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
2011
Open to Public Inspection
A For the calendar year, or tax year beginning 01-01-2011 and ending 12-31-2011
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 $ 293,789,637
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 MAJOR 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 15
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 15
5 Total number of individuals employed in calendar year 2011 (Part V, line 2a) ... 5 2,746
6 Total number of volunteers (estimate if necessary) .... 6 3,100
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a -45,318
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b -167,342
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 5,755,486 6,873,675
9 Program service revenue (Part VIII, line 2g) ......... 204,307,295 202,429,939
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 14,397,538 6,729,132
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 1,259,084 1,148,942
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 225,719,403 217,181,688
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 365,850 438,371
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) 88,707,048 83,632,596
16a Professional fundraising fees (Part IX, column (A), line 11e)..... 79,517 68,133
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet1,673,140    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 132,173,082 134,884,314
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 221,325,497 219,023,414
19 Revenue less expenses. Subtract line 18 from line 12....... 4,393,906 -1,841,726
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............. 444,423,691 427,994,844
21 Total liabilities (Part X, line 26)............. 361,303,576 365,687,000
22 Net assets or fund balances. Subtract line 21 from line 20..... 83,120,115 62,307,844
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 use only
Print/type preparer's name
 
Preparer's signature
Date
PTIN
Firm's name Right pointing arrowhead image

Firm's EIN Right pointing arrowhead image
Firm's address Right pointing arrowhead image



Phone no.
May the IRS discuss this return with the preparer shown above? See instructions .........bullet
For Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2011)
Form 990 (2011)
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 MAJOR 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 organization’s program service accomplishments for each of its three largest program services, as measured 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 $ 125,292,600 including grants of $ 2,675 ) (Revenue $ 135,893,761 )
DIAKON SENIOR LIVING SERVICES SEE SCHEDULE O
4b (Code:   ) (Expenses $ 24,332,674 including grants of $ 33,325 ) (Revenue $ 20,392,852 )
DIAKON SERVICES FOR CHILDREN, FAMILIES, AND COMMUNITIES SEE SCHEDULE O
4c (Code:   ) (Expenses $ 44,962,805 including grants of $ 0 ) (Revenue $ 44,962,805 )
STATEWIDE ADOPTION AND PERMANENCY NETWORK SEE SCHEDULE O
4d Other program services (Describe in Schedule O.)
(Expenses $ 2,063,832 including grants of $ 402,371 ) (Revenue $ 1,180,521 )
4e Total program service expensesMediumBullet$ 196,651,911
Form 990 (2011)
Form 990 (2011)
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 IIIClick to see attachment........................
5
 
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts for which 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 temporarily restricted endowments, permanent endowments, 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, investment, and program service activities outside the United States or aggregate foreign investments valued at $100,000 or more? 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
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....
20a
 
No
b
If “Yes” to line 20a, did the organization attach a copy of its audited financial statement to this return? Note. All Form 990 filers that operated one or more hospitals must attach audited financial statements.
20b
 
 
Form 990 (2011)
Form 990 (2011)
Page 4
Part IV
Checklist of Required Schedules (continued)
21
Did the organization report more than $5,000 of grants and other assistance to any government or organization 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
Yes
 
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 employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? 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 M
29
 
No
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................
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
 
35a
Did the organization have a controlled entity within the meaning of section 512(b)(13)?
35a
Yes
 
b
If ‘Yes’ to line 35a, 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
35b
Yes
 
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 (2011)
Form 990 (2011)
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
594
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
2,746
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 (2011)
Form 990 (2011)
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
If the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O.
1a
15
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
15
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
Did the organization have members or stockholders? ................
6
Yes
 
7a
Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? .................
7a
Yes
 
b
Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ............
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
Did the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? ....
10b
 
 
11a
Has the organization provided a complete 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
Did the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Were officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ........................
12b
Yes
 
c
Did the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this was done ....................
12c
Yes
 
13
Did the organization have a written whistleblower policy? ...............
13
Yes
 
14
Did 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 15a or 15b, 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,” did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
Yes
 
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 made these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year.
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 (2011)
Form 990 (2011)
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 (do not check more than one box, unless person is both an officer and a director/trustee) 		(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) HOLLY HEINTZELMAN ESQ
BOARD MEMBER
 1.0 X           0 0 0
(15) BISHOP SAM ZEISER
BOARD MEMBER
 1.0 X           0 0 0
(16) MARK T PILE
PRESIDENT/CEO
 38.0     X       323,001 0 248,312
(17) RICHARD M BARGER
EXECUTIVE VP/CFO
 38.0     X       252,036 0 100,207
Form 990 (2011)
Form 990 (2011)
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 (do not check more than one box, unless person is both an officer and a director/trustee) 		(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) SCOTT HABECKER
SVP ADMIN & BUS DEVLPMNT
 38.0       X     183,367 0 20,864
(19) ALICE M CLARK
SVP OF HUMAN RESOURCE SVCS
 38.0       X     152,024 0 37,165
(20) TAMA M CAREY
EVP OF SENIOR LIVING SERVICES
 38.0       X     214,066 0 24,730
(21) MARY ELLEN DICKEY
SVP OFFICE OF ADVANCEMENT
 38.0       X     180,065 0 62,673
(22) DAVID B BAKER
SVP, CHIEF INFORMATION OFFICER
 38.0       X     158,078 0 57,785
(23) JOHN J PALKOVITZ
VP, FINANCIAL SERVICES
 38.0         X   155,294 0 24,621
(24) BECKEY L VANETTEN
VP, QUALITY ASSURANCE
 38.0         X   147,748 0 24,319
(25) JEANNE M OSKI
VP, SENIOR LIVING COMMUNITIES
 38.0         X   145,760 0 44,636
(26) WILLIAM E SWANGER
SVP, CORPORATE COMMUNICATIONS
 38.0         X   137,869 0 34,551
(27) SUSAN K LIPPY
VP, HOME & COMMNTY BASED SVCS
 38.0         X   139,932 0 10,075






