operating budget fiscal year 2015

---

OPERATING BUDGET  FISCAL YEAR 2015

BAPTIST HEALTH SOUTH FLORIDA FOUNDATION, INC. OPERATING BUDGET FY 2015 TABLE OF CONTENTS Page Financial Highlights .......................................................................................................................................

1

Program and Supporting Services Expense Detail ........................................................................................

2

Summary of Net Proceeds from Special Events ............................................................................................

3

Notes ..............................................................................................................................................................

4

BAPTIST HEALTH SOUTH FLORIDA FOUNDATION, INC. OPERATING BUDGET FY 2015 FINANCIAL HIGHLIGHTS

Notes

FY 2015 Approved Budget

FY 2014 Estimated Approved Actual Budget

Favorable (Unfavorable) Variance from Est/Act $ %

FY 2013 Actual

SUMMARY OF OPERATIONS: FUNDS RAISED FOR DESIGNATED ENTITIES

$50,000

UNRESTRICTED CONTRIBUTIONS: General contributions

$3,330,000

$4,000,000

$1,750,000

($670,000)

-16.8%

5,062,492

ADDITIONS TO TEMPORARILY RESTRICTED NET ASSETS: Special events - net General contributions

1,647,000 24,773,000

2,355,000 10,033,000

1,200,000 9,550,000

(708,000) 14,740,000

-30.1% 146.9%

1,294,373 8,329,165

26,420,000

12,388,000

10,750,000

14,032,000

113.3%

9,623,538

200,000 50,000

100,000 307,000

500,000

100,000 (257,000)

100.0% -83.7%

654,528

250,000

407,000

500,000

(157,000)

-38.6%

654,528

30,000,000

16,795,000

13,000,000

13,205,000

78.6%

15,390,558

30,000

30,000

30,000

0

0.0%

68,886

TOTAL FUNDS RAISED AND OTHER REVENUE

30,030,000

16,825,000

13,030,000

13,205,000

78.5%

15,459,444

PROGRAM AND SUPPORTING SERVICES EXPENSES: Wages, salaries and benefits Purchased services Fundraising consultants Annual Fund Program Administrative and general Office supplies and postage Depreciation

4,205,000 1,123,000 479,000 139,000 947,000 33,000 3,000

3,293,000 973,000 278,000 139,000 729,000 33,000 3,000

3,938,000 650,000 637,000 140,000 619,000 42,000 4,000

(912,000) (150,000) (201,000) 0 (218,000) 0 0

-27.7% -15.4% -72.3% 0.0% -29.9% 0.0% 0.0%

3,005,575 670,974 437,538 93,383 332,747 36,607 2,783

6,929,000

5,448,000

6,030,000

(1,481,000)

-27.2%

4,579,607

$23,101,000

$11,377,000

$7,000,000

$11,724,000

103.1%

$10,879,837

$4,700,000

$9,015,000

$3,365,000

($4,315,000)

47.9%

$5,558,942

9.3% (6.5) ($3,160)

28.8% -24.5% -2.5%

Total additions to temporarily restricted net assets ADDITIONS TO PERMANENTLY RESTRICTED NET ASSETS: General contributions Special events - net Total additions to permanently restricted net assets TOTAL FUNDS RAISED

1

OTHER REVENUE

TOTAL PROGRAM AND SUPPORTING SERVICES EXPENSES EXCESS OF TOTAL FUNDS RAISED AND OTHER REVENUE OVER TOTAL PROGRAM AND SUPPORTING SERVICES EXPENSES INVESTMENT INCOME

6

STATISTICS: Program and supporting services expenses as a percent of total funds raised Total FTEs Average salary and benefits per FTE

2 2, 3

23.1% 33.0 $127,424

32.4% 26.5 $124,264

46.4% 33.0 $119,333

29.8% 25.0 $120,223

Page 1

BAPTIST HEALTH SOUTH FLORIDA FOUNDATION, INC. OPERATING BUDGET FY 2015 PROGRAM AND SUPPORTING SERVICES EXPENSE DETAIL

Notes

Wages and salaries Employee insurance Retirement expense Payroll taxes and other benefits

2 3 3 3

Total wages, salaries and benefits Publications Planned giving Founders' society Donor dinner Board of Directors retreat Donor recognition Donor cultivation Fundraising consultants Miami Cancer Institute campaign Annual Fund Program Other Total purchased services

4

Direct donor cultivation Direct donor entertainment Bank fees Travel and education Information technology Rental expense Corporate shared service costs Allowance for uncollectable pledges Other Total administrative and general Office supplies and postage Depreciation TOTAL PROGRAM AND SUPPORTING SERVICES EXPENSES

5

FY 2015 Approved Budget $ %

FY 2014 Estimated Actual $ %

Favorable (Unfavorable) Variance from Est/Act $ %

$3,488,000 379,000 97,000 241,000

50.3% 5.5% 1.4% 3.5%

$2,699,000 313,000 83,000 198,000

49.5% 5.7% 1.5% 3.6%

($789,000) (66,000) (14,000) (43,000)

-29.2% -21.1% -16.9% -21.7%

4,205,000

60.7%

3,293,000

60.4%

(912,000)

-27.7%

52,000 199,000 59,000 112,000 88,000 83,000 93,000 379,000 479,000 139,000 58,000

