Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1e · Government grants (contributions)

  $70,216

• 1f · All other contributions, gifts and grants

  $665,498

• 2a · Program service revenue: ROUTINE SERVICES

  total $26,098,958 · related or exempt $26,098,958

• 2b · Program service revenue: ENTRANCE FEE

  total $7,190,949 · related or exempt $7,190,949

• 2c · Program service revenue: ANCILLARY SERVICES

  total $4,347,198 · related or exempt $4,347,198

• 2d · Program service revenue: MEDICARE/MEDICAID

  total $2,815,074 · related or exempt $2,815,074

• 2e · Program service revenue: MEALS

  total $338,811 · related or exempt $338,811

• 3 · Investment income

  total $764,550 · excluded $764,550

• 7a · Gross sales of assets other than inventory

  securities $319,566

• 7b · Less cost or other basis and sales expenses

  securities $0

• 7c · Gain or loss

  securities $319,566

• 7d · Net gain or loss

  total $319,566 · excluded $319,566

• 11a · Other revenue: APARTMENT UPGRADES

  total $241,690 · related or exempt $241,690

• 11b · Other revenue: SUPPORT SERVICES

  total $70,544 · related or exempt $70,544

• 11c · Other revenue: SERVICES TO RESIDENTS

  total $40,745 · related or exempt $40,745

• 11d · All other revenue

  total $6,864 · related or exempt $6,864

• 11e · Other revenue, total

  $359,843

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $295,692 · management and general $295,692

• 7 · Other salaries and wages

  total $12,713,422 · program services $10,792,033 · management and general $1,919,940 · fundraising $1,449

• 8 · Pension plan contributions

  total $246,498 · program services $192,692 · management and general $51,084 · fundraising $2,722

• 9 · Other employee benefits

  total $1,385,259 · program services $1,119,341 · management and general $264,802 · fundraising $1,116

• 10 · Payroll taxes

  total $939,783 · program services $770,826 · management and general $161,992 · fundraising $6,965

• 11a · Fees: management

  total $145,835 · program services $145,835

• 11b · Fees: legal

  total $53,584 · management and general $53,584

• 11c · Fees: accounting

  total $14,596 · management and general $14,596

• 11d · Fees: lobbying

  total $1,350 · management and general $1,350

• 11g · Fees: other

  total $2,811,039 · program services $2,683,497 · management and general $127,177 · fundraising $365

• 12 · Advertising and promotion

  total $216,152 · program services $2,916 · management and general $211,395 · fundraising $1,841

• 13 · Office expenses

  total $1,421,155 · program services $1,188,480 · management and general $232,510 · fundraising $165

• 14 · Information technology

  total $703,791 · management and general $703,791

• 16 · Occupancy

  total $1,988,287 · program services $1,704,882 · management and general $283,405

• 17 · Travel

  total $14,767 · program services $1,807 · management and general $12,960

• 19 · Conferences, conventions and meetings

  total $98,264 · program services $8,953 · management and general $88,961 · fundraising $350

• 20 · Interest

  total $2,695,299 · program services $2,249,943 · management and general $442,820 · fundraising $2,536

• 22 · Depreciation, depletion and amortization

  total $7,512,058 · program services $6,270,807 · management and general $1,234,182 · fundraising $7,069

• 23 · Insurance

  total $452,864 · program services $452,864

• 24a · Other expenses: RELATED PARTY ACTIVITY

  total $2,774,453 · program services $35,000 · management and general $2,739,453

• 24b · Other expenses: DINING SERVICES

  total $1,603,148 · program services $1,603,148

• 24c · Other expenses: MAINT. FOR RESIDENTS

  total $1,168,189 · program services $1,168,189

• 24d · Other expenses: BAD DEBT

  total $229,137 · management and general $229,137

• 24e · All other expenses

  total -$2,861,553 · program services $180,462 · management and general -$3,051,899 · fundraising $9,884

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $7,011 · end of year $4,512

• 2 · Savings and temporary cash investments

  beginning of year $4,294 · end of year $4,295

• 3 · Pledges and grants receivable

  beginning of year $177,550 · end of year $77,245

• 4 · Accounts receivable

  beginning of year $1,262,926 · end of year $2,401,956

• 9 · Prepaid expenses and deferred charges

  beginning of year $9,270 · end of year $9,994

• 10a · Land, buildings and equipment: cost or other basis

  $165,800,508

• 10b · Land, buildings and equipment: accumulated depreciation

  $86,376,327

• 10c · Land, buildings and equipment, net

  beginning of year $62,187,234 · end of year $79,424,181

• 11 · Investments: publicly traded securities

  beginning of year $10,849,732 · end of year $14,372,252

• 12 · Investments: other securities

  beginning of year $9,651,271 · end of year $12,192,396

• 15 · Other assets

  beginning of year $1,764,553 · end of year $13,280,112

• 17 · Accounts payable and accrued expenses

  beginning of year $358,875 · end of year $336,810

• 19 · Deferred revenue

  beginning of year $38,994,961 · end of year $56,262,850

• 20 · Tax-exempt bond liabilities

  beginning of year $44,428,032 · end of year $56,583,511

• 21 · Escrow or custodial account liability

  beginning of year $233,299 · end of year $67,310

• 25 · Other liabilities

  beginning of year $28,647,996 · end of year $23,184,081

• 27 · Net assets without donor restrictions

  beginning of year -$30,136,226 · end of year -$18,276,429

• 28 · Net assets with donor restrictions

  beginning of year $3,386,904 · end of year $3,608,810

The filer's explanations (Part III)

PART I, LINE 3

SEE SCHEDULE O EXPLANATION FOR FORM 990 PART VI SECTION B LINE 15 FOR THE METHODS USED TO DETERMINE CEO COMPENSATION. THE REVIEW AND APPROVAL PROCESS IS DESIGNED TO SATISFY AND QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERNAL REVENUE CODE SECTION 4958.