1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 2,189,240 0 689,938
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organizationMediumBullet23
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. Report compensation for the calendar year ending with or within the organization’s tax year.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
Morrison Management Company
Po Box 102289
ATLANTA,GA303682289 		Culinary/Housekpng 21,198,364
Benchmark Construction Co Inc
4121 Oregon Pike
Brownstown,PA17508 		CONSTRUCTION 1,531,405
Wagman Construction Inc
PO Box 15076
YORK,PA17405 		Construction 1,492,202
Family Design Resources Inc
471 JPL Wick Drive
HARRISBURG,PA17111 		SWAN Program Service 9,704,750
Prelude Systems
3911 Hartzdale Drive
CAMP HILL,PA17011 		IT Support 3,521,488
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization MediumBullet53
Form 990 (2011)
Form 990 (2011)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, Gifts, Grants and Other Similar Amounts 1a Federated campaigns..1a 110,516
b Membership dues....1b  
c Fundraising events....1c 229,310
d Related organizations...1d 1,207,555
e Government grants (contributions)1e 1,687,699
f All other contributions, gifts, grants, and
similar amounts not included above1f 		3,638,595
g Noncash contributions included in lines 1a-1f:$ 19,536
h Total. Add lines 1a-1f.......MediumBullet 6,873,675
Program Service Revenue Business Code
2a SENIOR LIVING SERVICES 623,000 135,893,761 135,893,761    
b FAMILY AND COMMUNITY MINISTRIES 621,400 20,392,852 20,392,852    
c STATEWIDE ADOPTION AND PERMANENCY NETWORK 900,099 44,962,805 44,962,805    
d OTHER PROGRAM SERVICES 900,099 1,180,521 1,180,521    
e
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 202,429,939
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 2,428,972   2,646 2,426,326
4 Income from investment of tax-exempt bond proceeds..MediumBullet 214,121     214,121
5 Royalties............MediumBullet 0      
(i) Real (ii) Personal
6a Gross rents 671,811  
b Less: rental expenses 686,903  
c Rental income or (loss) -15,092  
d Net rental income or (loss).......MediumBullet -15,092 147,591 -162,683  
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 76,495,511 3,421,476
b Less: cost or other basis and sales expenses 73,159,632 2,671,316
c Gain or (loss) 3,335,879 750,160
d Net gain or (loss)..........MediumBullet 4,086,039     4,086,039
8a Gross income from fundraising events (not including
$ 229,310
of contributions reported on line 1c). See Part IV, line 18 ...
a 43,800
b Less: direct expenses ...b 90,098
c Net income or (loss) from fundraising events..MediumBullet -46,298   -46,298
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 900,099 935,079 935,079    
b OTHER REVENUE 900,099 224,949 110,230 114,719  
c VENDING REVENUE 541,610 28,539 28,539    
d All other revenue .... 21,765 21,765    
e Total. Add lines 11a–11d ......MediumBullet 1,210,332
12 Total revenue. See Instructions....MediumBullet 217,181,688 203,673,143 -45,318 6,680,188
Form 990 (2011)
Form 990 (2011)
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).
Check if Schedule O contains a response to any question in this Part IX. .........
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 United States. See Part IV, line 21 104,965 104,965
2 Grants and other assistance to individuals in the United States. See Part IV, line 22 333,406 333,406
3 Grants and other assistance to governments, organizations, and individuals outside the United States. 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 .... 1,979,059 0 1,744,470 234,589
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 64,043,499 57,267,818 6,034,957 740,724
8 Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) .... 2,858,068 2,563,965 280,453 13,650
9 Other employee benefits ....... 10,031,338 9,050,697 870,470 110,171
10 Payroll taxes ........... 4,720,632 4,127,207 530,276 63,149
11 Fees for services (non-employees):        
a Management ...... 164,576 164,576 0 0
b Legal ......... 526,793 7,743 519,050 0
c Accounting ........... 86,205 86,205 0 0
d Lobbying ........... 51,000   0 51,000
e Professional fundraising. See Part IV, line 17.. 68,133 68,133
f Investment management fees ...... 244,462 24,967 219,495 0
g Other .......... 5,967,428 4,623,627 1,341,258 2,543
12 Advertising and promotion .... 1,590,458 1,437,551 150,682 2,225
13 Office expenses ....... 13,821,482 11,759,126 1,822,698 239,658
14 Information technology ...... 3,624,113 2,672,045 925,312 26,756
15 Royalties .. 0      
16 Occupancy ........... 11,741,607 11,067,910 673,697 0
17 Travel ............ 3,077,616 2,528,916 480,275 68,425
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ...... 0      
19 Conferences, conventions, and meetings .... 199,253 106,525 89,438 3,290
20 Interest ........... 10,620,695 8,476,301 2,144,394 0
21 Payments to affiliates ....... 0      
22 Depreciation, depletion, and amortization ..... 13,505,439 12,087,615 1,417,238 586
23 Insurance .............. 2,199,480 2,007,064 189,531 2,885
24 Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24f. If line 24f amount exceeds 10% of line 25, column (A) amount, list line 24f expenses on Schedule O.)
a SWAN CONTRACTED SERVICES 40,237,567 40,237,567 0 0
b CULINARY SERVICE 16,169,911 16,169,911 0 0
c HOUSEKEEPING SERVICES 4,714,685 4,670,091 44,594 0
d UNRELATED BUS INC TAX 4,717 0 4,717 0
e
f All other expenses 6,336,827 5,076,113 1,215,358 45,356
25 Total functional expenses. Add lines 1 through 24f 219,023,414 196,651,911 20,698,363 1,673,140
26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here MediumBullet if following SOP 98-2 (ASC 958-720).        
Form 990 (2011)
Form 990 (2011)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing .......... 589,866 1 1,043,564
2 Savings and temporary cash investments ....... 29,422,153 2 45,042,520
3 Pledges and grants receivable, net ......... 1,420,549 3 857,850
4 Accounts receivable, net ......... 22,669,752 4 15,170,363
5 Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L .......... 0 5 0
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 .......... 0 6 0
7 Notes and loans receivable, net ............. 621,442 7 621,442
8 Inventories for sale or use .............. 0 8 0
9 Prepaid expenses and deferred charges ............ 3,248,136 9 1,733,161
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 360,944,422
b Less: accumulated depreciation. ..... 10b 165,793,440 196,478,227 10c 195,150,982
11 Investments—publicly traded securities .......... 153,305,032 11 131,491,220
12 Investments—other securities. See Part IV, line 11 ...... 0 12 0
13 Investments—program-related. See Part IV, line 11 .. 0 13 0
14 Intangible assets ......... 4,572,283 14 4,572,283
15 Other assets. See Part IV, line 11 ........... 32,096,251 15 32,311,459
16 Total assets. Add lines 1 through 15 (must equal line 34)... 444,423,691 16 427,994,844
Liabilities 17 Accounts payable and accrued expenses . 39,468,532 17 29,177,942
18 Grants payable .......... 0 18 0
19 Deferred revenue .......... 61,950,018 19 63,592,144
20 Tax-exempt bond liabilities .......... 219,442,702 20 216,537,165
21 Escrow or custodial account liability. Complete Part IV of Schedule D.. 0 21 0
22 Payables to current and former officers, directors, trustees, key
employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L.......... 0 22 0
23 Secured mortgages and notes payable to unrelated third parties .. 10,722,320 23 15,344,077
24 Unsecured notes and loans payable to unrelated third parties .... 0 24 0
25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D..... 29,720,004 25 41,035,672
26 Total liabilities. Add lines 17 through 25..... 361,303,576 26 365,687,000
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 ..... 42,899,867 27 23,360,639
28 Temporarily restricted net assets ..... 6,725,120 28 5,322,438
29 Permanently restricted net assets ..... 33,495,128 29 33,624,767
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 ..... 83,120,115 33 62,307,844
34 Total liabilities and net assets/fund balances ..... 444,423,691 34 427,994,844
Form 990 (2011)
Form 990 (2011)
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
217,181,688
2
Total expenses (must equal Part IX, column (A), line 25) ....
2
219,023,414
3
Revenue less expenses. Subtract line 2 from line 1 ...
3
-1,841,726
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ..
4
83,120,115
5
Other changes in net assets or fund balances (explain in Schedule O) ...
5
-18,970,545
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
62,307,844
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 (2011)
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
2011
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) 2011
Schedule A (Form 990 or 990-EZ) 2011
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) 2007 (b) 2008 (c) 2009 (d) 2010 (e) 2011 (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) 2007 (b) 2008 (c) 2009 (d) 2010 (e) 2011 (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) 2011
Schedule A (Form 990 or 990-EZ) 2011
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) 2007 (b) 2008 (c) 2009 (d) 2010 (e) 2011 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") . 6,754,798 7,460,850 6,286,903 5,755,486 6,873,675 33,131,712
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...... 167,092,200 178,416,906 194,825,038 204,281,540 202,383,641 946,999,325
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. 173,846,998 185,877,756 201,111,941 210,037,026 209,257,316 980,131,037
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.)           980,131,037
Section B. Total Support
Calendar year (or fiscal year beginning in) (a) 2007 (b) 2008 (c) 2009 (d) 2010 (e) 2011 (f) Total
9 Amounts from line 6... 173,846,998 185,877,756 201,111,941 210,037,026 209,257,316 980,131,037
10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources.. 7,355,314 6,493,227 4,015,691 3,857,070 2,790,684 24,511,986
b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975. 180,693 135,777 69,968 -149,648 -162,683 74,107
c Add lines 10a and 10b. 7,536,007 6,629,004 4,085,659 3,707,422 2,628,001 24,586,093
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.) 2,280,272 2,127,687 1,573,579 1,205,804 1,210,332 8,397,674
13 Total support (Add lines 9, 10c, 11 and 12.). 183,663,277 194,634,447 206,771,179 214,950,252 213,095,649 1,013,114,804
14
Section C. Computation of Public Support Percentage
15
15
96.744 %
16
16
96.281 %
Section D. Computation of Investment Income Percentage
17
17
2.427 %
18
18
2.859 %
19a
b
20
Schedule A (Form 990 or 990-EZ) 2011
Schedule A (Form 990 or 990-EZ) 2011
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
 