0.8% 2.9% 0.9% 1.6% 1.3% 1.2% 1.3% 5.5% 6.9% 2.0% 0.8%

47,000 99,000 59,000 112,000 88,000 83,000 43,000 379,000 278,000 139,000 63,000

0.9% 1.8% 1.1% 2.1% 1.6% 1.5% 0.8% 7.0% 5.1% 2.6% 1.2%

(5,000) (100,000) 0 0 0 0 (50,000) 0 (201,000) 0 5,000

-10.6% -101.0% 0.0% 0.0% 0.0% 0.0% -116.3% 0.0% -72.3% 0.0% 7.9%

1,741,000

25.1%

1,390,000

25.5%

(351,000)

-25.3%

89,000 24,000 48,000 18,000 120,000 0 243,000 215,000 190,000

1.3% 0.3% 0.7% 0.3% 1.7% 0.0% 3.5% 3.1% 2.7%

89,000 24,000 48,000 18,000 73,000 31,000 0 264,000 182,000

1.6% 0.4% 0.9% 0.3% 1.3% 0.6% 0.0% 4.8% 3.3%

0 0 0 0 (47,000) 31,000 (243,000) 49,000 (8,000)

0.0% 0.0% 0.0% 0.0% -64.4% 100.0% n/a 18.6% -4.4%

947,000

13.7%

729,000

13.4%

(218,000)

-29.9%

33,000

0.5%

33,000

0.6%

0

0.0%

3,000

0.0%

3,000

0.1%

0

0.0%

$6,929,000

100.0%

$5,448,000

100.0%

($1,481,000)

-27.2%

Page 2

BAPTIST HEALTH SOUTH FLORIDA FOUNDATION, INC. OPERATING BUDGET FY 2015 SUMMARY OF NET PROCEEDS FROM SPECIAL EVENTS FY 2015 Approved Budget

FY 2014 Estimated Approved Actual Budget

FY 2013 Actual

Special events generating temporarily restricted net proceeds: Baptist Childrens Hospital Gala Baptist Childrens Hospital Celebrity Golf Tournament Baptist Cardiac & Vascular Institute Branson Luncheon West Kendall Baptist Hospital Zoo Miami 5K Run South Miami Hospital Golf Classic South Miami Hospital Mercury Ball Doctors Hospital Ball Homestead Hospital NASCAR Championship Taste Event Mariners Hospital Bougainvillea Ball Mariners Hospital 5K Walk/Run for CEN Baptist Outpatient Services Sauté & Sip Dinner

$273,000 35,000

250,000 307,500 65,000 200,000 45,000 400,000

427,000 123,000 269,000 49,000 563,000

Temporarily restricted net proceeds from special events

1,647,000

2,355,000

50,000

56,000 251,000

50,000

307,000

$1,697,000

$2,662,000

$333,000 92,000 499,000

$100,000

71,500 55,000 250,000 300,000

$33,658 54,547 260,250 380,903

160,000 35,000 300,000

212,704 40,618 311,783

1,200,000

1,294,463

$1,200,000

$1,294,463

Special events generating permanently restricted net proceeds: South Miami Hospital Golf Classic South Miami Hospital Mercury Ball Permanently restricted net proceeds from special events TOTAL NET PROCEEDS FROM SPECIAL EVENTS

Page 3

BAPTIST HEALTH SOUTH FLORIDA FOUNDATION, INC. OPERATING BUDGET FY 2015 NOTES 1.

The proposed fiscal year 2015 budget reflects total funds raised of $30,000,000—an all-time record level—including an anticipated $15,000,000 for the Miami Cancer Institute (“MCI”). The MCI campaign will be the major focus of the Foundation’s fundraising efforts in the coming year; however, Baptist Health’s legacy special events are also planned, as are increased activities to raise funds for Baptist Health’s Centers of Excellence and other select service lines, and to cultivate and solicit upgraded gifts from existing Founders.

2.

The projected increase in total salaries includes the addition of three development officers and support personnel associated with the MCI campaign and Centers of Excellence fundraising efforts. Several of these positions were included in the fiscal year 2014 budget, but were delayed pending completion of a new strategic plan. The year-over-year increase also reflects realization of a full year of salaries for the marketing and annual fund personnel who were added late in the current year.

3.

The increase in employee benefits is commensurate with the anticipated increase in Foundation personnel, as well as an assumption of higher employee healthcare costs.

4.

The proposed increase in purchased services expenses reflects an additional $201,000 associated with the MCI campaign. Additionally, increases are projected for the enhancement of the planned giving program, including the reestablishment of the annual Living Legacy recognition event, and expansion of a pilot program designed to lead prospective donors through a personalized and comprehensive charitable estate planning process.

5.

The projected increase in administrative and general expenses relates almost entirely to costs incurred by the BHSF Corporate Office for the sole benefit of the Foundation. Earlier this year, the Financial Accounting Standards Board issued a revision to accounting rules regarding the treatment of costs incurred for the benefit of a related not-for-profit entity. This guidance is effective beginning in fiscal year 2015. The increase reflected in the proposed fiscal year 2015 budget includes costs incurred by Finance, Information Technology, Legal and Human Resources to support the Foundation, which have historically resided on the books of the BHSF Corporate Office.

6.

Investment income projections are consistent with the long-term investment return objectives of the Foundation’s investment portfolio.

Page 4