8
is report has been written as a brief summary as to how 15 years of study and evaluation of the RDC’s resources ultimately led to decisions regarding the congregational administrative structure and the sale of the Good Counsel Campus property. Difficult but necessary decisions were made resulting in transitions faced by the RDC sisters, students, faculty, staff and supporters. Change is never easy. e diligence and efforts of RDC Leadership has enabled the Divine Compassion community to remain viable and sustainable into the future. ese pages will outline that process as well as summarize how funds raised within the Advancement Office are utilized and how your support and generosity are critical to the lives, work, and mission of the Sisters of the Divine Compassion. Candace Herguth, Director of Advancement Rebecca Boivin, Director of Finance and Operations SPRING 2016 RDC Leadership has focused its attention on devel- oping strategies to ensure a safe and dignified retire- ment for all the RDCs going forward the next 30 to 40 years, and to ensure continued financial viability and sustainability of the Divine Compassion mission and community into the future. Financial analysis over the last 15 years pointed to an escalating critical financial problem as the median age increases and fewer sisters are able to work in compensated ministries. e RDC retirement savings became inadequate to meet the retirement needs of the sisters, as the escalating cam- pus costs of our dearly beloved Good Counsel campus in White Plains drained our resources. e Sisters of the Divine Compassion are not alone in the need to increase their retirement funding. Reli- gious institutes across the country are facing the same challenges, which are being addressed by the National Religious Retirement Office (NRRO), an organization created 40 years ago to assist religious institutes in financial planning for the retirement needs of their members. Each individual congregation, large or small like the RDC, is solely responsible for the living expenses for each sister for the length of her life. According to the NRRO, “For many years, most reli- gious institutes re- ceived very small sti- pends for the services of their members. Surplus, if any, often was invested in the ed- ucation of new mem- bers and in ministries. us religious insti- tutes were not able to set aside savings for elder care.” e RNA (Retirement Needs Analysis) is a tool uti- lized by NRRO to measure and plan the retirement funding needs of religious communities. It is an ob- jective measurement of the level of need, based on cost of living and projected demographics and allows NRRO to distribute funding for those retirement needs. e NRRO also works with religious commu- nities to develop long range plans for closing retire- ment funding gaps, the institute’s “unfunded retire- ment liability.” In 2013 the NRRO and other professional ad- visors and consultants were engaged by the RDC to further assist the community in organizational, property and financial planning. Referred to as the What’s inside: Sale of Property at 52 North Broadway .... 2 Chapel of the Divine Compassion .... 3 Current RDC Organizational Structure ..................... 4 Our Advancement Initiatives Have Changed ...................... 4 In Closing.................... 6 Community................. 7 ANNUAL REPORT of the Sisters of the Divine Compassion e ‘Retirement Needs Analysis’

SPRING 2016 ANNUAL REPORT · SPRING 2016 RDC Leadership has focused its attention on devel - oping strategies to ensure a safe and dignified retire-ment for all the RDCs going forward

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Page 1: SPRING 2016 ANNUAL REPORT · SPRING 2016 RDC Leadership has focused its attention on devel - oping strategies to ensure a safe and dignified retire-ment for all the RDCs going forward

This report has been written as a brief summary as to how 15 years of study and evaluation of the RDC’s resources ultimately led to decisions regarding the congregational administrative structure and the sale of the Good Counsel Campus property. Difficult but necessary decisions were made resulting in transitions faced by the RDC sisters, students, faculty, staff and supporters. Change is never easy. The diligence and efforts of RDC Leadership has enabled the Divine Compassion community to remain viable and sustainable into the future. These pages will outline that process as well as summarize how funds raised within the Advancement Office are utilized and how your support and generosity are critical to the lives, work, and mission of the Sisters of the Divine Compassion.

Candace Herguth, Director of Advancement Rebecca Boivin, Director of Finance and Operations

SPRING 2016

RDC Leadership has focused its attention on devel-oping strategies to ensure a safe and dignified retire-ment for all the RDCs going forward the next 30 to 40 years, and to ensure continued financial viability and sustainability of the Divine Compassion mission and community into the future. Financial analysis over the last 15 years pointed to an escalating critical financial problem as the median age increases and fewer sisters are able to work in compensated ministries. The RDC retirement savings became inadequate to meet the retirement needs of the sisters, as the escalating cam-pus costs of our dearly beloved Good Counsel campus in White Plains drained our resources.