 
 
 
Schedule A (Form 990 or 990-EZ) 2011

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
2011
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 on line H of its
Form 990-EZ or on Part I, 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) (2011)

Page 2
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
Name of organization
DIAKON LUTHERAN SOCIAL MINISTRIES
  		Employer identification number

23-1857015
Part I
Contributors (see Instructions). Use duplicate copies of Part I if additional space is needed.
     
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Total 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)
Total contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




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

     
 
   

$  




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

     
 
   

$  




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

     
 
   

$  




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

     
 
   

$  




(Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 3
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
Name of organization
DIAKON LUTHERAN SOCIAL MINISTRIES
  		Employer identification number

23-1857015
Part II
Noncash Property (see Instructions). Use duplicate copies of Part II if additional space is needed.
     
(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) (2011)

Page 4
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
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
that total 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 $  
Use duplicate copies of Part III if additional space is needed
(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) (2011)

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
2011
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, line 35c (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 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 function 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) 2011

Schedule C (Form 990 or 990-EZ) 2011
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 expenses, and share of excess lobbying expenditures).
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) 2008 (b) 2009 (c) 2010 (d) 2011 (e) Total
             
2a Lobbying non-taxable amount          
             
b Lobbying ceiling amount
(150% of line 2a, column(e)) 		         
             
c Total lobbying expenditures          
             
d Grassroots nontaxable amount          
             
e Grassroots ceiling amount
(150% of line 2d, column (e))		          
             
f Grassroots lobbying expenditures          
Schedule C (Form 990 or 990-EZ) 2011


Schedule C (Form 990 or 990-EZ) 2011
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)).
For each “Yes” response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.
(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
 
62,851
h
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ......
 
No
 
i
Other activities? ..........................
 
