2012 GRATITUDE Today we are grateful. REPORT

4165-1 2013AnnualReport-FINAL.indd 1 5/3/13 9:46 AM Cover Art Colorful Burst “The gray/black is a representation of my addiction in my past, and the vibrant colors coming through represent my recovery overpowering my addiction. The gray/black is still there because I am able to acknowledge my past yet not dwell on it.” ~ A Hazelden youth alumna and art therapy student

Mission Hazelden helps restore hope, healing, and health to people affected by addiction to alcohol and other drugs. Vision All who seek recovery will find it, and the stigma of addiction will be overcome. Values • Treat the whole person as well as the illness. • Treat every person with dignity and respect. • Continue a commitment to the Twelve Step fellowship. • Be of service. • Remain open to innovation.

4165-1 2013AnnualReport-FINAL.indd 2 5/3/13 9:46 AM TODAY WE ARE GRATEFUL

Dear Friends of Hazelden, 03

Every day, we at Hazelden receive heartfelt and very touching • Because of you, we opened an intensive outpatient clinic at expressions of gratitude. It would be tempting to claim these Tribeca Twelve in New York City, enhancing our care for those words for ourselves and wear them as a badge of honor for a who are returning to college; an outpatient clinic in Chaska, job well done. Instead, we are humbled and motivated. Most Minnesota, that offers working families convenient access to important, we are inspired to redirect the gratitude to you— care; and an outpatient clinic in Beaverton, Oregon, that focuses where it belongs. on co-occurring disorders and pain management. Thank you for helping us to grow and reach more people who need our help. We made tremendous strides in 2012, especially in expanding the continuum of our youth services and implementing • Because of you, our Graduate School of Addiction Studies Paul L. Gossling innovative clinical treatment programs for high-risk patients. secured a 10-year reaccreditation from the Higher Learning Here are just a few of the year’s highlights: Commission. Thank you for helping us send our qualified, compassionate graduates into the world. • Because of you, we launched the expansion and renovation of our campus for youth and families at Hazelden in Plymouth, As we continue this work in 2013, with a special focus on Minnesota. As this annual report goes to press, we are happy recovery management and long-term recovery, we’re honored to to report that Phase 1 (the expansion) is complete, and Phase have the leadership of The Honorable Susan Fox Gillis, Cook II (the renovation of the old space) is well underway. If you County Circuit Court Associate Judge, as our new Board of haven’t had the pleasure of seeing the newly constructed wing, Trustees Chair. Please join us in welcoming her to the helm. Mark G. Mishek let us help you visualize the sun-drenched entrance, the sky- high gymnasium with a climbing wall, the cozy but communal To get an idea of the impact you have made, consider the words living spaces, the soundproof music room, the state-of-the-art of a young man who received treatment at Hazelden in Plymouth: classrooms, and the calming meditation room. When young “It’s nice to wake up every day and feel good, to look at the people come through those doors, their apprehension is quickly opportunities I have, and to act on them. It feels good to feel replaced with hope—and when they leave, they shower our good.” Turn the page to read his story and the stories of others staff with their thanks. who, like us, can hardly find the words to express our gratitude. Sincerely, • Because of you, we implemented new protocols for treating opioid addicts, an especially vulnerable patient population Susan Fox Gillis at high risk of relapse and even death. Through enhanced programming that includes medication-assisted treatment, long-term monitoring, and peer coaching, we’re able to offer these patients significantly improved chances for long-term Paul L. Gossling Mark G. Mishek recovery. Thank you for helping Hazelden to become a leader Chair, Hazelden Board of Trustees President and CEO in offering this specialized programming within the tried-and- true context of the Twelve Steps.

4165-1 2013AnnualReport-FINAL.indd 3 5/3/13 9:46 AM Sharon and Phil: Loving and grateful parents and empathic and generous friends to young people in need of treatment for addiction.

4165-1 2013AnnualReport-FINAL.indd 4 5/3/13 9:46 AM TODAY WE ARE GRATEFUL :: for family 05

