Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1c · Fundraising events

  $1,787,326

• 1d · Related organizations

  $90,900

• 1e · Government grants (contributions)

  $847,093

• 1f · All other contributions, gifts and grants

  $22,256,860

• 1g · Noncash contributions included above

  $3,255,528

• 2a · Program service revenue: NET OUTPATIENT REVENUE

  total $82,579,956 · related or exempt $82,579,956

• 2b · Program service revenue: NET INPATIENT REVENUE

  total $37,204,168 · related or exempt $37,204,168

• 2c · Program service revenue: OTHER PATIENT RELATED REVENUE

  total $19,330,732 · related or exempt $19,330,732

• 2f · All other program service revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $118,757,153 · unrelated business -$182,035 · excluded $118,939,188

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

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 5 · Royalties

  total $195,606,623 · excluded $195,606,623

• 6a · Gross rents

  real property $600,891

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $600,891 · personal property $0

• 6d · Net rental income or loss

  total $600,891 · excluded $600,891

• 7a · Gross sales of assets other than inventory

  securities $314,759,537 · other assets $1,213,097

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

  securities $320,902,832 · other assets $850,300

• 7c · Gain or loss

  securities -$6,143,295 · other assets $362,797

• 7d · Net gain or loss

  total -$5,780,498 · unrelated business $25,206 · excluded -$5,805,704

• 8a · Fundraising events: gross income

  $538,502

• 8a · Fundraising events: contributions included on line 1c

  $1,787,326

• 8b · Fundraising events: direct expenses

  $788,404

• 8c · Net income from fundraising events

  total -$249,902 · excluded -$249,902

• 9a · Gaming: gross income

  $20,000

• 9b · Gaming: direct expenses

  $0

• 9c · Net income from gaming

  total $20,000 · excluded $20,000

• 10a · Gross sales of inventory

  $5,819,921

• 10b · Cost of goods sold

  $3,882,483

• 10c · Net income from sales of inventory

  total $1,937,438 · unrelated business $1,182,352 · excluded $755,086

• 11a · Other revenue: SURFACE DAMAGE/WATER SALES

  total $18,824,683 · related or exempt $18,824,683

• 11b · Other revenue: OTHER REVENUE

  total $1,315,667 · related or exempt $1,032,505 · unrelated business $283,162

• 11c · Other revenue: CAFETERIA/CATERING SALES

  total $836,356 · related or exempt $836,356

• 11d · All other revenue

  total $248,978 · related or exempt $248,978 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $21,225,684

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $1,388,578 · program services $1,388,578

• 5 · Compensation of officers, directors and key employees

  total $11,628,823 · program services $3,541,631 · management and general $7,580,773 · fundraising $506,419

• 6 · Compensation of disqualified persons

  total $86,482 · management and general $86,482

• 7 · Other salaries and wages

  total $116,857,281 · program services $99,679,757 · management and general $13,901,042 · fundraising $3,276,482

• 8 · Pension plan contributions

  total $8,249,952 · program services $7,135,771 · management and general $866,663 · fundraising $247,518

• 9 · Other employee benefits

  total $15,776,618 · program services $12,611,150 · management and general $2,715,693 · fundraising $449,775

• 10 · Payroll taxes

  total $7,477,523 · program services $6,285,179 · management and general $961,194 · fundraising $231,150

• 11b · Fees: legal

  total $556,632 · program services $70 · management and general $556,562

• 11c · Fees: accounting

  total $609,064 · management and general $609,064

• 11d · Fees: lobbying

  total $61,310 · management and general $61,310

• 11f · Fees: investment management

  total $9,501,089 · management and general $9,501,089

• 11g · Fees: other

  total $17,408,924 · program services $12,883,516 · management and general $4,320,922 · fundraising $204,486

• 12 · Advertising and promotion

  total $2,830,687 · program services $1,619,595 · management and general $691,099 · fundraising $519,993

• 13 · Office expenses

  total $7,319,418 · program services $5,239,209 · management and general $1,690,982 · fundraising $389,227

