Annual Report - Year 2002

    
Message from the Board of Directors

This is my third, and final, letter to congregations, staff, friends and other supporters of LSS. As I end my three-year term as chair of the LSS Board of Directors, I have found the experience to be profoundly enlightening and enriching. In this volunteer role, I have been able to work closely with staff. And, as with many volunteer roles, the closer you get to the day-to-day life of an organization, its people and its mission, the more you appreciate all that the organization does and the challenges it faces. That has been the case with my volunteer work at LSS.

In the year 2002, LSS' Long Range Plan themes continued to be the compass for our work.

• Focus on Mission

• Innovate in Service Leadership

• Expand our capacity to Serve

The first theme, however, is the one where I have spent the majority of my time. Understanding what it means to be faith-based and mission-based is very important to our owners, those we serve and the caring nature of our society in Minnesota.

Since the "owners" of LSS are the six Minnesota synods of the Evangelical Lutheran Church in America, it requires consistent and energetic communications with our church constituents to share the impressive role LSS plays in the missional life our of church in Minnesota.

More impressive is the role that the Lutheran churches play in the delivery of human services across the United State in the Virgin Islands. Lutheran Services in America, an umbrella organization of Lutheran Service organizations, is the largest non-profit human services group in the U.S. Bundled together, Lutheran service organizations would rank among the Fortune 500. There are 150,000 persons who work for the Lutheran Service Organizations whose mission is to serve those who need assistance.

Elsewhere in this report you will see the numbers that identify the outcomes of our services. And you'll get an idea of the types of persons we help in our day to day efforts.

You will also discover that innovation and the drive to help more people are characteristic themes of LSS. We can be well satisfied that the LSS management and staff have worked brilliantly in carrying out the goals of the long-range plan.

Permit me to share my appreciation for my fellow directors on the Board. They represent the church owners from each of the six Minnesota synods. They are also volunteers who devote at least two weeks of their lives each year to be directors of LSS. Each one has specific skills and rich talents. Together they work to establish the policies and outcomes that emerge from our mission. I am deeply grateful for the tireless energy they devote to LSS each year.

There is good reason to be proud of the work LSS does in Minnesota. The mission is real, it is very much alive, and it is prospering despite the economic setbacks our society faced in 2002, and in the aftermath of Sept. 11, 2001.

As a volunteer myself, I invite you to go deeper into LSS, to know the real individuals who are serving and those who are helped. In them, you see the mission of LSS at work. You see the expression of Christ' love for all people through acts of service.

Sincerely,
Reverend Gerald Hoffman, Chair, LSS Board of Directors

 
Changing Lives / Offering Hope

From its beginning in 1865, LSS' ministry has been grounded in hope. The founders of our movement believed that families could be found for abandoned children. They found adoptive families, and that gave children hope. When refugees came to Minnesota after World War II and, again, after the War in Vietnam, Lutherans took the lead in welcoming these people and offering them hope. When natural disasters strike, LSS is there to provide hope to the victims.

That is our work changing lives and offering hope.

The LSS Board of Directors is clear about the outcomes and attitudes we count important for those people we have been called to serve:

"LSS of Minnesota exists so that children, youth, families, older adults, and
persons with disabilities are safe, valued, and respected."

Volunteers
In 2002, we expanded on our long history of engaging volunteers in our services. New volunteer components were added to the following lines of service: Housing, Guardianship, Homeless Youth in the metro area, and a consortium of Youth and Guardianship programs in Duluth. We expect LSS volunteerism to expand further as a result of statewide programming.

In 2002, the volunteers and staff of Lutheran Social Service helped change the lives of over 100,000 persons. Here are some of the highlights:

Carrying out the Long-Range Plan
LSS' Long-Range Plan continues to drive organizational priorities. The Plan has three broad themes:

• Focus on mission

• Innovation in service leadership

• Greater capacity to serve

In 2002, we worked hard to tell our story and communicate our values to more people in all manner of media. We used radio and television more. We developed and coordinated media campaigns to coincide with major fundraising efforts. Our staff and volunteers invited legislative candidates to visit our service sites.

