Cove Charitable Trust Fund

Nonprofit profile at a glance

EIN
411794875
IRS 990 coverage
2010–2013
Forms available
Form 990 2013
Location
Charlotte, NC, USA
Phone
7044012253
Rating
84
Verdict
STRONG
Rating confidence
Moderate
Sector
Single Organization Support
Affiliation
Christianity

Reported finances

Revenue
$3,832,700
Expenses
$2,078,780
Assets
$67,970,357
Liabilities
$27,744

Source: IRS Form 990. Selected filing: tax year 2013. Amounts in USD.

Leadership & pay

20 people listed

Highest reported compensation

  • JOEL B AARSVOLD (SEC./VP CORP): $260,929 total reported compensation
  • WM FRANKLIN GRAHAM III (DIR./PRES./C): $240,641 total reported compensation
  • BILLY GRAHAM (DIRECTOR/CHA): $224,625 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2013. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Part i, line 1, and part iii, line 1 since 1988, the billy graham training center at the cove has been training christian leaders and lay people to study god's word, the bible, and share his good news across the globe. We believe that the problems facing our world today - economically, politically, and racially - are the direct result of human sin. The bible, which we believe is the only inspired work of god, states that "all have sinned and fall short of the glory of god" (romans 3:23). Sin separates us from god: "the wages of sin is death" (romans 6:23), and as a result, the whole earth and everything in it are under god's curse. There is good news, and we proclaim it to anyone and everyone who will hear. God sent his son, jesus christ, from heaven to earth to take our sins upon himself. He paid the penalty for our sins by dying in our place on the cross, and then he rose again to life. Jesus opened the way for us to know god. We believe that jesus is the only way to god, and he said

What it reported doing in 2013

The purpose of the cove charitable trust fund is to provide an ongoing source of funding for supporting, maintaining, and improving the facilities and ministry at the billy graham training center at the cove. The primary investment objective of this fund is to preserve and protect assets by focusing on conservation of principal and long-term growth of capital and income. This objective is generally attained by investing in a diversified portfolio of high quality securities. Expenditures from the fund have been based upon a spending plan using a three-year rolling average of fund assets. Funds were transferred to support the ministry of the cove in the amount of 1,763,237 in 2013.

Operating model

Revenue model
Investment-supported. 98% of the money available for current operations came from recurring investment income.
Distribution model
Affiliate network. The nonprofit sent 100% of its reported program spending through affiliated organizations.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Reported officer compensation is a large share of total spending, which may reflect staffing concentration.

Rating breakdown

  • Financial Efficiency: 84
  • Transparency & Controls: 88
  • Accountability: 84
  • Sustainability: 85
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 84.8%; rating input score 85
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 5 of 6 controls in place; rating input score 83
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 73.3%; rating input score 73; 12th percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 45.8%; rating input score 94; 94th percentile among comparable filings
  • Total-asset coverage ratio: 32.7; rating input score 99; 99th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 96; 96th percentile among comparable filings
  • Officer compensation ratio: 23.4%; rating input score 6; 6th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: 22.6% per year; rating input score 100; 89th percentile among comparable filings
  • Asset growth: 4.5% per year; rating input score 100; 51st percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 84.8% of spending went to programs
  • Governance: 11 of 15 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $1.8M in reported program spending
  • Leadership: top reported pay $261K · 20 people listed · 5 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $125K reported
  • Consistency: 14 of 14 current checks pass
  • Schedules: 5 filed schedules · includes executive pay
  • Filing history: 4 filing years from 2010 to 2013
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 4 filed related-organization links
  • 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 — Sustainability: Officer compensation ratio scored 6/100.