Legacy Place Cottages was developed by a group of Jehovah’s Witnesses to serve their brothers and sisters, and we are thrilled to see that the goal of providing quality, loving care has been successful to date. This is thanks to all of you for your love and prayers and especially through your donations.
Many friends have wondered why they occasionally receive encouragement to donate to support the care being provided at Legacy Place. After all, it is a licensed personal care facility that charges residents monthly fees. We wanted to show you exactly why your donations play such a vital role in supporting our dear elderly ones.
The short answer is that revenues from resident room rental do not fully cover the expenses incurred in operation, and donations have always been necessary to fill this need and keep doors open.
What about Government Funding?
In Pennsylvania, there is no government funding for personal care facilities and only skilled nursing homes provide subsidized care to residents who qualify financially and clinically. Only during 2020 did Legacy Place receive COVID-related financial assistance which was available to all business owners.
Why don’t the revenues from resident room rentals fully cover operations?
The reason is that while most residents pay published rent rates, some do not. They may be longtime servants of Jehovah who do not have sufficient funds or family to help, residents that have depleted their funds while at Legacy, or special full-time servants whose modest stipend from the Branch does not cover their occupancy.
What many do not know is that even after these needy ones are helped, additional donations are needed to cover costs and maintain rents at the current level. As a result, all who donate help everyone at Legacy Place. In line with 2 Corinthians 8:14, you are contributing towards “an equalizing, your surplus at the present time might offset their need…”
Where do the profits go?
There are no profits. Legacy Place is a non-profit whose mission is to support and care for our dear older ones. It is directed by a board of brothers who donate time each month to ensure that it runs smoothly. Purchase of the property and construction of the buildings were made possible by large donations from several local families and a commercial mortgage. Here are some numbers that will show you what we mean.
Typically, the annual shortfall from revenues to expenses has been $175,000 to $200,000. Since COVID, however, expenses have dramatically increased due to higher wage rates and increased essential staff. During 2020, occupancy was unusually low since new residents were not accepted during the state-mandated lockdown period, and expenses exceeded revenue by approximately $335,000 even after the receipt of approximately $200,000 in one-time PPP help. This year, although normal occupancy has been restored, payroll costs continue to increase, no government help is available, and a $400,000 loss is expected. Each year, such a loss needs to be covered by donations.
The pie charts below display actual expenses and sources of revenue in 2020. (Earlier financial information can be found in the 990 filings provided by Jah Jireh Homes of America-Allentown to the IRS or from our office.)
The 2022 budget is even more challenging as continued increases in payroll costs, necessary to retain and attract caregivers, are fully implemented. This is despite increases in published room rates. As you can see, the deficit projected for next year again approaches $400,000.
To be certain, Legacy Place will continue to provide the spiritual support and loving care that it has become known for since December 2014. Jehovah promises his help and He continues to sensitize all of us to the need to “care for widows and orphans”. We are confident generosity, mercy and compassion will be extended by the brotherhood as more become aware of the need.
Please join the growing ranks of “Legacy Lifesavers” that provide small monthly donations that are critically needed to support our dear elderly friends.
The name is a fun play on the wonderful candy we all love and the concept of a life preserver, which is described as “a device for keeping a person afloat.” How relevant! Watch for a special “Thank You” gift (handcrafted by our residents) being sent to each one that has donated to date, and which will be sent to all new donors. We think you will love them!
Your generosity, no matter the size, will connect all of you to the residents and the mission of care at Legacy Place…. a loving home by Jehovah’s Witnesses to serve our dear elderly brothers and sisters!
If you would like to donate, please click on this link and it will direct you to a secure page for donation.