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Fulfilling the Promise2011 Annual Report

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Fulfilling the Promise

Dear Friends in Christ,

The LSS Flame. It has been a constant companion to the organization’s identity for decades. The LSS flame is a link to earlier logos for the organization which included a flaming torch. In those logos, the torch was said to represent God’s love kindled in service to human need. To this day, the flame represents the core of the LSS mission: Motivated by the compassion of Christ, we help people improve the quality of their lives.

Behind the LSS flame is a promise –a promise to those we serve and a promise to our partners. Throughout 2011, LSS served over 100,000 individuals of all faiths and backgrounds. We did this with tighter

resources. We did this with a shared passion to serve and change the world, one grace-filled life at a time. We did this thanks to your continued support, which helps move the mission forward.

From our adoption programs to our older adult programs to our Voices for Youth program, LSS programs and services reached the far corners of Wisconsin and Upper Michigan. Every single day, we continue to fulfill the promise behind the LSS flame –providing compassionate care to our neighbors in need.

Thank you again for your prayerful, volunteer and financial support to the mission we share. We could not do it without you!

In Christ,

David N. LarsonPresident & CEO

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2011 Outcomes SnapshotAddiction and Recovery

• At intake, 24-percent of clients were employed either part-time or full-time; at discharge, the rate grew to 41-percent employment; and, 3 months after discharge, that rate grew to 51-percent.

Children & Family Services

• 402 children found forever families through the domestic, international and special needs adoption programs.

• 100-percent of youth that engaged in the Runaway and Youth Services (RAYS) program returned home or to an agreeable safe alternative.

Mental Health

• There was a 45-percent increase from 2010 in the number of clients served through LSS financial counseling services in Wisconsin (from 476 to 868 clients). Older Adults

• 96% of caregivers indicated that their caregiving has been less stressful as a result of participation in the adult day program.

Organizing Communities

• 129 adults were provided a safe place during the day through Off the Square Club, Positive Avenues, and Wellspring drop-in day centers.

Organizing Communities (cont.) • 264 refugees were assisted in obtaining sustainable employment.

• 750 foster children were provided with basic clothing through the Urban Threads clothing distribution program. Persons with Disabilities

• 97-percent of clients in the Individualized Community Support program responded that services helped them gain independence or remain independent in the community and an opportunity to learn new skills.

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I used to live in an abandoned warehouse, and before that I loved on the streets in Salt Lake City, and before that I lived on the streets in a lot of other places. When I got to Marquette, MI, I somehow knew this is where I wanted to stay, to settle down, go to college, because I knew it wasn’t working out the way it was before. I found Voices for Youth through someone at Salvation Army who recommended it to me. It ended up working out very well. They are very good people at Voices for Youth and I am extremely grateful for what this program is doing –not just for me, but for the others as well. What this program is doing for me is providing the motivation to go out and do something better with my life, as well as giving me a place to… [stay] during winter. Through this program I got my GED and I enrolled in college. I don’t know where I would be without this program. I see my future getting better and better and better. -Mark*

*Name changed to protect the privacy of the client.

Voices for Youth (VFY) helps young adults between the ages of 10 and 21 who are without a home or who face losing their housing. Services at VFY are free of charge and are available 24-hours a day, 7 days a week. The program serves Marquette, Alger, Delta, Dickinson, Iron and Menominee counties in Upper Michigan.

Voices for Youth encompasses Basic Center and Street Outreach Programs as well as Supportive and Transitional Living Programs that encourage self-sufficiency in participants by using a positive development approach, providing leadership opportunities, developing soft and hard life skills, and encouraging high levels of community involvement. In addition, VFY strives to reunite young people with their parents or relatives by providing mediation or counseling. Other services include food, clothing, housing, case management, life skill training, non-residential services, educational services, outreach, transportation, advocacy, after care and referrals. The overall goal of Voices for Youth is to help the youth and young adults become independent, productive citizens.

In 2011, Voices for Youth program assisted 48 homeless young adults (ages 18-21) in transitioning from the streets to permanent housing. Six of the young adults assisted were pregnant or parenting.

Voices for Youth: Supporting the Future

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I used to live in an abandoned warehouse, and before that I loved on the streets in Salt Lake City, and before that I lived on the streets in a lot of other places. When I got to Marquette, MI, I somehow knew this is where I wanted to stay, to settle down, go to college, because I knew it wasn’t working out the way it was before. I found Voices for Youth through someone at Salvation Army who recommended it to me. It ended up working out very well. They are very good people at Voices for Youth and I am extremely grateful for what this program is doing –not just for me, but for the others as well. What this program is doing for me is providing the motivation to go out and do something better with my life, as well as giving me a place to… [stay] during winter. Through this program I got my GED and I enrolled in college. I don’t know where I would be without this program. I see my future getting better and better and better. -Mark*

