Better Business Bureau of Michigan Fka Better Business Bureau of Western Mi
Nonprofit profile at a glance
- EIN
- 381902531
- IRS 990 coverage
- 2010–2024
- Forms available
- Form 990 2024
- Location
- Grand Rapids, MI, USA
- Phone
- 6162340569
- Rating confidence
- Limited
Reported finances
- Revenue
- $2,625,823
- Expenses
- $3,599,618
- Assets
- $876,420
- Liabilities
- $148,517
Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.
Leadership & pay
18 people listed
Executive titles in this filing
- LISA FROHNAPFEL (PRESIDENT/CEO)
Highest reported compensation
- LISA FROHNAPFEL (PRESIDENT/CEO): $208,991 total reported compensation
- JACK DALEY (VP OF STRATEGIC GROWTH AND REVENUE): $107,788 total reported compensation
Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.
Overview
Mission
The better business bureau's (bbb) mission is to be the leader in advancing marketplace trust. Bbb accomplishes this mission by 1) creating a community of trustworthy businesses, 2) setting standards for marketplace trust, 3) encouraging and supporting best practices, 4) celebrating marketplace role models, and; 5) denouncing substandard marketplace behavior.
What it reported doing in 2024
The bureau contracts with an unrelated third party(company) to provide certain membership services. The company is anaccredited online marketing company focused on creating successfulmarketing strategies for small to medium sized businesses. Havingpartnered with better business bureaus and chambers of commercenationwide, the company has the experience and expertise to help alltypes of businesses become more visible online. Bbb serving westernmichigan accredited businesses are offered opportunities to participatein the partnered program, deemed a taxable activity of the bureau. The partnered program allows bbb accredited businesses to purchase advertising in various online directories owned and operated by a company the bbb has contracted with. The bbb receives a commission based on all advertising revenue derived from the contracted company.
Operating model
- Revenue model
- Donor-supported. 95% of the money available for current operations came from contributions and gifts.
- Distribution model
- Cannot be determined from the filing. The filing does not provide enough consistent spending detail to tell whether the nonprofit works directly or through others.
The verdict
- The available evidence is not sufficient to produce an overall rating for this filing. This is not a warning sign.
Rating breakdown
- Financial Efficiency: NotEnoughData
- Transparency & Controls: 83
- Accountability: 95
- Sustainability: 13
- Growth: 60
Detailed rating inputs
Financial Efficiency
- Mission deployment rate: Limited
- Program expense ratio: Limited
- Fundraising efficiency: Limited
Transparency & Controls
- Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
- Pay-setting controls: 2 of 6 controls in place; rating input score 33
- Compensation committee: Missing
- Independent consultant: Missing
- Other Form 990s reviewed: Missing
- Written employment contract: Missing
- Compensation survey or study: Pass
- Board or committee approval: Pass
- Foreign activity oversight: Limited
- Grant itemization coverage: 100%; rating input score 100; 72nd percentile among comparable filings
- Major donor itemization: Yes; rating input score 100
- Related-party transparency: Limited
Accountability
- Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
- Governance controls: 8 of 9 controls in place; rating input score 89
- Conflict-of-interest policy: Pass
- Whistleblower policy: Pass
- 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: Pass
- Independent financial-statement audit: Pass
Sustainability
- Operating margin: -37.1%; rating input score 3; 3rd percentile among comparable filings
- Total-asset coverage ratio: 0.24; rating input score 7; 7th percentile among comparable filings
- Liabilities to assets ratio: 0.17; rating input score 48; 48th percentile among comparable filings
- Officer compensation ratio: 8.8%; rating input score 34; 34th percentile among comparable filings
Growth
- Program expense growth: Limited
- Revenue growth: 7.4% per year; rating input score 100; 57th percentile among comparable filings
- Asset growth: 1.2% per year; rating input score 100; 16th percentile among comparable filings
Details
- Where the money goes: Financial trends and filed revenue, expense, asset, and liability detail
- Governance: 16 of 16 board members independent · 8 of 9 filing controls reported
- Programs: 3 filed program accomplishments
- Leadership: top reported pay $209K · 18 people listed · 2 of 6 pay-setting controls reported
- Consistency: 13 of 13 current checks pass
- Schedules: 6 filed schedules · includes major donors, grants, and executive pay
- Filing history: 14 filing years from 2010 to 2024
- Contacts: How to reach this organization
- Money network: 3 filed money-flow records
- Related organizations: 1 filed related-organization link
- 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.
- Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.
Key Signals
Signals prioritize questions for review. They are not findings of misconduct.
- High — Sustainability: Operating margin scored 3/100.
- High — Sustainability: Total-asset coverage ratio scored 7/100.
- Review — Accountability: Governance controls: Other executive compensation review process not reported.
- Moderate — Sustainability: Officer compensation ratio scored 34/100.
- Moderate — Sustainability: Liabilities to assets ratio scored 48/100.