2010 was another transition year financially as Pilgrim Place continued its major campus development project – to be completed in 2011. Operating income and expenses were “on budget.” Again, in 2010, an effort was made to increase wages of lower paid employees - providing them with a better living wage. Pilgrim Place finished the year with a net decrease in unrestricted assets of $1,230,298, primarily due to increased interest expense on bonds paid from trust funds, not operating cash. Due to being licensed as a CCRC and able to charge entrance fees, Pilgrim Place ended the year with a much improved cash flow situation.

Financial Results

As in the past, revenue comes primarily from rents and fees (90% in 2010). However, gifts continue to play a vital role in keeping overall operations in the black, since revenue/expense from operations alone would result in a financial deficit. It is only through annual giving from residents, friends, churches and organizations that we are able to continue to provide the highest quality care and services to our residents.

An increased number of supporters make contributions to Pilgrim Place through estate planning and direct gifts that benefit the endowment. Many have included Pilgrim Place in their wills. Others have established trust and gift annuities that provide donors with current income as well as peace of mind in knowing their gift will strengthen this community for years to come. The value of our Gift Annuity Portfolio at the end of 2010 was about $1.1 million.

During 2010, the Pilgrim Place endowment increased in value due to the improved market environment, while providing $324,601 to support operations. As of December 31, 2010 the total market value of the endowment was about $10 million. During the most recent five-year period, the investment return on the endowment portfolio averaged 2.5 percent per year.

Capital Improvements

TOTAL: $1,097,651

During 2010 Pilgrim Place continued its commitment to maintain and upgrade houses, central facilities and grounds. An investment of $1,097,651 went to capital improvements on campus, such as house preps and renovations, street repairs, new roofs and repair of other central facilities.

 In addition to the above, about $10,164,000 was spent on development costs for our major campus development project which began in 2010 and will be completed in 2011.

The financial summary is based on unaudited records. The independent audit report by Vicenti, Lloyd and Stutzman, Certified Public Accountants, is available for examination upon request.