The Masonic Home for Children at Oxford

Executive Committee Meeting

March 10, 2016

MINUTES

A meeting of the Executive Committee of the Board of Directors was held this date via teleconference at 5:15pm. Members present were PGM Dan Rice, Chair, PGM Dewey R. Preslar, Jr., Vice Chair, Bryant Webster, Grand Master of Masons, 2016, Speed Hallman, Observer, and Kevin Otis, Administrator. LuAnne Clark, Chief Finance Officer, Kevin Combs, Finance Committee Member, and Chris Richardson, Financial Development Director were also present. Members absent with notice were Melissa Hogan, Treasurer and David Wicker, Secretary. A quorum was present.

Chairman Dan Rice thanked all for attending. The meeting was opened with prayer.

Chairman Rice asked for a report from the Policy and Personnel Committee. Mr. Otis have the report on behalf of Committee Chair David Wicker. Mr. Otis reported on the status of the In-kind Donation Coordinator position and an update on the progress of the employee reassigned to this position, Mrs. Sue Riggan, since late 2015. He reported that on 2/25/16 Mrs. Riggan was placed on a ninety-day probationary status as a result of her performance regarding In-kind Donation Coordination. Several lapses and errors have occurred with her work in this position. Mr. Otis indicated that a plan was put in place to help support Mrs. Riggan in organizing and processing gifts, especially relating to “Thank You” cards. The plan includes official reviews every thirty days. A discussion followed by members of the Executive Committee regarding the reviews and the performance outcomes and results from these reviews regarding this employee. Chairman Rice asked that he and Mr. Otis discuss further the reviews and their outcomes with regards to the progress of the employee in this position at a time prior to the next 30-day evaluation.

Shortages in various departments continue as additional staff have had medical and personal issues; some requiring FMLA leave. Mr. Otis commended the staff who have worked extra time to fill these vacancies.

Mr. Richardson then provided the Financial Development report for the period. Regarding the donation revenue for the first two months of the first quarter of 2016, Mr. Richardson reported a total donation revenue of $750K. He noted that this total in donation revenue was not reached in 2015 until June and that donation revenue through the period was well ahead of last year’s total at this time. He noted that the reason for the above average giving stemmed from three major planned gifts totaling over $500K as a result of the Norwood Trust. A small amount remains to be distributed regarding this Trust. Mr. Richardson stated that without legacies and designated gifts the total for the same period was $186K, about $70K behind the total at the same time last year, but ahead of the two-month average.

Mr. Richardson said that the In-Kind Gift procedures continue to be developed and that the department was working with the In-Kind Donation Coordinator regarding some of the procedural changes and some of the issues taking place that was impacting the In-kind Giving. The Department will continue to monitor these projects and their impact on donors and donations.

Mr. Richardson also acknowledged the continuing changes in the Financial Development Department, specifically the work of the Financial Development Assistant/Donor Database Manager, Mrs. Jennifer Grimes. Following a successful 90-day evaluation, which was also successful for the newly hired Museum Director, Mr. Richardson communicated to the Committee the efficacious development of a “Prospect Program” utilizing the existing donation software. Mrs. Grimes worked with Mr. Richardson to develop the program as part of the recommendations and metric development as a result of the Financial Development Program review held by consultant of the NC Masonic Foundation, Jennifer King, of MHCO’s fundraising in late 2014. Specifically this work will help MHCO in identifying, communicating with, and sustaining contacts for current, potential, and new donors and planned givers to the Home.

Mr. Richardson noted the continued success of the “Buy A Banner” Program, accepting donations for the completed external Lighting Campaign completed in 2015. Currently only Homecoming and Holiday banners are available for donors to sponsor and fortunately sponsorships continue to be received for these banners. Opportunities still remain for these banners to be sponsored.

Mr. Richardson remarked on the meeting of the Board’s Financial Development Committee held in February 2016. Of note was the Committee’s recommendation to put on hold the revision of the Home’s Financial Development Policies and Procedures. This was justified by the Committee as a result of the pending hiring of a new Chief Development Officer for the NC Masonic Foundation, citing the possible need to have input from this new Director regarding policies and procedures fraternity-wide for fundraising. Committee Member Speed Hallman expounded on this decision, noting the same situation existing for the fraternity’s other charitable organization, Whitestone, and their suspension of Policy and Procedure development, as theirs would be a completely new document, owing to the same reason. Mr. Richardson stated he would submit minutes from the Financial Development Committee Meeting prior to the May Board Meeting.

