406 Recovery Inc

Nonprofit profile at a glance

EIN
883519359
IRS 990 coverage
2023–2024
Forms available
Form 990 2024
Location
Bozeman, MT, USA
Phone
4062197233
Rating
74
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Alcohol, Drug and Substance Abuse, Dependency Prevention and Treatment

Official website

Reported finances

Revenue
$1,795,602
Expenses
$1,870,515
Assets
$12,736
Liabilities
$178,193

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

12 people listed

Executive titles in this filing

  • ROBERT SISE (CEO)
  • DAN NAUTS (President)

Highest reported compensation

  • ROBERT REIDENBAUGH (CMO): $201,837 total reported compensation
  • ROBERT SISE (CEO): $174,845 total reported compensation
  • Mark Ackerman (Nurse Practitioner): $160,622 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

406 Recoverys mission is realized through two primary activities:(1) promoting the health of Montanans via its Clinical Program, in which physicians and advanced practice providers directly deliver medical and psychiatric services to individuals suffering from substance use disorders (SUDs) and other mental health conditions; and(2) educating the public on topics related to SUDs and mental health through its Educational Program. The Educational Program provides instruction both to employees of community health clinics and directly to residents throughout the Greater Montana region.

What it reported doing in 2024

406 Recovery directly provides medical services to individuals suffering from substance use disorders (SUDs) and other mental health conditions, and educates the public on topics related to SUDs and mental health through its Educational Program.

Operating model

Revenue model
Earned-program. 100% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 66
  • Accountability: 69
  • Sustainability: 13
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 99.3%; rating input score 99
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 2 of 8 controls in place; rating input score 25
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -4.2%; rating input score 26; 26th percentile among comparable filings
  • Total-asset coverage ratio: 0.01; rating input score 1; 1st percentile among comparable filings
  • Liabilities to assets ratio: 13.99; rating input score 0; 0th percentile among comparable filings
  • Officer compensation ratio: 52.3%; rating input score 2; 2nd percentile among comparable filings

Growth

  • Program expense growth: 37.7% per year; rating input score 100; 93rd percentile among comparable filings
  • Revenue growth: 33.3% per year; rating input score 100; 93rd percentile among comparable filings
  • Asset growth: -149.3% per year; rating input score 0; 0th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 99.3% of spending went to programs
  • Governance: 6 of 6 board members independent · 2 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $1.9M in reported program spending
  • Leadership: top reported pay $202K · 12 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 21 of 21 current checks pass
  • Schedules: 4 filed schedules · includes executive pay
  • Filing history: 2 filing years from 2023 to 2024
  • Contacts: How to reach this organization
  • Money network: 8 filed money-flow records
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Accountability: Governance controls: 5 of 7 not reported.
  • High — Sustainability: Operating margin scored 26/100.
  • High — Sustainability: Total-asset coverage ratio scored 1/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Liabilities to assets ratio scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 2/100.