Concept 7 Inc

Nonprofit profile at a glance

EIN
237334271
IRS 990 coverage
2014–2018
Forms available
Form 990 2018
Location
Whittier, CA, USA
Phone
7142218657
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Foster Care

Official website

Reported finances

Revenue
$705,294
Expenses
$773,125
Assets
$1,217,860
Liabilities
$388,570

Source: IRS Form 990. Selected filing: tax year 2018. Amounts in USD.

Leadership & pay

6 people listed

Executive titles in this filing

  • Miki Jordan (President/CEO)

Highest reported compensation

  • Miki Jordan (President/CEO): $452,012 total reported compensation
  • Jay Allen (COO): $305,406 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2018. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

A foster family agency program for boys and girls with services that include recruiting foster parents, training, counseling and educating them, placing foster children in their homes, and giving both financial assistance as well as on-going support.

What it reported doing in 2018

Concept 7 has provided treatment services to children from infancy to 21 years of age throughout Southern California. These services ease the suffering of abused and neglected children by providing a safe environment in which a child begins the process of healing. In addition, foster families are supported and educated to enable them to nurture the growth and development of each child. The staff and foster families of Concept 7 are driven by the seven founding concepts of the healing process that they have found to be vital in the lives of foster children - Rescue, renewal, recognition, responsibility, relationship, respect, and reunification. Foster homes are located throughout Orange, Los Angeles, Riverside, and San Bernardino Counties. Depending on the number of children placed in each foster home, Concept 7 receives revenue from these various counties, a portion of which originates from the Federal government. Concept 7 also receives funding from the State for adoptions and from private sources. Number of children/families served by the program this fiscal period are 220 and 73, respectively.

Operating model

Revenue model
Grant-funded. 99% of the money available for current operations came from government grants.
Distribution model
Hybrid. The nonprofit split its reported program spending across 68% for direct work, and 32% for grants.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Program spending has declined or grown slowly and revenue has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 88
  • Transparency & Controls: 79
  • Accountability: 91
  • Sustainability: 31
  • Growth: 20

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 96.5%; rating input score 96
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Pass
    • Independent consultant: Missing
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 74th 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: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • 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: -9.6%; rating input score 15; 15th percentile among comparable filings
  • Total-asset coverage ratio: 1.58; rating input score 60; 60th percentile among comparable filings
  • Liabilities to assets ratio: 0.32; rating input score 27; 27th percentile among comparable filings
  • Officer compensation ratio: 13.2%; rating input score 25; 25th percentile among comparable filings

Growth

  • Program expense growth: -17.7% per year; rating input score 0; 4th percentile among comparable filings
  • Revenue growth: -16.2% per year; rating input score 0; 2nd percentile among comparable filings
  • Asset growth: 11.3% per year; rating input score 100; 70th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 96.5% of spending went to programs
  • Governance: 4 of 4 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $746K in reported program spending
  • Leadership: top reported pay $452K · 6 people listed · 2 of 6 pay-setting controls reported
  • Consistency: 28 of 28 current checks pass
  • Schedules: 7 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 5 filing years from 2014 to 2018
  • Contacts: How to reach this organization
  • 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.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Operating margin scored 15/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Officer compensation ratio scored 25/100.
  • High — Sustainability: Liabilities to assets ratio scored 27/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.