Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

MediumBullet The organization may have to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0047
2010
Open to Public Inspection
A For the calendar year, or tax year beginning 01-01-2010 and ending 12-31-2010
BCheck if applicable:
CName of organization
Diakon Lutheran Social Ministries
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
798 Hausman Road
 
Room/suite
City or town, state or country, and ZIP + 4
Allentown, PA18104
D Employer identification number

23-1857015
E Telephone number

G Gross receipts $ 314,663,352
F Name and address of principal officer:
Mark TPile
798 Hausman Road Ste 300
Allentown,PA18104
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
www.diakon.org
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet9386
K Form of organization:
 
L Year of formation: 1868
M State of legal domicile: PA
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: THE ORGANIZATION IS A LEADING PROVIDER OF SENIOR LIVING SERVICES AND SOCIAL SERVICES, INCLUDING ADOPTION, foster care, counseling and youth services in PENNSYLVANIA, MARYLAND, AND DELAWARE.
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) .... 3 13
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 13
5 Total number of individuals employed in calendar year 2010 (Part V, line 2a) ... 5 2,869
6 Total number of volunteers (estimate if necessary) .... 6 4,800
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a -147,231
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b -147,231
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 6,286,903 5,755,486
9 Program service revenue (Part VIII, line 2g) ......... 194,849,819 204,307,295
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 6,720,507 14,397,538
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 1,839,710 1,259,084
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 209,696,939 225,719,403
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 180,544 365,850
14 Benefits paid to or for members (Part IX, column (A), line 4) .... 0 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 89,432,816 88,707,048
16a Professional fundraising fees (Part IX, column (A), line 11e).... 33,030 79,517
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet1,764,581    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 117,607,533 132,173,082
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 207,253,923 221,325,497
19 Revenue less expenses. Subtract line 18 from line 12...... 2,443,016 4,393,906
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 425,059,752 444,423,691
21 Total liabilities (Part X, line 26)............ 337,344,220 361,303,576
22 Net assets or fund balances. Subtract line 21 from line 20 ..... 87,715,532 83,120,115
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title.
Paid Preparer's Use Only Preparer's
signatureBig Right Arrow 		Date
right pointing bullet image Preparer’s taxpayer identification number
(see instructions)
Firm’s name (or yours
if self-employed),
address, and ZIP + 4Big Right Arrow




 		EIN right pointing bullet image
Phone no. right pointing bullet image
May the IRS discuss this return with the preparer shown above? (see instructions) .........
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2010)
Form 990 (2010)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response to any question in this Part III . . . . . . . . . .
1
Briefly describe the organization’s mission: The organization is a leading provider of senior living services and social services, including adoption, foster care, counseling and youth services, in Pennsylvania, Maryland, and Delaware.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ....................
If “Yes,” describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ..........................
If “Yes,” describe these changes on Schedule O.
4
Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses.
Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $ 126,991,962 including grants of $ 4,845 ) (Revenue $ 137,086,507 )
See Schedule O
4b (Code:   ) (Expenses $ 28,888,691 including grants of $ 69,671 ) (Revenue $ 25,579,730 )
See Schedule O
4c (Code:   ) (Expenses $ 40,582,151 including grants of $   ) (Revenue $ 40,582,151 )
See Schedule O
4d Other program services. (Describe in Schedule O.)
(Expenses $ 1,876,942 including grants of $ 291,334 ) (Revenue $ 1,058,907 )
4e Total program service expensesMediumBullet$ 198,339,746
Form 990 (2010)
Form 990 (2010)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule AClick to see attachment.....................
1
Yes
 
2
Is the organization required to complete Schedule B, Schedule of Contributors? Click to see attachment........
2
Yes
 
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part IClick to see attachment..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part IIClick to see attachment.........................
4
Yes
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................
5
 
 
6
Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part IClick to see attachment.......................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
 
No
10
Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
Yes
 
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
 
No
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
 
No
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX.Click to see attachment
11d
Yes
 
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X.Click to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X.Click to see attachment
11f
Yes
 
12a
Did the organization obtain separate, independent audited financial statements for the tax year? If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment
12a
 
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
Yes
 
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I.........
14b
 
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part IClick to see attachment
17
Yes
 
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II.......... Click to see attachment
18
Yes
 
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III................... Click to see attachment
19
 
No
Form 990 (2010)
Form 990 (2010)
Page 4
Part IV
Checklist of Required Schedules (continued)
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....
20a
 
No
b
Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. .....
20b
 
 
21
Did the organization report more than $5,000 of grants and other assistance to governments and organizations in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment
21
Yes
 
22
Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III..... Click to see attachment
22
 
No
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment
23
Yes
 
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................ Click to see attachment
24a
Yes
 
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
Yes
 
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
No
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
No
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I...... Click to see attachment
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................ Click to see attachment
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II........................... Click to see attachment
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III............... Click to see attachment
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV ......................... Click to see attachment
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV................... Click to see attachment
28b
 
No
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV.. Click to see attachment
28c
Yes
 
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule MClick to see attachment
29
Yes
 
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............ Click to see attachment
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I........................... Click to see attachment
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment
33
Yes
 
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment
34
Yes
 
35
Is any related organization a controlled entity within the meaning of section 512(b)(13)? .....
35
Yes
 
a
Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2........... Click to see attachment
36
 
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VIClick to see attachment
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2010)
Form 990 (2010)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response to any question in this Part V . . . . . . . . . .
Yes
No
1a
Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......
1a
560
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................
2a
2,869
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)
2b
Yes
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?.............................
3a
Yes
 
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
Yes
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................
4a
 
No
b
If "Yes," enter the name of the foreign country: MediumBullet
See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........
6a
 
No
b
If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
Yes
 
b
If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....
7b
Yes
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
No
d
If “Yes,” indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................
7e
 
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
No
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............
7h
 
 
8
Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................
8
 
 
9
Sponsoring organizations maintaining donor advised funds.
a
Did the organization make any taxable distributions under section 4966?.........
9a
 
 
b
Did the organization make a distribution to a donor, donor advisor, or related person?......
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.
13a
 
 
b
Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.
13b
 
c
Enter the aggregate amount of reserves on hand.
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
 
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2010)
Form 990 (2010)
Page 6
Part VI
Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response to any question in this Part VI . . . . . . . . . .
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year ..............
1a
13
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
13
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
 
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Does the organization have members or stockholders? ................
6
Yes
 
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
Yes
 
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
Yes
 
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Does the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....
10b
 
 
11a
Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Does the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................
12b
Yes
 
c
Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................
12c
Yes
 
13
Does the organization have a written whistleblower policy? ...............
13
Yes
 
14
Does the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
Yes
 
b
If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
No
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
MD , PA
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet
RICHARD BARGER
960 CENTURY DRIVE
MECHANICSBURG,PA17055
(717) 795-0342
Form 990 (2010)
Form 990 (2010)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response to any question in this Part VII . . . . . . . . . .
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(1) Dr Don Main
Vice-Chair
 1.0 X           0 0 0
(2) Maurice Bobst
Board Member
 1.0 X           0 0 0
(3) Dr Barry Parks
Board Member
 1.0 X           0 0 0
(4) Larry Delp
Chair
 1.0 X           0 0 0
(5) Greg Rhodes
Board Member
 1.0 X           0 0 0
(6) Dr Addie J Butler
Board Member
 1.0 X           0 0 0
(7) Dr Phil Krey
Board Member
 1.0 X           0 0 0
(8) Anita Langford
Board Member
 1.0 X           0 0 0
(9) Erich March
Board Member
 1.0 X           0 0 0
(10) John Pearson
Secretary
 1.0 X           0 0 0
(11) Joseph Skillman
Board Member
 1.0 X           0 0 0
(12) Joyce Herschberger
Board Member
 1.0 X           0 0 0
(13) Dr Jesse Weigel
Board Member
 1.0 X           0 0 0
(14) MARK T PILE
President/CEO
 40.0     X       318,970 0 243,723
(15) RICHARD M BARGER
Executive VP/CFO
 40.0     X       251,347 0 58,388
(16) LINDA A CIAMPI
SVP OF FAMILY/COMM MINISTRIES
 40.0       X     332,121 0 38,604
(17) ALICE M CLARK
SVP OF HUMAN RESOURCE SVCS
 40.0       X     296,266 0 128,281
Form 990 (2010)
Form 990 (2010)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(18) TAMA M CAREY
EVP OF SENIOR LIVING SERVICES
 40.0       X     207,943 0 34,311
(19) MARY ELLEN DICKEY
SVP OFFICE OF ADVANCEMENT
 40.0       X     178,884 0 64,624
(20) DAVID B BAKER
SVP, Chief Information Officer
 40.0       X     155,529 0 59,975
(21) Trang Tran
Executive Rehab Services
 40.0         X   223,298 0 42,201
(22) JOHN J PALKOVITZ
VP, Financial Services
 40.0         X   155,199 0 26,625
(23) BECKEY L VANETTEN
VP, Clinical Operations
 40.0         X   145,087 0 33,189
(24) Scott Habecker
VP FIN. PLANNING/BUS. DEVLPMT.
 40.0         X   176,023 0 22,632
(25) JEANNE OSKI
EXECUTIVE DIRECTOR
 40.0         X   134,929 0 44,866










1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 2,575,596 0 797,419
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet27
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
 
