Report of the

Bible Fellowship Church Homes, Inc.

          By 2050, the population of seniors 65 and older will double and those 85 and over will quadruple. By 2020, the ratio of those over 65 to working adults will be one-to-four. This grouping of the world’s citizens will dramatically affect each generation and the church. Forecasts for an aging society assert “sweeping change for the swelling population”, include growth in elder-care options. The impact will be felt in shifting life-styles, health needs, social policy, family responsibilities and services provided by the Church.

          In regard to life style, increasing independence for elders is predicted as seniors reinvent themselves rather than retire, employers benefit from a wise, experienced workforce, and seniors benefit from financial gain and a sense of worth and contribution. Senior independence is further promoted through elder-friendly technology that enhances communication with family and friends and improved access to health-care information and providers.

          Health care needs for seniors will also shift. While chronic and terminal illness will remain a major issue for this population, those over 65 will continue to be very health conscious. As avid consumers of fitness and nutrition services, seniors are invested in staying well and maintaining their quality of life.

          As health needs increase, seniors will look for and demand alternative, cost-effective elder-care environments that promote maximum productivity and contributory life styles. A full-service facility may include a business center, computer rooms and classes in exercise and nutrition, in addition to social clubs, transportation and a health-care facility. Fellowship Community must continue as an innovative community, which constantly changes to meet the growing needs of the elder population.

          Seniors can also be expected to significantly influence social and health policy, long-term, hospice and respite care; prescriptions, vision and dental coverage; and employee benefits for elder-care. All are concerns of seniors and their succeeding generations.

          Elder-care responsibilities will place increasing demands on families, friends and the church. From making decisions about services and facilities, to monitoring an elder’s health-care needs, to directly providing the care, caregivers will potentially be faced with threats to finances, employment and personal relationships. Their needs and interests present a secondary set of issues that require attention.

          All these forecasts will promote increased demands on the church, and will provide many new opportunities for service. The government cannot solve or finance all the issues presented by this new population shift.

          Who better than the Christian community to design and implement alternative, cost-effective elder-care environments or direct in-home and facility services? Who better than the church to provide counseling and support services to our elder citizens? No secular organization is available to provide the continuity of service necessary in maintaining a high quality of life for our elder citizens. The Christian community will be confronted with these issues and be expected to respond.

          Fellowship Community will be developing a program, which will begin to address some of these issues. The plan will include methodologies for the churches to provide extended services to their elder citizens. Each BFC will be visited this year to determine interest and to share information about how Fellowship Community can assist the churches in providing extended services for their elder citizens.

          This past year has been a busy year at Fellowship Community. Construction has begun on building 21 new independent-living-single-story townhouses. We expect occupancy to occur in September/October 2001. All 21 units have been pre-sold and we are beginning a waiting list for the next section of courts, identified as Gehman Court.

          The Bond Issue to construct an Assisted Living wing to Fellowship Manor has been progressing very slowly due to the lack of interest by investors to invest in Health Care Non-rated Bonds. A marketing and financial feasibility study was completed which demonstrated that the program presented was marketable and financially sound.

          Fellowship Manor achieved a maximum 3 year accreditation by the Joint Commission on Accreditation of Healthcare Organization for Long Term Care and also achieved accreditation by the same organization for our Dementia Special Care units. We also achieved a favorable survey by both the Pennsylvania Department of Health and the Pennsylvania Department of Public Welfare.

          Fellowship manor resident and resident family satisfactory surveys demonstrate that 95% of the resident/residents families rated care rendered at Fellowship Manor as either very good or excellent.

          The occupancy rate for each of the facilities from 7/1/00 to 12/30/00 is as follows:

                    Manor                    –          97%

                    Home           –          87%

                    Courts                    –         100%

          Fellowship Community has conducted its first capital fund drive to purchase 2 busses for the residents of Fellowship Manor, Home and Courts. The drive officially began on 2/10/01. As of 2/22/01, 44% of the $100,000 has been raised.

          John and Katherine Reiss were awarded the Pennsylvania Association of Non-Profit Homes for the Aging 2000 Distinguished Service Award for Volunteers of the year at its Annual Banquet. John and Katherine are members of the Cedar Crest BFC.

          The staff and volunteers at Fellowship Community (Manor, Home and Courts) are to be commended for their caring attitude and cooperative spirit. We thank the Lord of providing us with a very dedicated and loyal staff.

          In conclusion of the report, the Board of Directors appreciates all the contributions from the churches and individuals. It is with praise and thanksgiving to our God and Savior for His wonderful provision for this ministry.

          Contributions should be made payable to Fellowship Community and mailed to Fellowship Community, 3000 Fellowship Drive, Whitehall, PA 18052

          Note that the financial report prepared by Lisa Hazler, CPA, is a condensed version of the full financial report audited by ParenteRandolph. The fiscal year of Bible Fellowship Church Homes, Inc. is from July 1, 1999 to June 30, 2000. The audited report from ParenteRandolph is available and may be obtained by contacting the Secretary of the Board.