• 14 · Information technology

  total $11,176,200 · program services $8,776,630 · management and general $2,039,640 · fundraising $359,930

• 16 · Occupancy

  total $11,139,101 · program services $9,496,390 · management and general $1,423,072 · fundraising $219,639

• 17 · Travel

  total $858,799 · program services $682,518 · management and general $167,339 · fundraising $8,942

• 19 · Conferences, conventions and meetings

  total $403,521 · program services $327,940 · management and general $70,666 · fundraising $4,915

• 22 · Depreciation, depletion and amortization

  total $25,795,260 · program services $15,405,839 · management and general $9,903,928 · fundraising $485,493

• 23 · Insurance

  total $1,708,507 · program services $42,498 · management and general $1,666,009

• 24a · Other expenses: MEDICAL & OTHER SUPPLIES

  total $24,030,752 · program services $23,009,268 · management and general $919,452 · fundraising $102,032

• 24b · Other expenses: BAD DEBT EXPENSE

  total $10,649,668 · program services $10,649,668

• 24c · Other expenses: RANCH OPERATIONS

  total $3,021,666 · management and general $3,021,666

• 24e · All other expenses

  total $0 · program services $0 · management and general $0 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $6,830,055

• 2 · Savings and temporary cash investments

  end of year $8,161,844

• 3 · Pledges and grants receivable

  beginning of year $123,340 · end of year $450,821

• 4 · Accounts receivable

  beginning of year $59,240,024 · end of year $64,377,649

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $5,401,619 · end of year $5,156,101

• 9 · Prepaid expenses and deferred charges

  beginning of year $10,367,872 · end of year $14,847,013

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

  $648,306,660

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

  $268,005,443

• 10c · Land, buildings and equipment, net

  beginning of year $371,988,288 · end of year $380,301,217

• 11 · Investments: publicly traded securities

  beginning of year $400,726,000 · end of year $476,654,534

• 12 · Investments: other securities

  beginning of year $2,763,501,740 · end of year $3,296,065,317

• 13 · Investments: program-related

  beginning of year $0

• 15 · Other assets

  beginning of year $98,954,518 · end of year $108,526,364

• 17 · Accounts payable and accrued expenses

  beginning of year $25,313,258 · end of year $31,712,646

• 19 · Deferred revenue

  beginning of year $976,921 · end of year $985,163

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $103,496,668 · end of year $103,555,664

• 27 · Net assets without donor restrictions

  beginning of year $3,434,788,733 · end of year $4,048,677,571

• 28 · Net assets with donor restrictions

  beginning of year $152,557,876 · end of year $169,609,816

The filer's explanations (Part III)

Schedule J, Part I, Line 1a Travel for companions

(INCLUDED ON SCH J, PART II, COL B (III) & W-2, BOX 5) JAYSSON BROOKS, MD - 800 DANIEL J. SUCATO, MD - 800

Schedule J, Part I, Line 1a Health or social club dues or initiation fees

Robert Walker Social Club dues used for business purposes.

Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan

THE RESTORATION OF RETIREMENT INCOME PLAN (RRIP) IS A NON QUALIFIED PLAN PROVIDING SUPPLEMENTAL RETIREMENT BENEFITS TO CERTAIN EMPLOYEES OF TEXAS SCOTTISH RITE HOSPITAL FOR CHILDREN (TSRHC) AND A RELATED ENTITY, WHOSE BENEFITS UNDER THE TAX-QUALIFIED RETIREMENT PLAN HAVE BEEN LIMITED BY THE MAXIMUM BENEFIT AND MAXIMUM COMPENSATION LIMITATIONS IMPOSED UNDER THE TAX QUALIFIED RETIREMENT PLAN IN ORDER TO COMPLY WITH THE INTERNAL REVENUE CODE. THE TOTAL ACCUMULATED BENEFIT THAT HAS ACCRUED FOR A PARTICIPANT UNDER THE RRIP NORMALLY BECOMES VESTED AND TAXABLE TO A PARTICIPANT WHEN HE OR SHE EITHER HAS ATTAINED AGE 55 AND COMPLETED 15 YEARS OF SERVICE OR ATTAINS AGE 65. THE BENEFIT ACCRUALS FOR A PARTICIPANT AFTER THE DATE OF INITIAL VESTING ARE TAXABLE TO THE PARTICIPANT WHEN AND AS ACCRUED. RRIP BENEFITS BECOME PAYABLE AFTER TERMINATION OF EMPLOYMENT. UNDER THE TERMS OF THE RRIP, THE FOLLOWING EMPLOYEES MET THE VESTING REQUIREMENTS AS A PARTICIPANT IN 2023. UPON MEETING THE VESTING REQUIREMENT OF AGE 55 AND 10 YEARS OF SERVICE UNDER THE RRIP, THE PARTICIPANT'S ACTUAL CUMULATIVE BENEFIT EARNED SINCE THEIR DATE OF HIRE IS CALCULATED UNDER THE ASSUMPTIONS PRESCRIBED BY THE RRIP AND SUBJECT TO TAXATION IN CALENDAR YEAR 2023 AS REQUIRED BY THE FEDERAL TAX LAW. THE VALUE OF THE BENEFIT LISTED BELOW IS A LUMP SUM PRESENT VALUE. HOWEVER, THE VALUE OF THE LUMP SUM WILL BE CONVERTED TO A MONTHLY ANNUITY UPON RETIREMENT BASED ON EACH PARTICIPANT'S ELECTION. THE PARTICIPANT WILL NOT RECEIVE THE AMOUNTS LISTED BELOW AS A SINGLE SUM PAYMENT. THE ESTIMATED HISTORICAL BENEFIT ACCRUAL HAS BEEN PREVIOUSLY REPORTED AS DEFERRED COMPENSATION ON A PREVIOUS FORM 990. (INCLUDED IN SCHEDULE J, PART II, COLUMN B(III) & F AND W-2 BOX 5) PHILIP L. WILSON, MD - 1,162,065 UNDER THE TERMS OF THE RRIP, THE FOLLOWING EMPLOYEES HAVE PREVIOUSLY VESTED AS A PARTICIPANT. THE ADDITIONAL BENEFIT ACCRUAL EARNED DURING THE CALENDAR YEAR 2023 HAS BEEN CALCULATED UNDER THE ASSUMPTIONS PRESCRIBED BY THE RRIP AND IS SUBJECT TO TAXATION AS REQUIRED BY THE FEDERAL TAX LAW. THE VALUE OF THE ADDITIONAL BENEFIT LISTED BELOW IS A LUMP SUM PRESENT VALUE. HOWEVER, THE VALUE OF THE LUMP SUM WILL BE CONVERTED TO A MONTHLY ANNUITY UPON RETIREMENT BASED ON EACH PARTICIPANT'S ELECTION. THE PARTICIPANT WILL NOT RECEIVE THE AMOUNTS LISTED BELOW AS A SINGLE SUM PAYMENT. (INCLUDED IN SCHEDULE J, PART II, COLUMN B(III) AND W-2 BOX 5) DANIEL J. SUCATO, MD - 1,016,839 DONALD E KATZ - 57,235 KRIS L KEEVER-SMITH - 23,735 DAVID C WILKES, MD - 209,270 UNDER THE TERMS OF THE RRIP, THE FOLLOWING EMPLOYEES HAVE RETIRED AND RECEIVE PAYMENT FROM THE PLAN DURING 2023 WHICH ARE SUBJECT TO