Sharon and Phil L. Their determination, commitment, and love built a stronger family. Sharon and Phil: When we took our son Ben to Hazelden, we were in a Hazelden taught us so much: We learned that we didn’t cause Ben’s disease, state of disbelief. Never in a million years had we imagined that we would that we can’t cure it or control it. We learned that we needed to stay out of the be walking through those doors. way of his recovery process. We learned that we had not “failed” as parents. We have always been a strong family grounded in faith and love for each Wonderful changes began to happen, including the ability to have healthy other. But when Ben entered his junior year in high school, we found dialogue with our son on so many levels. We realized we could apply ourselves descending rapidly into a living nightmare. We knew that he the principles of recovery to our own lives, principles that can benefit was not coping well with the added responsibilities and pressures of a anyone and everyone. Our compassion and empathy for others was very competitive, challenging school environment. And we knew he was deepened. Whatever façade there was dropped away, and love, family and struggling to answer the questions that every young man asks himself: relationships took center stage. “Who am I? What am I doing here? What is my purpose in life?” We did Ben returned home to us as a mature young man with a startling amount not turn away from the fact that he was using drugs and alcohol to fill the of insight. We regularly look at one another and express how grateful we void, and we came to realize that until that problem was addressed, none are for our sons, for how much fun we have together, and for how much of the other issues could be resolved. stronger we are as individuals and as a family. We were, however, a little naive. We thought Ben would finish 28 days in Ben: It’s nice to wake up every day and feel good, to look at the treatment and be home by Christmas. We had no idea that he’d be gone opportunities I have, and to act on them. It feels good to feel good. I’m for another three months in long-term care and another five months in studying economics and teaching and competing in mixed martial arts. a residential treatment home thousands of miles away. If someone had I’m grateful for my parents, who supported me in everything from the told us that we would lose our 16-year-old son for nine months, we don’t very start. They are awesome people. I’m honored to be their son. And I’m know what we would have done. It ripped our hearts out. grateful for my brother, David; he is my best friend. Those nine months put us through the greatest test of our lives. You David: Ben has made a complete turnaround in his life, and I’m extremely are emotional every day, trying to decide the next best thing to do for proud of him. He’s a hard worker, determined, positive, and very devoted your child. Life throws other curves: a parent dies, a family business is to living his sober lifestyle. He and my parents have really opened my transitioned, another son prepares for college. Throughout the process, we eyes to see that when I face my own struggles in life, it’s possible to work stayed connected and determined—as parents and as a couple. through them. Ben is my best friend; the only bad thing is, I just can’t keep up with his jiu-jitsu.

4165-1 2013AnnualReport-FINAL.indd 5 5/3/13 9:46 AM Rod: Husband, father, builder, and Knutson Construction project supervisor with a big heart for youth and all those who need Hazelden services.

4165-1 2013AnnualReport-FINAL.indd 6 5/3/13 9:46 AM TODAY WE ARE GRATEFUL :: for the opportunity 07

Rod S. For this project, he uses his head, hands, and heart. As a longtime construction professional in Minnesota, I’ve had the honor properly diagnosed and treated for bipolar disorder. My own experience and the privilege to work on many buildings that give our community has given me a great deal of empathy not only for the kids I see here its unique identity: the Guthrie Theater, the Ordway, and Children’s every day but also their parents. I understand their confusion and their Hospitals and Clinics of Minnesota, just to name a few. fear very well. But one of the projects closest to my heart is the renovation and expansion I use my head and my hands for this work. But, for my son, I put my of Hazelden’s campus for young people and their families in Plymouth. heart into it as well. I’m grateful for the opportunity to make an impact. As we built from the ground up, my team members and I thought a lot about the young people who would be coming here. We wanted to lift their burden a little, let some light into their lives, and give them a place About the project not only to connect to each other but also to find their own strength. Using expansive windows, curved walls, warm tones, and little touches Hazelden broke ground in October 2011 for the $30 million like jeweled glass, we tried to make the building as inviting and appealing expansion, which includes: as possible. There are private spaces for families to heal, open spaces for – A 32-bed residential unit for young women young people to find fellowship, and music and art rooms for kids to – An indoor recreation space, including a gym, exercise room, express their creativity. and climbing wall My favorite room is the gym. I like to think of the kids going in there – A redesigned, welcoming entrance and admission area that and finding freedom from their troubles—even if just for a few minutes provides privacy, respect, and dignity each day. – Dedicated, state-of-the-art spaces for school, music and art therapy, family programs, and mental health services As we hammer and drill, we try as much as possible to stay in the background. But I notice when those kids come in the door, and I notice Thank you for your much-needed support as we continue this project when they leave 30 days later, filled with hope and thanks, their suitcases and begin the renovation of the old space. With your help, we’re rolling behind them. And that is a good feeling. confident that we’ll meet the deadline for the grand openingDream On gala at Hazelden in Plymouth on September 20, 2013. Also as I work, I think of my son, whose struggles with addiction began when he was just 14 years old. He’s doing well now, after finally being

4165-1 2013AnnualReport-FINAL.indd 7 5/3/13 9:46 AM Cheryl: Wife, “mom,” grandmother, spiritual healer, and generous giver to fellow travelers.

