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.
Attach to Form 990 or Form 990-EZ. See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Franciscan Sisters of Chicago Service Corporation
Employer identification number
36-3579767
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
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(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)
No
(ii)
a family member of a person described in (i) above?
......................
11g(ii)
No
(iii)
a 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
No
h
Provide the following information about the supported organization(s).
(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
(1)
FRANCISCAN COMMUNITIES INC
351124441
09
No
Yes
Yes
5,848,904
(2)
THE CLARE AT WATER TOWER
030447208
09
No
Yes
Yes
7,623,572
(3)
FRANCISCAN COMMUNITIES ST MARY OF THE WOODS
510436466
09
No
Yes
Yes
2,921,689
(4)
UNIVERSITY PLACE INC
352058981
09
No
Yes
Yes
753,587
(5)
FRANCISCAN COMMUNITIES VILLA DE SAN ANTONIO
743015408
09
No
Yes
Yes
154,465
(6)
FRANCISCAN COMMUNITIES SERVICES INC
364026985
09
No
Yes
Yes
115,487
(7)
ST JUDE HOUSE INC
351905782
07
No
Yes
Yes
490,652
(8)
ST ANTHONY MEDICAL CENTER INC
351172181
03
No
Yes
Yes
0
(9)
FRANCISCAN COMMUNITY BENEFIT SERVICES
364454351
09
No
Yes
Yes
0
Total
17,908,356
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3..
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6
Public Support. Subtract line 5 from line 4.
Section B. Total Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
7
Amounts from line 4..
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11
Total support (Add lines 7 through 10).
12
Gross receipts from related activities, etc. (See instructions.)
..................
12
13
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here..........................................
Section C. Computation of Public Support Percentage
14
Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f))
.........
14
15
Public Support Percentage for 2009 Schedule A, Part II, line 14
...............
15
16a
33 1/3% support test—2010.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
......................
b
33 1/3% support test—2009.
If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2010.
If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization
..................................................
b
10%-facts-and-circumstances test—2009.
If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported organization
..............................................
18
Private Foundation
If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions
...................................................
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2
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......
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.
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.)
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
9
Amounts from line 6...
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c
Add lines 10a and 10b.
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.)
13
Total support (Add lines 9, 10c, 11 and 12.).
14
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public Support Percentage for 2010 (line 8 column (f) divided by line 13 column (f))
.........
15
16
Public support percentage from 2009 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2010 (line 10c column (f) divided by line 13 column (f))
......
17
18
Investment income percentage from 2009 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2010.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
..........
b
33 1/3% support tests—2009.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
....
20
Private Foundation
If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information.
Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2010
Additional Data
Software ID:
Software Version:
-
TIN:
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.
Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
Franciscan Sisters of Chicago Service Corporation
Employer identification number
36-3579767
Identifier
Return Reference
Explanation
Corporate Member
Form 990, Part VI, Question 6
Does the organization have members or stockholders? The members of Franciscan Sisters of Chicago Serivce Coporation ("FSCSC") shall consist of the General Minister and the members of the General Council of the Franciscan Sisters of Chicago (the "Members"). The General Minister of the Franciscan Sisters of Chicago shall be the chairperson of the Members. The Members shall act in a stewardship capacity and ensure that all actions of FSCSC are consistent with the purposes of FSCSC and the ethical and religious principles of the Franciscan Sisters of Chicago and in furtherance of their apostolates and the catholic church.
Elect governing body
Form 990, Part VI, Question 7a
The sole corporate member, the Franciscan Sisters of Chicago, has the reserve power to appoint and remove Directors and fill vacancies on the Board of Directors of the Franciscan Sisters of Chicago Service Corporation.
Reserve Powers
Form 990, Part VI, Question 7b
The Members shall have the following reserve powers: (a) Mission, Philosophy, Values - To review and consult with the FSCSC Board of Directors, prior to the FSCSC Board of Directors' approval or adoption of any changes to or deviations from the mission, philosophy, and values of FSCSC( including as reflected in any statement of its mission, philosophy or values, or in any strategic plan, any annual operating, capital and cash flow budgets, and to approve any such change or deviation.) (b) Governing Document Amendments and Goverance 1. To approve any amendments to the Articles of Incorporation, Bylaws or similar governing documents of FSCSC or any Affiliate that would diminish the rights and powers of the Members as set forth herein or in such other governing documents. 2. To appoint and remove Directors and fill vacancies on the Board of Directors. 3. To appoint or remove the Chairperson and the President/CEO of FSCSC, after consultation with the Board of Directors. (c) Significant Actions 1. To approve any merger, consolidation, dissolution or liquidation of FSCSC or any Affiliate, other than a merger or consolidation soley between existing Affiliates. 2. To approve the creation of any new Affiliate or any affiliation. 3. To approve the establishment , termination, transfer or other acquisition or disposition of a major ministry, work or similar program by FSCSC or any Affiliate. 4. To approve the purchase, sale, donation, lease, mortgage, or any other acquisition, disposition or encumbrance of any assets of FSCSC or any Affiliate, over the amount set by the Members from time to time. 5. To approve the incurrence of indebtedness, or the guarantee of indebtedness of any person, by FSCSC or any Affiliate over an amount specified by the Members from time to time.
