Arts & Business Council of Chicago

Nonprofit profile at a glance

EIN
363376861
IRS 990 coverage
2013–2023
Forms available
Form 990 2023
Location
Chicago, IL, USA
Phone
3123721876
Rating
70
Verdict
SUPPORTED
Rating confidence
Moderate

Official website

Reported finances

Revenue
$320,491
Expenses
$404,734
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2023. Amounts in USD.

Leadership & pay

11 people listed

Highest reported compensation

  • Kristin Larsen (Executive Dir.): $103,481 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2023. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Arts & Business Council of Chicagos mission is to develop leadership and accelerate excellence in the business of arts and art of business in Chicago.

What it reported doing in 2023

1) Training individuals looking to become highly-qualified and sought-after leaders on boards of directors for nonprofit arts organizations throughout Chicago.2) Labs which are an educational series on a variety of arts management topics and best practices.3) The flagship program business volunteers for the arts (BVA) strengthens not for profit arts and cultural institutions organizational capacity and effectiveness while enhancing business professionals corporate workplace performance through skills-based volunteering.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
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 - The filed numbers largely add up and a large share of available resources goes toward mission work. A relatively small share of total spending goes to programs and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 63
  • Transparency & Controls: 92
  • Accountability: 83
  • Sustainability: 8
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 73.9%; rating input score 74
  • Program expense ratio: 58.5%; rating input score 59
  • Fundraising efficiency: $4.94 raised per $1 spent on fundraising; rating input score 21; 21st percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 88.9%; rating input score 89; 24th percentile among comparable filings
  • Governance controls: 6 of 8 controls in place; rating input score 75
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -26.3%; rating input score 12; 12th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 1; 1st percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 25.6%; rating input score 14; 14th percentile among comparable filings

Growth

  • Program expense growth: -7.8% per year; rating input score 0; 14th percentile among comparable filings
  • Revenue growth: -7.4% per year; rating input score 0; 9th percentile among comparable filings
  • Asset growth: -7.4% per year; rating input score 0; 8th percentile among comparable filings

Details

  • Where the money goes: 73.9% of revenue deployed · 58.5% of spending went to programs
  • Governance: 8 of 9 board members independent · 6 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $237K in reported program spending
  • Leadership: top reported pay $103K · 11 people listed
  • Consistency: 21 of 21 current checks pass
  • Schedules: 5 filed schedules · includes major donors
  • Filing history: 6 filing years from 2013 to 2023
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

  • Review — Financial Efficiency: Program expense ratio scored 59/100.
  • High — Financial Efficiency: Fundraising efficiency scored 21/100.
  • High — Sustainability: Operating margin scored 12/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 1/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 14/100.