Last month, CHS hosted our annual legislative reception, bringing together board members, legislators and state officials. The evening gave board members a chance to share updates on CHS’s work and highlight how we support the state’s most vulnerable children and families.
Board members also took the opportunity to remind officials that many of the children served are wards of the state and that continued funding is critical to meet their basic needs. They emphasized that even if CHS weren’t here, these challenges would remain—and with the number of children in need rising, demand for services will continue to grow.
Governor and First Lady Rhoden stopped by during the reception to learn more about CHS and the impact of our programs.
Senator Jack Kolbeck also attended, and since it was his birthday, everyone gathered to sing for him.
The following day, board members met for the quarterly meeting to review updates and discuss upcoming initiatives. Check out the highlights below.
Society Board Highlights
Committee Updates
- Operations Committee: Chair Deb Soholt provided an update on:
- Review of the OMHS Clinic.
- Council on Accreditation—final accreditation anticipated at the end of February 2026.
- Aberdeen day school opportunity.
- Finance, Audit and Investment Committee: Chair Greg Schweiss provided an update on:
- Review of year-to-date financial results.
- Annual audit—which had no findings.
- The request for proposals for audit services.
- The Form 990 was also approved.
Rapid City Campus Construction
- Mark Niemeyer shared the forecasted completion date on the new campus.
- He also shared potential challenges and opportunities related to the timeline.
- Project remains on schedule and under budget.
- Anticipated completion in October 2026.
Financials
- Shannon Clark reviewed our organization’s:
- Funding sources.
- Levels of philanthropic support.
- Contingency risk plans if funding levels shift due to economic conditions.
- Year-to-date financial results.
- Clark noted that current philanthropic support represents 21.5% of total funding, compared to the benchmark range of 25-30%.
- At this time, no critical financial risk was identified.
- Board member requested future analysis of historical philanthropic support trends to help make informed decisions.
Outpatient Clinic Update
- Michelle Lavallee and Allison Sanderson provided a status update on the clinic.
- Clinic operations have been reassessed.
- New measurements have been implemented to support future growth and long-term sustainability.
- Schweiss noted that the Finance, Audit and Investment Committee will closely monitor the outpatient clinic’s financial performance at each quarterly meeting.
- The outpatient clinic executive summary is available on BoardVantage and provides a detailed analysis of the clinic’s performance.
Serenity Dennard Status
- February 4, 2026, marks the seven-year anniversary of Serenity Dennard’s disappearance.
- Lavallee emphasized that all media inquiries and external communication related to this matter must be directed exclusively to her.
- The board was reminded not to engage with the media or journalists.
- Crisis communication protocols have been established, and Lavallee is prepared to manage all related communications.
- She will distribute similar communication to staff on the anniversary date.
Foundation Board Highlight
Promise Appeal Campaign
- Jon Mammenga reported that more than $15,100,556 has been raised in the first 11 months.
- This has been raised from 107 donors.
- Over the next 11 months, the campaign will remain in the quiet/major gift phase.
- Approximately 600 donor prospects identified.
- Discussion is underway regarding a potential stretch goal of $20 million or higher.
Endowment Report
- Eric Lee reviewed the Endowment Report and First PREMIER Annual Update.
- He reported a 15% return on investment in 2025.
- He noted that the endowment is not currently meeting its investment benchmarks.
- The board was asked to consider what is and is not working within the investment strategy.
- Lee reiterated that the endowment exists to support the mission today as a strategic partner with the Society, to grow assets while protecting against inflation, and to provide flexibility as a financial “shock absorber.”
- Conversations with First PREMIER are ongoing.
- Additional discussions focused on whether to continue taking the maximum distribution or to consider a lower distribution to protect future years.
- Conversations were also held on where the Foundation should focus its limited resources and energy.
- Towards philanthropy efforts or the endowment.
Funding Gaps/ Scenarios
- Clark reviewed the budget funding sources for FY 2026.
- She highlighted a mix of federal, state, local, school district, charitable, fee-for-service and other revenue sources supporting program operation.
- She presented scenarios showing the impact of different fundraising levels on interest expense and long-term loan balances for the Black Hills construction project.
- Noted that higher fundraising substantially reduces both interest costs and outstanding debt over time.
- Clark noted that the Investment Policy was updated in March 2024, and the maximum distribution request is 5%.
- Discussions followed regarding the need for a five-year pro forma, clarification of Mammenga’s role and how his time and efforts should be prioritized to achieve established goals.