Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $1,064,400

• 1e · Government grants (contributions)

  $11,466,309

• 1f · All other contributions, gifts and grants

  $2,367,197

• 2a · Program service revenue: SENIOR LIVING SERVICES

  total $82,799,425 · related or exempt $82,799,425

• 2b · Program service revenue: STATEWIDE ADOPTION AND PERMANENCY

  total $73,899,267 · related or exempt $73,899,267

• 2c · Program service revenue: OTHER PROGRAM SERVICES

  total $3,188,879 · related or exempt $3,188,879

• 2d · Program service revenue: HOUSING URBAN DEVELOPMENT

  total $1,014,032 · related or exempt $1,014,032

• 3 · Investment income

  total $3,694,499 · excluded $3,694,499

• 4 · Income from investment of tax-exempt bond proceeds

  total $29 · excluded $29

• 7a · Gross sales of assets other than inventory

  securities $660 · other assets $24,765,178

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

  securities $0 · other assets $11,518,791

• 7c · Gain or loss

  securities $660 · other assets $13,246,387

• 7d · Net gain or loss

  total $13,247,047 · excluded $13,247,047

• 11a · Other revenue: TRUST INCOME

  total $1,386,793 · related or exempt $1,386,793

• 11b · Other revenue: OTHER REVENUE

  total $997,742 · related or exempt $918,982 · unrelated business $78,760

• 11c · Other revenue: VENDING REVENUE

  total $20,944 · related or exempt $20,944

• 11d · All other revenue

  total $18,188 · excluded $18,188

• 11e · Other revenue, total

  $2,423,667

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $424,482 · program services $424,482

• 5 · Compensation of officers, directors and key employees

  total $2,421,570 · management and general $2,421,570

• 7 · Other salaries and wages

  total $26,336,613 · program services $23,785,001 · management and general $2,536,015 · fundraising $15,597

• 8 · Pension plan contributions

  total -$114,132 · program services -$97,344 · management and general -$16,550 · fundraising -$238

• 9 · Other employee benefits

  total $3,699,067 · program services $3,145,516 · management and general $551,984 · fundraising $1,567

• 10 · Payroll taxes

  total $1,999,990 · program services $1,643,944 · management and general $355,962 · fundraising $84

• 11a · Fees: management

  total $183,384 · program services $183,384

• 11b · Fees: legal

  total $227,487 · program services $903 · management and general $226,584

• 11c · Fees: accounting

  total $65,300 · program services $65,300

• 11d · Fees: lobbying

  total $54,000 · management and general $54,000

• 11f · Fees: investment management

  total $36,298 · management and general $36,298

• 11g · Fees: other

  total $15,699,856 · program services $14,022,032 · management and general $1,675,741 · fundraising $2,083

• 12 · Advertising and promotion

  total $1,038,767 · program services $867,036 · management and general $171,731

• 13 · Office expenses

  total $5,742,103 · program services $4,970,801 · management and general $745,965 · fundraising $25,337

• 14 · Information technology

  total $4,047,065 · program services $199,763 · management and general $3,821,262 · fundraising $26,040

• 16 · Occupancy

  total $8,840,842 · program services $8,436,354 · management and general $404,488

• 17 · Travel

  total $830,707 · program services $668,167 · management and general $162,540

• 19 · Conferences, conventions and meetings

  total $30,448 · program services $6,891 · management and general $23,557

• 20 · Interest

  total $4,653,495 · program services $4,586,435 · management and general $67,060

• 22 · Depreciation, depletion and amortization

  total $13,509,380 · program services $11,650,251 · management and general $1,859,129

• 23 · Insurance

  total $1,359,881 · program services $936,436 · management and general $423,445

• 24a · Other expenses: SWAN CONTRACTED SERVICE

  total $65,827,541 · program services $65,827,541

• 24b · Other expenses: CULINARY SERVICE

  total $9,450,594 · program services $9,450,594

• 24c · Other expenses: HOUSEKEEPING SERVICES

  total $2,742,674 · program services $2,714,017 · management and general $28,657

• 24d · Other expenses: PA NH ASSESSMENT FEE

  total $703,364 · program services $703,364

• 24e · All other expenses

  total $3,683,499 · program services $3,420,487 · management and general $256,325 · fundraising $6,687

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $80,819 · end of year $2,769,823

