Charlestown Community Inc

“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? On april 30, 2010, cci and erickson senior living, llc ("esl") entered into a management and marketing agreement. Esl will provide management and marketing services to cci during the term of this agreement in exchange for a management fee and allocation of certain costs to the community. The agreement has been amended various times since inception, including on august 21, 2024; this current agreement expires on december 31, 2032. Don grove, executive director, gladstone james, director, finance (thru 5/21/24), and david schneyer, director, finance (beg 12/9/24), are leased employees from the management company. The filing organization reimburses the management company for their compensation which is reported on form 990, part vii, section a. The following officer is listed in part vii, as a non-compensated officer of the filing organization, pam stiner (beg 5/15/24). Her duties are considered performed pro bono.”

“Has the organization provided a complete copy of this form 990 to all members of its governing body before filing the form? The audit committee of the board has the responsibility to review the form 990 prior to its filing or to designate another board member to review the form. The full board is given the opportunity to review the form 990 before it is filed and ask questions of the audit committee or the reviewer regarding the form. The board chair designates an officer to sign form 990.”

“Did the organization regularly and consistently monitor and enforce compliance with the policy? Charlestown community, inc.'s conflict of interest policy covers all directors, officers, key employees, employees and volunteers in a position to exercise substantial influence over charlestown community, inc.'s affairs, committee members, prospective directors, and senior staff providing services to the organization under a management agreement. Each covered person completes a conflict of interest disclosure statement annually and as potential conflicts arise during the year. These statements are reviewed by the board chair who may consult with the organization's managing director for governance and/or independent legal counsel in order to determine if there is a conflict of interest. The board chair prepares a report for the executive committee which reviews the findings and recommends appropriate action to the full board. Either the full board or a committee of disinterested directors will determine whether a conflict actually exists. A covered person may not participate in any discussion or debate by the board but may answer questions or provide clarifying information unless any board member objects.”

“Did the process for determining compensation of the organization's ceo, executive director, or top management official, or other officers or key employees, include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? Reference to directors is the management directors, not the board of directors. The board has approved a directors' compensation policy which establishes the process by which all director compensation is determined. Board members serve without compensation. A review of the management directors' compensation is conducted each fiscal year. Compensation is approached on an overall basis and the total value of all forms of compensation is established and monitored. Erickson senior living (esl) establishes benchmark data for all positions within each department. Various market surveys are used in analyzing and determining compensation. In addition, geographical differentials are taken into account in determining compensation. Market surveys used include both for-profit and not-for-profit peers. An independent compensation consultant is periodically retained to perform an analysis of charlestown's compensation. The governance committee of the board considers all of the above data in reviewing and approving compensation. The governance committee is a subcommittee of the board and is comprised of members of the board. This subcommittee is delegated with certain detailed review tasks including this detailed review of compensation. After reviewing and approving compensation, the governance committee then makes a recommendation to the board of directors as to appropriate compensation. If requested, the board has access to all of the compensation data above and can ask questions of management and the governance committee. The board reviews and votes on the final compensation recommendation as part of the budget approval process.”

“Describe 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. The governing documents, conflict of interest policy, and the financial statements are available upon request to review at the executive director's office for the same period of disclosure as set forth in section 6104(d).”

“Independent contractors compensation. The amount included in column (c) for erickson senior living is for payments made for management services and the direct and shared costs allocated to the community. Direct and shared costs include salaries and benefits for management personnel, and the use of services such as finance, legal, human resources, information services, and operations.”

“Mission statement charlestown community, inc. Is formed exclusively for educational and charitable purposes, including: the promotion of the health of the elderly through the provision of a residential community offering various levels of services for elderly persons; carrying on educational activities related to the promotion of health of the residential community; and performing other activities permitted under the general laws of the state of maryland, to the extent such activities are permitted by organizations which are exempt from federal income tax under section 501(c)(3) of the internal revenue code. In addition, charlestown community, inc.'s exempt purpose is to provide a home for the aged that satisfies the three primary needs of aged persons - - the need for housing, the need for health care, and the need for financial security. Charlestown community, inc. Provides housing by establishing residential facilities that are specifically designed to meet the physical, emotional, recreational, social, religious, and similar needs of aged persons. Charlestown community, inc. Provides health care by directly providing some medical services, and maintaining continuing arrangements with other organizations designed to maintain the physical and mental well-being of its residents. Charlestown community, inc. Provides financial security by having an established policy that provides for the maintaining of residence of any persons who become unable to pay their regular charges to the extent of its financial ability. Charlestown community, inc. Also operates so as to provide its services to the aged at the lowest feasible costs.”

“Unrealized gain on swap agreement 1,347,509. Change in restricted net investment return 180,441.”

“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. Has the process changed during the current year? The audit committee of the board oversees the financial statement audit process as well as the selection of an independent accountant that audited the financial statements. The process has been consistent with prior years.”