No
 
j
Total. Add lines 1c through 1i ...............................
62,851
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 carry over 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) and if either (a) BOTH Part III-A, lines 1 and 2 are answered “No” OR (b) Part III-A, line 3 is answered “Yes”.
1
Dues, assessments and similar amounts from members .....................
1
 
2
Section 162(e) nondeductible 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, Part II-A; line 5; and Part ll-B, line 1.
Also, complete this part for any additional information.
Identifier Return Reference Explanation
SCHEDULE C, PART II-B, 1B AND 1G   IN 2011, 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 $62,851.
SCHEDULE C, PART II-B, 1D   AMOUNTS PAID FOR MAILINGS AND PUBLICATIONS WERE NOMINAL.
SCHEDULE C, PART II-B, 1E   LETTERS, EMAILS, PHONE CALLS ARE MADE TO LEGISLATORS WHEN DLSM NEEDS TO CONTACT LEGISLATORS TO SPEAK IN SUPPORT OF ANY BUDGET ITEMS OR SENATE BILLS TO BE PASSED RELATED TO LONG-TERM CARE AND HEALTH AND SOCIAL SERVICE PROGRAMS. HANDOUTS ARE CREATED BY OUR COMMUNICATIONS DEPARTMENT FOR LOBBYING VISITS THAT THE DLSM STAFF ATTENDS.
Schedule C (Form 990 or 990EZ) 2011

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, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2011
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 can 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 through 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, and not on a historic structure listed in the National Register .................... 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax 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 (ASC 958), 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 (ASC 958), 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 (ASC 958), 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) 2011

Schedule D (Form 990) 2011
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 .... 12,149,734 10,392,169 8,760,586 8,474,260
b Contributions ........ 1,024,585 191,217 1,050,631 286,326
c Net investment earnings, gains, and losses ... -69,426 1,982,276 1,962,231  
d Grants or scholarships .....        
e Other expenditures for facilities
and programs ........ 		416,396 415,928 1,381,279  
f Administrative expenses ....        
g End of year balance ...... 12,688,497 12,149,734 10,392,169 8,760,586
2
Provide the estimated percentage of the year end balance (line 1g) held as:
a
Board designated or quasi-endowment SchDMd Bullet  
b
Permanent endowment SchDMd Bullet100.000 %
c
Temporarily restricted endowment SchDMd Bullet  
The percentages in lines 2a, 2b, and 2c should equal 100%.
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
Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of property (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................   19,601,281 19,601,281
b Buildings ................   168,223,845 98,886,536 69,337,309
c Leasehold improvements ............   26,152 20,516 5,636
d Equipment ................   40,805,575 27,882,600 12,922,975
e Other .................   132,287,569 39,003,788 93,283,781
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......SchDMdBullet 195,150,982
Schedule D (Form 990) 2011

Schedule D (Form 990) 2011
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) must 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) must 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 367,561
(2) BENEFICIAL INTEREST IN TRUST 24,556,563
(3) ESTIMATED THIRD PARTY SETTLE 1,789,997
(4) INVESTMENT IN JOINT VENTURES 823,771
(5) DEFERRED BOND ISSUANCE COSTS 3,631,748
(6) OTHER ASSETS 668,934
(7) DUE FROM AFFILIATES 472,885


Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........Small Bullet 32,311,459
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Book value
Federal Income Taxes 0
ESTIMATED THIRD-PARTY PAYOR SE 1,357,006
MINIMUM PENSION LIABILITY 26,788,430
INTEREST RATE SWAP AGREEMENTS 11,166,672
RESIDENT DEPOSITS 775,853
OTHER PAYABLES 947,711




Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)Small Bullet 41,035,672
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) 2011