No
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
Yes
 
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
Morrison Management Company
Po Box 102289
ATLANTA,GA303682289 		Culinary/Housekpng 19,369,146
Wagman Construction Inc
PO Box 15076
YORK,PA17405 		Construction 5,682,600
Healthcare Service Group Inc
3220 Tillman Dr Suite 300
BENSALEM,PA19020 		Housekeeping 1,988,745
Family Design Resources Inc
471 JPL Wick Drive
HARRISBURG,PA17111 		SWAN Program Service 7,427,359
Prelude Systems
3911 Hartzdale Drive
CAMP HILL,PA17011 		IT Support 3,084,870
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet51
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a 133,453
b Membership dues....1b  
c Fundraising events....1c 269,144
d Related organizations...1d 1,100,004
e Government grants (contributions)1e 1,655,532
f All other contributions, gifts, grants, and
similar amounts not included above1f 		2,597,353
g Noncash contributions included in lines 1a-1f:$ 108,584
h Total. Add lines 1a-1f.......MediumBullet 5,755,486
Program Service Revenue Business Code
2a SENIOR LIVING SERVICES 623,000 137,086,507 137,086,507    
b FAMILY AND COMMUNITY MINISTRIES 621,400 25,579,730 25,579,730    
c STATEWIDE ADOPTION AND PERMANENCY NETWORK 900,099 40,582,151 40,582,151    
d OTHER PROGRAM SERVICES 900,099 1,058,907 1,058,907    
e
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 204,307,295
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 2,655,374   2,417 2,652,957
4 Income from investment of tax-exempt bond proceeds..MediumBullet 973,013     973,013
5 Royalties............MediumBullet 0      
(i) Real (ii) Personal
6a Gross Rents 857,838  
b Less: rental expenses 778,803  
c Rental income or (loss) 79,035  
d Net rental income or (loss).......MediumBullet 79,035 228,683 -149,648  
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 98,558,694 300,228
b Less: cost or other basis and sales expenses 88,042,420 47,351
c Gain or (loss) 10,516,274 252,877
d Net gain or (loss)..........MediumBullet 10,769,151     10,769,151
8a Gross income from fundraising events (not including
$ 269,144
of contributions reported on line 1c). See Part IV, line 18 ...
a 49,620
b Less: direct expenses ...b 75,375
c Net income or (loss) from fundraising events..MediumBullet -25,755   -25,755
9a Gross income from gaming activities.
See Part IV, line 19 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from gaming activities...MediumBullet 0      
10a Gross sales of inventory, less
returns and allowances .
a  
b Less: cost of goods sold ..b  
c Net income or (loss) from sales of inventory..MediumBullet 0      
Miscellaneous Revenue Business Code
11a TRUST INCOME 900,099 924,053 924,053    
b OTHER FEES 541,610 19,358 19,358    
c VENDING REVENUE 900,099 28,235 28,235    
d All other revenue .... 234,158 234,158    
e Total. Add lines 11a–11d ......MediumBullet 1,205,804
12 Total revenue. See Instructions....MediumBullet 225,719,403 205,741,782 -147,231 14,369,366
Form 990 (2010)
Form 990 (2010)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII. 		(A)
Total expenses 		(B)
Program service expenses 		(C)
Management and general expenses 		(D)
Fundraising expenses
1 Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21 365,850 365,850
2 Grants and other assistance to individuals in the U.S. See Part IV, line 22 0  
3 Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16 0  
4 Benefits paid to or for members 0  
5 Compensation of current officers, directors, trustees, and key employees .... 2,025,954 0 1,797,624 228,330
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) .... 0      
7 Other salaries and wages 67,662,723 60,426,543 6,393,139 843,041
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) .... 4,029,784 3,539,998 456,282 33,504
9 Other employee benefits ....... 10,107,309 9,130,882 858,147 118,280
10 Payroll taxes ........... 4,881,278 4,268,927 548,198 64,153
11 Fees for services (non-employees):        
a Management ...... 153,380 153,380 0 0
b Legal ......... 1,089,119 18,772 1,070,347 0
c Accounting ........... 79,365 79,365 0  
d Lobbying ........... 51,000     51,000
e Professional fundraising. See Part IV, line 17.. 79,517 79,517
f Investment management fees ...... 266,501 23,259 243,242 0
g Other .......... 6,889,193 5,266,641 1,619,187 3,365
12 Advertising and promotion .... 1,225,901 1,069,152 152,426 4,323
13 Office expenses ....... 14,391,043 12,344,303 1,845,947 200,793
14 Information technology ...... 3,648,472 2,683,950 944,655 19,867
15 Royalties .. 0      
16 Occupancy ........... 11,456,009 10,750,122 705,887 0
17 Travel ............ 3,027,372 2,509,256 450,674 67,442
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ...... 0      
19 Conferences, conventions, and meetings .... 194,316 122,560 69,083 2,673
20 Interest ........... 9,991,104 9,346,798 644,306 0
21 Payments to affiliates ....... 0      
22 Depreciation, depletion, and amortization ..... 13,401,197 12,052,509 1,348,102 586
23 Insurance .............. 2,205,018 2,024,570 178,935 1,513
24 Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a SWAN CONTRACTED SERVICES 36,236,385 36,236,385 0 0
b CULINARY SERVICE 16,115,917 16,115,917 0 0
c HOUSEKEEPING SERVICES 4,681,993 4,634,489 47,504 0
d PA NH ASSESSMENT FEE 1,714,543 1,714,543 0 0
e UNRELATED BUS INCME TX RECEIPT -106,622 0 -106,622 0
f All other expenses 5,461,876 3,461,575 1,954,107 46,194
25 Total functional expenses. Add lines 1 through 24f 221,325,497 198,339,746 21,221,170 1,764,581
26 Joint costs. Check here MediumBullet if following
SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation 		       
Form 990 (2010)
Form 990 (2010)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing .......... 1,972 1 589,866
2 Savings and temporary cash investments ....... 71,008,079 2 29,422,153
3 Pledges and grants receivable, net ......... 1,061,688 3 1,420,549
4 Accounts receivable, net ......... 14,714,011 4 22,669,752
5 Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L ..........   5  
6 Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
Schedule L ..........   6  
7 Notes and loans receivable, net ............. 451,727 7 621,442
8 Inventories for sale or use ..............   8  
9 Prepaid expenses and deferred charges ............ 1,802,886 9 3,248,136
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 348,875,020
b Less: accumulated depreciation. ..... 10b 152,396,793 195,533,016 10c 196,478,227
11 Investments—publicly traded securities .......... 108,193,754 11 153,305,032
12 Investments—other securities. See Part IV, line 11 ......   12  
13 Investments—program-related. See Part IV, line 11 ..   13  
14 Intangible assets ......... 4,572,283 14 4,572,283
15 Other assets. See Part IV, line 11 ........... 27,720,336 15 32,096,251
16 Total assets. Add lines 1 through 15 (must equal line 34)... 425,059,752 16 444,423,691
Liabilities 17 Accounts payable and accrued expenses . 19,124,569 17 39,468,532
18 Grants payable ..........   18  
19 Deferred revenue .......... 59,751,983 19 61,950,018
20 Tax-exempt bond liabilities .......... 220,401,352 20 219,442,702
21 Escrow or custodial account liability. Complete Part IV of Schedule D..   21  
22 Payables to current and former officers, directors, trustees, key
employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L..........   22  
23 Secured mortgages and notes payable to unrelated third parties .. 11,068,683 23 10,722,320
24 Unsecured notes and loans payable to unrelated third parties ....   24  
25 Other liabilities. Complete Part X of Schedule D..... 26,997,633 25 29,720,004
26 Total liabilities. Add lines 17 through 25..... 337,344,220 26 361,303,576
Net Assets or Fund Balance Organizations that follow SFAS 117, check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets ..... 54,182,858 27 42,899,867
28 Temporarily restricted net assets ..... 3,852,253 28 6,725,120
29 Permanently restricted net assets ..... 29,680,421 29 33,495,128
Organizations that do not follow SFAS 117, check here MediumBullet and complete lines 30 through 34.
30 Capital stock or trust principal, or current funds .....   30  
31 Paid-in or capital surplus, or land, building or equipment fund .....   31  
32 Retained earnings, endowment, accumulated income, or other funds   32  
33 Total net assets or fund balances ..... 87,715,532 33 83,120,115
34 Total liabilities and net assets/fund balances ..... 425,059,752 34 444,423,691
Form 990 (2010)
Form 990 (2010)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response to any question in this Part XI . . . . . . . . . .
1
Total revenue (must equal Part VIII, column (A), line 12) . . .
1
225,719,403
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
221,325,497
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
4,393,906
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
87,715,532
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
-8,989,323
6
Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) . . . . . .
6
83,120,115
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response to any question in this Part XII . . . . . . . . . .
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?..
2a
 
No
b
Were the organization’s financial statements audited by an independent accountant?........
2b
Yes
 
c
If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O............................
2c
Yes
 
d
If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................
3a
Yes
 
b
If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..
3b
Yes
 
Form 990 (2010)
Additional Data


Software ID:  
Software Version:  
Form 990, Special Condition Description:
Special Condition Description
SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service
Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
right arrow Attach to Form 990 or Form 990-EZ. right arrow See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Part I
Reason for Public Charity Status (All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
f
g
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization? ................
11g(i)
 
 
(ii) a family member of a person described in (i) above? ......................
11g(ii)
 
 
(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................
11g(iii)
 
 
h
(i)
Name of supported organization 		(ii)
EIN 		(iii)
Type of organization (described on lines 1- 9 above or IRC section (see instructions)) 		(iv)
Is the organization in col. (i) listed in your governing document? 		(v)
Did you notify the organization in col. (i) of your support? 		(vi)
Is the organization in col. (i) organized in the U.S.? 		(vii)
Amount of support?
Yes No Yes No Yes No
Total                  

For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....            
2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......            
3 The value of services or facilities furnished by a governmental unit to the organization without charge..            
4 Total. Add lines 1 through 3..            
5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..            
6 Public Support. Subtract line 5 from line 4.            
Section B. Total Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
7 Amounts from line 4..            
8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..            
9 Net income from unrelated business activities, whether or not the business is regularly carried on..            
10 Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..            
11 Total support (Add lines 7 through 10).            
12
12
 
13
Section C. Computation of Public Support Percentage
14
14
 
15
15
 
16a
b
17a
b
18
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") . 2,969,757 6,754,798 7,460,850 6,286,903 5,755,486 29,227,794
2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose...... 77,236,119 167,092,200 178,416,906 194,825,038 204,281,540 821,851,803
3 Gross receipts from activities that are not an unrelated trade or business under section 513..            
4 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...            
5 The value of services or facilities furnished by a governmental unit to the organization without charge..            
6 Total. Add lines 1 through 5. 80,205,876 173,846,998 185,877,756 201,111,941 210,037,026 851,079,597
7a Amounts included on lines 1, 2, and 3 received from disqualified persons...            
b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.            
c Add lines 7a and 7b..            
8 Public Support (Subtract line 7c from line 6.)           851,079,597
Section B. Total Support
Calendar year (or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
9 Amounts from line 6... 80,205,876 173,846,998 185,877,756 201,111,941 210,037,026 851,079,597
10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources.. 3,313,936 7,355,314 6,493,227 4,015,691 3,857,070 25,035,238
b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.   180,693 135,777 69,968 -149,648 236,790
c Add lines 10a and 10b. 3,313,936 7,536,007 6,629,004 4,085,659 3,707,422 25,272,028
11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.            
12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.) 413,577 2,280,272 2,127,687 1,573,579 1,205,804 7,600,919
13 Total support (Add lines 9, 10c, 11 and 12.). 83,933,389 183,663,277 194,634,447 206,771,179 214,950,252 883,952,544
14
Section C. Computation of Public Support Percentage
15
15
96.281 %
16
16
95.930 %
Section D. Computation of Investment Income Percentage
17
17
2.859 %
18
18
3.180 %
19a
b
20
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
 
Explanation
Other income is comprised of revenue from trust income and other miscellaneous revenue sources.
 