37%

9%4%4%

11%

35%

Chart Title

Persons with Disabilities 37%

Addictions and Restorative Justice 9%

Urban Ministries 4%

Behavioral Health 4%

Housing and Aging 11%

Children and Family Services 35%

Consolidated Financial Data2011 2010

LUTHERAN SOCIAL SERVICES OF WISCONSIN AND UPPER MICHIGAN, INC.2011 Annual Report

Consolidated Financial Data

As of and for the year ended December 31, 2011

Unaudited Unaudited2011 2010 Increase

CHANGE IN NET ASSETSRevenue and other support $ 70,575,090 86,577,163 -18%Expenses 74,921,052 86,349,855 -13%

Increase in net assets $ (4,345,962) 227,308

FINANCIAL POSITIONAssetsCash and investments $ 2,275,848 352,764Beneficial interest in LSS Foundation 22,542,135 26,127,168Accounts receivable, net 9,116,013 10,842,395Property and equipment, net 32,071,740 33,770,191Prepaid and other 3,052,312 3,365,384

Total assets 69,058,048 74,457,902LiabilitiesAccounts payable 1,363,739 1,888,572Accrued expenses 10,110,973 9,978,731Deferred revenue 2,429,201 2,316,217Debt 20,762,547 21,536,832

Total liabilities 34,666,460 35,720,352

Net Assets 34,391,588 38,737,550 -11%

Total liabilities and net assets $ 69,058,048 74,457,902- -

2011 2010Where dollars came from

LSS Foundation 1,709,098 2.0% 1,940,164 2.0%United Way 1,306,017 2.0% 1,181,251 1.0%Government purchased 39,118,574 53.0% 48,979,545 58.0%Client fees and insurance 6,955,940 10.0% 7,636,672 9.0%Private grants and contracts 21,538,882 30.0% 23,514,852 27.0%Other 2,116,708 3.0% 2,321,420 3.0%

72,745,219 100.0% 85,573,904 100.0%Change in beneficial interest in LSS Foundation (1,485,032) 864,143 Investment Income 17,309 37,948

71,277,496 86,475,995 702,406 (101,168)

What dollars paid forPersons with Disabilities 27,329,259 37.0% 32,141,142 36.0%Addictions and Restorative Justice 6,798,348 9.0% 6,122,000 7.0%Urban Ministries 2,635,834 4.0% 4,826,456 6.0%Behavioral Health 3,098,231 4.0% 3,244,048 4.0%Housing and Aging 8,438,770 11.0% 8,503,191 10.0%Children and Family Services 25,523,369 35.0% 31,006,837 37.0%

73,823,810 100.0% 85,843,673 100.0%

Expenses2006 95,731,8752007 96,340,873 2008 95,659,200 2009 93,554,862 2010 86,349,855 2011 74,921,052

Net Assets2006 45,171,8702007 46,561,246 2008 36,737,741 2009 38,510,242 2010 38,737,550 2011 34,391,588

Gift Income 2011 2010Individuals 442,668 19.0% 505,977 23.0% -13%Churches 653,284 30.0% 697,374 31.0% -6%Corporations/Organizations 268,559 12.0% 235,033 11.0% 14%Foundations 253,961 12.0% 233,687 10.0% 9%Planned Gifts 348,122 16.0% 267,918 12.0% 30%Gifts In-Kind 233,488 11.0% 299,906 13.0% -22%

2,200,081 100.0% 2,239,895 100.0% -2%

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Where Dollars Came From

37%

9%4%4%

11%

35%

Chart Title

Persons with Disabilities 37%

Addictions and Restorative Justice 9%

Urban Ministries 4%

Behavioral Health 4%

Housing and Aging 11%

Children and Family Services 35%

What Dollars Paid For

LUTHERAN SOCIAL SERVICES OF WISCONSIN AND UPPER MICHIGAN, INC.2011 Annual Report

Consolidated Financial Data

As of and for the year ended December 31, 2011

Unaudited Unaudited2011 2010 Increase

CHANGE IN NET ASSETSRevenue and other support $ 70,575,090 86,577,163 -18%Expenses 74,921,052 86,349,855 -13%

Increase in net assets $ (4,345,962) 227,308

FINANCIAL POSITIONAssetsCash and investments $ 2,275,848 352,764Beneficial interest in LSS Foundation 22,542,135 26,127,168Accounts receivable, net 9,116,013 10,842,395Property and equipment, net 32,071,740 33,770,191Prepaid and other 3,052,312 3,365,384

Total assets 69,058,048 74,457,902LiabilitiesAccounts payable 1,363,739 1,888,572Accrued expenses 10,110,973 9,978,731Deferred revenue 2,429,201 2,316,217Debt 20,762,547 21,536,832