Schedule D (Form 990) 2011
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) .................... 1 217,181,688
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 219,023,414
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3 -1,841,726
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 -3,563,514
9 Total adjustments (net). Add lines 4 through 8 ......................... 9 -3,563,514
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10 -5,405,240
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1 218,489,586
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 3,695,291
e Add lines 2a through 2d ..................... 2e 3,695,291
3 Subtract line 2e from line 1..................... 3 214,794,295
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 174,461
b Other (Describe in Part XIV.) ........... 4b 2,212,932
c Add lines 4a and 4b....................... 4c 2,387,393
5 Total Revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ...... 5 217,181,688
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1 219,710,172
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 4,175,561
e Add lines 2a through 2d...................... 2e 4,175,561
3 Subtract line 2e from line 1..................... 3 215,534,611
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 174,461
b Other (Describe in Part XIV.) ............ 4b 3,314,342
c Add lines 4a and 4b....................... 4c 3,488,803
5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ...... 5 219,023,414
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 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   SCHED D PART XI LINE 8 OTHER EXCESS(DEFICIT) OF OTHER ENTITIES IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON LUTHERAN FUND DEFICIT (481,994) DIAKON LUTHERAN SENIOR HOUSING AT LUTHER MEADOWS EXCESS 55,877 DIAKON LUTHERAN SENIOR HOUSING AT HEILMAN HOUSE DEFICIT (41,017) INSTITUTE FOR STRATEGIC MANAGEMENT, INC. DEFICIT (39,422) SUSQUEHANNA HOUSING, INC. 16 SUBTOTAL (506,540) REVENUE NOT INCLUDED IN EXCESS (DEFICIT) IN CONSOLIDATED FINANCIAL STATEMENTS: TEMPORARILY RESTRICTED CONTRIBUTIONS (1,044,503) PERMANENTLY RESTRICTED CONTRIBUTIONS (984,165) TEMPORARILY RESTRICTED INVESTMENT GAIN (205,186) TEMPORARILY RESTRICTED NET ASSETS RELEASED 2,263,915 SUBTOTAL 30,061 OTHER CHANGES: EQUITY IN GAIN OF JOINT VENTURE 104,213 DECREASE IN FAIR VALUE OF SWAP AGREEMENT DLSM (3,191,248) SUBTOTAL (3,087,035) TOTAL (3,563,514) =========== SCHED D PART XII LINE 2D OTHER REVENUE OF OTHER ENTITIES IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON LUTHERAN FUND 816,994 DIAKON 531,517 DIAKON LUTHERAN SENIOR HOUSING AT LUTHER MEADOWS 503,998 DIAKON LUTHERAN SENIOR HOUSING AT HEILMAN HOUSE 458,262 INSTITUTE FOR STRATEGIC MANAGEMENT, INC. 607,502 SUSQUEHANNA HOUSING INC. 16 SUBTOTAL 2,918,289 ITEMS RECLASSIFIED FROM EXPENSE FOR 990 REPORTING PURPOSES: RENTAL EXPENSES 686,903 FUNDRAISING EXPENSES 90,099 SUBTOTAL 777,002 TOTAL 3,695,291 ========= SCHED D PART XII LINE 4B OTHER REVENUE NOT INCLUDED IN EXCESS(DEFICIT) IN CONSOLIDATED FINANCIAL STATEMENTS: TEMPORARILY RESTRICTED CONTRIBUTIONS 1,044,503 PERMANENTLY RESTRICTED CONTRIBUTIONS 984,165 TEMPORARILY RESTRICTED INVESTMENT GAIN 205,186 TEMPORARILY RESTRICTED NET ASSETS RELEASED (2,263,915) SUBTOTAL (30,061) REVENUE ELIMINATED IN CONSOLIDATION IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON LUTHERAN FUND GRANT INCOME 1,207,555 DIAKON MANAGEMENT FEE 524,390 HUD MANAGEMENT FEE 433,895 SUBTOTAL 2,165,840 DISCONTINUED OPERATIONS 611,794 IMPAIRMENT - LOSS ON DISPOSAL (534,641) TOTAL 2,212,932 ========== SCHED D PART XIII LINE 2D OTHER EXPENSES OF OTHER ENTITIES IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON LUTHERAN FUND 1,298,988 DIAKON 531,517 DIAKON LUTHERAN SENIOR HOUSING AT LUTHER MEADOWS 439,063 DIAKON LUTHERAN SENIOR HOUSING AT HEILMAN HOUSE 482,067 INSTITUTE FOR STRATEGIC MANAGEMENT, INC. 646,924 SUBTOTAL 3,398,559 ITEMS RECLASSIFIED FROM EXPENSE FOR 990 REPORTING PURPOSES: RENTAL EXPENSES 686,903 FUNDRAISING EXPENSES 90,099 SUBTOTAL 777,002 TOTAL 4,175,561 ========= SCHED D PART XIII LINE 4B OTHER EXPENSES ELIMINATED IN CONSOLIDATION IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON LUTHERAN FUND GRANT INCOME 1,207,555 DIAKON MANAGEMENT FEE 524,390 HUD MANAGEMENT FEE 433,895 SUBTOTAL 2,165,840 DISCONTINUED OPERATIONS 948,502 OTHER EXPENSE 200,000 TOTAL 3,314,342 ==========
Schedule D (Form 990) 2011

Additional Data


Software ID:  
Software Version:  




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 arrowAttach to Form 990 or Form 990-EZ. right arrowSee separate instructions.
OMB No. 1545-0047
2011
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 Direct Mailing   No 91,354 46,300 45,054
CCS FUNDRAISING STRATEGY   No 0 21,833 -21,833
Total .................right arrow 91,354 68,133 23,221
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.
AZ, 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) 2011
Schedule G (Form 990 or 990-EZ) 2011
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 . . . 131,497 85,778 55,835 273,110
2 Less: Charitable
contributions . . . 		112,357 70,298 46,655 229,310
3 Gross income (line 1
minus line 2) . . . 		19,140 15,480 9,180 43,800
VerticalDirectExpenses 4 Cash prizes . . .        
5 Non-cash prizes . .        
6 Rent/facility costs . . 7,673 1,200 2,859 11,732
7 Food and beverages . . 504 12,901 15,857 29,262
8 Entertainment . . .        
9 Other direct expenses . 8,746 24,087 16,271 49,104
10 Direct expense summary. Add lines 4 through 9 in column (d) ........... right arrow 90,098
11 Net income summary. Combine lines 3 and 10 in column (d)............ right arrow -46,298
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) 2011
Schedule G (Form 990 or 990-EZ) 2011
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. REED HANN PRINTS DONOR BLESSINGS AND DONOR REPORT. DLSM PURCHASES MAILING LISTS FROM SPECIALIZED FUNDRAISING SERVICES.
Schedule G (Form 990 or 990-EZ) 2011
Additional Data


Software ID:  
Software Version:  
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
2011
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) Christ Lutheran Church124 South 13th Street
c/o Rev Jody Silliker
Harrisburg,PA17104 		23-1445638 501(c)(3) 8,750       Free dental clinic
(2) Upper Susquehanna SynodPO Box 36
c/o Rev Jody Silliker
Lewisburg,PA17837 		36-3514272 501(c)(3) 14,625       Distribution Network
(3) Lutheran Theological Seminary of Gettysburg61 Seminary Ridge
GETTYSBURG,PA173251795 		23-1365169 501(c)(3) 39,996       chair endowment
(4) Christ the King Lutheran Church730 S New Street
West Chester,PA19382 		23-2732797 501(c)(3) 8,450       Ministry for Deaf
















2
Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................. Bullet Image
4
3
Enter total number of other organizations listed in the line 1 table ......................... . Bullet Image
3
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2011

Schedule I (Form 990) 2011
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
(1) BENEVOLENT CARE TO UNRELATED INSTITUTIONS 12 333,406      













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) 2011


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
2011
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 or provision 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. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.
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 Regulations 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) 2011

