MOVING FORWARD IN CHANGING TIMES

Olympia Union Gospel Mission

2012 Annual Meeting

Jacob Smith House, Lacey

November 8, 7 p.m.

I press on toward the goal for the prize of the upward call of God in Christ Jesus.

Philippians 3:14

The OUGM exists as an Evangelical Christian Rescue Mission, serving

Thurston County, to share the good news of life in Jesus Christ by meet-

ing the physical, mental and spiritual needs of individuals in crisis.

The Olympia Union Gospel Mission began its work with the homeless and needy in 1995 through a street

ministry outreach. Sandwiches and hot drinks were offered in an atmosphere of love and acceptance. Our

goal was and still is to share God's love in practical ways.

OUGM EXECUTIVE BOARD

CHARLES MCREYNOLDS, President

LARRY BAKER, Vice President

ANDREW CHRISTENSEN, Secretary

CINDI MCREYNOLDS, Treasurer

BOARD

JACK OLSON

ROBIN WADSWORTH

OUGM STAFF

Administration

SKIP STEFFEN, Executive Director

LORI VANDERVATE, Office & Database Manager

VIOLET HOFMAN, Volunteer Coordinator

KRINA ALLISON, Marketing & Communications

KATHLEEN BLANCHETTE, Community Relations Liaison

Street Ministry

TIM LANGAN, Chaplain & Director of Facilities

CODY HOWARD, Director of Food Services

JEROME JAEGER, Day Room Supervisor

DENNY BOBBERT, Evening Supervisor

GLENN RAMOS, Hygiene Center & Donations

Life Transformation Program

PEGGY LANGAN, Men's & Women’s Life Transformation Director

LAURIE ANDERSON, Women’s Counselor

MATT IHLER, Jeremiah House Supervisor

Health Resources

LINDA BARRETT , Dental Clinic Manager

SHELLEY CASE, TCDAN Coordinator

BROOKE HURST, Dental Clinic Receptionist

MARISSA ALTIMARINO-CRUZ , Medical Clinic Manager

MARCY FULMER, Medical Clinic Nurse

VIOLET HOFMAN, Vision Clinic Manager

OLYMPIA UNION GOSPEL MISSION

PO BOX 7668, Olympia WA 98507

413 Franklin St. NE, Olympia WA 98501

360.709.9725

OUGM.org | FACEBOOK

MOVING FORWARD IN CHANGING TIMES

WELCOME & PRAYER

Charles McReynolds, President

INTRODUCTION OF BOARD MEMBERS

MOVING FORWARD IN CHANGING TIMES

Robin Wadsworth

Andrew Christiansen

Jack Olson

INTRODUCTION OF OUGM STAFF

Loren “Skip” Steffen, Executive Director

OPERATIONS & FINANCIAL INFORMATION

Loren “Skip” Steffen & Charles McReynolds

WOMEN’S TRANSFORMATION PROGRAM

MEN’S TRANSFORMATION PROGRAM

Peggy Langan, Life Transformation Director

David Baratz

Esther Spare

Matthew Ihlers

QUESTIONS

Loren “Skip” Steffen

CLOSING PRAYER

Tim Langan

David

Esther

Matthew

OLYMPIA UNION GOSPEL MISSION ANNUAL MEETING

FISCAL YEAR 9-1-2011 THROUGH 8-31-2012

NOVEMBER 8, 2012

Facilities – “Back to the Future” - The 2011 – 2012 Fiscal Year (9-2011 through 8-2012) began with the Board reflecting on what God intended for the future in terms of facilities. The Capital Campaign to construct a new building on the Westside of the property was not going well. After an initial flurry of activity and receiving cash or pledges for up to $500,000 new funds were not coming in. Board members were seeking God’s will through prayer and questioning the direction of the campaign. The Board had also been informed that the owners of the property where the women’s Life Transformation housing and program space resided were at a point in their lives where they wished to divest themselves of the property.

In January of 2012 the Board held a retreat to consider the possible options: 1) continue with the current Campaign, 2) suspend the Campaign and address the need for an interim or longer term facility for the women’s Life Transformation Program, 3) purchase the property where the women’s program currently resided or search for other property. The Board reached the decision to sus-pend the Campaign and search the real estate market for an interim or permanent “home” for the women’s Life Transformation program.

