Diakon Lutheran Fund

“The sole member of Diakon Lutheran Fund (DLF) is Diakon, a Pennsylvania non-profit corporation.”

“The directors of DLF are elected by the board of directors of its sole member, Diakon, from the slate of candidates nominated by the Diakon Lutheran Fund board.”

“The sole member of the DLF is Diakon, a Pennsylvania non-profit corporation. Diakon has approval rights, specified by DLF and Diakon bylaws, over certain types of actions by DLF's governing body.”

“Members of senior management and of the finance department of DLSM, in its role of providing management services to DLF, 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 DLF's 990 was received and accepted by the organization's governing body at its regular quarterly meeting on October 14, 2015.”

“DLSM's Senior Vice President/Chief Risk Officer, in his role of providing management services to DLF, reviews the organization's conflict of interest statement and certification form with the board of directors 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 Senior Vice President/Chief Risk Officer and by organization's outside auditor on a regular basis.”

“A Compensation Committee of independent directors of Diakon (Compensation Committee), utilizes external consultants to assist with the development, administration, and determination 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 Diakon. 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 Diakon's "Excess Benefits Transactions" policy, which requires review and approval by independent persons, comparability data and contemporaneous substantiation of the deliberation and decision. DLSM and its parent organization Diakons executive compensation program consists of a base salary reflecting the value of an executives capabilities, experience, and success in meeting mission, financial, operational, and quality objectives. 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 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 retirement plan accruals were frozen as of 12/31/11.”

“DLF makes its governing documents (articles of incorporation and bylaws) and conflict of interest policy available upon request. A statement of financial position is published in the organization's annual report, which is mailed to the approximately 120,000 individuals on the organization's publication mailing list. The audited consolidated financial statements and annual report are also available on the Diakon website at Diakon.org as well as available upon request.”

“Exempt Purpose Achievements In 2014, more than 60,000 of the 68,990 people directly served by Diakon Child, Family & Community Ministries and its sister organization, Diakon Lutheran Social Ministries, including those served by the Diakon-administered Pennsylvania Statewide Adoption and Permanency Network, were aided by services for children, families, and communities, lines of service supported by the Diakon Lutheran Fund, through subsidies totaling $1,120,004. Those subsidies also helped to fund Diakon Kathryn's Kloset. Products delivered through Diakon Kathryn's Kloset to regional, national, and international non-profit organizations touched the lives of approximately 250,000 persons; the number serves as an estimate because Diakon Kathryn's Kloset relies on self-reporting from shelters and other non-profit programs and cannot confirm the extent to which individuals reported by each program may be duplicates.”

“Exempt Purpose Achievements In 2014, Diakon Lutheran Fund continued awarding scholarships to youths through endowment funds collectively referred to as the Diakon Youth Scholarship Fund. Thirty-one scholarships totaling $74,346 were awarded.”

“Other Changes in Net Assets Increase in Fair Market Value of Funds Held in Trust $ 53,880 Pledge Receivable balance adjustment $ (2,862) ------------ Total $ 51,018”

“LINE 2: Diakon, the sole member of Diakon Lutheran Fund, 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. LINE 3: 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.”