Schedule J (Form 990) 2011
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is 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) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and column (E) for that individual.
(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 as deferred
in prior Form 990
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1) MARK T PILE (i)
(ii)		 315,220
0 		150
0 		7,631
0 		227,062
0 		21,250
0 		571,313
0 		0
0
(2) RICHARD M BARGER (i)
(ii)		 245,895
0 		 
0 		6,141
0 		97,345
0 		2,862
0 		352,243
0 		0
0
(3) JOHN J PALKOVITZ (i)
(ii)		 153,651
0 		410
0 		1,233
0 		5,259
0 		19,362
0 		179,915
0 		0
0
(4) BECKEY L VANETTEN (i)
(ii)		 139,875
0 		 
0 		7,873
0 		10,335
0 		13,984
0 		172,067
0 		0
0
(5) JEANNE M OSKI (i)
(ii)		 144,230
0 		300
0 		1,230
0 		36,317
0 		8,319
0 		190,396
0 		0
0
(6) WILLIAM E SWANGER (i)
(ii)		 136,422
0 		150
0 		1,297
0 		14,079
0 		20,472
0 		172,420
0 		0
0
(7) SUSAN K LIPPY (i)
(ii)		 139,685
0 		60
0 		187
0 		3,618
0 		6,457
0 		150,007
0 		0
0
(8) SCOTT HABECKER (i)
(ii)		 182,349
0 		150
0 		868
0 		3,670
0 		17,194
0 		204,231
0 		0
0
(9) ALICE M CLARK (i)
(ii)		 149,797
0 		300
0 		1,927
0 		17,292
0 		19,873
0 		189,189
0 		0
0
(10) TAMA M CAREY (i)
(ii)		 211,578
0 		150
0 		2,338
0 		16,009
0 		8,721
0 		238,796
0 		0
0
(11) MARY ELLEN DICKEY (i)
(ii)		 173,872
0 		60
0 		6,133
0 		39,605
0 		23,068
0 		242,738
0 		0
0
(12) DAVID B BAKER (i)
(ii)		 156,269
0 		60
0 		1,749
0 		36,380
0 		21,405
0 		215,863
0 		0
0




Schedule J (Form 990) 2011

Schedule J (Form 990) 2011
Page 3
Part III
Supplemental Information
Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 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 THREE 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 $319.45 JOHN PALKOVITZ $319.83 JEANNE OSKI $345.88
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   TWO KEY EMPLOYEES AND ONE HIGHLY COMPENSATED EMPLOYEE WERE OFFERED AND SIGNED AGREEMENTS WHICH INCLUDE A 457(F) SUPPLEMENTAL NONQUALIFIED BENEFIT; 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 AND HIGHLY COMPENSATED 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 AND HIGHLY COMPENSATED 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 OR HIGHLY COMPENSATED EMPLOYEE FOR A SPECIFIED PERIOD OF TIME, FROM ACCEPTING EMPLOYMENT WITH COMPETITOR ORGANIZATIONS. THE THREE INDIVIDUALS WHO PARTICIPATED IN THE 457 (F) PLAN IN 2011 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: DAVID B. BAKER $27,912 MARY ELLEN DICKEY $29,922 JEANNE OSKI $25,291 PART III: THE EMPLOYER MATCHING CONTRIBUTION TO THE DEFINED CONTRIBUTION PLAN WAS SUSPENDED AS OF JULY OF 2010. THE DLSM DEFINED BENEFIT RETIREMENT PLAN ACCRUALS WERE FROZEN AS OF 12/31/11. THE PRESENT VALUE OF THE INCREASE IN ACCRUED BENEFIT IS REFLECTED IN SCHEDULE J, PART II, COLUMN C, AND PART VII, SECTION A, COLUMN F.
Schedule J (Form 990) 2011

Additional Data


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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 Part VI.
SchKMediumBullet Attach to Form 990. SchKMediumBullet See separate instructions.
OMB No. 1545-0047
2011
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 SCHEDULE O
  		23-6003119 SCHEDULEO 09-30-2003 69,020,000 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 . . . . . . . . . . . . . 45,115,000 1,640,000 0 1,950,000
2 Amount of bonds legally defeased . . . . . . . . . . 0 0 0 0
3 Total proceeds of issue . . . . . . . . . . . . . 72,260,461 10,631,897 70,021,934 122,499,444
4 Gross proceeds in reserve funds . . . . . . . . 0 0 6,291,921 11,342,091
5 Capitalized interest from proceeds . . . . . . . . . . 0 0 8,917,396 2,103,425
6 Proceeds in refunding escrows . . . . . . . . . . . 0 0 0 0
7 Issuance costs from proceeds . . . . . . . . . . . 1,361,092 189,735 1,051,817 1,988,038
8 Credit enhancement from proceeds . . . . . . . . . . 2,742,245 132,663 0 0
9 Working capital expenditures from proceeds . . . . . . . 0 0 0 0
10 Capital expenditures from proceeds . . . . . . . . . . 21,063,623 10,309,499 41,805,730 4,783,225
11 Other spent proceeds . . . . . . . . . . . 43,094,199 0 0 76,789,281
12 Other unspent proceeds . . . . . . . . . . . 4,018,091 0 11,955,070 25,493,385
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) 2011
Schedule K (Form 990) 2011
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 of bond-financed property? . . . . . . . . . X   X   X     X
b If ‘Yes’ to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . . X   X   X      
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . .   X   X   X   X
d If ‘Yes’ to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .                
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 0% 0% 0% 0.00000%
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% 0.00000% 0% 0.00000%
6 Total of lines 4 and 5 . . .. . . . . . . . . 0% 0% 0% 0.00000%
7 Does the bond issue meet the private security or payment test? . . . X   X   X   X  
8 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under
Regulations sections 1.141-12 and 1.145-2?
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 qualified hedge with respect to the bond issue? X   X     X   X
b Name of provider . . . . . . . . WELLS FARGO
  		WELLS FARGO
  		0
  		 
 
c Term of hedge . . . . . . . . 17. 17.    
d Was the hedge superintegrated? . . . .   X   X        
e Was a hedge terminated? . . . . .   X   X        
4a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . .   X   X   X   X
b Name of provider . . . . . . 0
  		0
  		0
  		0
 
c Term of GIC . . . . . . .        
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . . . . . .                
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
7 Has the organization established written procedures to monitor the requirements of section 148? . . .   X   X   X   X
Schedule K (Form 990) 2011

Schedule K (Form 990) 2011
Page 3
Part V
Procedures To Undertake Corrective Action
Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? . . . . . . . . . . . . . .
Part VI
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 0  
Schedule K (Form 990) 2011

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
2011
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) 2011
Schedule L (Form 990 or 990-EZ) 2011
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 70,620 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) 2011