Mr. Richardson indicated an updated Needs List was now on-line for the Spring and inquired of Grand Master Bryant regarding his participation in a scheduled conference call with he and DDGMs and DDGLs later in the month. GM Bryant indicated the need for Mr. Richardson to cite changes in the In-Kind/Need List giving procedures as part of the call, to include a Power Point, for their instruction to members in their respective districts.

Mr. Richardson informed the Committee that the MHCO Board of Director’s Information Portal had been established and was currently being reviewed by the Administrator. The portal entry was on the Home’s main page, bottom right of the page and would retain information and documents only from the two preceding Board Meetings as of that date, citing security reasons. Mr. Richardson said that all Board Members that submitted a username and password would receive notification when the portal was open and ready for access.

An update on planned giving was forwarded noting 16 planned gifts currently outstanding, with two in legal proceedings and nine involving property sales, including four new estates during the period. Mr. Richardson noted that with the arrival of warmer weather, these properties would have to be maintained prior to their sale causing an occurrence of additional expenses against those estates, through the fall if not sold. Of those noted by Mr. Richardson were the following:

o  Norwood – new trust (3), based on passing of wife; MHCO entitled to $600K before September 1, 2015. UPDATE: Received one distribution October 27, 2015 - $100K. UPDATE: Others after the end of the year, per Mrs. Clark, Financial Institution. UPDATE: Received $100K on February 1, 2016. Additional monies to be distributed. UPDATE: Additional distribution $327K on February 26, 2016.

o  Finch – Visiting home, lawyers, relator – August 7; begin sale process; family has “trashed residency”; prepping for sale; follow-up this week with trash-out, lawn maintenance, and listing. UPDATE: Closed November 13, 2015, at $32,989.69. With the lock changes, clean out fees, and lawn maintenance, netted approximately $30K on the sale. Awaiting additional $100K received December 18, 2015. Small amount left to be distributed in 2016. UPDATE: $100K received; additional $20-30K to be given in 2016 to close account.

o  Scott – Visiting home, lawyers, relator – August 21 – meeting with Executrix who must renounce Lifetime Rights; begin sale process. UPDATE: Quick claim deed complete; working with auctioneer, realtor, donor, to complete paperwork. Will generate receipt for donor to sign giving up all rights to property, items. Hope to put on market by October 15, 2015. Send listing to D. Rice, D. Caudle prior to list from Tom Gregory. UPDATE. Received quick claim deed, waiver of Lifetime Rights. Visiting October 21 to complete transfer. Working on prices, clean-out for listing by October 21, 2015. Switched power, lawn mowing to MHCO. Visited 10/21 to finalize items from house, pick up keys, begin clean out and place on market. Power and lawn in MHCO's name, as well as taxes. UPDATE: Confirmed clean-out proceeding, per Fred Barkley. Comps forwarded by PGM, Gregory, suggested at $59,500, which we will list as soon as Brother Barkley clears the property. UPDATE: Awaiting reply from Brother Barkley regarding clean out. UPDATE: House cleaned, listing signed by chairman. To be listed on March 1, 2016. Will monitor for grounds keeping needs, starting March 30, 2016. UPDATE: Two offers received since March 9, 2016. Awaiting the reply of PGM Thomas Gregory, relator for the property, who was submitting a counter-offer to the two buyers of $55,000 or higher.

** At this time Mr. Richardson asked for Chairman Rice and the Committee to discuss the sale price and approval of a sale of this property regarding the recent offers. A discussion followed. Motion was submitted by PGM Dewey Preslar that the Chairman be authorized to sell the property for a price no less than $55,000, but could be more. The motion was seconded by GM Webster. The motion passed. Mr. Richardson will be in contact with the relator and Chairman Rice regarding the possible sale, submitting paperwork as needed.

o  Allen – signed receipt of mobile home 9/8/15. Currently not moving; trying to sell on site. Items in house valued at $500 or less. Executive Committee approval to clean out items. Listing for $30K, trying to get $20K; additional $37K in cash. UPDATE: No update per legal counsel of MHCO as of December 4, 2015. UPDATE: Jim Wrenn advised that the trailer has been sold, just waiting on the money. $22,000.00 was the sale price. Additional funds are also available as part of this estate.

