Alternatives Inc

Nonprofit profile at a glance

EIN
810382745
IRS 990 coverage
2009–2024
Forms available
Form 990 2024, Form 990-T 2024
Location
Billings, MT, USA
Phone
4062563501
Rating
90
Verdict
STRONG
Rating confidence
Moderate
Sector
Prison Alternatives

Official website

Reported finances

Revenue
$19,847,760
Expenses
$19,436,712
Assets
$16,870,204
Liabilities
$4,288,459

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

Leadership & pay

27 people listed

Executive titles in this filing

  • SAM BOFTO (VICE PRESIDENT)
  • JAY THOMPSON (VICE PRESIDENT)
  • BLADE STILLER (PRESIDENT)
  • MIKE WATERS (PAST PRESIDENT)
  • VERNE PETERMANN (PAST PRESIDENT)
  • DAVID ARMSTRONG (CEO)

Highest reported compensation

  • DAVID ARMSTRONG (CEO): $240,905 total reported compensation
  • JOHN A WILLIAMS (EMPLOYEE): $108,213 total reported compensation
  • GINA M POOR (EMPLOYEE): $105,873 total reported compensation

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

Overview

Mission

We promote public safety and challenge offenders to become responsible, productive citizens through firm, fair, consistent supervision, treatment, and education.

What it reported doing in 2024

Passages is a community corrections prerelease center that prepares female adult offenders from the Montana state womens prison, federal bureau of prisons, and Montana probation and parole. In addition to providing supervision, treatment and rehabilitative programming is provided to the offenders to help and challenge them be successful in their integration into society as productive citizens. Passages also provides two secured supervision and treatment programs for female offenders: an alcohol and drug treatment unit and an assessment, sanction, revocation and hold center.

Operating model

Revenue model
Grant-funded. 79% of the money available for current operations came from government grants.
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

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Expenses are high relative to revenue and total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 88
  • Transparency & Controls: 94
  • Accountability: 100
  • Sustainability: 42
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 97.8%; rating input score 98
  • Program expense ratio: 99.8%; rating input score 100
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 6 of 6 controls in place; rating input score 100
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Pass
    • Written employment contract: Pass
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 66th percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 2.1%; rating input score 42; 42nd percentile among comparable filings
  • Total-asset coverage ratio: 0.87; rating input score 31; 31st percentile among comparable filings
  • Liabilities to assets ratio: 0.25; rating input score 51; 51st percentile among comparable filings
  • Officer compensation ratio: 3.8%; rating input score 61; 61st percentile among comparable filings

Growth

  • Program expense growth: 5.5% per year; rating input score 100; 46th percentile among comparable filings
  • Revenue growth: 4.2% per year; rating input score 100; 37th percentile among comparable filings
  • Asset growth: 3% per year; rating input score 100; 23rd percentile among comparable filings

Details

  • Where the money goes: 97.8% of revenue deployed · 99.8% of spending went to programs
  • Governance: 21 of 21 board members independent · 9 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $19.4M in reported program spending
  • Leadership: top reported pay $241K · 27 people listed · 6 of 6 pay-setting controls reported
  • Consistency: 32 of 32 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 16 filing years from 2009 to 2024
  • Contacts: How to reach this organization
  • Money network: 6 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.

  • Moderate — Sustainability: Operating margin scored 42/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 31/100.
  • Review — Sustainability: Liabilities to assets ratio scored 51/100.