 
 
Schedule A (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  
Schedule B
(Form 990, 990-EZ,
or 990-PF)
Department of the Treasury
Internal Revenue Service
Schedule of Contributors
Arrow Bullet Attach to Form 990, 990-EZ, or 990-PF.
OMB No. 1545-0047
2010
Name of organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Organization type (check one):
Filers of:
Section:
Form 990 or 990-EZ





Form 990-PF




Check if your organization is covered by the General Rule or a Special Rule.  
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.
General Rule—
Special Rules
......................... Arrow Bullet   $    
Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2 of its Form 990, or check the box in the heading of its
Form 990-EZ, or on line 2 of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).
For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.
Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part I
Name of organization
Diakon Lutheran Social Ministries
  		Employer identification number

23-1857015
Part I
Contributors (see Instructions)
     
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
RESTRICTED
RESTRICTED
 

     
RESTRICTED
RESTRICTED  
RESTRICTED, RESTRICTED   RESTRICTED

$RESTRICTED




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part II
Name of organization
Diakon Lutheran Social Ministries
  		Employer identification number

23-1857015
Part II
Noncash Property (see Instructions)
     
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part III
Name of organization
Diakon Lutheran Social Ministries
  		Employer identification number

23-1857015
Part III
Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
aggregating more than $1,000 for the year. (Complete columns (a) through (e) and the following line entry.)
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet $  
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Additional Data


Software ID:  
Software Version:  
SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet Complete if the organization is described below.
SchCMd Bullet Attach to Form 990 or Form 990-EZ. SchCMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
If the organization answered “Yes,” to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet Section 527 organizations: Complete Part I-A only.
If the organization answered “Yes,” to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part II-A. Do not complete Part II-B.
Round Bullet Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered “Yes,” to Form 990, Part IV, Line 5 (Proxy Tax) or Form 990-EZ, Part V, line 35a (Proxy Tax), then
Round Bullet Section 501(c)(4), (5), or (6) organizations: Complete Part III.
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Part I-A
Complete if the organization is exempt under section 501(c) or is a section 527 organization.

1
Provide a description of the organization's direct and indirect political campaign activities on behalf of or in opposition to candidates for public office in Part IV.
2
Political expenditures ....................................SchCMd Bullet
$  
3
Volunteer hours ........................................
 

Part I-B
Complete if the organization is exempt under section 501(c)(3).
1
Enter the amount of any excise tax incurred by the organization under section 4955 .........SchCMd Bullet
$  
2
Enter the amount of any excise tax incurred by organization managers under section 4955 ......SchCMd Bullet
$  
3
If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............
4a
Was a correction made? .........................................
b
If "Yes," describe in Part IV.
Part I-C
Complete if the organization is exempt under section 501(c) except section 501(c)(3).
1
Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet
$  
2
Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt funtion activities ....................................SchCMd Bullet

$  
3
Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b..SchCMd Bullet

$  
4
Did the filing organization file Form 1120-POL for this year? ..........................
5
Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.
(a) Name (b) Address (c) EIN (d) Amount paid from filing organization's funds. If none, enter -0-. (e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.










For Privacy Act and Paperwork Reduction Act Notice, see the instructions for Form 990.
Cat. No. 50084S
Schedule C (Form 990 or 990-EZ) 2010

Schedule C (Form 990 or 990-EZ) 2010
Page 2
Part II-A
Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).
A Check
B Check
Limits on Lobbying Expenditures
(The term "expenditures" means amounts paid or incurred.) 		(a) Filing
Organization's
Totals 		(b) Affiliated Group
Totals
1a Total lobbying expenditures to influence public opinion (grass roots lobbying) ......    
b Total lobbying expenditures to influence a legislative body (direct lobbying) .......    
c Total lobbying expenditures (add lines 1a and 1b) ...................    
d Other exempt purpose expenditures ........................    
e Total exempt purpose expenditures (add lines 1c and 1d) ...............    
f Lobbying nontaxable amount. Enter the amount from the following table in both
columns.		    
  If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:    
  Not over $500,00020% of the amount on line 1e.    
  Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.    
  Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.    
  Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.    
  Over $17,000,000$1,000,000.    
       
g Grassroots nontaxable amount (enter 25% of line 1f) .................    
h Subtract line 1g from line 1a. If zero or less, enter -0-. ................    
i Subtract line 1f from line 1c. If zero or less, enter -0-. ................    
j If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting
section 4911 tax for this year? ......................................

4-Year Averaging Period Under Section 501(h)
(Some organizations that made a section 501(h) election do not have to complete all of the five
columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
  Calendar year (or fiscal year
beginning in) 		(a) 2007 (b) 2008 (c) 2009 (d) 2010 (e) Total
             
2a Lobbying non-taxable amount          
             
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		         
             
c Total lobbying expenditures          
             
d Grassroots non-taxable amount          
             
e Grassroots ceiling amount
(150% of line 2d, column (e))		          
             
f Grassroots lobbying expenditures          
Schedule C (Form 990 or 990-EZ) 2010


Schedule C (Form 990 or 990-EZ) 2010
Page 3
Part II-B
Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).
(a)
Yes
No
(b)
Amount
1
During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:
a
Volunteers? .........................................
 
No
b
Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....
Yes
 
c
Media advertisements? ....................................
 
No
 
d
Mailings to members, legislators, or the public? .........................
Yes
 
 
e
Publications, or published or broadcast statements? .......................
Yes
 
 
f
Grants to other organizations for lobbying purposes? .......................
 
No
 
g
Direct contact with legislators, their staffs, government officials, or a legislative body? ........
Yes
 
72,818
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
No
 
i
Other activities? If "Yes," describe in Part IV ..........................
 
No
 
j
Total. lines 1c through 1i ...................................
72,818
2a
Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....
 
No
b
If "Yes," enter the amount of any tax incurred under section 4912 .................
 
c
If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....
 
d
If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......
 
 
Part III-A
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).
Yes
No
1
Were substantially all (90% or more) dues received nondeductible by members? ................
1
 
 
2
Did the organization make only in-house lobbying expenditures of $2,000 or less? ................
2
 
 
3
Did the organization agree to carryover lobbying and political expenditures from the prior year? ..........
3
 
 
Part III-B
Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) if BOTH Part III-A, lines 1 and 2 are answered “No” OR if Part III-A, line 3 is answered “Yes”.
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) non-deductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).
a
Current year .........................................
2a
 
b
Carryover from last year ....................................
2b
 
c
Total ...........................................
2c
 
3
Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .
3
 
4
If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................
4
 
5
Taxable amount of lobbying and political expenditures (see instructions) ..............
5
 
Part IV
Supplemental Information
Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; and Part ll-B, line 1i.
Also, complete this part for any additional information.
Identifier Return Reference Explanation
Schedule C, Part II-B, 1b and 1g   In 2010, Diakon Lutheran Social Ministries engaged J.M. Uliana & Associates, LLC to conduct lobbying activities related to state legislation affecting long-term care and health and social service programs. Payments to J.M. Uliana & Associates, LLC, and amounts paid to Diakon Lutheran Social Ministries' staff totaled $72,818.
Schedule C, Part II-B, 1d   Amounts paid for mailings and publications were nominal.
Schedule C (Form 990 or 990EZ) 2010

Additional Data


Software ID:  
Software Version:  

SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11, or 12.
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Part I
Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.
(a) Donor advised funds (b) Funds and other accounts
1 Total number at end of year .......    
2 Aggregate contributions to (during year) ...    
3 Aggregate grants from (during year) ...    
4 Aggregate value at end of year .......    
5
Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............
6
Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.
Held at the End of the Year
a Total number of conservation easements ....................... 2a  
b Total acreage restricted by conservation easements .................. 2b  
c Number of conservation easements on a certified historic structure included in (a) ..... 2c  
d Number of conservation easements included in (c) acquired after 8/17/06 ........ 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet $  
8
Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................
9
In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.
1a
If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:
(i)
Revenues included in Form 990, Part VIII, line 1 ........................SchDMd Bullet $  
(ii)
Assets included in Form 990, Part X ..............................SchDMd Bullet $  
2
If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 relating to these items:
a
Revenues included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
Assets included in Form 990, Part X ...............................SchDMd Bullet $  
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 52283D
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.
5
During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........
Part IV
Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIV and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21? .....................
b
If “Yes,” explain the arrangement in Part XIV.
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current Year (b)Prior Year (c)Two Years Back (d)Three Years Back (e)Four Years Back
1a Beginning of year balance .... 10,392,169 8,760,586 8,474,260
b Contributions ........ 191,217 1,050,631 286,326
c Investment earnings or losses ... 1,982,276 1,962,231  
d Grants or scholarships .....      
e Other expenditures for facilities
and programs ........ 		415,928 1,381,279  
f Administrative expenses ....      
g End of year balance ...... 12,149,734 10,392,169 8,760,586
2
Provide the estimated percentage of the year end balance held as:
a
Board designated or quasi-endowment: SchDMd Bullet  
b
Permanent endowment: SchDMd Bullet100.000 %
c
Term endowment: SchDMd Bullet  
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
No
(ii) related organizations ........................
3a(ii)
Yes
 
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
Yes
 
4
Describe in Part XIV the intended uses of the organization's endowment funds.
Part VI
Investments—Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of investment (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................   22,050,909 22,050,909
b Buildings ................   168,636,207 94,062,504 74,573,703
c Leasehold improvements ............   26,152 19,141 7,011
d Equipment ................   39,818,565 25,654,611 14,163,954
e Other .................   118,343,187 32,660,537 85,682,650
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 196,478,227
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 3
Part VII
Investments—Other Securities. See Form 990, Part X, line 12.
(a) Description of security or category
(including name of security)		 (b)Book value (c) Method of valuation:
Cost or end-of-year market value
(1)Financial derivatives    
(2)Closely-held equity interests    
Other








Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)Small Bullet  
Part VIII
Investments—Program Related. See Form 990, Part X, line 13.
(a) Description of investment type (b) Book value (c) Method of valuation:
Cost or end-of-year market value








Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)Small Bullet  
Part IX
Other Assets. See Form 990, Part X, line 15.
(a) Description (b) Book value
(1) INTEREST RECEIVABLE 467,142
(2) FUNDS HELD IN TRUST AND 25,651,170
(3) ESTIMATED THIRD PARTY SETTLE 1,396,187
(4) INVESTMENT IN JOINT VENTURES 719,558
(5) DEFERRED BOND ISSUANCE COSTS 3,107,358
(6) OTHER ASSETS 754,836



Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........Small Bullet 32,096,251
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Amount
Federal Income Taxes 0
ESTIMATED THIRD-PARTY PAYOR SE 1,179,871
MINIMUM PENSION LIABILITY 18,465,811
INTEREST RATE SWAP AGREEMENTS 7,975,424
RESIDENT DEPOSITS 915,150
OTHER PAYABLES 808,054
DUE TO AFFILIATES 375,694



Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 29,720,004
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 4
Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1 Total revenue (Form 990, Part VIII, column (A), line 12) .................... 1 225,719,403
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 221,325,497
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3 4,393,906
4 Net unrealized gains (losses) on investments .......................... 4  
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV) ................................. 8 -1,572,150
9 Total adjustments (net). Add lines 4 - 8 ............................. 9 -1,572,150
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10 2,821,756
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1 227,588,192
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a  
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV): ............ 2d 4,548,780
e Add lines 2a through 2d ..................... 2e 4,548,780
3 Subtract line 2e from line 1..................... 3 223,039,412
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a 191,499
b Other (Describe in Part XIV): ........... 4b 2,488,492
c Add lines 4a and 4b....................... 4c 2,679,991
5 Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ...... 5 225,719,403
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1 223,454,498
2 Amounts included on line 1 but not on Form 990, Part IX, line 25:
a Donated services and use of facilities .......... 2a  
b Prior year adjustments .............. 2b  
c Other losses ................ 2c  
d Other (Describe in Part XIV): ............ 2d 4,386,940
e Add lines 2a through 2d...................... 2e 4,386,940
3 Subtract line 2e from line 1..................... 3 219,067,558
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b .. 4a 191,499
b Other (Describe in Part XIV): ............ 4b 2,066,440
c Add lines 4a and 4b....................... 4c 2,257,939
5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ...... 5 221,325,497
Part XIV
Supplemental Information
Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
Schedule D, Part V, line 4   The intended uses of the organization's endowment funds are 1) benevolent care, 2) expansion of programs, and 3) to support current programs and activities.
FIN 48 FOOTNOTE Schedule D, Part X, LINE 2 Diakon and its controlled affiliates, with the exception of ISM, a Pennsylvania for-profit corporation, are not-for-profit corporations as described in Section 501(c)(3) of the Internal Revenue Code and are exempt from federal income taxes. The Corporation uses a threshold of more likely than not for recognition and derecognition of the tax positions taken or expected to be taken in a tax return. The Corporation does not believe that there are any unrecognized tax benefits or liabilities that should be recorded.
SCHEDULE D, PARTS XI, XII AND XIII   Schedule D, part XI, line 8 Other Excess(Deficit) of Other entities in consolidated financial statements: Diakon excess before equity in losses of subsidiaries 19,182 Diakon Lutheran Fund Excess 378,794 Diakon Housing and Development, Inc. deficit (84,604) Diakon Lutheran Senior Housing at Luther Meadows excess 37,624 Diakon Lutheran senior housing at Heilman House deficit (36,937) Institute for Strategic Management, Inc. deficit (152,242) Susquehanna Housing, Inc. 23 __________ Subtotal 161,840 Revenue not included in Excess(deficit) in consolidated financial statements: Tempporarily restricted contributions (1,859,326) Permanently restricted contributions (191,217) Temporarily restricted investment loss 6,634 Temporarily restricted net assets released 1,621,857 _________ Subtotal (422,052) Other changes: Equity in gains of joint ventures 72,018 Decrease in fair value of swap agreements DLSM (1,383,956) __________ Subtotal (1,311,938) __________ Total (1,572,150) ========== Schedule D, Part XII Line 2d other Revenue of other entities in consolidated financial statements: Diakon Lutheran Fund 1,538,918 Diakon 583,851 Diakon Housing and Development, Inc. 86,529 Diakon Lutheran Senior Housing at Luther Meadows 507,837 Diakon Lutheran Senior Housing at Heilman House 481,629 Institute for Strategic Management, Inc. 495,815 Susquehanna Housing, Inc. 23 _________ Subtotal 3,694,602 Items reclassified from expense for 990 reporting purposes: Rental Expenses 778,803 Fundraising Expenses 75,375 _________ Subtotal 854,178 _________ Total 4,548,780 ========= Schedule D Part XII line 4b Other Revenue not included in excess(deficit) in consolidated financial statements: Temporarily restricted contributions 1,859,326 Permanently restricted contributions 191,217 Temporarily restricted investment loss (6,634) Temporarily restricted net assets released (1,621,857) _________ Subtotal 422,052 Revenue eliminated in consolidation in consolidated financial statements: Diakon Lutheran Fund Grant Income 1,100,004 Diakon Management fee 583,851 HUD Management fee 382,585 _________ Subtotal 2,066,440 _________ Total 2,488,492 ========= Schedule D part XIII Line 2d Other Expenses of other entities in consolidated financial statements: Diakon Lutheran Fund 1,160,124 Diakon 564,669 Diakon Housing and Development, Inc. 171,133 Diakon Lutheran Senior Housing at Luther Meadows 470,213 Diakon Lutheran Senior Housing at Heilman House 518,566 Institute for Strategic Management, Inc. 648,057 __________ Subtotal 3,532,762 Items reclassified from expense for 990 reporting purposes: Rental Expenses 778,803 Fundraising Expenses 75,375 __________ Subtotal 854,178 __________ Total 4,836,940 ========== Schedule D part XIII line 4b Other Expenses eliminated in consolidation in consolidated financial statements: Diakon Lutheran Fund Grant Income 1,100,004 Diakon Management fee 583,851 HUD Management fee 382,585 __________ Total 2,066,440 ==========
Schedule D (Form 990) 2010

Additional Data


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SCHEDULE G
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Supplemental Information Regarding
Fundraising or Gaming Activities
Complete if the organization answered "Yes" to Form 990, Part IV, lines 17, 18, or 19,
or if the organization entered more than $15,000 on Form 990-EZ, line 6a.
right arrow Attach to Form 990 or Form 990-EZ. right arrow See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Part I
Fundraising Activities. Complete if the organization answered "Yes" to Form 990, Part IV, line 17.
1
Indicate whether the organization raised funds through any of the following activities. Check all that apply.
a e
b f
c g
d
2a
Did the organization have a written or oral agreement with any individual (including officers, directors, trustees
or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services?
b
If “Yes,” list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is
to be compensated at least $5,000 by the organization. Form 990-EZ filers are not required to complete this table.
(i) Name and address of individual
or entity (fundraiser) 		(ii) Activity (iii) Did fundraiser have custody or control of contributions? (iv) Gross receipts
from activity 		(v) Amount paid to
(or retained by)
fundraiser listed in
col. (i) 		(vi) Amount paid to
(or retained by)
organization
Yes No
Coremessagink
334 Valleybrook Dr
 
Lancaster, PA17601 		Direct Mailing   No 108,513 37,850 70,663
CCS
461 FIFTH AVENUE
3RD FLOOR
NEW YORK, NY10017 		FUNDRAISING STRATEGY   No 0 41,667 -41,667
Total .................right arrow 108,513 79,517 28,996
3
List all states in which the organization is registered or licensed to solicit funds or has been notified it is exempt from registration or licensing.
MD, PA
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50083H
Schedule G (Form 990 or 990-EZ) 2010
Schedule G (Form 990 or 990-EZ) 2010
Page 2
Part II
Fundraising Events. Complete if the organization answered "Yes" to Form 990, Part IV, line 18, or reported more than $15,000 on Form 990-EZ, line 6a. List events with gross receipts greater than $5,000.
(a) Event #1

Dinner 1
(event type) 		(b) Event #2

Dinner 2
(event type) 		(c) Other Events

1
(total number) 		(d) Total Events
(Add col. (a) through col. (c))
VerticalRevenue 1 Gross receipts . . . 133,819 114,913 70,032 318,764
2 Less: Charitable
contributions . . . 		113,779 97,033 58,332 269,144
3 Gross income (line 1
minus line 2) . . . 		20,040 17,880 11,700 49,620
VerticalDirectExpenses 4 Cash prizes . . .        
5 Non-cash prizes . .        
6 Rent/facility costs . . 7,645 1,200 2,423 11,268
7 Food and beverages . .   9,396 11,187 20,583
8 Entertainment . . .        
9 Other direct expenses . 9,240 23,943 10,341 43,524
10 Direct expense summary. Add lines 4 through 9 in column (d) ........... right arrow 75,375
11 Net income summary. Combine lines 3 and 10 in column (d)............ right arrow -25,755
Part III
Gaming. Complete if the organization answered "Yes" to Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a.
VerticalRevenue (a) Bingo (b) Pull tabs/Instant
bingo/progressive bingo 		(c) Other gaming (d) Total gaming (Add col. (a) through col. (c))
1 Gross revenue . . . .        
VerticalDirectExpenses 2 Cash prizes . . . .        
3 Non-cash prizes . . .        
4 Rent/facility costs . . .        
5 Other direct expenses . .        
6 Volunteer labor . . .
 
 
 
7 Direct expense summary. Add lines 2 through 5 in column (d) ........... right arrow  
8 Net gaming income summary. Combine lines 1 and 7 in column (d) .......... right arrow  
9
Enter the state(s) in which the organization operates gaming activities:
a
Is the organization licensed to operate gaming activities in each of these states? ............
b
If "No," Explain:
 
10a
Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? .....
b
If "Yes," Explain:
 
11
Does the organization operate gaming activities with nonmembers? .................
12
Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity
formed to administer charitable gaming? ...........................
Schedule G (Form 990 or 990-EZ) 2010
Schedule G (Form 990 or 990-EZ) 2010
Page 3
13
Indicate the percentage of gaming activity operated in:
a
The organization's facility ......................
13a
 
b
An outside facility ........................
13b
 
14
Provide the name and address of the person who prepares the organization's gaming/special events books and records:
Name right arrow
Address right arrow
15a
Does the organization have a contract with a third party from whom the organization receives gaming
revenue? ......................................
b
If "Yes," enter the amount of gaming revenue received by the organization right arrow $   and the
amount of gaming revenue retained by the third party right arrow $   .
c
If "Yes," enter name and address:
Name right arrow
Address right arrow
 
 
16
Gaming manager information:
Name right arrow
Gaming manager compensation right arrow $  
Description of services provided right arrow
 
17
Mandatory distributions:
a
Is the organization required under state law to make charitable distributions from the gaming proceeds to
retain the state gaming license? ............................
b
Enter the amount of distributions required under state law distributed to other exempt organizations or spent
in the organization's own exempt activities during the tax year right arrow$  
Part IV
Complete this part to provide additional information for responses to quuestion on Schedule G (see instructions.)
Identifier ReturnReference Explanation
FORM 990, SCHEDULE G, PART II   Fundraising events serve many purposes and are not evaluated solely on the basis of dollars raised. Those purposes are to provide an opportunity for corporate support, create an environment to introduce new donors to the organization, educate large numbers of individuals and corporations on a specific program or programs, and raise funds while engaging corporate leaders in the fundraising process. Gross receipts reported do not reflect certain gift-in-kind donations. Tiger Printing prints and mails letters, including invitations and brochures. DLSM purchases mailing lists from Specialized Fundraising Services.
Schedule G (Form 990 or 990-EZ) 2010
Additional Data