• 2 · Savings and temporary cash investments

  beginning of year $1,752,145 · end of year $5,729,923

• 3 · Pledges and grants receivable

  beginning of year $472,199 · end of year $277,551

• 4 · Accounts receivable

  beginning of year $12,960,634 · end of year $22,840,297

• 9 · Prepaid expenses and deferred charges

  beginning of year $2,823,792 · end of year $2,951,538

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

  $318,867,515

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

  $188,261,766

• 10c · Land, buildings and equipment, net

  beginning of year $130,621,054 · end of year $130,605,749

• 11 · Investments: publicly traded securities

  beginning of year $177,446,761 · end of year $166,949,306

• 15 · Other assets

  beginning of year $60,000,052 · end of year $37,229,424

• 17 · Accounts payable and accrued expenses

  beginning of year $22,391,460 · end of year $25,339,671

• 19 · Deferred revenue

  beginning of year $63,768,372 · end of year $58,608,707

• 20 · Tax-exempt bond liabilities

  beginning of year $131,113,842 · end of year $127,671,761

• 23 · Secured mortgages and notes payable

  beginning of year $8,538,551 · end of year $10,546,305

• 25 · Other liabilities

  beginning of year $60,111,372 · end of year $45,669,203

• 27 · Net assets without donor restrictions

  beginning of year $42,745,595 · end of year $55,094,381

• 28 · Net assets with donor restrictions

  beginning of year $57,488,264 · end of year $46,423,583

The filer's explanations (Part III)

PART I, LINE 3

SEE SCHEDULE O IN REFERENCE TO PART VI, SECTION B, LINE 15 FOR A DETAILED DESCRIPTION OF THE ORGANIZATION'S EXECUTIVE COMPENSATION POLICY.

PART I, LINE 4B

DLSM HAS A 457(F) SUPPLEMENTAL NONQUALIFIED BENEFIT PLAN TO RECOGNIZE CERTAIN EMPLOYEES FOR THEIR SIGNIFICANT CONTRIBUTIONS AND IN CONSIDERATION OF EXPECTED CONTRIBUTION TO THE GROWTH OF DLSM, ITS AFFILIATES AND SUBSIDIARIES IN THE FUTURE. THE ANNUAL ACCRUALS AND INTEREST EARNINGS FOR THE 457(F) SUPPLEMENTAL NONQUALIFIED BENEFIT PLAN IS REPORTED IN PART VII, SECTION A, COLUMN F AND SCHEDULE J, PART II, COLUMN C AND IS LISTED BELOW: SCOTT D. HABECKER $154,600 SHARI E. VANDERGAST $88,020 DAVID BAKER $24,342 JENNIFER RAUTZHAN $22,625 AS A CONDITION FOR PARTICIPATING IN THE 457(F) SUPPLEMENTAL NON QUALIFIED BENEFIT PLAN, THE INDIVIDUAL MUST BE EMPLOYED AT THE VESTING DATE AND HAVE AGREED TO CERTAIN RESTRICTIVE COVENANTS.

PART I, LINE 7

THE COMPENSATION COMMITTEE OF THE DIAKON BOARD REVIEWS THE PERFORMANCE OF THE CEO ON AN ANNUAL BASIS BY ASSESSING ACTUAL PERFORMANCE OUTCOMES AGAINST PREVIOUSLY ESTABLISHED GOALS AND OBJECTIVES. THE CHAIR OF THE COMPENSATION COMMITTEE LEADS A PROCESS THAT ALIGNS THE PERFORMANCE ASSESSMENT WITH ANY INCENTIVE COMPENSATION TO BE PAID TO THE CEO. BASED ON THE ASSESSMENT OF 2021 PERFORMANCE COMPLETED DURING THE FIRST QUARTER OF 2022, AN INCENTIVE PAYMENT WAS APPROVED TO BE PAID TO THE CEO DURING THE FIRST QUARTER OF 2022. VARIOUS OTHER MEMBERS OF THE MANAGEMENT TEAM OF THE ORGANIZATION PARTICIPATE IN A MANAGEMENT INCENTIVE PLAN WHEREBY ELIGIBLE PARTICIPANTS CAN EARN INCENTIVE COMPENSATION FOR THE ACHIEVEMENT OF CERTAIN QUALITY AND FINANCIAL GOALS ESTABLISHED FOR THEIR RESPECTIVE AREAS OF RESPONSIBILITY. BASED ON A REVIEW OFF PERFORMANCE IN 2021 ACROSS ALL AREAS OF THE ORGANIZATION, VARIOUS MANAGEMENT TEAM MEMBERS RECEIVED INCENTIVE COMPENSATION PAYMENTS DURING THE FIRST QUARTER OF 2022.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• DIAKON LUTHERWOOD SENIOR HOUSING LLC

  HUD HOUSING · PA · income $1,339,620 · assets $2,607,798

  Directly controlled by DLSM

• DIAKON-SWAN LLC

  ADOPTION AND PERMANENCY NETWORK · PA · income $73,899,267 · assets $13,193,869

  Directly controlled by DLSM

• DIAKON FROSTBURG SENIOR HOUSING LLC

  HUD HOUSING · MD · income $1,081,375 · assets $2,653,927

  Directly controlled by DLSM