4165-1 2013AnnualReport-FINAL.indd 8 5/3/13 9:46 AM TODAY WE ARE GRATEFUL :: FOR ABUNDANT LIFE 09

Cheryl M. The miracle of recovery is returned a thousandfold. We often hear about “downward spirals”—especially in the world of of knowledge, effort, and care. I remember my spiritual counselor saying, addiction. But I like to talk about my “upward spiral,” which is ever- “I hear a lot of pain, and we can help you with that.” increasing and ever-widening. My newfound recovery pushed me further into new experiences—ones The spiral’s fixed center represents the point at which I was beyond hope. It that I had never even imagined. was 1983, and I had failed several treatments in many different locations. After leaving Hazelden, I got a job as the maintenance person at the I had been (understandably) banished from my family in Missouri. I had halfway house where I was staying. (I was actually qualified, as I had been no life, or something less than no life—suspended somewhere outside of a boat builder and knew a lot about construction.) I thought I’d better limbo. My caregivers were sending messages of futility: “Maybe you’re just return to school and learn something. I became very attracted to spiritual not ready yet.” “We don’t know what’s wrong with you.” care, and entered Hazelden’s clergy training program. I worked on the I was pointed in the direction of Minnesota, where I was told I might residential care units and in the renewal center. At the same time, I began find more treatment options. After detoxing for the umpteenth time and to work toward my master’s degree at United Theological Seminary in while living in a halfway house, I headed to Hazelden in Center City New Brighton, Minnesota. I fell in love, married, and with my husband for a Second Sunday lecture. I overheard talk among the residents of went back to Missouri and built FRESH Renewal Center, a spiritual “long-term treatment” (beyond the standard 28-day regimen), which was beacon for those who are recovering from addiction. unique then and still is unique in the nation as far as I’m concerned. I My upward, ever-expanding spiral now finds me in the mountainsides immediately felt it might be the answer for me. So I called Hazelden, with of Southern California with my beloved husband, Dick—a humorous, the hope of eventually being admitted to long-term care. big-hearted, exacting man and physician who has dedicated his life to I will never forget my exchange with the intake person. She asked me, helping addicted people. I have remained very connected to Hazelden as “Who is your significant other?” I answered with a mix of sincerity and a longtime member of the Board of Trustees and the Hazelden Graduate despair: “I guess it’s God, but He doesn’t happen to have an address.” School of Addiction Studies Board of Governors. I volunteer as a spiritual Her response triggered the first stirrings of my now abundant, joyful life: counselor for a women’s treatment center near where I live. And I “Maybe His address is right here, right now.” celebrate the wonders of creation as a volunteer for the Santa Rosa & San Jacinto Mountains National Monument. My spiral began to unfold. I completed the first phase of residential treatment in primary care, then spent four months on Jellinek, a I am grateful for my 30 years of sobriety, for my big, loving family, and long-term treatment unit. During that time, I had the most positive for this abundant life—for these flowers that bloom in the desert, those experience: I felt that people were really listening to me. My counselors, mountains that rise above the valley, and for that kestrel soaring overhead. who had been well trained at Hazelden, were operating from a solid base

4165-1 2013AnnualReport-FINAL.indd 9 5/3/13 9:46 AM Keith: Longtime counselor on the Tiebout unit in Center City, Minnesota; lover of punk and postpunk indie rock, and a guide on the journey to recovery.

4165-1 2013AnnualReport-FINAL.indd 10 5/3/13 9:46 AM TODAY WE ARE GRATEFUL :: FOR PERSEVERANCE 11