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
2011
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 CARE, A RANGE OF OUTDOOR-BASED PROGRAMS FOR AT-RISK YOUTHS, AND A PROGRAM THAT LINKS CORPORATE IN-KIND DONATIONS OF 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 TRANSFORM THE LIVES OF CHILDREN, FAMILIES, AND OLDER ADULTS AT MORE THAN 35 SERVICE CENTERS AND SENIOR LIVING COMMUNITIES IN PENNSYLVANIA, MARYLAND, AND DELAWARE. STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS IN 2011, DIAKON LUTHERAN SOCIAL MINISTRIES DIRECTLY SERVED NEARLY 58,000 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 CARE, 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 SERVES AS 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 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 HEALTH CARE BECAUSE OF INADEQUATE RESOURCES AND/OR WHO ARE UNINSURED OR UNDERINSURED. A NUMBER OF PROGRAMS FOR CHILDREN AND FAMILIES 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 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, 2011: SUPPORT PROVIDED TO SLS RESIDENTS: MEDICAL ASSISTANCE COST IN EXCESS OF CONTRACTUAL REIMBURSEMENT $ 7,934,292 CHARITY CARE IN SUPPORT OF THOSE IN NEED $ 2,769,192 FCM PROGRAMS SUPPORTED BY THE DLSM(CHARITY CARE): CHILDREN'S SERVICES $ 1,871,257 BEHAVIORAL HEALTH $ 600,536 FAMILY LIFE AND CONGREGATION $ 261,023 COMMUNITY SERVICES $ 853,633 HOME SERVICES FOR SENIORS $ 97,234 ------------- $ 3,683,683 ------------- TOTAL $ 14,387,167 ------------- IN 2011, DIAKON LUTHERAN SOCIAL MINISTRIES PROVIDED THE FOLLOWING: RESIDENTIAL AND ELDERCARE 809,084 CARE DAYS HUD HOUSING PROJECTS 84,967 CARE DAYS CHILDCARE AND YOUTH SERVICES 127,640 CARE DAYS COMMUNITY SERVICES FOR SENIORS 9,639 PERSONS SERVED HOSPICE CARE 21,874 CARE DAYS ADULT DAY SERVICES 17,407 CARE DAYS DIAKON FAMILY LIFE SERVICES 7,690 UNDUPLICATED PERSONS SERVED ADOPTION & FOSTER CARE 2,313 CHILDREN/FAMILY MEMBERS SERVED STATEWIDE ADOPTION & PERMANENCY NETWORK (SWAN CONTRACT TO MANAGE) 27,309 CHILDREN/FAMILY MEMBERS SERVED ADOPTION 91 FINALIZATIONS DIAKON KATHRYN'S KLOSET APPROX. 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 AND 4D   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 10 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 2011, THESE SENIOR LIVING COMMUNITIES SERVED 7,200 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 2011, 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 DIAKON HELP AT HOME INTO SEVERAL OF THE COMMUNITIES' SERVICE OFFERS. DIAKON ALSO CONTINUED WITH AN EMPHASIS ON THE CONTINUUM OF SENIOR LIFESTYLE AND HEALTH-RELATED SERVICES-A MOVE THAT SET THE STAGE FOR INCORPORATION IN 2011 OF HOSPICE CARE, ADULT DAY SERVICES, AND COMMUNITY-BASED SENIOR SERVICES WITHIN THIS PROGRAM DIVISION. DIAKON SENIOR LIVING SERVICES PROVIDED $10,703,484 IN UNCOMPENSATED CARE DURING 2011, 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 EMPHASES INCLUDING CHILD & FAMILY SERVICES AND DIAKON KATHRYN'S KLOSET. AMONG REPRESENTED PROGRAMS ARE ADOPTION, FOSTER CARE, SERVICES FOR COURT-ADJUDICATED YOUTHS, CHILDREN'S BEREAVEMENT PROGRAM, AND FAMILY LIFE SERVICES COUNSELING FOR INDIVIDUALS, COUPLES, AND CHILDREN. 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 2011 ACHIEVEMENTS FOR DIAKON SERVICES AIDING CHILDREN, FAMILIES, AND COMMUNITIES INCLUDES CONTINUED SUCCESS WITH AN ADOPTION-RELATED PROGRAM CALLED DIAKINNECTIONS THAT FOCUSES ON FINDING KIN AND FICTIVE-KIN FAMILIES FOR CHILDREN IN FOSTER CARE WITH FEW OTHER RESOURCES, AS WELL AS SIGNIFICANT ACHIEVEMENTS IN OTHER SERVICES FOCUSED ON FINDING "FOREVER FAMILIES" FOR OLDER YOUTHS; SUCCESSFUL GRADUATIONS OF YOUTHS FROM THE DIAKON WILDERNESS CENTER'S FLIGHT PROGRAM; EXPANSION OF DAYTIME COMMUNITY-BASED YOUTH SERVICES TO NEW COUNTIES; 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 CONTINUED OPERATION 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 $3,683,683 IN UNCOMPENSATED CARE DURING 2011. LINE 4C - STATEWIDE ADOPTION AND PERMANANCY 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 402,371 2,063,832 1,180,521
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 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 WAS RECEIVED AND ACCEPTED BY THE DIAKON LUTHERAN SOCIAL MINISTRIES' GOVERNING BODY AT ITS REGULAR QUARTERLY MEETING ON AUGUST 22, 2012. LINE 12C DLSM'S CHIEF COMPLIANCE OFFICER REVIEWS DLSM'S CONFLICT OF INTEREST STATEMENT AND CERTIFICATION FORMS WITH THE BOARD ON A REGULAR BASIS. 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 CHIEF COMPLIANCE OFFICER AND BY THE ORGANIZATION'S OUTSIDE AUDITOR ON A REGULAR BASIS.
PART VI, 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 OF THE SOLE MEMBER, WHICH INCLUDES DIRECTORS FROM DLSM (COMPENSATION COMMITTEE), 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 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 THE NATIONAL ECONOMIC ISSUES AND THEIR IMPACT ON DLSM'S OPERATIONS, NO SALARY ADJUSTMENTS TO THE BASE SALARY WERE MADE IN 2011 AND NO VARIABLE PAYMENTS WERE MADE. AN EXTERNAL CONSULTANT COMPLETED A COMPETITIVE PAY ANALYSIS DURING 2011. 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 DLSM DEFINED BENEFIT RETIREMENT PLAN ACCRUALS WERE FROZEN AS OF 12/31/11. THE PRESENT VALUE OF THE INCREASE IN ACCRUED BENEFIT IS 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, WHICH CURRENTLY INCLUDES ONLY THE CEO AND CFO. THE 2011 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 $607,551 AT DECEMBER 31, 2011 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, 2011. TWO KEY EMPLOYEES AND ONE HIGHLY COMPENSATED EMPLOYEE WERE OFFERED AND SIGNED AGREEMENTS WHICH INCLUDE A 457(F) SUPPLEMENTAL NONQUALIFIED BENEFIT, 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/HIGHLY COMPENSATED 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 AND HIGHLY COMPENSATED EMPLOYEE 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.
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 11,000 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 DECREASE IN FAIR VALUE OF SWAP AGREEMENTS (3,191,248) EQUITY IN GAINS OF JOINT VENTURE 104,213 PENSION-RELATED CHANGES OTHER THAN NET PERIODIC PENSION COSTS (8,241,783) UNREALIZED LOSSES ON INVESTMENTS (4,939,365) CHANGE IN BENEFICIAL INTEREST IN TRUSTS (47,836) DECREASE IN FAIR VALUE OF FUNDS HELD IN TRUST BY OTHERS (854,526) EQUITY TRANSFER TO AFFILIATE (1,800,000) --------- SUBTOTAL (18,970,545)
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 VI   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, 2011 INSTALLMENT COMPUTATION DATE. THE NEXT COMPUTATION DATE IS SCHEDULED TO OCCUR ON SEPTEMBER 30, 2012. 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. THE 2003D BONDS WERE REFINANCED, AND PART OF THE PROCEEDS FROM THE 2009D SERIES ISSUANCE WERE USED TO PAY OFF THE 2003D BONDS. IN THE INTEREST OF TRANSPARENCY, DLSM IS INCLUDING THE 2003D SERIES BONDS ON SCHEDULE K FOR 2011 AND GOING FORWARD. 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 LOAN 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, 2011 INSTALLMENT COMPUTATION DATE. THE NEXT COMPUTATION DATE IS SCHEDULED TO OCCUR ON SEPTEMBER 30, 2012. 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. TOTAL PROCEEDS FROM ISSUE $ 69,020,000 ISSUE PRICE CUMULATIVE INVESTMENT EARNINGS $ 3,240,461 TOTAL $ 72,260,461 OTHER SPENT PROCEEDS REFUNDING OF 1993 & 1998 SERIES $ 5,385,560 REFUNDING OF 1994 & MHHEFA DEBT $ 14,715,293 REFUNDING OF 2003 D $ 22,993,346 TOTAL $ 43,094,199 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 $ 6,386,008 TOTAL $ 70,021,934 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. 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, 2011 INSTALLMENT COMPUTATION DATE. THE NEXT COMPUTATION DATE IS SCHEDULED TO OCCUR ON DECEMBER 1, 2012. TOTAL PROCEEDS FROM ISSUE ISSUANCE PRICE $ 122,154,764 CUMULATIVE INVESTMENT EARNINGS $ 344,681 TOTAL $ 122,499,444 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) 2011