After six months of futilely searching the greater Olympia Area for a facility that would both house the women and children as well as have space for group meetings and private counseling, the Board and the owners of the current women’s facility found them-selves right back where they started and decided to negotiate the purchase of the current facility and two surrounding parcels of property that had rental units on them for $500,000 with owner financing of the balance after a $100,000 down payment. As God had done once before, the rental income from the adjacent properties will just about offset the monthly mortgage payment.

Figure 1

Aerial View of OUGM property—Genesis Acres

1. Adjacent Property 2. Adjacent Property

3. Genesis Acres

4. Office

Figure 2

Impact of the Economy

MISSION SERVICES – Impact of the Economy

Two of the Mission’s fastest growing programs during Fiscal Year 2011 / 2012 were those most sensitive to loss of income and loss

of benefits – meals served and medical clinic visits. As show in Figure 2, after showing little growth in the previous two years, the

number of meals serviced grew by 19% in the fiscal year to 77, 238 meals. Medical Clinic visits also posted a significant growth,

increasing 41% over the previous fiscal year. As of August 30, 2012 600 patients considered the Mission’s medical clinic their home

for primary care of chronic diseases: diabetes, asthma, COPD, heart failure and hypertension.

CONSOLIDATION - Life Transformation Program Leadership Marla Root who had provided leadership for the Women’s Life Transformation Program since 2005 returned to Nebras-ka in the fall of 2012 to be near her parents as their health declined with age. Marla is a very unique individual. She grew up in the north-east corner of Washington State and is very much a lady of the back woods. Like the women in the Mission’s program, she suffered much abuse as a young mother and spouse. But in her case she did not retreat into drugs or alcohol, but rather made up her mind to get an education and stand on her own two feet. And that she did, first a bachelor’s degree and then a master’s degree and then a counseling license. Because of her background, she could relate to the women and their children in the program in a way that few can. She knew what they were thinking or how they would respond to a given situation even before they did, and she was there to be by their side at just the right moment. When necessary, she could be tough as nails or as gentle as a mother with her infant daughter. She is grounded in scripture and could help the women apply it to their life situations. She is a great counselor – backwoods wisdom combined with modern knowledge. Over her six year tenure 16 women and their children graduated from the program and looking back, all the way to the beginning of her tenure, 14 or 88% are living lives free from the tyranny of drugs and alcohol. That’s no small accomplishment! Peggy Langan, also a Master’s Degreed Licensed Mental Health Counselor with a Chemical Dependency Counselor Cer-

tification, had previously been responsible for the Men’s Life Transformation Program. Peggy has stepped up to be-

come the Director of Life Transformation Services working with both the men’s and women’s programs. Peggy is being

supported by Lori Anderson on the “women’s side” and Chaplain Tim Langan and Jerry Gatton (an intern working on his

Master’s Degree) on the “men’s side.” Board and Staff members alike look forward to working with Peggy to see both

men and women place their faith in Jesus rather than chemicals to see them through the hard times and rebuild their

lives. Please pray for God’s blessing on the work of Marla in Nebraska and Peggy here at home!

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FINANCIAL INFORMATION

Financial Report – In comparing the actual results for fiscal years 2010 – 2011 to 2011 – 2012 a decrease in income for the Life Transformation Programs can be seen. This is due to two factors: 1) due to State budget cuts less of the clients the Mission en-rolls in Life Transformation have incomes and are able to pay program fees and, 2) the Mission has divested itself of the property that was being rented to male graduates for interim housing after graduation because currently graduates are not requiring housing. General donations to the Street Ministry have declined, in part because a faithful donor to the Benevolence Fund moved out of State. The increase in donations to the “General Fund” has been used to make up for the loss in funding. Income for Health Services, the Capital Building Fund and the General Fund all increased in 2011-2012 fiscal year over the previous fiscal year. Considering the economic climate, this is truly very good news and has to be a “God Thing.”