Keith J. He’s been ‘a small part of the journey’ for 25 years. I like to joke with a colleague that she and I have been counselors here I also have learned so much from my clients, especially the difficult at Hazelden in Center City “since dirt was new.” I started back in 1988 ones, the ones who resist and deny and put up a fight. From them I have in the yearlong counselor training program, then got hired for an on-call learned perseverance. position. I eventually got a full-time position on the Tiebout unit, where To stay present for my clients, I try not to get buried in the paperwork. I’ve been ever since. Maybe that’s why there’s so much stuff in my office. I stay consciously aware of preventing burnout. I lose myself in music, To back up a little: I was in recovery myself, finishing college, when I especially punk and postpunk indie rock: Patti Smith, the Ramones, became aware that people, especially younger people, would seek me out Devo, Echo and the Bunnymen. I’m dating myself, I know. after AA meetings to process what they’d learned and ask questions. I guess Today I’m grateful for the opportunity to be part of someone’s journey that’s when I started to realize that I had something to give. I say that with into self-discovery. I tell the guys: “You know, most people don’t get a all due humility, because, with help from my mentors here at Hazelden, I chance to take a month out of their lives and see what makes them tick.” have come to a much better understanding of my role in this process. My twin brother and my only sibling, who died of cancer, never had that People come here broken and hurting and in need of some repair. And chance. I say that with no self-pity whatsoever but with gratitude and being in this environment is conducive to healing, especially when there’s awareness that I did have that chance, and now I have the honor and the a positive peer group. I’m here to manage that process, of course, and to privilege of being a small part of other people’s journeys. give direction and guidance. Once, after a silent medallion ceremony, a departing peer said to us all, I tell the guys: “We’re here to show you where the light switch is, but you “Thank you for saving my life.” It’s hard not to tuck that one in my pocket. are the ones who have got to turn it on. We can’t turn it on for you.” I have learned so much from my mentors and supervisors at Hazelden: how to “meet my clients where they’re at,” to stay out of the way of and to trust the process, to stay attentive to possibility, and to let go. Letting go is probably the most challenging and important thing to learn: I can no more take responsibility for a client’s relapse than I can claim credit for his sobriety.

4165-1 2013AnnualReport-FINAL.indd 11 5/3/13 9:46 AM Financial Highlights

Hazelden Foundation and Subsidiaries Consolidated Financial Highlights Years Ended December 31 (in thousands)

Operating Revenues 2012 2011 Patient Service Revenue, Net $105,479 $95,952 Publishing Revenue, Net 21,660 22,284 Unrestricted Contributions 1,492 1,347 Tuition and Workshops, Net 2,379 2,158 Net Assets Released from Restrictions-Operations 2,298 1,912 Investment Earnings, allocated to operations 787 772 Other 1,733 2,102 Total Operating Revenue 135,828 126,527

Operating Expenses 2012 2011 Salaries, Wages, and Benefits 77,631 70,243 Other Operating Expenses 38,965 38,966 Depreciation, Amortization, and Accretion 12,354 10,797 Total Operating Expenses 128,950 120,006 Operating Income 6,878 6,521 Nonoperating Gains, principally investment earnings 4,457 1,240 Other Changes in Unrestricted Net Assets, principally unrealized gains on investments 9,306 (4,427) Total Change in Unrestricted Net Assets 20,641 3,334 Change in Temporarily Restricted Net Assets 2,711 584 Change in Permanently Restricted Net Assets 127 (7) Total Change in Net Assets 23,479 3,911 Net Assets, Beginning of Year 197,032 193,121 Net Assets, End of Year $220,511 $197,032

4165-1 2013AnnualReport-FINAL.indd 12 5/3/13 9:46 AM TODAY WE ARE GRATEFUL 13

FUNCTIONAL EXPENSES 2012–2008 (in thousands)

2012 2011 2010 2009 2008 Recovery Services 82,848 64% 74,809 62% 73,752 65% 65,183 62% 66,805 61% Publishing 15,884 12% 17,101 14% 15,403 14% 15,066 14% 15,956 15% Higher Education & Professional Training 2,539 2% 2,273 2% 2,153 2% 2,066 2% 2,379 2% General & Administrative 25,497 20% 23,786 20% 20,274 18% 19,985 19% 20,338 19% Development 2,182 2% 2,037 2% 2,167 2% 2,352 2% 3,329 3% 128,950 100% 120,006 100% 113,749 100% 104,652 100% 108,807 100%

Operating Margin (%) Patients Served

6% 15,000

5.15% 5.06% 12,821 12,366 4% 12,500 10,977 10,341 2.82% 2.97% 2% 10,000

9,572

0% 7,500

-1.06

-2% 5,000 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

A copy of the audited Consolidated Financial Statements of the Hazelden Foundation and Subsidiaries is available by contacting Dawn Severson, Corporate Controller, 651-213-4253.