o  Story Property – Call from Niece that Aunt with Lifetime Rights has passed. Home and property to MHCO per will. Locating Deed. Decision needed on property and acceptance and disposal. Will visit property in coming months. UPDATE: Have deed and will; working on disposition of property, securing a relator. Currently working with a local Mason regarding a relator and a possible sale of the property “as is”. Will continue to update the Chairman and the Committee should a sale be imminent.

o  Critcher Property – offer from Sheldon Land regarding purchase at $10K. Approved by the Board on Feb. 12, 2016. Title search has provided no information or documentation. None located. UPDATE: Surveyor secured. Cost as listed below was approved by CFO. Mr. Richardson is working with him to determine title creation and proceed with sale. Information below.

After looking at more information pertaining to the MHCO property located at the end of Smith Street in Oxford, N.C.

I estimate the cost of surveying services to be $ 1050.00.

Please call me at your convenience to discuss.

Best Regards...... Barry

BARRY H. OAKES SURVEYING, PA

Professional Land Surveyor, L-3061

P O Box 2059, Oxford, NC 27565

Phone: 919-693-3260, Cell: 919-691-0524

Fax: 919-693-3251

Email:

o  H.V. – emailed that he and his wife are confirming estate plans, to include MHCO. Corresponded via email and will continue to contact and schedule a visit, if agreeable to the donor, prior to August 1, 2016. Donor is providing a copy of the estate plan to MHCO and cited the GM’s recent emphasis on estate planning for his decision.

o  Thwing - .95 acres, road front, undeveloped, in Bakersville, NC – Tax value of $2,500, from Bro. Bryan Garland – awaiting deed; will work to find relator for sale; taxes paid in 2016 for $15; 828-467-0252. UPDATE: Need legal counsel to prepare paperwork for the deed transfer to MHCO. Called on Executive Committee for input. Chairman Rice and GM Webster offered their assistance, including two names of legal counsel in the area to contact regarding their services (Lloyd Hise or Hal Harrison). Mr. Richardson indicated a possible sale of the land following its donation to MHCO.

o  Medlin Estate – will that originally contained proceeds of the sale of a house for MHCO, now has verified codicil leaving those items originally left to the daughter and nephew now to MHCO. Includes residual estate items. Spoke with attorney regarding situation and was assured that all was handled legally and ethically prior to Mrs. Medlin’s death. Awaiting inventory and all property associated has been liquidated by attorney, per the instructions of Mrs. Medlin’s will.

Chairman Rice then asked Mr. Richardson to provide an update on Masonic Homecoming. Mr. Richardson noted final confirmation of one band for Friday Band. Mr. Richardson thanked the participation of the Chairman and GM Bryant at the meeting/conference call with Masonic Homecoming chairs that was held on February 12, 2016. As a result of this meeting several topics were discussed in preparation for the event. Mr. Richardson stated that posters were still being developed for the event and that a website for the event would be in-place in late April on the Home’s website. Mr. Richardson noted that he would be sending a letter regarding the festival to GM Bryant, written on his behalf, for his review, that would be mailed to all Lodges in NC, as well as registered alumni of the Home and Shrine Potentates and Divan. Mr. Rice thanked Mr. Richardson for his continued involvement with Masonic Homecoming Festival Chairman Gene Purvis.

Regarding the Administrator’s Report, Mr. Otis reported that between 2/1/16 – 2/29/16 MHCO had 3 discharges and 1 admission. Current census is 55 residents, 44 Direct Care and 11 Independent Living. An emergent admission was made today for a young man that was appropriate and looked to be a good fit for both he and the Home. A discussion followed on one of the discharges and specifically the work with the guardians, Social Services, and the Home. Mr. Otis indicated that the Home worked diligent and in the best interest of the child and explained in detail the steps taken regarding the former residents. In indicated that the resident was removed by the guardian, that was newly appointed and that various actions by the guardians afterwards were noted and communicated to the appropriate DSS. The Committee acknowledged this work by the Home and its staff and Chairman Rice asked Mr. Otis for any additional information regarding the resident even as they were not longer a resident of MHCO. Mr. Otis stated that he would and commended the staff for their work for this child in trying to maintain their placement at MHCO.