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Schedule I
(Form 990)
Department of the Treasury
Internal Revenue Service
Grants and Other Assistance to Organizations,
Governments and Individuals in the United States
Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet Attach to Form 990
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number
23-1857015
Part I
General Information on Grants and Assistance
1
Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................
2
Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.
Part II
Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet
(a) Name and address of organization
or government		 (b) EIN (c) IRC Code section
if applicable		 (d) Amount of cash grant (e) Amount of non-cash
assistance		 (f) Method of valuation
(book, FMV, appraisal,
other)		 (g) Description of
non-cash assistance		 (h) Purpose of grant
or assistance
(1) Feast of Justice3101 Tyson Avenue
co/ Rev Tricia Neale
Philadelphia,PA19149 		26-0392596 501(c)(3) 5,600       Food and clothing
(2) Welcome Center2111 Sansom Street
c/o The Rev Violet C Little
Philadelphia,PA19103 		41-1568278 501(c)(3) 5,250       day ctr for homeless
(3) Christ Lutheran Church124 South 13th Street
c/o Rev Jody Silliker
Harrisburg,PA17104 		23-1445638 501(c)(3) 16,250       Free dental clinic
(4) Upper Susquehanna SynodPO Box 36
Lewisburg,PA17837 		36-3514272 501(c)(3) 22,500       Distribution Network
(5) AAHSA2519 Connecticut Ave NW
Washington,DC200081520 		13-6213525 501(c)(3) 25,000       ltc Solution Program
(6) DELAWAREMARYLAND SYNOD700 LIGHT ST
BALTIMORE,MD21230 		36-3514267 501(c)(3) 7,071       ANTI RACISM
(7) Lutheran Theological Seminary of Gettysburg61 Seminary Ridge
GETTYSBURG,PA173251795 		23-1365169 501(c)(3) 39,996       chair endowment
(8) Christ the King Lutheran Church730 S New Street
West Chester,PA19382 		23-2732797 501(c)(3) 13,000       Ministry for Deaf
(9) Luther Ridge at Seiders Hill160 Red Hrse Rd
Pottsville,PA17901 		30-0301370   84,636       Benevolent Care
(10) Village of Harbor Point611 Tressler Dr
Salisbury,MD21801 		20-5105131   78,927       Benevolent Care
(11) Assisted Living Frostburg VillageOne Kaylor Cr
Frostburg,MD21532 		20-5103941   20,903       Benevolent Care
(12) Lutheran Theol Sem of Phila7301 Germantown Ave
Philadelphia,PA19119 		23-1352657 501(c)(3) 20,000       Lutheran 101 BK/DVD
(13) ECLA Disaster Response39330 Treasure City
Chicago,IL60694 		41-1568278 501(c)(3) 11,918       Haiti Relief
2
Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image
10
3
Enter total number of other organizations ................................ . Bullet Image
3
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2010

Schedule I (Form 990) 2010
Page 2
Part III
Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.
(a)Type of grant or assistance (b)Number of
recipients		 (c)Amount of
cash grant		 (d)Amount of
non-cash assistance		 (e)Method of valuation (book,
FMV, appraisal, other)		 (f)Description of non-cash assistance













Part IV
Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.
Identifier Return Reference Explanation
SCHEDULE I SUPPLEMENTAL INFORMATION   Diakon Lutheran Social Ministries' grant review process includes annual visits and review of grantee budgets. DLSM does not provide a significant number of grants, and therefore does not require detailed monitoring of the use of grant funds. To promote congregational-based, community-focused social ministry efforts, DLSM annually provides small stipends to assist a range of organizations in meeting local needs. The grants assist congregations and organizations with initial efforts in creating services, especially with a type of service or in a region in which needs are unmet or funding may help those in need without unnecessarily duplicating existing services. Drawing from organizational resources to further DLSM's participation with congregations and other expressions of the church, these limited funds, not acquired through grants or recent contributions, are designated to support the work of local congregations or related social ministry-type efforts.
Schedule I (Form 990) 2010


Additional Data


Software ID:  
Software Version:  


Schedule J
(Form 990)
Department of the Treasury
Internal Revenue Service
Compensation Information
For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet Attach to Form 990. SchJMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Part I
Questions Regarding Compensation
Yes
No
1a
Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.
b
If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement orprovision of all the expenses described above? If "No," complete Part III to explain....
1b
Yes
 
2
Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....
2
 
No
3
Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply.
4
During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:
a
Receive a severance payment or change-of-control payment? ...............
4a
 
No
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........
4b
Yes
 
c
Participate in, or receive payment from, an equity-based compensation arrangement? ........
4c
 
No
If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.
Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.
5
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:
a
The organization? ...........................
5a
 
No
b
Any related organization? .........................
5b
 
No
If "Yes," to line 5a or 5b, describe in Part III.
6
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:
a
The organization? ...........................
6a
 
No
b
Any related organization? .........................
6b
 
No
If "Yes," to line 6a or 6b, describe in Part III.
7
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............
7
 
No
8
Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................
8
 
No
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 50053T
Schedule J (Form 990) 2010

Schedule J (Form 990) 2010
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use Schedule J-1 if additional space needed.
For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a.
(A) Name (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and other deferred compensation (D) Nontaxable
benefits		 (E) Total of columns
(B)(i)-(D) 		(F) Compensation
reported in prior
Form 990 or
Form 990-EZ
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1) MARK T PILE (i)
(ii)		 312,649
0 		360
0 		5,961
0 		222,579
0 		21,144
0 		562,693
0 		0
0
(2) RICHARD M BARGER (i)
(ii)		 245,897
0 		80
0 		5,370
0 		55,577
0 		2,811
0 		309,735
0 		0
0
(3) Trang Tran (i)
(ii)		 113,666
0 		150
0 		109,482
0 		32,348
0 		9,853
0 		265,499
0 		0
0
(4) JOHN J PALKOVITZ (i)
(ii)		 153,651
0 		150
0 		1,398
0 		7,698
0 		18,927
0 		181,824
0 		0
0
(5) BECKEY L VANETTEN (i)
(ii)		 138,056
0 		0
0 		7,031
0 		16,140
0 		17,049
0 		178,276
0 		0
0
(6) Scott Habecker (i)
(ii)		 175,026
0 		0
0 		997
0 		3,215
0 		19,417
0 		198,655
0 		0
0
(7) LINDA A CIAMPI (i)
(ii)		 188,680
0 		110
0 		143,331
0 		36,444
0 		2,160
0 		370,725
0 		128,866
0
(8) ALICE M CLARK (i)
(ii)		 149,782
0 		380
0 		146,104
0 		109,204
0 		19,077
0 		424,547
0 		114,400
0
(9) TAMA M CAREY (i)
(ii)		 205,288
0 		150
0 		2,505
0 		25,508
0 		8,803
0 		242,254
0 		0
0
(10) MARY ELLEN DICKEY (i)
(ii)		 173,857
0 		0
0 		5,027
0 		41,030
0 		23,594
0 		243,508
0 		0
0
(11) DAVID B BAKER (i)
(ii)		 153,588
0 		50
0 		1,891
0 		38,856
0 		21,119
0 		215,504
0 		0
0
(12) JEANNE OSKI (i)
(ii)		 133,167
0 		300
0 		1,462
0 		38,106
0 		6,760
0 		179,795
0 		0
0




Schedule J (Form 990) 2010

Schedule J (Form 990) 2010
Page 3
Part III
Supplemental Information
Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.
Identifier Return Reference Explanation
Schedule J, Part I, Question 1a   Tax indemnification and gross-up payments - included a bonus paid (with a gross-up payment) to employees who completed the Lifestyles Return Program, part of the DLSM wellness program. The gross-up payments, to net an established amount of money for the DLSM wellness program, were approved in the Compensation policy as revised effective August 1, 2010. The two individuals who received the life/wellness incentive and gross-up and the amounts of the incentive and gross-up are reported in Part VII, Section A, Column D and Schedule J, Part II, Columns B(ii) (Life/Wellness incentive) and B(iii) (amount of gross-up payment) are listed below: Alice M. Clark $317.80 Mark T. Pile $317.80
Schedule J, Part I, Question 3   See Schedule O in reference to Part VI, Section B, line 15 for a detailed description of the organization's Executive Compensation Policy.
Schedule J, Part I, Question 4b   Six key employees were offered and signed agreements which include a 457(f) supplemental nonqualified benefit; three were effective in 1/1/2006, two were effective 7/1/2008 and one was effective June 1, 2009. This benefit was added to recognize the significant contributions of identified key employees in the past, and in consideration of expected contribution to the growth of DLSM, its affiliates and subsidiaries in the future, and in exchange for additional income benefits and a new supplemental executive retention plan. The annual accruals and interest earnings for the 457(f) supplemental nonqualified benefit plans are reported in Part VII, Section A, Column F and Schedule J, Part II, Column C. As a condition for participating in the 457(F) supplemental nonqualified benefit plan, the key employees who have signed the applicable agreements must be employed at the vesting date and have agreed to certain restrictive covenants that prohibit the key employee, for a specified period of time, from accepting employment with competitor organizations. Three individuals reached the vesting date and received a payout of the accrued benefit and interest as of 12/31/2010 which is included in reportable compensation in Part VII, Section A and Schedule J, Part II, column B(iii) and are listed below: Linda M. Ciampi $136,598 Alice M. Clark $144,783 Trang Tran $107,729 The six individuals who participated in the 457 (F) plan in 2010 and the amounts of this plan that are reported in Part VII, Section A, Column F, and Schedule J, Part II, Column C are listed below: Linda A. Ciampi $ 7,732 Alice M. Clark $ 30,383 Trang Tran $ 22,893 David B. Baker $ 25,955 Mary Ellen Dickey $ 28,219 Jeanne Oski $ 22,285 The retention agreements were not renewed for the three individuals who vested and received a payout of the accrued benefit and interest. Part III: The employer matching contribution to the defined contribution plan was suspended as of July of 2010. The matching contributions made through June are reflected in Schedule J, Part II, column C and Part VII, Section A, Column F.
Schedule J (Form 990) 2010

Additional Data


Software ID:  
Software Version:  
Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Schedule O (Form 990).
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number
23-1857015
Part I
Bond Issues
(a) Issuer Name (b) Issuer EIN (c) CUSIP # (d) Date Issued (e) Issue Price (f) Description of Purpose (g) Defeased (h) On
Behalf of
Issuer 		(i) Pool
financing
Yes No Yes No Yes No
A See Schedule O
  		23-6003119 ScheduleO 09-30-2003 26,020,000 Schedule O   X   X   X
B Cumberland County Municipal Authority
  		23-6003119 230614BU2 07-01-2005 10,605,000 Schedule O   X   X   X
C Cumberland County Municipal Authority
  		23-6003119 230614CK3 01-30-2007 63,635,926 Schedule O   X   X   X
D Cumberland County Municipal Authority
  		23-6003119 230614EK1 12-10-2009 122,154,764 Schedule O   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired. . . . . 1,685,000 1,150,000    
2 Amount of bonds defeased . . . .        
3 Total proceeds of issue . . . . 26,738,822 10,631,897 69,902,548 122,288,626
4 Gross proceeds in reserve funds . . 6,174,498   6,174,498 12,356,718
5 Capitalized interest from proceeds. 8,917,371   8,917,371 1,018,286
6 Proceeds in refunding escrow. . . . .        
7 Issuance costs from proceeds . . . 513,121 189,735 1,051,817 1,988,038
8 Credit enhancement from proceeds. 1,033,805 132,663    
9 Working capital expenditures from proceeds . .        
10 Capital expenditures from proceeds . . 4,393,293 10,309,499 37,785,716 4,783,225
11 Other spent proceeds . . 20,100,853     76,789,281
12 Other unspent proceeds. . . 1,354,648   15,973,146 25,353,078
13 Year of substantial completion . . . 2004 2004
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue? X     X X X    
15 Were the bonds issued as part of an advance refunding issue?   X   X   X   X
16 Has the final allocation of proceeds been made? . .   X X     X   X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . X   X   X   X  
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . .   X   X   X   X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . X   X   X     X
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2010
Schedule K (Form 990) 2010
Page 2
Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use? X   X   X     X
b Are there any research agreements that may result in private business use of bond-financed property? . .   X   X   X   X
c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? . X   X   X   X  
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . . . . . . . . . . . . . SchKMediumBullet 3.652 % 1.995 % 1.721 % 1.628 %
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . SchKMediumBullet 0.019 %      
6 Total of lines 4 and 5 . . .. . . . . . 3.671 % 1.995 % 1.721 % 1.628 %
7 Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities? X   X   X   X  
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . . X     X   X   X
2 Is the bond issue a variable rate issue? X   X     X   X
3a Has the organization or the governmental issuer entered into a hedge with respect to the bond issue? X   X     X   X
b Name of provider . Wells Fargo
  		Wells Fargo
  		 