We accelerated our innovations in care for frail older adults by expanding Respite and Caregiver Support and developing Customized Living Services. At a time when the demand for much greater efficiencies is so evident, these innovations ought to be very attractive developments. Time will tell if they take hold.

Collaborations
We have a profound commitment to partner with others. LSS works with hundreds of other non-profit organizations. Here are a few of them.

• Partners in Community Supports (PICS). PICS provides support services for persons with disabilities, in their own homes, and is a leading edge provider of "consumer directed" care. PICS continues to grow rapidly and served 753 individuals with developmental disabilities in 2002. Our partners in this service are: Dakota Communities; Fraser Community Services; Hammer Residences; Mt. Olivet Rolling Acres; and Opportunity Partners.
   

• Faith in the City. This could turn out to be one of the most significant collaborations for the Lutheran community in the Twin Cities in generations! The members of this group are: Thrivent Financial for Lutherans; Central Lutheran Church, in Minneapolis; Augsburg College; Luther Seminary; Fairview Health System, and LSS. Jeri Nelsen, former VP for LSS, serves as Executive Director. Faith in the City is now establishing a new charter school, targeting students for careers in health care. For its next move, Faith in the City is considering a particular focus on the Phillips Neighborhood, bounded by LSS' 2414 Park Avenue site on the south and Central Lutheran Church on the north. Faith in the City seeks to create synergy among the principal Lutheran institutions in the Twin Cities and to give "Lutheran" greater currency in the marketplace.
   

• Catholic Charities. Over the holiday season, LSS and Catholic Charities combined their gift solicitation programs that benefit families. This effort proved successful, both in its results and the accompanying goodwill from media outlets, sponsoring corporations, and the public. Moreover, the ecumenical witness is valuable in and of itself!

Turnaround of the Year: LSS Financial Services
LSS' Financial Services, which provides Consumer Credit Counseling as its principal service, improved its financial position from a loss (of $197,000) in 2001 to a loss (of $906) this past year! The leadership of this line of service made tough decisions about staffing, streamlined administrative procedures, focused on productivity, and optimized technology.

Quality Indicators
Last year, we reported that the service populations which we had surveyed for satisfaction, consistently gave our services high marks (90th percentile). Based on those positive results, several service lines decided to ask tougher questions, soliciting more specific responses to inquiries. Here are a couple of examples of questions asked of those clients in residential settings: "Do people knock or ask permission before entering your room?" Or, "Are staff respectful of your possessions?" Even within the context of asking tougher questions, results were again in the high 80 to 90th percentiles. Clients, families and referral sources indicated our services were helpful, engaged them personally, improved their life situations, and provided professional, reliable services.

Services for Older Persons
For the past six years, LSS has been a leader in developing new forms of care for frail older persons in the form of our Customized Living Service initiatives. In 2002, this innovation took a big step forward in the establishment of Customized Living Services. With the support of grants from the State of Minnesota, LSS began the development of what may become principal alternatives to traditional nursing home care. Moreover, LSS was able to expand caregiver support and respite care in 32 counties!

Guardianship
LSS is now the State's largest corporate provider of these services. In 2002, all professional staff became Registered Guardians, clearly distinguishing LSS from all other providers in Minnesota!

Disaster Services
In addition to responding to the floods in far northwestern Minnesota, LSS developed and delivered Joseph's Journey: New Ground, a day camp for children surviving the attacks of 9/11. LSS' national reputation as a specialist in working with children affected by disasters continues to grow.

Camp Knutson
The Camp's transformation to world class moved closer to reality! The infirmary and welcome center were completed, and construction began on the second family lodge and staff quarters, preparing us for the grand 50th anniversary celebration in 2003! The Camp's ability to serve especially fragile populations was demonstrated again when a week of camp was given over to children with heart disease.