Additional Data


Software ID:  
Software Version:  
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
2011
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 1,010,615 5,279,229 DLSM
 










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
 
 
No
(2) DIAKON LUTHERAN FUND

798 HAUSMAN ROAD STE 300

ALLENTOWN,PA18104
23-1365978 		FUND PROGRAMS PA 501(C)3 11 DIAKON
 
Yes
 
(3) DIAKON LUTHERAN SENIOR HOUSING AT LUTHER

798 HAUSMAN ROAD STE 300

ALLENTOWN,PA18104
23-2837747 		HUD HOUSING PA 501(C)3 9 DLSM
 
Yes
 
(4) DIAKON LUTHERAN SENIOR HOUSING AT HEILMA

798 HAUSMAN ROAD STE 300

ALLENTOWN,PA18104
23-2463233 		HUD HOUSING PA 501(C)3 9 DLSM
 
Yes
 
(5) SUSQUEHANNA HOUSING INC

798 HAUSMAN ROAD STE 300

ALLENTOWN,PA18104
23-2040250 		INACTIVE PA 501(C)3 11 DLSM
 
Yes
 




For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2011
Schedule R (Form 990) 2011
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      
(2) CHARITABLE REMAINDER TRUSTS (2)
 
 
    N/A
        
(3) PERPETUAL TRUSTS HELD BY 3rd PARTY (24)
 
 
    N/A
        








Schedule R (Form 990) 2011
Schedule R (Form 990) 2011
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 related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
 
No
c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Yes
 
d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
 
No
g Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
No
h Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
No
j Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
 
No
k Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .
1k
 
No
l Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .
1l
 
No
m Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .
1m
 
No
n Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1n
Yes
 
o Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
Yes
 
p Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
Yes
 
q Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
Yes
 
r Other transfer of cash or property from related 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 1,207,555 Book Value
(2) Diakon Lutheran Senior Housing at Luther Mead

 n 79,489 Book Value
(3) Diakon Lutheran Senior Housing at Heilman Hou

 n 84,294 Book Value
(4) Diakon Lutheran Senior Housing at Luther Mead

 p 28,670 Book Value
(5) Diakon Lutheran Senior Housing at Heilman Hou

 p 26,695 Book Value
(6) Diakon

 o 524,390 Book Value
(7) Diakon

 p 524,390 Book Value
(8) Diakon

 q 1,800,000 Book Value
Schedule R (Form 990) 2011
Schedule R (Form 990) 2011
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)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(e)
Are all
partners
section
501(c)(3)
organizations? 		(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 Yes No






























Schedule R (Form 990) 2011
Schedule R (Form 990) 2011
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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