  		 
 
c Term of hedge . . 18. 18.    
d Was the hedge superintegrated? .   X   X        
e Was a hedge terminated? .   X   X        
4a Were gross proceeds invested in a GIC? .   X   X X     X
b Name of provider . citigroup
  		 
  		citigroup
  		 
 
c Term of GIC . . 2.7   2.7  
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . X       X      
5 Were any gross proceeds invested beyond an available temporary period? . X     X   X   X
6 Did the bond issue qualify for an exception to rebate? . . .   X   X   X   X
Schedule K (Form 990) 2010

Schedule K (Form 990) 2010
Page 3
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule K (see instructions).
Identifier Return Reference Explanation
See Schedule O    
Schedule K (Form 990) 2010

Additional Data


Software ID:  
Software Version:  

Schedule L
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Transactions with Interested Persons
MediumBullet Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet Attach to Form 990 or Form 990-EZ. MediumBulletSee separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Part I
Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1(a) Name of disqualified person (b) Description of transaction (c) Corrected?
Yes No





2
Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image$
 
3
Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image$
 

Part II
Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.
(a) Name of interested person and purpose (b) Loan to or from the organization? (c)Original principal amount (d)Balance due (e) In default? (f) Approved by board or committee? (g)Written agreement?
To From Yes No Yes No Yes No
Total ...............Small Bullet $  
Part III
Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.
(a) Name of interested person (b)Relationship between interested person and the organization (c)Amount of grant or type of assistance
For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2010
Schedule L (Form 990 or 990-EZ) 2010
Page 2
Part IV
Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues?
Yes No
(1) RICHARD M BARGER ret partner of E EVP & CFO of DLSM 91,465 CONSULTING SERVICES FOR FMV   No
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule L (see instructions).
Identifier Return Reference Explanation
Schedule L (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  




SCHEDULE M
(Form 990)

Department of the Treasury
Internal Revenue Service
NonCash Contributions
Right pointing arrow large imageComplete if the organization answered "Yes" on Form 990, Part IV, lines 29 or 30.
Right pointing arrow large image Attach to Form 990.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Part I
Types of Property
(a)
Check if applicable 		(b)
Number of Contributions or items contributed 		(c)
Contribution amounts reported on
Form 990, Part VIII, line 1g 		(d)
Method of determining
contribution amounts
1 Art—Works of art ....        
2 Art—Historical treasures .        
3 Art—Fractional interests ..        
4 Books and publications ..      
5 Clothing and household
goods ....... 		     
6 Cars and other vehicles ..        
7 Boats and planes ....        
8 Intellectual property ...        
9 Securities—Publicly traded . X 1 4,842 FMV
10 Securities—Closely held stock .        
11 Securities—Partnership, LLC,
or trust interests .... 		       
12 Securities—Miscellaneous ..        
13 Qualified conservation
contribution—Historic
structures ..... 		       
14 Qualified conservation
contribution—Other ... 		       
15 Real estate—Residential .        
16 Real estate—Commercial .. X 3 10,070 FMV
17 Real estate—Other ...        
18 Collectibles .....        
19 Food inventory ...        
20 Drugs and medical supplies .        
21 Taxidermy ......        
22 Historical artifacts ....        
23 Scientific specimens ..        
24 Archeological artifacts ...        
25 Other Right pointing arrow large image ( Meals ) X 343 14,469 FMV
26 Other Right pointing arrow large image ( APPLIANCES ) X 2 0 FMV
27 Other Right pointing arrow large image ( ITEMS FOR FUNDRAISING EVE ) X 92 0 FMV
28 Other Right pointing arrow large image ( BABY SUPPLIES ) X 5 0 FMV
Other Right pointing arrow large image ( BOOKS ) X 2 0 FMV
Other Right pointing arrow large image ( CHRISTMAS GIFTS ) X 6 0 FMV
Other Right pointing arrow large image ( CLOTHING AND HOUSEHOLD GO ) X 34 0 FMV
Other Right pointing arrow large image ( COMPLIMENTARY ROOM ) X 3 0 FMV
Other Right pointing arrow large image ( DISCOUNT FOR AV PRODUCTIO ) X 1 0 FMV
Other Right pointing arrow large image ( FOOD/BEVERAGE ) X 5 0 FMV
Other Right pointing arrow large image ( FURNITURE & EQUIPMENHT ) X 23 0 FMV
Other Right pointing arrow large image ( GIFT CERTIFICATES ) X 105 0 FMV
Other Right pointing arrow large image ( WALK-IN SHOWER TUB ) X 1 0 FMV
Other Right pointing arrow large image ( CUSTOM IMPROVEMENTS TO CO ) X 15 79,203 FMV
29
Number of Forms 8283 received by the organization during the tax year for contributions
for which the organization completed Form 8283, Part IV, Donee Acknowledgement ...
29
 
Yes
No
30a
During the year, did the organization receive by contribution any property reported in Part I, lines 1-28 that it
must hold for at least three years from the date of the initial contribution, and which is not required to be used
for exempt purposes for the entire holding period? ..................
30a
 
No
b
If "Yes," describe the arrangement in Part II.
31
Does the organization have a gift acceptance policy that requires the review of any non-standard contributions?
31
 
No
32a
Does the organization hire or use third parties or related organizations to solicit, process, or sell non-cash
contributions? ............................
32a
 
No
b
If "Yes," describe in Part II.
33
If the organization did not report revenues in column (c) for a type of property for which column (a) is checked,
describe in Part II.
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 51227J
Schedule M (Form 990) 2010
Schedule M (Form 990) 2010
Page 2
Part II
Supplemental Information. Complete this part to provide the information required by Part I, lines 30b,
32b, and 33. Also complete this part for any additional information.
Identifier Return Reference Explanation
Schedule M (Form 990) 2010
Additional Data


