The Leadership Council established the Process and Oversite Committee (POC). The purpose of the POC was “To steward the study and implementation of an evolutionary process to determine the future use and ownership of the land and buildings on the Monroe Campus with particular attention given to the Motherhouse.” The committee also identified Guiding Principles for our work.
Based on the work that was done in prior years, the POC felt we were in a excellent position to write a Request for Qualifications (RFQ), The committee surfaced the names of about seven entities that would be approached to consider future ownership of the IHM Senior Living Community (IHM SLC), After several drafts, the POC invited Lynn Daly, Executive Vice-President of HJ Sims, Inc. to review the RFQ and offer feedback. Lynn worked as a consultant for the congregation on various endeavors over the years. She gave the IHMs excellent feedback. Yet the POC and subsequently Leadership Council, realized we were over our heads in taking on such an endeavor. Like many congregations, over the years, members of the leadership planned for the current building needs as well as looking to the future. With the myriad of challenges that come before leadership, it was realized that we could not walk this journey alone. We contracted HJ Sims, with Lynn Daly as our consultant (January 2022). Transfer of the ownership of buildings and grounds is but one aspect of partnership that congregations can follow.
There are a variety of types of Affiliations/Sponsorship Transitions/Sales. Communities that want to maintain complete control over their Motherhouse or sponsored entity might simply work with others via a management agreement. Oftentimes, Catholic Sponsored Senior Living will hand over the keys of their community to a new sponsor via a Sponsorship Transition. The IHMs, through their discernment process with the Process and Oversight Committee (POC) determined that a transfer of the campus to a hand-picked Sponsor put the Sisters in the best position to focus on what was important to them, while allowing them to off-load campus-related concerns including upkeep, maintenance of older buildings, marketing empty rooms in the CCRC and taking the long term financial risk of the upkeep and reinvestment into the campus and senior living community of which the Sisters are residents.
With the decision being made that the IHMs were looking to divest the property and the buildings, HJ Sims surveyed the Leadership Team and the Board of the CCRC to garner what attributes were most important for them in a future partner. These surveys were shared to ensure that there was alignment of priorities. With the results of the survey as a guide on the types of organizations the sisters were interested in exploring, Lynn worked with the IHM Congregation to develop a List of Prospective Strategic Candidates (over 40!) and Confidential Information Memorandum to share with those on the list. Through the three-year process, Lynn walked with the community through the Solicitation Process, Due Diligence and Documentation and Closing. Yes, this was a financial investment to work with an outside consultant, but it was a wise investment. The POC worked closely with HJ Sims to assist the community in stewarding our resources into the future, exploring the various options before the congregation.
The IHM Community was introduced to over a dozen different entities. As the process played out, there were two entities who were finalists, including Saint Therese (May 2022). Throughout the process, Lynn was the liaison between the congregation and the various entities. When we realized that the congregation would need to financially assist any entity in the next several years. Lynn communicated to the entities and helped them realize what we could afford with the ultimate goal of terminating all financial obligations at a near-term date certain. Lynn worked with the community to negotiate the terms of the agreement (June 2023).
As religious communities face the future considering changing demographics, leadership is faced with multiple issues, still maintaining the mission and ministries of the congregation. “Going alone” is not really an option. Hoffman and HJ Sims are among various consultants who understand religious life and have the expertise to assist the communities to understand the complex nature of our changing demographics and the decisions we need to make. It does not cost to learn more and explore where on the partnership spectrum might be best for your community. One size does not fit all congregations. As was pointed out, transfer of ownership is one of the paths to follow and there are other types of partnership that will walk with the congregations into the future, bringing the necessary expertise to the table.