Total liabilities 34,666,460 35,720,352

Net Assets 34,391,588 38,737,550 -11%

Total liabilities and net assets $ 69,058,048 74,457,902- -

2011 2010Where dollars came from

LSS Foundation 1,709,098 2.0% 1,940,164 2.0%United Way 1,306,017 2.0% 1,181,251 1.0%Government purchased 39,118,574 53.0% 48,979,545 58.0%Client fees and insurance 6,955,940 10.0% 7,636,672 9.0%Private grants and contracts 21,538,882 30.0% 23,514,852 27.0%Other 2,116,708 3.0% 2,321,420 3.0%

72,745,219 100.0% 85,573,904 100.0%Change in beneficial interest in LSS Foundation (1,485,032) 864,143 Investment Income 17,309 37,948

71,277,496 86,475,995 702,406 (101,168)

What dollars paid forPersons with Disabilities 27,329,259 37.0% 32,141,142 36.0%Addictions and Restorative Justice 6,798,348 9.0% 6,122,000 7.0%Urban Ministries 2,635,834 4.0% 4,826,456 6.0%Behavioral Health 3,098,231 4.0% 3,244,048 4.0%Housing and Aging 8,438,770 11.0% 8,503,191 10.0%Children and Family Services 25,523,369 35.0% 31,006,837 37.0%

73,823,810 100.0% 85,843,673 100.0%

Expenses2006 95,731,8752007 96,340,873 2008 95,659,200 2009 93,554,862 2010 86,349,855 2011 74,921,052

Net Assets2006 45,171,8702007 46,561,246 2008 36,737,741 2009 38,510,242 2010 38,737,550 2011 34,391,588

Gift Income 2011 2010Individuals 442,668 19.0% 505,977 23.0% -13%Churches 653,284 30.0% 697,374 31.0% -6%Corporations/Organizations 268,559 12.0% 235,033 11.0% 14%Foundations 253,961 12.0% 233,687 10.0% 9%Planned Gifts 348,122 16.0% 267,918 12.0% 30%Gifts In-Kind 233,488 11.0% 299,906 13.0% -22%

2,200,081 100.0% 2,239,895 100.0% -2%

Page 1 of 1

Sources of Contributed Income

37%

35%

16%

12%

Chart Title

Individuals (includes some gifts in-kindand testamentary gifts) 37%

Churches (includes some gifts in-kind)35%

Corporations/Organizations (includessome gifts in-kind) 16%

Foundations 12%

37%

35%

16%

12%

Chart Title

Individuals (includes some gifts in-kindand testamentary gifts) 37%

Churches (includes some gifts in-kind)35%

Corporations/Organizations (includessome gifts in-kind) 16%

Foundations 12%

37%

35%

16%

12%

Chart Title

Individuals (includes some gifts in-kindand testamentary gifts) 37%

Churches (includes some gifts in-kind)35%

Corporations/Organizations (includessome gifts in-kind) 16%

Foundations 12%

53%

4%

10%

30%

3%

Chart Title

Government purchased 53%

Charitable Revenue (includingUnited Way support) 4%Client fees and insurance 10%

Private grants and contracts 30%

Other 3%

53%

4%

10%

30%

3%

Chart Title

Government purchased 53%

Charitable Revenue (includingUnited Way support) 4%Client fees and insurance 10%

Private grants and contracts 30%

Other 3%

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LSS in BriefFounded: 1882

Mission Statement:Motivated by the compassion of Christ, we help people improve the quality of their lives.

Vision Statement:Change the world – one grace-filled life at a time.

Core Competency:Passion for serving

Values:The infinite worth of each person: Each person is a unique creation and child of God.Diversity: LSS seeks diversity in its staff and volunteers as well as in those it serves.Interdependence: Individuals and organizations are intertwined and must rely on and support each other.Excellence: Excellence is the standard of quality for all agency services and operations.Innovation: Ongoing change calls for creativity in developing and providing services.

Locations: In 2011, LSS offered over 340 programs at over 250 sites in 80+ communities throughout Wisconsin and Upper Michigan. LSS is headquartered in Milwaukee and has offices throughout Wisconsin and Upper Michigan.

People Served: Lutheran Social Services offers a variety of services throughout Wisconsin and Upper Michigan. The agency provides services across the lifespan and across a variety of conditions. Services are available for children and families, adults, older adults and persons with disabilities. Services are open to all, regardless of religious affiliation or background.

Staff: 1,400 employees

Ministry: LSS conducts its ministry on behalf of 500,000 Wisconsin and Upper Michigan Lutherans in nearly 800 congregations of the Evangelical Lutheran Church in America (ELCA).

Governance: LSS is governed by a Board of Directors, including representatives from business, health care, clergy and other sectors of the community in the two-state area.

Budget: 2012 operating budget is $65 million.

(800) 488-5181 • www.lsswis.org