47%

Substance abuse in family

Family member

with mental illness

67%

32%

A Solution

Goal CompletionOur youth care team develops a treatment plan for each young person that contains specific goals that youth must work toward while living at the Home. The goals cover areas such as appropriate behavior, improved peer and adult relationships, and academic benchmarks. Last year, 65% of the young people who left Mercy Home successfully completed their treatment goals. Goal CompletionPersonal Progress

Rebuilding Family StructureTime to HealMercy Home works with each child for as long as is needed to affect lasting, positive change. Youth lived with us for an average of 22.1 months. Many have spent most of their adolescence at Mercy Home.

Rebuilding Family StructureAs part of our mission statement, Mercy Home supports healing for families. This is just one way we promote permanent change in a child. But we also seek to ensure that each young person moves on to the safest and most appropriate living environment possible after completing their time at Mercy Home. We support the continued success of all children through our AfterCare program, whether they live at home with guardians, or on their own as adults.

Since 1887, young people have come to Mercy Home seeking shelter from the storm and comfort in times of crisis. But, when they come to us, they also yearn for a lasting solution — opportunities to make real change, and tools to build a lifetime of achievement.

Personal ProgressThe measure of whether a child is healing is seen in countless day-to-day achievements and interactions. Still, Mercy Home uses a clinical testing tool to chart each child’s progress in overcoming or lessening problems that had held them back in the past. Results indicate that 72% of the young people at Mercy Home over the last year had made progress in this area.

65%successfully completed

goals

100

80

60

40

20

0

After completing Mercy Home’s program

77% returned to appropriate

guardian

23% moved to independent

adult living

We Served:

100

80

60

40

20

0

72%overcame/lessened problems

Additional youth who received an assessment or a referral to another service agency

Total youth in our three major programs —Residential, AfterCare, and Friends First mentoring

New youth who came to live with us this year

Youth in our mentoring program, Friends First

Former residential youth in our AfterCare program

Youth who lived in our Residential Program homes

0 100 200 300 400 500 24,000600 700

71

91

225

170

176

662 Youth since 1887

Educational Success At Mercy Home, we surround our young people with an array of educational programs to help them close achievement gaps. Our support includes placing them in the most appropriate schools, providing tutoring five nights a week, computerized learning software in math and reading, supplementary coursework delivered at the Home by professional educators, fully-equipped learning centers on each of our two campuses and more. This coordinated approach gets results.

Preparing for WorkMany young people come to Mercy Home from some of the most economically-challenged areas of Chicago. It’s critical that we underscore for these children the connection between hard work and success.

Even during a difficult recession, Mercy Home was able to provide children with opportunities to build hope based on achievement. Through summer jobs and internships, our young people acquire critical life skills and experience that will enable them to grow into self-reliant adults.

Mercy Home Youth Employed

Educational Success

Like any young person, success is more sustainable when they have access to a network of continuing support. In that way, our AfterCare program keeps former residents connected to their Mercy Home family and to an extensive host of support services, such as educational or career counseling, help in finding housing, family therapy and much more. The result is that more of our young people continue to make progress as they work toward creating a life outside of Mercy Home.

100

75

50

25

0

89% Youth 17+ who worked a

summer job or internship

with area businesses

94% who worked held same job for 6+ months

100

75

50

25

0

92% of our seniors

graduated

100% of our young people

attended school as required

98% of those

still living with us at the end of the school

year advanced a grade

level

76% of youth who had

been behind in reading when they

entered Mercy Home

gained ground

71% of youth who had

been behind in math

when they entered

Mercy Home gained ground

Sustainable SuccessYoung people offered membership into AfterCare

upon leaving residential programs

Young people who connected with AfterCare within 6 months of leaving Mercy Home for a strengths assessment,

which is used in developing a long-term support plan

Young people remained active in AfterCarefor at least a year after their strengths assessment

AfterCare members made appropriatequarterly progress toward their potential

Maintained gains made while living at Mercy Home

0 25 50 75 100

71%

78%

100%

58%

71%

GovernanceChairman - Darryl G. Schimeck, Atlantic Plant ServicesPresident - Rev. L. Scott Donahue, Mercy Home for Boys & GirlsSecretary - Mary Pat HayTreasurer - Robert GrecoPatrick H. Arbor, Macquarie Futures USA, Inc.Rev. Michael Boland, Archdiocese of ChicagoRich Daniels, City Lights Music Inc.Edward J. Noha, CNA Financial CorporationMercy Home is nationally accredited by the Council of Accreditation of Services for Families and Children, Inc. (COA)