Governance review of 990
Form 990, Part VI, Question 11a
Management presented a final draft of the completed Form 990, including all applicable schedules to the audit and finance committee of the Board of Directors prior to its filing with the Internal Revenue Service.
Delegate Control of Management Duties
Form 990, Part VI, Section A.,Question 3, Schedule L, Part IV
Effective July 15, 2008, the Franciscan Sisters of Chicago Service Corporation ("FSCSC") and its sponsor, the Franciscan Sisters of Chicago, entered into an agreement to delegate the control of management duties of FSCSC to Mesirow Financial Interim Management, LLC. This agreement terminated September 30,2010. The scope of services of the agreement included Mr. Thomas J. Allison to serve as Chief Executive Officer of FSCSC. And in accordance with the bylaws of FSCSC Mr. Allison served as a member of the Board of Directors. Mr. Allison reported directly to the Board of Directors and to the Sponsor. The scope of the agreement also included consulting and project services. These services included analyzing and revising FSCSC's organizational structure and team to more effectively oversee and manage business operations, assist in developing a plan to restructure the operations and business of FSCSC, and to provide assistance for ministries facing significant challenges. The total cost of Mesirow Financial Interim Mangement services under this agreement for the year totalled $463,101 .
Conflict of Interest Policy
Form 990, Part VI, Section B, Question 12c
As provided for in the Conflict of Interest policy, it is the responsibility of the board or committee chair to ensure that each director, officer, and member of a board committee annually signs an FSCSC approved conflict of interest disclosure statement. Copies of all signed statements are forwarded to the Corporate Director of Compliance and Standards. Key employees are required to complete an annual conflict of interest statement that is reviewed by their direct supervisor.
Executive Compensation
Form 990, Part VI, Section B., Question 15
The board of directors of the organization has the responsibility to establish compensation ranges for the employees of FSCSC. The board of directors appointed an executive compensation committee of the board to meet this responsibility. The executive compensation committee approves the compensation for the Chief Executive Officer and President, Chief Financial Officer, and other key employees in the organization. The executive compensation committee is comprised of persons who do not have a conflict of interest with respect to the compensation arrangements at issue. The process for determining the appropriate compensation of each position includes: 1. Review and approval by the executive compensation committee. 2. Obtaining and analyzing comparable compensation data for similar persons in functionally comparable positions in similar organizations. 3. Contemporaneous documentation and recordkeeping with respect to deliberations and decisions regarding the compensation arrangements.
Governing Documents Disclosure
Form 990, Part VI, Section C., Question 19
The organization makes its governing documents, conflict of interest policy and financial statements available to the public in accordance with applicable laws and regulations.
Officers, Directors and Key Employees Hours
Form 990, Schedule J-2, Column B
The Franciscan Sisters of Chicago Service Corporation("FSCSC") is the sole corporate member of Franciscan Communities, Inc., University Place Inc., Franciscan Communities St Mary of the Woods, Franciscan Communities Villa de San Antonio, The Clare at Water Tower, Franciscan Community Services, Franciscan Community Benefit Services, St Jude House, St Joseph Senior Housing, and St Anthony Medical Center. The purpose of FSCSC is to provide program and administrative support for its affiliates including operational oversight, financial management, treasury management, information technology, compliance, marketing, human resources, resident services, and construction and development management. FSCSC is the paymaster for the officers and key employees that provide these services. The average hours per week identified in Schedule J-2 reflect the total hours spent on all affiliates.
Independent Audit
Form 990 Part IV Question 12b; Part XII Line 2
Independent audited financial statements have not been issued at the time of this filing. Information reported in this return reflect the current draft of the audited financial statements.
Other Changes in Net Assets
Form 990 Part XI Line 5
Net unrealized gains on investments $ 985,878 Loss on Swap agreement 5,161 Net Asset Transfers -1,577,061 ---------- Total Other changes in net assets -$ 596,344 ==========
Compensation of Officers
Form 990 Part VII
Dates of Service for the following Directors: Thomas Allison - President 07/15/08 - 09/30/10 Judy Amiano - President 10/27/10 - current Robert Zimmer - Treasurer 02/25/09 - 02/11/11 Ronald Tinsley - Treasurer 06/13/11 - current Terry Malik - General Counsel and Secretary 07/06/10 - 01/25/11
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Sister M. Francis Radke, OSF TITLE:Chairman HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Sister M. Francine Labus, OSF TITLE:Vice Chair and Secretary HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Jill Krueger TITLE:Director HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Annette Shoemaker TITLE:Director HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Lawrence Leaman TITLE:Director HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Susan Nordstrom Lopez TITLE:Director HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Sandra Singer TITLE:Director HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Thomas J. Allison TITLE:President HOURS:40
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Judy Amiano TITLE:President HOURS:40
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Robert Zimmer TITLE:Treasurer HOURS:40
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Stephen Bardoczi TITLE:SVP Planning and Real Estate HOURS:40
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Lora Ann Slawinski TITLE:Chief Operating Officer HOURS:40
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Lawrence Carlson TITLE:VP of Operations HOURS:40
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Kathy Kelly TITLE:VP Clinical Services HOURS:40
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Karla Grzeskowiak TITLE:Vice-President Human Resources HOURS:40
HOURS DEVOTED FOR RELATED ORGANIZATION
FORM 990 PART VII
NAME:Jeanette M. Lindish TITLE:VP Mission Integration HOURS:40