Office Space
We built and moved into new offices in Fergus Falls.

The Gathering Storm
In 2002, it became apparent to LSS that the environment for the delivery of care to persons in need was unsettled. LSS saw government, private foundations, and even the Twin Cities United Way, reduce their support. These reductions weren't dramatic, but they seemed to portend a gathering storm. Consequently, LSS established a conservative operating plan for 2003. Since employee compensation represents 75% of our total cost, there will be no salary increases until after State legislative action is clear; other expenses were trimmed. These actions, taken in the Fall of 2002, help position LSS in 2003 to withstand what is turning out to be a once-in-a-generation storm.

Regardless of the winds and rain, know that LSS will continue to change lives wherever we are, whatever we do, with whatever resource we can secure. You can count on us to be your partner whenever you seek the well-being of people in our state.

  
Benefits / Results

LSS Adoption Services
LSS offers comprehensive, statewide adoption services from offices in Minneapolis/St. Paul, Duluth, St. Cloud, Moorhead and Mankato. Services include pregnancy counseling, international, domestic, special needs adoptions as well as post adoption services.

LSS Customized Living Services
LSS Assisted Living is made up of two programs: LSS ElderShare Homes and LSS Customized Living Services. LSS offers Customized Living Services in any of our five ElderShare Homes. Or the same services are offered to support elderly individuals living in their own apartments.

     
LSS Camp Knutson
LSS Camp Knutson provides camping and outdoor experiences to children and families with special needs. The Camp works in partnership with organizations that serve individuals with specific needs: autism, deafness, developmental disabilities, Down syndrome, HIV AIDS, severe skin difficulties. The basic services common to all camps include food service, recreational programs, health services and sleeping facilities. During off-camp periods, the facilities are rented to outside groups for retreats, conferences or training sessions.

     
LSS Counseling & Family Resources
There are three primary types of service provided through Counseling and Family Resources:

1. Office Based Counseling provides individual, family and partner, group therapy and psychiatric assessments using a multidisciplinary staff of psychologists and clinical social workers.

2. Family Based Services uses mental health practitioners and professionals to provide parent and family education, skills training, home-based mental health counseling, and resource and referral services to families that are at risk of having a child placed outside of the home (foster care).

3. Therapeutic Foster Care provides specially trained foster parents for children and adolescents that are at risk of long-term out of home placement.

    
LSS Disaster Services
LSS Disaster Services works in partnership with first responders, congregations, government agencies and local communities to provide comprehensive services to disaster-affected persons and caregivers in Minnesota. In partnership with Lutheran Disaster Response, Disaster Services provides specialized services for disaster-affected children across the United States.

     
LSS Financial Services
Financial Services works with people in financial need to achieve financial stability through financial counseling, housing counseling, debt management services, loan and grant programs, referral, advocacy and education services.

     
LSS Guardianship
As court-appointed decision-makers, Guardians/Conservators have the responsibility for managing the affairs of incapacitated individuals and advocating in their best interest. 

     
LSS Home and Community Living Services (HCLS)
LSS Home and Community Living Services support individuals with developmental disabilities as they live in local communities. By offering an array of services in various settings, HCLS is able to promote the independence and personal choices of individuals. These services are offered in residences owned and operated by LSS; they are also offered in homes owned by clients and/or their families.

      
LSS Housing Services
LSS Housing Services includes the following programs:

• Transitional Housing - Supportive living environment in a residential setting, case management for families, training and education, housing placement assistance, post-placement supportive help (Minneapolis, Anoka County, Brainerd).

• Housing Resource Centers - Walk In/Drop In availability, consultation on housing situation with an advocate, listings of available housing (Minneapolis, Brainerd).

• Metro Housing Options - Assists families in finding, securing, and keeping affordable housing utilizing Section 8 Federal Housing Assistance (Metro area).