Software ID:  
Software Version:  
SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Identifier Return Reference Explanation
Form 990, Part III, Question 1   Diakon Lutheran Social Ministries ("DLSM"), a Pennsylvania non-profit corporation, offers a range of senior living, health care, and social services in Pennsylvania, Maryland, and Delaware, including nursing and rehabilitative centers, continuing care retirement communities, personal care and assisted living accommodations, community-based services for older adults, adoption and foster care, child day care, counseling and related mental-health supportive services, in-home services, hospice and home health services, a range of outdoor-based programs for at-risk youths, and a program that links corporate donations of in-kind goods with non-profit organizations that provide those goods, free of charge, to local people in need. DLSM is affiliated with the Evangelical Lutheran Church in America through Lutheran Services in America and is one of the larger Lutheran social ministry organizations in the United States. DLSM, whose name derives from a Greek term for "one assigned by the church to minister to the needs of others," offers programs that aid people from the newborn through the most senior at approximately 35 service centers and senior living communities in its three-state territory. Statement of Program Service Accomplishments In 2010, Diakon Lutheran Social Ministries served approximately 71,650 individuals in Pennsylvania, Maryland, and Delaware through such services as residential accommodations for older persons, nursing care, adoption, child day care, adult day services, counseling and related mental-health services, in-home services, hospice and home health, and a range of community- and outdoor-based programs for adjudicated youths. In addition to the number served directly by Diakon programs, products delivered through Diakon Kathryn's Kloset to regional, national, and international non-profit organizations touched the lives of up to 1 million persons; the number served is an estimate because Diakon Kathryn's Kloset relies on self-reporting from shelters and other nonprofit programs and cannot confirm the extent to which individuals reported by each program may be duplicates. Charity Care and Support of Those In Need DLSM provides charity care and other support of those in need to many of the programs and individuals that it serves. DLSM maintains records to identify and monitor the amount of charity care it provides. These records include charges foregone, based on established rates, for services and supplies furnished under its charity care policy, and the estimated cost of those services and supplies. Support of those in need includes services provided to persons within our Senior Living Services (SLS) line of service who cannot afford healthcare because of inadequate resources and/or who are uninsured or underinsured. A number of programs for children, youths, families, and communities (FCM) do not receive sufficient funding from the sponsoring organizations or from program fees to meet the needs of the people they serve. DLSM has elected to underwrite the operating deficits of certain programs in order to serve as many of the identified needs as possible. The following is a summary of the value of DLSM's support of these programs during the year ended December 31, 2010. Support provided to SLS residents: Medical Assistance cost in excess of contractual reimbursement $ 7,318,699 Charity Care in support of those in need $ 2,528,502 FCM programs supported by the DLSM (charity care): Children's services $ 2,151,246 Behavioral health $ 732,617 Family life and congregation $ 298,748 Community services $ 1,038,560 Home services for seniors $ 149,041 ___________ $ 4,370,212 ___________ Total $14,217,413 In 2010, Diakon Lutheran Social Ministries provided the following: Residential and eldercare 836,816 care days HUD Housing Projects 84,651 care days Childcare and youth services 163,796 care days Community services for seniors 10,342 persons served Hospice care 56,525 care days Palliative Care 1,053 care days Adult day services 15,195 care days Diakon Family Life Services 8,309 unduplicated persons served Adoption & foster care 2,314 family members served Statewide Adoption & Permanency Network 34,459 family members served (contract to manage) Adoption 82 finalizations Diakon Kathryn's Kloset Approximately 1 million persons served through partnerships with non-profits using corporately donated goods supplied through Diakon Kathryn's Kloset
FORM 990, PART III, 4A, 4B & 4C: EXEMPT PURPOSE ACHIEVEMENTS   Line 4a: Diakon Senior Living Services: One of the primary service divisions within Diakon Lutheran Social Ministries, Diakon Senior Living Services is responsible for the operation and maintenance of 11 comprehensive senior living communities in Pennsylvania and Maryland. Most of DLSM's Senior Living Communities offer a continuum of services for older adults including residential accommodations, personal care/assisted living services, and skilled nursing and rehabilitative care. In 2010, these senior living communities served 8,203 persons. In the case of nursing care and assisted living/personal care accommodations, the number served includes one additional family member for each resident or couple. During 2010, the division continued to focus on expansion of the continuum of services at its senior living communities. Such projects included the building of new residential accommodations, continued advancement of a "catered-living-style" option at one campus, and extensive renovations to upgrade living options for older adults. In addition, the division remained focused on expansion of services designed to help older persons "age in place" in their current accommodations; those efforts involved steps to integrate other Diakon programs such as Help at Home and Diakon Home Health into the communities' service offers. Moreover, DLSM has taken a leading position in the country in terms of incorporating designs and affordable technology options into its senior living services and accommodations, again to help older adults age in place. One senior living community, The Lutheran Home at Topton, includes a model home demonstrating this technology. Diakon also began planning an expansion of home and community-based services as part of its continuum of senior lifestyle and health-related services-a move that set the stage for incorporation in 2011 of hospice and home health, adult day services, and community-based senior services within this program division. Diakon Senior Living Services provided $9,847,201 in uncompensated care during 2010, divided between costs in excess of medical-assistance reimbursement and care for people who have exhausted their financial resources. Line 4b: Diakon Services for Children, Families, and Communities: Diakon includes several additional service divisions. Among them are Child & Family Services and a grouping that includes Diakon Kathryn's Kloset. Among represented programs are adoption, foster care, services for court-adjudicated youths, children's bereavement program, family life services (individuals, couples, and children) counseling, and child-care services. Relatedly, Diakon as an organization provides administrative oversight for Pennsylvania's Statewide Adoption & Permanency Network, described on the following page. A brief listing of numerous 2010 achievements for Diakon services aiding children, families, and communities includes continued expansion of an employee assistance program; successful development of a new adoption-related program called DiaKINnections that focuses on finding kin and fictive-kin families for children in foster care with few other resources; continued emphasis at the Diakon Wilderness Center on the center's Flight Program, a mentoring service for former center students aging out of the juvenile-justice system, and a day-treatment program for school-age youths; expansion of daytime community-based youth services to new counties; development of an evening reporting center for at-risk youths; continuation of Girls on the Run services, particularly in low-income areas; maintenance of a successful day-care center and before- and after-school program for children from an economically challenged neighborhood of East Baltimore; and the continued expansion of Diakon Kathryn's Kloset, which stores corporate in-kind product donations and makes them available, without fee, to non-profit organizations regionally, nationally, and internationally that, in turn provide the goods, free of charge, to people in need. Diakon services for children, youths, families, and communities provided $4,370,212 in uncompensated care during 2010. Line 4c -Statewide Adoption Network: Pennsylvania's Statewide Adoption & Permanency Network (SWAN) is both a broad-based cooperative effort and a centralized information and facilitation service funded and overseen by the Pennsylvania Department of Public Welfare and managed under contract by Diakon Lutheran Social Ministries. The SWAN network includes county children and youth agencies, juvenile court judges, foster and adoptive parents, private adoption agencies, the Pennsylvania Adoption Exchange and many others, working together on behalf of waiting children who need permanent homes. The SWAN program serves children and youths in the custody of county children and youth agencies. The design of the network is to support the work of the county agencies in expediting permanency for these waiting children. SWAN manages referrals from county children and youth agencies, contracts with private agencies that work with counties to provide direct services to children and families, provides consultation and training for county agencies and private providers, develops conferences and regional meetings, and manages support services to enhance the effectiveness of the child-placement network. Line 4d -Other Program Services: Description Grants Expenses Revenue HUD and other programs 291,334 1,876,942 1,058,907
Form 990, Part VI A: GOVERNANCE, MANAGEMENT AND DISCLOSURE   Line 6: The sole member of DLSM is Diakon, a PA non-profit corporation. Line 7a: A majority of the members of the governing body (the DLSM board of directors) are elected by a majority vote of the bishops of the following synods of the Evangelical Lutheran Church in America: Northeastern Pennsylvania Synod, Southeastern Pennsylvania Synod, Delaware-Maryland Synod, Upper Susquehanna Synod, and Lower Susquehanna Synod. The remaining members of the board are elected by the board from a slate of candidates presented by the board development committee. Line 7b: The sole member of DLSM is Diakon, a PA non-profit corporation. Diakon has approval rights, specified in both the DLSM and Diakon by-laws, over certain types of actions by DLSM's governing body.
Form 990, Part VI B Policies   Line 11b: Members of senior management and of the finance department, including the Executive VP/CFO, SVP/Human Resources, SVP/Advancement, SVP/Chief Legal and Compliance Officer, SVP/Corporate Communications and Public Relations, and VP/Financial Services, participated in developing the draft 990 in consultation with KPMG, which was engaged to provide assistance. Senior management and finance staff reviewed and revised drafts. The final draft of Diakon Lutheran Social Ministries' 990 was provided to the members of the board and received and accepted by the Diakon Lutheran Social Ministries' governing body at its regular quarterly meeting on August 17, 2011. Line 12c: DLSM's senior vice president/chief legal and compliance officer reviews DLSM's conflict of interest statement and certification forms with the board annually. All board members and all officers and key employees are required to complete a certification form and disclose possible or actual conflicts of interest. The completed forms are reviewed by the senior vice president/chief legal and compliance officer and by the organization's outside auditor during the annual audit. Lines 15a and 15b Executive Compensation Philosophy DLSM seeks to attract, reward and retain critical leadership talent in order to fulfill its mission and organizational strategic initiatives. A Compensation Committee of independent directors utilizes external consultants to assist with the development, administration, and termination of compensation, welfare, benefit, pension and other plans, which take into account appropriate industry benchmarks and the compensation policies followed by organizations similarly situated to DLSM. The board Compensation Committee has adopted a written "charter", which sets forth the purpose, membership and responsibilities of the Committee. In addition, it conducts its activities in compliance with DLSM's "Excess Benefits Transactions" policy, which requires review and approval by independent persons, comparability data and contemporaneous substantiation of the deliberation and decision. DLSM's executive compensation program consists of two major components: base salary and variable pay. Base salary is the primary component; it reflects the value of an executive's capabilities and experience. Through the variable pay component, DLSM is able to reward executives for successfully meeting mission, financial, operational, and quality objectives. Base salary and variable pay together represent total cash compensation. Due to broader economic issues and their impact on DLSM's operations, in early 2009 a six percent reduction in the base salary of executives and other leadership was implemented. In addition, no variable pay was given in early 2010 for 2009 executive performance. In October 2009, DLSM's external consultant met with the chair of the board Compensation Committee and DLSM's President/CEO, Executive VP/COO, Executive VP/CFO, and SVP/Human Resources to review the impact the national economic situation has had on executive compensation. Due to the national economic issues and their impact on DLSM's operations, no salary adjustments to the base salary were made in 2010 and no variable payments were made. Information about executive compensation issues and decisions is reported to the full board of directors at regular meetings. Employee Benefits DLSM provides all employees, including executives, with a comprehensive benefit plan that includes health insurance, dental insurance, life and disability insurance, a defined benefit pension plan and a defined contribution retirement plan. The employer matching contribution to the defined contribution plan was suspended as of July of 2010. The matching contributions made through June are reflected in Schedule J, Part II, column C and Part VII, Section A, Column F. Supplemental Retirement Plan (SERP) DLSM's Board of Director has established a SERP, which is a nonqualified defined benefit plan, under which DLSM may pay supplemental retirement benefits to key executives in addition to amounts under the DLSM pension plan. The SERP was added to provide equitable and competitive post-retirement income for Board selected senior executives. The 2010 annual cost accrued for this plan is noted in Schedule J, Part II. The SERP is not funded and the liability for this plan was $463,371 at December 31, 2010 and is reported in other long-term liabilities. As a condition for participating in the SERP, the executive must be employed at the vesting date and have agreed to certain restrictive covenants that prohibit the executive, for a specified period of time, from accepting employment with competitor organizations. The amount deferred under this plan (not substantially vested) is recorded in Schedule J (Form 990), Part II, column C in the Form 990 for the year ending December 31, 2010. Six key employees were offered and signed agreements which include a 457(f) supplemental nonqualified benefit; three were effective in 1/1/2006, two were effective 7/1/2008 and one was effective June 1, 2009. This benefit was added to recognize the significant contributions of identified key employees in the past, and in consideration of expected contribution to the growth of DLSM, its affiliates and subsidiaries in the future, and in exchange for additional income benefits and a supplemental executive retention plan. The annual accruals and interest earnings for the 457(f) supplemental nonqualified benefit plans are reported in Part VII, Section A, Column F and Schedule J, Part II, Column C. As a condition for participating in the 457(F) supplemental nonqualified benefit plan, the key employees who have signed the applicable agreements must be employed at the vesting date and have agreed to certain restrictive covenants that prohibit the key employee, for a specified period of time, from accepting employment with competitor organizations. Three individuals reached the vesting date and received a payout of the accrued benefit and interest as of 12/31/2010 which is included in reportable compensation in Part VII, Section A and Schedule J, Part II, column B(iii).
Form 990, Part VI C Disclosure, Line 19   DLSM makes its governing documents (articles of incorporation and bylaws) and conflict of interest policy available upon request. A statement of financial position is published in the organization's annual report, which is mailed to the approximately 120,000 individuals on the organization's publication mailing list. The audited consolidated financial statements and annual report are also available on the DLSM website at Diakon.org, as well as upon request.
Form 990, Part VII, Section A, 1a   Column B reflects the average hours per week per employee for DLSM. There are no hours from related organizations. Form 990, Part XI, Line 5 Other Changes in Net Assets Correction of an Error (see below) (8,400,000) Decrease in fair value of swap agreements (1,383,956) Equity in gains of joint venture 72,018 Pension-related changes other than net periodic pension costs (1,084,765) Unrealized losses on investments (2,559,833) Change in beneficial interest in trusts 743,723 Increase in fair value of funds held in trust by others 3,623,490 --------- Subtotal (8,989,323) Correction of an Error: During 2010, Diakon Lutheran Social Ministries recognized a provision for an estimated repayment of certain Medicare receipts related to services rendered in prior years. As a result, net assets previously reported as of December 31, 2009 were decreased by $8.4 million.
Form 990, Part XII, lines 2 and 3   Diakon, the sole member of DLSM, has an annual audit of the consolidated financial statements for Diakon and controlled affiliates performed by an independent accounting firm. The audit committee of the Diakon board of directors assumes responsibility for the oversight of the audit and selection of the independent accounting firm. Diakon also has an annual audit under the single audit act and OMB Circular A-133, performed by an independent accounting firm for the consolidated group.
Schedule K, Part V   Bond A (2003 Series A and E) 2003 Series A (a) Issuer Name- Cumberland County Municipal Authority (b) Issuer EIN - 23-6003119 (c) CUSIP#-230614BT5 (d) Date Issued-09/30/2003 (e) Issue Price - $5,555,000 (f) Description of Purpose - The 2003A Bonds were issued by the Authority to finance a project for the benefit of DLSM, comprised of, among other things, (1) the current refunding of a portion of the outstanding Berks County Industrial Development Authority Revenue Bonds, Series A of 1993; (2) the current refunding of a portion of the outstanding Berks County Industrial Development Authority Revenue Bonds, Series A of 1998; and (3) paying all or a portion of the costs and expenses of issuance of the 2003A Bonds. Arbitrage Footnote Pursuant to Section 5(f) of the Certificate for the 2003A Bonds and 2003D Bonds, the Authority's 2003A Bonds and 2003D Bonds, along with the County Commissioners of Washington County, Maryland's 2003E Bonds were considered a single issue as described in Section 1.150-1 of the Income Tax Regulations for Arbitrage rebate and yield computation purposes. Along with the issuance of the 2003A, 2003D, and 2003E Bonds, the Authority also issued the 2003B and 2003C Bonds. The 2003B and 2003C Bonds were taxable issues and not subject to rebate restrictions and were excluded from all rebate calculations. After evaluation for the initial rebate computation period, no arbitrage liability existed for the bonds as of the September 30, 2010 Installment Computation date. The next computation date is scheduled to occur on September 30, 2011. 2003 Series D The Series D of 2003 - CUSIP 230614BS7 with an issue price of $43,000,000 issued on 09/30/2003 was refunded in December, 2009. The outstanding principal balance was $42,110,000. 2003 Series E (a) Issuer Name- County Commissioners of Washington County (b) Issuer EIN - 52-6001037 (c) CUSIP#-937752AB9 (d) Date Issued-09/30/2003 (e) Issue Price - $20,465,000 (f) Description of Purpose - The 2003E Bonds were issued by the County to finance a project for the benefit of DLSM comprised of (1) the refunding of the outstanding Maryland Industrial Development Authority Economic Development Revenue Bonds, Series C of 1994; (2) the current refunding of a load from the Maryland Health and Higher Education Facilities Authority; (3) the acquisition, construction, improvement, renovation and equipping of various long-term care, assisted living and independent living facilities located in Washington County; and (4) payment of the costs and expenses of issuance of the 2003E Bonds. Arbitrage Footnote Pursuant to Section 5(f) of the Certificate for the 2003A Bonds and 2003D Bonds, the Authority's 2003A Bonds and 2003D Bonds, along with the County Commissioners of Washington County, Maryland's 2003E Bonds were considered a single issue as described in Section 1.150-1 of the Income Tax Regulations for Arbitrage rebate and yield computation purposes. Along with the issuance of the 2003A, 2003D, and 2003E Bonds, the Authority also issued the 2003B and 2003C Bonds. The 2003B and 2003C Bonds were taxable issues and not subject to rebate restrictions and were excluded from all rebate calculations. After evaluation for the initial rebate computation period, no arbitrage liability existed for the bonds as of the September 30, 2010 Installment Computation date. The next computation date is scheduled to occur on September 30, 2011. IRS Audit - Washington County 2003E Series A "no change" to status was issued in 2011 from a recent IRS audit of the Washington County 2003E Series. Issue Price $ 26,020,000 Cumulative Investment Earnings $ 718,822 Total $ 26,738,822 Other Spent Proceeds Refunding of 1993 & 1998 Series $ 5,385,560 Refunding of 1994 & MHHEFA Debt $ 14,715,293 Total $ 20,100,853 Bond B (2003 Series C) 2003 Series C (a) Issuer Name- Cumberland County Municipal Authority (b) Issuer EIN - 23-6003119 (c) CUSIP#-230614BU2 (d) Date Issued-07/01/2005 (e) Issue Price - $10,605,000 (f) Description of Purpose - The 2003C Bonds were issued by the Authority to finance a project for the benefit of DLSM, comprised of, among other things, (1) a portion of the costs of the acquisition, construction, renovation, improvement and equipping of existing skilled nursing, assisted living and independent living facilities know as Cumberland Crossings located in Cumberland County; and (2) payment of a portion of the costs and expenses of issuance of the 2003C Bonds. Total Proceeds from Issue Issuance Price $ 10,605,000 Cumulative Investment Earnings $ 26,897 Total $ 10,631,897 The 2003C Bonds were remarketed as tax-exempt beginning 07/01/2005. The 2003C Bonds qualify for an exception to the rebate requirements. Bond C (2007 Series A) 2007 Series A (f) Description of Purpose - The 2007A were issued by the Authority to finance a project for the benefit of DLSM comprised of, among other things, (1) the acquisition, construction, renovation, improvement and equipping of existing skilled nursing, assisted living and independent living facilities; and (2) the payment of a portion of the costs and expenses of issuing the 2007A Bonds. Pursuant to section 5(f) of the Bond Agreement, the 2007A Bonds were a single issue. The Bonds were still outstanding as of the end of the Tax Period and have not otherwise been reissued for tax purposes. After evaluation for the initial rebate computation period, no arbitrage liability existed for the bonds as of the January 31, 2011 Installment Computation date. The next computation date is scheduled to occur on January 31, 2012. Total Proceeds from Issue Issuance Price $ 63,635,926 Cumulative Investment Earnings $ 6,266,623 Total $ 69,902,548 Bond D (2009 Series) 2009 Series (f) The 2009 Bonds were being issued by the Authority to finance a project for the benefit of DLSM comprised of, among other things, (1) the current refunding of the Authority's Revenue Bonds Series D of 2003 (see note below for additional details; (2) the current refunding of the Authority's Variable Rate Revenue Bonds, Series B of 2007 (see note below for additional details; (3) the acquisition, construction, renovation, improvement and equipping of administrative, skilled nursing, assisted living and independent living facilities; (4) the funding of a debt service reserve fund for the bonds; (5) the payment of one or more termination payments with respect to certain outstanding interest rate management agreements; (6) the payment of the costs and expenses incident to the issuance of the 2009 Bonds. Refunding Summary Series D of 2003 - CUSIP 230614BS7 with an issue price of $43,000,000 issued on 09/30/2003. The outstanding principal balance was $42,110,000. Series B of 2007 - CUSIP 230614CL1 with an issue price of $47,400,000 issued on 01/30/2007. The outstanding principal balance was $44,375,000. As part of the refunding process, realized gains were recognized on unspent 2007B funds, resulting in an arbitrage rebate payment of $13,087. This rebate was submitted in February 2010, within the 180 required period. The total refunded principal and interest of the two series was $86,573,324. The 2009 Series refunded $76,789,281. The debt service funds associated with those two series refunded the difference. After evaluation for the initial rebate computation period, no arbitrage liability existed for the bonds as of the December 1, 2010 Installment Computation date. The next computation date is scheduled to occur on December 1, 2011. Total Proceeds from Issue Issuance Price $ 122,154,764 Cumulative Investment Earnings $ 133,862 Total $ 122,288,626 Other Spent Proceeds Refunding of 2007B/2003D $ 76,789,281 Total $ 76,789,281
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2010