The Sisters of the Divine Compassion are not alone in the need to increase their retirement funding. Reli-gious institutes across the country are facing the same challenges, which are being addressed by the National Religious Retirement Office (NRRO), an organization created 40 years ago to assist religious institutes in financial planning for the retirement needs of their members. Each individual congregation, large or small like the RDC, is solely responsible for the living expenses for each sister for the length of her life.

According to the NRRO, “For many years, most reli-gious institutes re-ceived very small sti-pends for the services of their members. Surplus, if any, often was invested in the ed-ucation of new mem-bers and in ministries. Thus religious insti-tutes were not able to set aside savings for elder care.”

The RNA (Retirement Needs Analysis) is a tool uti-lized by NRRO to measure and plan the retirement funding needs of religious communities. It is an ob-jective measurement of the level of need, based on cost of living and projected demographics and allows NRRO to distribute funding for those retirement needs. The NRRO also works with religious commu-nities to develop long range plans for closing retire-ment funding gaps, the institute’s “unfunded retire-ment liability.”

In 2013 the NRRO and other professional ad-visors and consultants were engaged by the RDC to further assist the community in organizational, property and financial planning. Referred to as the

What’s inside:

Sale of Property at 52 North Broadway .... 2

Chapel of the Divine Compassion .... 3

Current RDC Organizational Structure ..................... 4

Our Advancement Initiatives Have Changed ...................... 4

In Closing .................... 6

Community ................. 7

ANNUAL REPORTof the Sisters of the Divine Compassion

The ‘Retirement Needs Analysis’

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ANNUAL REPORTof the Sisters of the Div ine Compassion

CPR team (Confidential Property Research), these individuals were pro bono or financed through grants received from NRRO. The specific purpose of the NRRO grants was to assist the congregation in finding a financial solution significant enough to turn around the large unfunded retirement lia-bility, so that all RDCs would be assured a safe and dignified retirement.

The advisors began by looking at all of the research, studies and planning that the congregation had been engaged in over the last 15 years. The focus of the advisors quickly became the need to reduce the deficit spending caused largely by the $1.7 M operating costs of Good Counsel campus. After consultation, prayer and discernment the congregation had to make the difficult and painful decision to market and sell the Good Counsel campus. Regular meetings were held with GCA Elementary and High School’s Principals and Board Presidents. Together they explored the needs and various options for the schools’ viability and sustainability into the future. Congregational Leadership began ongoing communication with Cardinal Dolan and the New York Archdiocesan Vicar for Religious. Meetings were also held with the Chancellor/Vicar General, Superintendent of Schools, and the Archdiocesan Directors of Health Care, Finance and Property.

Simultaneously health care and housing needs were being addressed through community meetings and committees researching appropriate housing for retired sisters, especially those living at Good Counsel.

Sale of Property at 52 North Broadway

The CPR (Confidential Property Research) team was eventually expanded to include; a land use engineer, a CFO/accountant, a CEO Architect, a CEO Civil Engineer, a CEO Real Estate Valuation Expert, Real Estate Attorneys, Canon Lawyers, and LCWR and other religious leaders involved and experienced in finance, healthcare, and property planning. The Mayor and other City of White Plains officials were also available to the team for their input and support. The 5 acres of the back field was covered with landfill and could not be built on as is, or required an estimated $3 million to remove the landfill. The remaining 10 acres with 14 buildings required marketing the property in total. This plan maximized the potential value of the property allowing the RDC congregation to become viable and sustainable.

Working with the school boards and leaders, as well as the archdiocese, relocation options were actively pursued. At the last minute in January 2015, the relocation choice for Good Counsel Academy High School became unavailable. The need to close GCAHS was a terrible shock and extremely sad for everyone involved: sisters, students, teachers, alumnae and parents. The relocation site for Good Counsel Academy Elementary School was arranged at Holy Name of Jesus School in Valhalla. GCAES continues to seek new enrollment in order to become viable and sustainable.