PART I, LINE 4B

EXECUTIVE BENEFIT PLAN COVENANT MINISTRIES OF BENEVOLENCE (CMB), A RELATED ORGANIZATION, PROVIDES CERTAIN SUPPLEMENTAL RETIREMENT BENEFITS TO ITS OFFICERS AND KEY EMPLOYEES. THESE BENEFITS ARE PROVIDED THROUGH A NONQUALIFIED DEFERRED COMPENSATION PLAN, UNDER WHICH A PORTION OF THE BENEFITS BEING EARNED ARE SUBJECT TO A "SUBSTANTIAL RISK OF FORFEITURE." THE SUPPLEMENTAL RETIREMENT BENEFITS ARE STRUCTURED TO PROVIDE A RETENTION INCENTIVE THAT HAS BEEN DETERMINED BY THE EXECUTIVE COMPENSATION COMMITTEE OF CMB'S BOARD ("COMMITTEE") TO BE OF SUBSTANTIAL VALUE TO THE ORGANIZATION. THE COMMITTEE APPROVES ALL RETIREMENT BENEFITS, TOGETHER WITH ALL OTHER FORMS OF COMPENSATION AND BENEFITS FOR THESE AND OTHER EXECUTIVES, IN A MANNER INTENDED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTION'S RULES OF FEDERAL INCOME TAX LAW. THE FOLLOWING ARE PARTICIPANTS IN THE PLAN: CORY STERN DAVID ERICKSON HILDE SAGER JEAN JUSTIE TERRI CUNLIFFE TODD SLECHTA WILLIAM RABE SHELLY SMITH ARLENE ARROYO SANJA MILIDRAG TANDERIA BROWN CORY KALLHEIM JAY PRINCE IN 2023, THESE INDIVIDUALS VESTED IN THE PLAN IN THE FOLLOWING AMOUNTS: TERRI CUNLIFFE - $131,377 DAVID ERICKSON - $47,458 WILLIAM RABE - $29,365 CORY STERN - $15,253 TODD SLECHTA - $4,369 HILDE SAGER - $11,924 IN 2023, THESE INDIVIDUALS RECEIVED DISTRIBUTIONS FROM THE PLAN IN THE FOLLOWING AMOUNTS: DAVID ERICKSON - $27,212

PART I, LINE 7

THE FOLLOWING APPLIES TO CERTAIN INDIVIDUALS LISTED ON PART VII WHOSE COMPENSATION IS PAID FROM RELATED ORGANIZATIONS: THE EXECUTIVE COMPENSATION COMMITTEE (OF CMB'S BOARD) FOLLOWS A PRESCRIBED METHOD FOR CALCULATING INCENTIVE COMPENSATION AWARDS. THE CALCULATION IS BASED ON MEASURABLE TARGETS DETERMINED AT THE BEGINNING OF THE YEAR. THE COMMITTEE HAS THE ABILITY TO ADJUST THE DOLLAR VALUE OF THE CALCULATED AWARDS BY UP TO 10%. THE ADJUSTMENT CAN BE AN UPWARD OR DOWNWARD ADJUSTMENT BASED ON VARIOUS PERFORMANCE FACTORS OR ON FACTORS THAT WILL ASSURE THAT FINAL INCENTIVE COMPENSATION AWARDS ARE IN THE BEST INTEREST OF THE ORGANIZATION AND APPROPRIATELY REFLECT THE PERFORMANCE OF THE ORGANIZATION. REFER TO ADDITIONAL INFORMATION ON THE COMMITTEE INCLUDED IN SCHEDULE O. PART II, COLUMN B (II): BONUS AND INCENTIVE COMPENSATION - CERTAIN KEY PERSONS EMPLOYED BY COVENANT LIVING AND CMB ARE ELIGIBLE FOR INCENTIVE COMPENSATION AS DETERMINED BY THE EXECUTIVE COMPENSATION COMMITTEE OF EITHER THE COVENANT LIVING OR CMB'S BOARD BASED ON WHERE THESE INDIVIDUALS ARE EMPLOYED. INCENTIVES RELATED TO THE ACHIEVEMENT OF TARGETS FOR THE TWELVE MONTHS ENDED 9/30/22 WERE PAID OUT IN 2023 FOR CLCS AND RELATED ENTITIES. INCENTIVES RELATED TO CMB'S ACHIEVEMENT OF TARGETS FOR THE TWELVE-MONTHS ENDED 9/30/23 WERE PAID OUT IN 2023. PART II, COLUMN D: NONTAXABLE BENEFITS INCLUDE HEALTH INSURANCE PREMIUMS PAID BY THE EMPLOYER AND EMPLOYEE.

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• COVENANT INTERNATIONAL INSURANCE COMPANY LTD

  C · INSURANCE · BD

• COVENANT TRUST COMPANY

  C · FINANCIAL SERVICES · IL

• COVENANT LIVING HOLDINGS THREE INC

  C · CONSULTING SERVICES · IL