Additional Data


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SCHEDULE R
(Form 990)
Department of the Treasury
Internal Revenue Service
Related Organizations and Unrelated Partnerships
MediumBulletComplete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBulletAttach to Form 990. MediumBullet See separate instructions.

OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Diakon Lutheran Social Ministries
 
Employer identification number

23-1857015
Part I
Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)
(a)
Name, address, and EIN of disregarded entity


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Total income
(e)
End-of-year assets


 		(f)
Direct controlling
entity







(1) Diakon Lutherwood Senior Housing
798 Hausman Road Ste 300
Allentown,PA18104
26-0649129 		Senior Housin PA 0 0 NA
 










Part II
Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)
(a)
Name, address, and EIN of related organization


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Exempt Code section
(e)
Public charity status
(if section 501(c)(3))

 		(f)
Direct controlling
entity

 		(g)
Section 512(b)(13) controlled organization
Yes No
(1) Diakon

798 Hausman Road Ste 300

Allentown,PA18104
23-3014613 		Sub Oversight PA 501(c)(3) 11 NA
 
 
 
(2) Diakon Lutheran Fund

798 Hausman Road Ste 300

Allentown,PA18104
23-1365978 		fund programs PA 501(c)(3) 11 Diakon
 
 
 
(3) Diakon Lutheran Senior Housing at Luther

798 Hausman Road Ste 300

Allentown,PA18104
23-2837747 		HUD Housing PA 501(c)(3) 9 DLSM
 
 
 
(4) Diakon Housing and Development Inc

798 Hausman Road Ste 300

Allentown,PA18104
30-0137524 		Community Dev MD 501(c)(3) 11 Diakon
 
 
 
(5) Diakon Lutheran Senior Housing at Heilma

798 Hausman Road Ste 300

Allentown,PA18104
23-2463233 		HUD Housing PA 501(c)(3) 9 DLSM
 
 
 
(6) Susquehanna Housing Inc

798 Hausman Road Ste 300

Allentown,PA18104
23-2040250 		Inactive PA 501(c)(3) 11 DLSM
 
 
 


For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)
(a)
Name, address, and EIN of
related organization



 		(b)
Primary activity




 		(c)
Legal
domicile
(state or foreign
country)


 		(d)
Direct controlling
entity



 		(e)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




 		(i)
Code V—UBI
amount in box 20 of
Schedule K-1
(Form 1065)
 		(j)
General or
managing
partner?



 		(k)
Percentage
ownership
Yes No Yes No












Part IV
Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)
(a)
Name, address, and EIN of related organization



 		(b)
Primary activity



 		(c)
Legal domicile
(state or
foreign
country)
 		(d)
Direct controlling
entity


 		(e)
Type of entity
(C corp, S corp,
or trust)

 		(f)
Share of total income



 		(g)
Share of
end-of-year
assets

 		(h)
Percentage
ownership
(1) Institute for Stategic Management Inc
960 CENTURY DRIVE
MECHANICSBURG,PA17055
26-4316868 		CONSULTING PA DIAKON
  		C Corp      












Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 3
Part V
Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)
Note. Complete line 1 if any entity is listed in Parts II, III or IV.
Yes
No
1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?
a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .
1a
 
No
b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
 
No
c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Yes
 
d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
 
No
g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
No
h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
No
j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
 
No
k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1k
 
No
l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1l
 
No
m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1m
 
No
n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1n
Yes
 
o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
Yes
 
p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
Yes
 
q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
 
No
r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
 
No
2
If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.
(a)
Name of other organization 		(b)
Transaction
type(a-r) 		(c)
Amount involved 		(d)
Method of determining amount involved
(1) Diakon Lutheran Fund

 c 1,100,004  
(2) Diakon Lutheran Senior Housing at Luther Mead

 n 85,853  
(3) Diakon Lutheran Senior Housing at Heilman Hou

 n 84,768  
(4) Diakon Lutheran Senior Housing at Luther Mead

 p 29,449  
(5) Diakon Lutheran Senior Housing at Heilman Hou

 p 27,932  
(6) Diakon

 o 583,851  
(7) Diakon

 p 583,851  
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)
Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.
(a)
Name, address, and EIN of entity 		(b)
Primary activity 		(c)
Legal domicile
(state or foreign
country) 		(d)
Are all
partners
section
501(c)(3)
organizations? 		(e)
Share of
end-of-year
assets 		(f)
Disproprtionate allocations? 		(g)
Code V—UBI
amount in box
20 of Schedule K-1
(Form 1065) 		(h)
General or
managing
partner?
Yes No Yes No Yes No






























Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 5
Part VII
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule R (see instructions).
Identifier Return Reference Explanation
Additional Data


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