4165-1 2013AnnualReport-FINAL.indd 13 5/3/13 9:46 AM 2012 by the numbers

Patients served: 12,821

Patient Aid for those who couldn’t afford the full cost of care: $7,154,000

Visits to Hazelden’s website: 4 million

Telephone and online inquiries: more than 148,000

Research projects to inform clinical care and identify needs: 20

Hazelden Graduate School of Addiction Studies: educated more than 180 students

Number of student volunteered hours: approximately 8,000

Publications: 55 new releases, 332 e-books, 28 phone apps

Book Aid program: 17,758 donated products touched the lives of more than 200,000 people

Donors: 7,431 generous donors gave more than $10 million

Volunteers: 9,009 hours were freely given, valued at $196,306

Professionals in Residence: 162 professionals (nurses, doctors, psychologists, clergy members) learned about the latest research-based treatment methods at Hazelden

4165-1 2013AnnualReport-FINAL.indd 14 5/3/13 9:46 AM TODAY WE ARE GRATEFUL 15 2012 Hazelden Trustees, Directors, and Governors

Hazelden Foundation Hazelden Chicago Hazelden Springbrook Board Of Trustees Board Of Directors Board Of Directors Mr. Paul L. Gossling Chair Mr. Chris Jenkins Chair Mr. Donald N. B. Hall, PhD Chair The Hon. Susan Fox Gillis Vice Chair Mr. William Cowhey Vice Chair Mr. Mark G. Mishek* President and CEO Ms. Terry M. Rubenstein Secretary Mr. Mark G. Mishek* President and CEO Mr. James A. Blaha* Secretary/Treasurer Mr. Mark G. Mishek* President and CEO Mr. James A. Blaha* Secretary/Treasurer Mr. James A. Blaha* Treasurer Mr. Howard Carsman Mr. A. Warren Adam Mr. Kelly W. G. Clark Mr. John K. Butler Mr. William Cowhey Mr. Donald N. B. Hall, PhD Mr. William Cirone Mr. James C. Dowdle Ms. Sonja Haugen Mr. Kelly W. G. Clark Mr. Harve Ferrill Mr. William Koltun, MD Ms. Susan S. Engeleiter Mr. William Fitzgerald Ms. Loni A. Parrish Mr. Harve Ferrill Mr. Dal Frost The Hon. Susan Fox Gillis The Hon. Susan Fox Gillis Hazelden Graduate School Mr. Paul L. Gossling Mr. Thomas A. Hale Of Addiction Studies Mr. A. John Huss Jr. Mr. John Harada Board Of Governors . . Chris Jenkins Mr Andrew A. Jeon, MD Mr Mr. Frank B. Wilderson Jr., PhD Chair Mr. Paul Karon Ms. Lois Joast Mr. Mark G. Mishek* President and CEO Mr. James S. Kowalski Ms. Louise Lane Mr. William J. Lammers Mr. Thomas McCaffrey Ms. Pauline Boss, PhD . Donald C. . Lester Mr MacMillan Mr Munson Mr. William Cirone . Francis Patrick Ms. Cheryl S. McKinley Mr Murphy Ms. Cheryl S. McKinley Ms. Catherine W. Morley Mr. Arch W. Shaw II Ms. Ruth Mickelsen . Lester . John Shlofrock Mr Munson Mr Mr. Larry G. Osnes, PhD . Fr Michael J. O’Connell Ms. Karen Smilie Mr. Paul C. Pribbenow, PhD . J. ood Ms. Cynthia Piper Mr Nelson W The Hon. David B. Washington Ms. Terry M. Rubenstein Mr. Frank B. Wilderson Jr., PhD Mr. Michael Sime Hazelden New York Mr. W. Christopher White Board Of Directors . Whitney Ms. Mary F Mr. W. Christopher White Chair . Frank B. Wilderson Jr., PhD Mr Mr. Mark G. Mishek* President and CEO Mr. James A. Blaha* Secretary/Treasurer Ms. Judy Collins Ms. Valery Craane Mr. Paul L. Gossling Ms. Margaret Brennan Hassett Mr. Leonard Holzer Mr. Robert M. Manocherian Ms. Judith Davidson Moyers Mr. William Paulsen Ms. Brooke Picotte Mr. Charlie Rubenstein Mr. W. Christopher White * Nonvoting member

4165-1 2013AnnualReport-FINAL.indd 15 5/3/13 9:46 AM hazelden locations Beaverton, Oregon Center City, Minnesota Chaska, Minnesota Chicago, Illinois Maple Grove, Minnesota Naples, Florida New York, New York Plymouth, Minnesota Springbrook, Oregon St. Paul, Minnesota

Hazelden, a national nonprofit organization founded in 1949, helps people reclaim their lives from the disease of addiction. Built on decades of knowledge and experience, Hazelden offers a comprehensive approach to addiction that addresses the full range of patient, family, and professional needs, including treatment and continuing care for youth and adults, research, higher education, public advocacy, and publishing.

© 2013 Hazelden Foundation Hazelden and the Hazelden logo are registered trademarks of the Hazelden Foundation.

4165-1 (5/13)

4165-1 2013AnnualReport-FINAL.indd 16 5/3/13 9:46 AM