Challenge Detroit

Nonprofit profile at a glance

EIN
453790122
IRS 990 coverage
2012–2024
Forms available
Form 990 2024
Location
Royal Oak, MI, USA
Phone
2486332288
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Economic Development

Official website

Reported finances

Revenue
$227,530
Expenses
$367,494
Assets
$90,530
Liabilities
$5,100

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

Leadership & pay

12 people listed

Executive titles in this filing

  • DOYLE MOSHER (PRESIDENT)
  • HAMSA YAQO (VICE-PRESIDENT)
  • DEIRDRE GREENE GROVES (EXECUTIVE DIRECTOR AND C.O.O.)

Highest reported compensation

  • DEIRDRE GREENE GROVES (EXECUTIVE DIRECTOR AND C.O.O.): $91,000 total reported compensation

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

Overview

Mission

To retain and attract young leaders from across the nation to the region who have the courage, passion, and drive to make a difference, and to provide them with the opportunity to collaborate and lend their intellectual capital to philanthropic challanges that will contribute to the growth and revitalization of the greater detroit region

What it reported doing in 2024

A group of individuals was chosen to go to the detroit area and get the opportunity to experience the city's culture, work in the region, and have the ability to make a difference in the community. 90 applicants came to detroit for a recruiting event, and 22 of the individuals were selected to be employed by companies working with challenge detroit. The chosen candidates then work at their jobs for one year and, on fridays, compete in various challenges set up by the organization, including volunteer opportunities in the city of detroit.

Operating model

Revenue model
Earned-program. 87% 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

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Fundraising costs are high for each dollar raised and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 78
  • Transparency & Controls: 92
  • Accountability: 79
  • Sustainability: 11
  • Growth: 20

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 66.1%; rating input score 66
  • Fundraising efficiency: $0.95 raised per $1 spent on fundraising; rating input score 5; 5th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 64th 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: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 4 of 8 controls in place; rating input score 50
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -61.5%; rating input score 4; 4th percentile among comparable filings
  • Total-asset coverage ratio: 0.25; rating input score 13; 13th percentile among comparable filings
  • Liabilities to assets ratio: 0.06; rating input score 31; 31st percentile among comparable filings
  • Officer compensation ratio: 24.8%; rating input score 15; 15th percentile among comparable filings

Growth

  • Program expense growth: -2.2% per year; rating input score 0; 23rd percentile among comparable filings
  • Revenue growth: -2.5% per year; rating input score 0; 15th percentile among comparable filings
  • Asset growth: 4.2% per year; rating input score 100; 44th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 66.1% of spending went to programs
  • Governance: 11 of 11 board members independent · 4 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $243K in reported program spending
  • Leadership: top reported pay $91K · 12 people listed
  • Consistency: 22 of 22 current checks pass
  • Schedules: 3 filed schedules · includes major donors
  • Filing history: 13 filing years from 2012 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: Filed and resolved organization relationships.
  • 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 — Financial Efficiency: Fundraising efficiency scored 5/100.
  • Review — Accountability: Governance controls: 3 of 7 not reported.
  • High — Sustainability: Operating margin scored 4/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 13/100.
  • High — Sustainability: Officer compensation ratio scored 15/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 31/100.