TAXATION, IN THE FOLLOWING AMOUNT. (INCLUDED IN SCHEDULE J, PART II, COLUMN B (III) & W-2, BOX 5) CHARLES E. JOHNSTON III, MD - 102,571 JOHN A. HERRING, MD - 175,658 BENJAMIN S. RICHARDS III, MD - 138,522 THE MANAGEMENT BENEFIT PLAN IS A NON-QUALIFIED PLAN PROVIDING SUPPLEMENTAL RETIREMENT BENEFITS TO CERTAIN ELIBIGLE EMPLOYEES WHO BECAME PARTICIPANTS PRIOR TO 1988. MONTHLY RETIREMENT INCOME BENEFITS BECOME PAYABLE UNDER THE PLAN COMMENCING AT AGE 65 (OR EARLIER DISABILITY), AND ARE TAXABLE TO PARTICIPANTS WHEN PAID. UNDER THE TERMS OF THE MANAGEMENT BENEFIT PLAN, THE FOLLOWING EMPLOYEES RECEIVED PAYMENTS IN 2023. (INCLUDED ON SCHEDULE J, PART II, COLUMN B(III) & F AND W-2, BOX 1 AND 5) CHARLES E. JOHNSTON III, MD - 108,848 THE FLEXIBLE BENEFITS PLAN IS A NON QUALIFED PLAN PROVIDING LIFE INSURANCE, DISABILITY INSURANCE, LONG-TERM CARE INSURANCE AND/OR RETIREMENT BENEFITS TO ELIGIBLE EMPLOYEES OF TEXAS SCOTTISH RITE HOSPITAL FOR CHILDREN (TSRHC) AND A RELATED ENTITY, AT THEIR ELECTION. THE INSURANCE PREMIUM AND RETIREMENT ACCOUNT CONTRIBUTION AMOUNTS ALLOCATED TO A PARTICIPANT UNDER THIS PLAN FOR EACH YEAR ARE TAXABLE TO THE PARTICIPANT FOR SUCH YEAR. THE EARNINGS ON THE RETIREMENT ACCOUNT CONTRIBUTIONS BECOME TAXABLE TO A PARTICIPANT WHEN PAID OR MADE AVAILABLE TO THE PARTICIPANT. UNDER THE TERMS OF THE FLEXIBLE BENEFIT PLAN, THE FOLLOWING EMPLOYEES WERE TAXED ON THE FOLLOWING AMOUNTS FOR CALENDAR YEAR 2023. (INCLUDED IN SCHEDULE J, PART II, COLUMN B(III), AND W-2, BOX 5) BRIGGER, STEPHANIE K. - 11,295 BROOKS, JAYSSON - 33,362 BUCKMEIER, ANGIE - 18,000 CHANCE, MATTHEW S. - 27,000 CLONCH, JR. LESLIE A. - 21,915 DALTON, LORI L. - 27,450 ELLIS, MD, HENRY B. - 34,542 GILL, MD COREY S - 33,361 GIVENS, ASHLEY C. - 7,290 HOWELL, JEREMY L. - 12,690 JOHNSON, JENNY J. - 9,539 KATZ, DONALD E. - 15,300 KEEVER-SMITH, KRISTINA L. - 14,625 MCINTOSH, MD, AMY L. - 33,361 RAMO, MD, BRANDON A. - 34,577 RATHJEN, MD, KARL E - 26,534 RICHMOND, FREDRIC D. - 24,345 SUCATO, MD, DANIEL J. - 54,000 WALKER, ROBERT L. - 65,099 WILSON, MD, PHILIP L. - 39,222

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• PEG WELBORN PRIVATE EQUITY FUND LP

  Excluded · INVESTMENTS · NY · 95.45% owned · share of income $13,464,159 · share of assets $307,806,015

  Directly controlled by TEXAS SCOTTISH RITE HOSPITAL

• ALGERT INTERNATIONAL SMALL CAP FUND LP

  Excluded · INVESTMENTS · CA · 69.82% owned · share of income $5,820,765 · share of assets $142,038,106

  Directly controlled by TEXAS SCOTTISH RITE HOSPITAL

Related corporations and trusts

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

• CHARITABLE REMAINDER TRUST (1)

  Trust · CHARITABLE REMAINDER TRUST · TX

  Directly controlled by NA