Breaking Free Foundation Inc

Nonprofit profile at a glance

EIN
208492494
IRS 990 coverage
2014–2017
Forms available
Form 990 2017, Form 990-N 2010
Location
La Porte, TX, USA
Rating
56
Verdict
MIXED
Rating confidence
Moderate
Sector
Family Services

Reported finances

Revenue
$946,484
Expenses
$830,547
Assets
$1,025,320
Liabilities
$562,211

Source: IRS Form 990. Selected filing: tax year 2017. Amounts in USD.

Leadership & pay

3 people listed

Executive titles in this filing

  • Gene Johnson (President)

Highest reported compensation

  • Gail Johnson (Secretary): $50,700 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2017. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Provide daycare to children in the area.

What it reported doing in 2017

Daycare is provided to children in the area.

Operating model

Revenue model
Earned-program. 72% 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

MIXED - A large share of available resources goes toward mission work and the filed numbers largely add up. A relatively small share of voting board members are independent and few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence.

Rating breakdown

  • Financial Efficiency: 72
  • Transparency & Controls: 64
  • Accountability: 10
  • Sustainability: 57
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 77.2%; rating input score 77
  • Program expense ratio: 87.9%; rating input score 88
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • 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: 0%; rating input score 0; 4th percentile among comparable filings
  • Governance controls: 2 of 8 controls in place; rating input score 25
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 12.2%; rating input score 71; 71st percentile among comparable filings
  • Total-asset coverage ratio: 1.23; rating input score 52; 52nd percentile among comparable filings
  • Liabilities to assets ratio: 0.55; rating input score 17; 17th percentile among comparable filings
  • Officer compensation ratio: 6.1%; rating input score 52; 52nd percentile among comparable filings

Growth

  • Program expense growth: -6.9% per year; rating input score 0; 12th percentile among comparable filings
  • Revenue growth: 0.2% per year; rating input score 100; 26th percentile among comparable filings
  • Asset growth: 5.6% per year; rating input score 100; 54th percentile among comparable filings

Details

  • Where the money goes: 77.2% of revenue deployed · 87.9% of spending went to programs
  • Governance: 0 of 3 board members independent · 2 of 8 filing controls reported
  • Programs: 2 filed program accomplishments · $730K in reported program spending
  • Leadership: top reported pay $51K · 3 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 27 of 27 current checks pass
  • Schedules: 4 filed schedules · includes executive pay
  • Filing history: 4 filing years from 2014 to 2017
  • 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.

  • High — Accountability: Independent voting board scored 0/100.
  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Accountability: Governance controls: 5 of 7 not reported.
  • High — Growth: Program expense growth scored 0/100.
  • Review — Sustainability: Total-asset coverage ratio scored 52/100.
  • High — Sustainability: Liabilities to assets ratio scored 17/100.
  • Review — Sustainability: Officer compensation ratio scored 52/100.