FINANCIAL STATEMENT

LIABILITIES

Accounts payable and accrued expenses 2,667,657

Gift annuities payable, charitable trusts and asset retirement obligations

9,698,320

Total liabilities 12,365,977

NET ASSETS (Assets Minus Liabilities)

Unrestricted 67,894,670

Board designated for annuity and trust obligations

9,486,547

Temporarily restricted 1,012,805

Permanently restricted 3,556,142

Total net assets 81,950,164

ASSETS

Current assets 5,970,315

Investments 58,254,288

Fixed assets 29,099,047

Other 992,491

Total assets 94,316,141

OPERATING EXPENSES

Program services

Youth care 15,449,463 56.5%

Mission press 1,006,000 3.7%

Information services 2,649,927 9.7%

Televised Sunday mass 879,492 3.2%

Total program services 19,984,882 73.1%

Fundraising 6,575,340 24.1%

Management and general 776,466 2.8%

Total current year operating expenses 27,336,688 100%

Used from reserves 833,577

Total 26,503,111

OPERATING REVENUE

Support from donors 24,728,223 93.3%

Sale of printing services 1,004,934 3.8%

Government revenue 60,234 .2%

Family support 56,262 .2%

Other 653,458 2.5%

Total 26,503,111 100%

A CLOSER LOOK AT 2008—2009

Mercy Home raised 99.8% of its operating revenue privately. This includes support from donors, sale of printing services, family support and other miscellaneous sources.

Approximately 73 cents of every dollar spent on operating expenses went toward program services.

Mercy Home’s fundraising ratio, defined as fundraising expenses as a percentage of support from donors, was 26.6%

INVESTMENTS

Total investments 58,254,288

Permanently restricted for scholarships 3,189,697

Board designated for annuity and trust obligations 9,486,547

Other restricted funds 74,654

Unrestricted investments available for future operations 45,503,390

One way we honor our commitment to the children we care for is by maintaining an endowment, which provides a safety net. The funds from the endowment are invested and overseen by our Board. As of June 30, 2009, our Unrestricted Endowment would cover operating expenses for up to 20 months.

99.8% Privately Funded

73.1%ProgramServices

24.1% Fund

Raising

2.8% Management and General

Operating Expenses: $27,336,688

Unrestricted Endowment: $45,503,390

.2%Government

Revenue

Accountability. In the wake of the economic crisis, it’s the watchword not just on Wall Street, but also at the many charities all across this country that must faithfully steward the trust and support of donors. Americans remain a generous people. But especially in times like these, they are careful about where they direct their charitable dollars to have the greatest impact. It is the responsibility of organizations like Mercy Home to demonstrate a solid return on investment.

So how did we do? As we report on our efforts during this past fiscal year, we see the

unmistakable impact that our donors continue to have on kids raised in some of the most challenging backgrounds imaginable. Young people arrive at Mercy Home struggling in nearly every area of their lives. But once here, they receive the safety and support they need to chart a clear path to success and achievement.

As a member of Mercy Home’s Board of Regents since 1993, I have had the privilege of helping to manage the investment that donors make in young people’s futures. During this past fiscal year, I was especially honored to be named chairman of the Board of Regents and Board of Directors. In this role, I look forward to working closely with Fr. Scott Donahue, my fellow board members, and all of the amazing coworkers at the Home carry out this life-saving mission of mercy.

Sincerely, Darryl G. Schimeck President Atlantic Plant Services

Mission StatementMercy Home for Boys & Girls is a Catholic Organization answering the Gospel call by ministering to children and families in need.

Mercy Home: • Savesyounglivesbyprovidingasafeenvironment,

a nurturing home, and opportunity for an excellent education and means for personal growth.

• Supportshealingforfamilies.

• Iscommittedtoraisingpublicawarenessofyouthin need and encourages support to help them.

• Issustainedbybenefactorswhobelieveinthemiracle of God’s mercy in action.

For more information visitus at www.mercyhome.org

1140 W. Jackson Blvd, Chicago, IL 60607312.738.7560

Looking Ahead