The closing of the property came to completion in November 2015. The accepted bid on the Good Counsel Property met the stipulations for the Chapel of the Divine Compassion to be enhanced and be ensured in perpetuity.

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RetirementFund

Needed forRetirement

UnfundedRetirement

2015 Retirement Needs Analysis(before sale of the property)$ Million

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RetirementFund

Needed forRetirement

UnfundedRetirement

2016 Retirement Needs Analysis(after sale of the property)$ Million

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-10

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20

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RetirementFund

Needed forRetirement

UnfundedRetirement

2015 Retirement Needs Analysis(before sale of the property)$ Million

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20

30

RetirementFund

Needed forRetirement

UnfundedRetirement

2016 Retirement Needs Analysis(after sale of the property)$ Million

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ANNUAL REPORTof the Sisters of the Div ine Compassion

Sisters living on the Good Counsel campus relocated to other residences, while the congregational president’s office, operations staff offices and a conference room were relocated to St. Joseph’s/Mapleton; the healthcare/wellness director and additional leadership offices were relocated to the ground floor of Sacred Heart Convent in Yonkers. The RDC Center for Counseling and Human Development continues to use space on the first floor of St. Joseph’s. The new campus property owners are working with the City of White Plains to determine an acceptable master plan for the campus, and are interested and supportive of the option to allow RDC congregational offices and possibly new residences to be located on the campus.

Chapel of the Divine CompassionBefore a marketing plan for the property was

created, the congregation clearly emphasized the preservation of the Chapel of the Divine Compassion in perpetuity was a non-negotiable requirement for any potential purchaser. The sisters’ use of the Chapel was also included in this requirement. A committee of sisters was formed in 2014 to discuss ways the chapel could be designed for versatile uses in the future. The committee met and also engaged in research and discussion, offering creative ideas for moveable seating, and upgrades necessitated by age of the building, codes, continuing repair of the crypt, and the variety of possibilities for the use of the chapel. The Divine Compassion Chapel will also be enhanced to provide for RDC Heritage space. The congregation was invited to submit ideas for

Chapel use and enhancement recommendations to the committee.

These recommendations will be used as the congregation begins collaborative initiatives with the new campus owners and their development of the campus.

The leadership team is engaged in ongoing conversations with the new campus owners about enhancements and upgrades to the chapel. Discussions will also continue regarding options to maintain congregational offices on the campus and as well as the possibility of newly created RDC housing as part of the future master planning.

*Donations to the Sisters of the Divine Compassion designated for the chapel will be applied by the sisters for their share of the finances of the chapel, and for programs the RDC sponsors in the chapel as part of our ongoing Divine Compassion Spirituality Mission.

Mapleton/St. Joseph’s: Currently housing the RDC Counseling Center and RDC Administrative Offices

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Our Advancement Initiatives Have Changed The Sisters of the Divine Compassion Advance-

ment Office helps grow financial resources to sup-port members and the RDC mission. In 2016 we are at a critical point in our RDC community’s life cycle. Strategic and finan-cial planning necessitated many changes in the lives of the community, as well as advancement initiatives. We are able to assure you the mission and the values of the RDC will continue through our ministries for many years to come.

Within this report we at-tempt to share the realities we face, as well as responsible plans for the fu-ture, transparency on how our advancement of-fice raises funds and for what purposes. Through improved communications we must also convey

the impact your ‘partnership’ has had on the thousands whose lives are touched by the RDC community and how grateful we are to be united with you in the RDC mission.

For several years the ad-vancement office has been focused on restructuring in-come streams and improv-ing communications with our partners in mission. Although downsizing staff has been another ‘reality’ in our reorganization, we are committed to building and strengthening methods of communicating with you.

Meaningful communication is a priority. For the Congregation to remain vibrant it is essential to keep our benefactors informed on the work, the activities and the lives of the sisters.

