Avista Business Development Corp

Nonprofit profile at a glance

EIN
561326727
IRS 990 coverage
2010–2016
Forms available
Form 990 2016, Form 990-EZ 2009
Location
Weaverville, NC, USA
Phone
8286452906
Rating
73
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Economic Development

Official website

Reported finances

Revenue
$71,339
Expenses
$430,232
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2016. Amounts in USD.

Leadership & pay

16 people listed

Highest reported compensation

  • ROBERT KENDRICK (CHIEF EXECUT): $201,204 total reported compensation
  • LAURA GOURLAY (DIRECTOR): $705 total reported compensation
  • AC HONEYCUTT JR (DIRECTOR): $405 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2016. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To promote economic development and revitalization by providing small business administration loans and other programs and services to businesses in western North Carolina.

What it reported doing in 2016

The corporation, as of may 31, 2017, completed active loan servicing as directed by the us small business admistration. During the year the active portfolio was 92 loans completing 35 years of active small business lending to companies in North Carolina with a focus on the western region.

Operating model

Revenue model
Earned-program. 100% of the money available for current operations came from fees and other program revenue.
Distribution model
Hybrid. The nonprofit split its reported program spending across 44% for direct work, and 56% for grants.

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: 83
  • Transparency & Controls: 69
  • Accountability: 82
  • Sustainability: 5
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 82.8%; rating input score 83
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 21st 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: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 97.5%; rating input score 98; 56th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 64th percentile among comparable filings
  • Governance controls: 5 of 9 controls in place; rating input score 56
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -503.1%; rating input score 7; 7th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 2; 2nd percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 48%; rating input score 7; 7th percentile among comparable filings

Growth

  • Program expense growth: 18% per year; rating input score 100; 81st percentile among comparable filings
  • Revenue growth: -9.9% per year; rating input score 0; 38th percentile among comparable filings
  • Asset growth: -9.5% per year; rating input score 0; 19th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 82.8% of spending went to programs
  • Governance: 14 of 14 board members independent · 5 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $356K in reported program spending
  • Leadership: top reported pay $201K · 16 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 23 of 24 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes grants and executive pay
  • Filing history: 7 filing years from 2010 to 2016
  • Contacts: How to reach this organization
  • Money network: 23 filed money-flow records
  • Related organizations: 6 filed related-organization links
  • 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 — Accountability: Governance controls: 3 of 8 not reported.
  • High — Sustainability: Operating margin scored 7/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 2/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 7/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.