Changing Hearts Boarding School and Ministry

Nonprofit profile at a glance

EIN
455559729
IRS 990 coverage
2017–2024
Forms available
Form 990 2024
Location
Mars Hill, NC, USA
Phone
8282731380
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Primary, Elementary Schools
Affiliation
Christianity

Official website

Reported finances

Revenue
$1,041,217
Expenses
$940,376
Assets
$467,606
Liabilities
$119,180

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

Leadership & pay

4 people listed

Executive titles in this filing

  • Debbie West (Executive director)

Highest reported compensation

  • Debbie West (Executive director): $70,796 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 organization is a boarding school to assist troubled teen females adapt to adoptive homes from a Christian perspective.

What it reported doing in 2024

The organization assisted 30 females between the ages of 8 and 16 and their families with emotional issues developed after adoption.

Operating model

Revenue model
Earned-program. 100% 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

STRONG - 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 total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 82
  • Transparency & Controls: 90
  • Accountability: 69
  • Sustainability: 44
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 88.5%; rating input score 88
  • Program expense ratio: 98%; rating input score 98
  • Fundraising efficiency: Limited

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: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd 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: Fail
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 9.7%; rating input score 61; 61st percentile among comparable filings
  • Total-asset coverage ratio: 0.5; rating input score 23; 23rd percentile among comparable filings
  • Liabilities to assets ratio: 0.25; rating input score 27; 27th percentile among comparable filings
  • Officer compensation ratio: 7.5%; rating input score 45; 45th percentile among comparable filings

Growth

  • Program expense growth: 14.5% per year; rating input score 100; 74th percentile among comparable filings
  • Revenue growth: 15.9% per year; rating input score 100; 80th percentile among comparable filings
  • Asset growth: 46.7% per year; rating input score 100; 96th percentile among comparable filings

Details

  • Where the money goes: 88.5% of revenue deployed · 98% of spending went to programs
  • Governance: 4 of 4 board members independent · 2 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $921K in reported program spending
  • Leadership: top reported pay $71K · 4 people listed
  • Consistency: 17 of 17 current checks pass
  • Schedules: 3 filed schedules
  • Filing history: 7 filing years from 2017 to 2024
  • 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: Governance controls: 5 of 7 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 23/100.
  • High — Sustainability: Liabilities to assets ratio scored 27/100.
  • Moderate — Sustainability: Officer compensation ratio scored 45/100.