Current RDC Organizational Structure The RDC Leadership Team has been

working on organizational planning since 2012, which included downsizing staff as much as possible. The Organization-al Chart was finalized and implemented in November 2015, with a new position, the Director of Finance and Operations. This plan allows RDC members to per-form significant congregational roles and functions and continue offering contrib-uted services and service as volunteers. The functions listed under business op-erations, streamlines congregational op-erations of RDC salaried employees, and allows them to assume greater responsi-bilities in their areas. This maximizes the best use of their professional skills and working relationships in direct collabora-tion with each other for the good of the congregation.

Srs. Celesta Kelley, Alice Feeley, Pat Hannan with William Preston, descendent of Founder Monsignor Thomas S. Preston

ANNUAL REPORTof the Sisters of the Div ine Compassion

President and Leadership Team•Sr. Carol Wagner, President•Sr. Clare Arenholz, First Councilor•Sr. Lauren McLeod, Second Councilor•Sr. Mary Jane Deodati, Third Councilor

Congregational & Mission Business Operations•Director of Finance and

Operations, Rebecca Boivin•Director of Advancement,

Candace Herguth•Director of Wellness and Health

Care, Noreen Rosa•Director of Technology, Sr. Judy

Frasinetti

Congregational Roles and Functions•Vocation Ministry•Life Development/Formation

Ministry•Community Life•Office of Mission and Charism•Ministries (Sponsored & diverse)•Legacy Planning

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Care of Retired Sisters RDC Mission

Use of Unrestricted Donor Funds

Currently to maintain contact, each day time is devoted to acknowledgment letters, website updates, E-Blasts newsletters, and responding to the many cards, letters, and emails we receive weekly. This report is our first step in improving communication with supporters. Going forward we will assemble an annual newsletter ensuring supporters are informed on the lives and work of the RDC community. The Advancement and Finance offices will continue to work together issuing an annual report providing financial informa-tion and news of the impact your support has had on the Divine Compassion mission.

The primary ways income is generated through the Advancement Office are …✛✛ Christmas Appeal & Direct Mail Campaigns✛✛ Annual Golf Classic ✛✛ Partners in Compassion

(Monthly Giving Enrollments)✛✛ Prayer Enrollments and Memorial cards✛✛ Mother Mary Veronica Legacy Society

(Planned Giving & Bequests)

All unrestricted donations are used for living support of retired sisters or the mission of the congregation. 

The retirement needs that have been funded have provided technology, senior services, re-treat days and medical transportation. In ad-dition, moving expenses for the sisters who have relocated were funded.

The mission of the congregation is also supported by donor gifts. Funding assistance through unrestricted donor funds can be di-rected to various ministries and works of the RDC; Good Counsel Academy, school and sum-mer programs, Mustard Seed Migrant Minis-try, RDC Archives, RDC United Nations NGO and social justice commitments, community outreach services, efforts to end Human Traf-ficking, along with spirituality programs and Sunday liturgies in the Chapel of the Divine Compassion. Many other sponsored and di-verse ministries are also given funding assis-tance through unrestricted donor funds.

Sisters Pam Wagner and Mary Jane Deodati preparing lunch for campers at the Mustard Seed Migrant Ministry, Goshen, NY

ANNUAL REPORTof the Sisters of the Div ine Compassion

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Care of Retired Sisters RDC Mission

Use of Unrestricted Donor Funds

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ANNUAL REPORTof the Sisters of the Div ine Compassion

Sisters Anne Kniphuisen, Pat Smith, Ruth Murphy, hosting guests at the 2015 Annual Golf Classic

Sr. M. Caroline Thomas in tutoring session with GCAHS student

Jane Starr Merritt great granddaughter of Foundress Mother Mary Veronica (Mary Caroline Dannat Starr)

Founder’s Day, June 2015

Sr. Loretta Marie Schollhamer, Librarian at Preston High School

In Closing

Although we have been through an ex-tremely challenging journey together, we as a congregation are resilient and grateful for your investment in our future. As always to-morrow is a mystery, but we share with you our mission to be a compassionate presence in the world in whatever ways the needs of God’s people are revealed to us.

The Sisters of the Divine Compassion are filled with gratitude to each of you, our gen-erous donors and partners in mission.