• Housing First - An alternative to traditional models of emergency shelter and transitional housing. Housing First moves homeless families directly into permanent affordable housing and provides support services. The support builds a community base and long-term stability

• Its All About the Kids - A collaborative effort between LSS, Minneapolis Public Housing Authority, Minneapolis Community Development Agency, and Minneapolis Public Schools. LSS finds affordable housing in school attendance areas of Minneapolis for at risk families so children can remain in the same school and receive support services.

    
LSS Refugee and Employment Services 

• LSS Refugee Services include our Resettlement Program, which reunites families that have been forced to leave their country due to fear of persecution for political or religious reasons. LSS resettles refugees in the seven-county metro area, Marshall, Moorhead/Pelican Rapids and St. Cloud. Extended refugee services are provided by the outstate offices to assist refugees in accessing services and integrate into their communities. Training on tenant education and on employment discrimination is presented to communities in the metro area.

• LSS Refugee Employment Programs provide job placement and retention assistance to refugees and asylees, who have been in the United States for less than 5 years. Services are provided to refugees who are seeking employment in the metro area, Marshall, Pelican Rapids, and St. Cloud area.

• Minnesota Family Investment Program (MFIP) Tiers 1&2, and MFIP Supported Work programs provide job placement and retention assistance to welfare participants who live in Hennepin County. These programs help participants overcome barriers to employment such as language and cultural barriers, lack of work experience, mental health issues, and chemical health issues. Additional services include training, transportation, childcare, rental assistance and other approved supports.
   

    
LSS Senior Corps

The Foster Grandparent Program provides opportunities for seniors to serve in schools and others sites as mentors, tutors and caregivers for children and youth who need special help.

Senior Companion volunteers play a significant role in helping clients and caregivers maintain independence at home. Senior Companions run errands, perform small chores and serve as a friend to frail elderly persons.

     
LSS Senior Nutrition
Senior Nutrition provides nutritious meals, social contact and support services for individuals 60 years of age or older. The focus is to keep seniors healthy, active and living independent lives.

     
LSS Youth Services
LSS Youth Services are located throughout the state and reflect the needs of specific communities. There are three types of services.

• Youth Residential, which includes shelters and group homes.

• Transitional Living/Independent Living Skills programs that address the needs
  of homeless youth people. These services are offered in scattered site apartments.

• Prevention/Intervention/Community Programs such as support groups,
  truancy programs, crisis nurseries, young parent program, volunteer church services, and street outreach.

LSS Volunteer Services  
Tied to the LSS Office of Cooperative Ministries (OCM), several programs involving volunteers expanded considerably during 2002. In addition to providing support to the newly designed approach for volunteer management in specific lines of service, OCM oversees the efforts of "Befrienders" and the "Family Friends" holiday program co-sponsored with Catholic Charities (formerly LSS' holiday project "Sponsor A Family"), and supports the LSS Auxiliary.

  

Treasurer's Report

LSS continues to maintain a strong and viable financial foundation, despite unstable public policy for certain populations we serve. Based on prudent financial oversight and a conservative view of a potential economic upturn, LSS finished the 2002 calendar year with revenues of nearly $65 million. Positive gains from operations and temporarily restricted funds were offset by negative results in our permanently restricted investments, resulting in a very minor loss for the year 2002.

During 2002, LSS' revenue grew over 10%. Public contributions of $6.7 million allowed LSS to provide nearly $58 millions dollars of direct care and support services to over 100,000 people in all eighty-seven counties of Minnesota. Charitable contributions allow LSS to leverage its federal, state and country funding to provide more services to more people without increasing the cost of such service. Likewise, without the on-going public support from the general public and congregations, many of the activities of LSS, especially those in support of children and families would not otherwise be able to be conducted. LSS continues to maximize its resources for the direct care and support of the people we serve, contributing nearly 89 cents of every dollar earned to program support.

We look with hope (and some trepidation) to 2003 but are confident that we do so with a strong and viable financial organization. Thank you for your partnership in this ministry!

Pam Shaw Hargrove, LSS Treasurer

The Cost

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