Expenses held constant for the Women’s Life Transformation Program and decreased for the Men’s Life Transformation Program as the Mission divested itself of rental units for the men. Street Ministry expenses increased by 10.3 percent, primarily due to the cost of food and supplies for the kitchen as the number of meals served jumped by 19 percent over the previous fiscal year. The cost of operating the Health Services Clinics increased in the area of supplies, medications, laboratory and diagnostic imaging services with the increase in the number of patient visits. The combined cost of management and fundraising declined by about $9,000 because less energy was invested in the Capital Campaign as Staff and Board members focused on the facility search for the Women’s Life Transformation Program.

“Net Cash From Operations” is generally used in the following fiscal year to invest in Staffing and unexpected expenditures.

The Budget for Fiscal Year 2012 – 2013 shows a significant increase in income for the Women’s Life Transformation Program as a result of rental income from the property purchase discussed above. Income for the Men’s Program is reduced further in antici-pation that there will be no after care housing needed during the fiscal year. Street Ministry income has been reduced further to reflect a full year with no significant income for the Benevolence Fund. Benevolence will be funded from the “General Fund” in-come. Budgeted income directed to the Building Fund and General Fund has been reduced over the previous Fiscal Year to be conservative in projecting revenue.

Expenses associated with the Women’s Life Transformation Program have increased dramatically to account for debt reduction payments. The reduction in expenses for the Men’s Life Transformation Program results forms completing the consolidation of the Program residents into one six bed room house. Street Ministry expenses continue to show an increase in expectation of serving 80 – 83,000 meals in the next Fiscal Year. Expenses for the Dental Clinic are budgeted to increase due to inflationary pres-sure; however there may be a reduction due to cost savings in film and developer as a result of investing $65,000 to convert den-tal imaging to digital technology. Expenses for the Medical Clinic increase further with the addition of 0.6 FTE of part time staff to enable the clinic to operate 12 to 14 hours a day, five days a week. Management and Fund Raising expenses are held essentially constant.

The reduction in the Building Fund of $102,000 reflects the down payment on the Women’s Life Transformation program facility.

Respectfully Submitted:

Charles McReynolds, Board President

Loren “Skip” Steffen, Executive Director

INCOME / DONATIONS

Women's Life Transformation $ 32,327 $ 23,696 -26.7% $ 50,025 111.1%

Men's Life Transformation $ 19,694 $ 11,633 -40.9% $ 4,796 -58.8%

Street Ministry (Meals, clothing, $ 32,711 $ 27,299 -16.5% $ 18,590 -31.9%

showers, laundry, counseling,

church and chappel services)

Dental Clinic $ 72,409 $ 91,773 26.7% $ 61,582 -32.9%

Medical / Vision Clinics $ 37,322 $ 46,257 23.9% $ 35,425 -23.4%

Capital Building

Fund $ 86,215 $ 97,893 13.5% $ 77,482 -20.9%

General Fund $ 915,652 $ 992,374 8.4% $ 961,880 -3.1%

TOTAL $ 1,196,330 $ 1,290,925 7.9% $ 1,209,780 -6.3%

EXPENSES / INVESTMENTS

Women's Life Transformation $ 137,183 $ 136,663 -0.4% $ 160,190 17.2%

Men's Life Transformation $ 75,647 $ 66,580 -12.0% $ 48,791 -26.7%

Street Ministry (Meals, clothing, $ 297,611 $ 328,171 10.3% $ 342,558 4.4%

showers, laundry, counseling,

church and chappel services)

Dental Clinic $ 149,472 $ 153,402 2.6% $ 156,400 2.0%

Medical / Vision Clinics $ 112,868 $ 129,234 14.5% $ 149,821 15.9%

Capital Improvements $ 11,000 $ 5,056 -54.0% $ - -100.0%

Management $ 48,685 $ 52,997 8.9% $ 51,413 -3.0%

Fund Raising $ 193,552 $ 180,559 -6.7% $ 178,800 -1.0%

TOTAL $ 1,026,018 $ 1,052,662 2.6% $ 1,087,973 3.4%

Transfer to Building Fund $ 120,000 $ 170,000 $ 85,000

Reduction From Building Fund $ 102,000

NET CASH OPERATIONS $ 50,312 $ 68,263 $ 36,807

2010—2011 2011—2012 2012—2013

2012 ANNUAL MEETING

FINANCIAL REPORT

Figure 3

FINANCIAL INFORMATION —2012 Financial Report