RDC Leadership TeamSr. Carol Wagner, President

Sr. Clare ArenholzSr. Lauren McLeod

Sr. Mary Jane Deodati

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ANNUAL REPORTof the Sisters of the Div ine Compassion

The Divine Compassion Community Currently Includes:77 Sisters of the Divine Compassion RDCs55 Associates of the Divine Compassion ADCs 6 Companions of the Divine Compassion CDCs Congregational and Sponsored Ministry Staff, Leaders, Boards of Trustees & Alumnae

SPONSORED MINISTRIES Sponsorship (sponsored Ministry) describes the congregation’s relationship to incorporated entities that carry out activities (minis-tries) of the order and follow the nature, purpose, spirit and character of the congregation.

Academy of Our Lady of Good Counsel Elementary SchoolAcademy of Our Lady of Good Counsel High School (1922-2015)Center of Compassion Dover/Loaves & FishesMustard Seed Migrant MinistryPreston High SchoolPreston Center of CompassionRDC Center for Counseling & Human Development

(Please visit links at www.DivineCompassion.org website for further Ministry information)

DIVERSE RDC, ADC (Associates of the Divine Compassion), CDC (Companions of the Divine Compassion) MINISTRIES Spiritual/Pastoral/Leadership/Social Justice Ministry✛✛ White Plains Hospital, White Plains✛✛ Calvary Hospital, Bronx, NY✛✛ Hebrew Hospital Home, Valhalla, NY✛✛ Northern Westchester Hospital, Mt. Kisco, NY✛✛ Pace University, Pleasantville, NY✛✛ Schnurmacher Center for Rehabilitation and Nursing, White Plains, NY✛✛ Sexual Assault Center of East Tennessee, Knoxville, TN✛✛ Shepherd’s Flock, White Plains, NY✛✛ St. Joseph Parish, Croton Falls, NY✛✛ Mariandale Retreat & Conference Center✛✛ Leadership Conference of Women Religious National Board & Region 2✛✛ SHORE (Sheltering the Homeless is Our Responsibility) leadership✛✛ ROAR Religious Organizations Along the River – protecting the Hudson✛✛ New York CRC-STOP Coalition of Religious Congregations to Stop Human Trafficking✛✛ RDC Spirituality Ministry/Spiritual Direction/Contemporary Context of Compassion Speaker Series ✛✛ RDC Social Justice Ministry Broad✛✛ UN NGO Partnership for Global Justice✛✛ Holy Name of Jesus Parish✛✛ Sacred Heart Parish, Yonkers, NY

Education✛✛ Kennedy Catholic High School, Somers, NY✛✛ Little Rock Scripture Study, Little Rock, AR✛✛ Our Lady of Mt Carmel Elementary School, Elmsford, NY✛✛ Our Lady of Sorrows Elementary School, White Plains, NY✛✛ St. John the Baptist Elementary School, Yonkers, NY✛✛ Pace Literacy Center, White Plains, NY✛✛ Pace University✛✛ Little Rock Scripture Studies, Little Rock, AR✛✛ St. Genevieve’s Elementary School, Elizabeth, NJ✛✛ Church of the Holy Family, Newark, NJ✛✛ College of New Rochelle Reading Center, New Rochelle, NY✛✛ Individual / Group Tutoring, Westchester & Bronx NY✛✛ St. Patrick’s Parish, Armonk✛✛ Pace Literacy Center, White Plains, NY✛✛ Pace University✛✛ St. Genevieve’s Elementary School, Elizabeth, NJ✛✛ St. John the Baptist Elementary School, Yonkers, NY

Health and Human Services✛✛ Dominican Sisters Family Health Service, Westchester County, NY✛✛ Geriatric Social Work, Catholic Charities, Chester, PA✛✛ Valhalla Volunteer Ambulance Corps, Valhalla, NY✛✛ Calvary Hospital, Bronx, NY✛✛ Blythedale’s Children’s Hospital, Valahalla, NY✛✛ St. Cabrini Nursing Home, Dobbs Ferry, NY✛✛ Providence Rest Nursing Home, Bronx, NY

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Sisters of the Divine Compassion52 North BroadwayWhite Plains, NY 10603

Nonprofit

U.S. Postage

PAIDPermit No. 454

White Plains, NY

Chapel of the Divine Compassion, preserved in perpetuity for the Sisters of the Divine Compasion