Covenant Foundation Inc

Nonprofit profile at a glance

EIN
421295784
IRS 990 coverage
2009–2024
Forms available
Form 990 2024
Location
Waterloo, IA, USA
Phone
3192728000
Rating
74
Verdict
SUPPORTED
Rating confidence
Standard

Official website

Reported finances

Revenue
$816,171
Expenses
$1,013,262
Assets
$6,768,770
Liabilities
$27,517

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

Leadership & pay

21 people listed

Highest reported compensation

  • BRIAN SIMS DO (DIRECTOR; PHYSICIAN - PEDIATRICS): $660,442 total reported compensation
  • RYAN MEYER (DIRECTOR; MERCYONE NE IA COO): $557,288 total reported compensation
  • TIMOTHY HUBER (MERCYONE NORTHEAST IA VP OF FINANCE): $397,268 total reported compensation

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

Overview

Mission

We, covenant foundation and trinity health, serve together in the spirit of the gospel as a compassionate and transforming healing presence within our communities. Covenant foundation is a member of trinity health.

What it reported doing in 2024

Since 1986, covenant foundation (mercyone waterloo foundation), located in waterloo, Iowa, has served as the fundraising arm of covenant medical center (mercyone waterloo medical center).in fiscal year 2025, the foundation raised over $300,000 from individuals, corporations, and private foundations with assistance from dedicated volunteers and generous friends. Funding from the foundation helps mercyone waterloo medical center meet the health care needs of its patients and the community. Please visit our website for additional information: www.mercyone.org/northeastiowa/giving/waterloo-foundation

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
Distribution model
Grant intermediary. The nonprofit sent 100% of its reported program spending out as grants.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 79
  • Transparency & Controls: 73
  • Accountability: 89
  • Sustainability: 40
  • Growth: 20

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 98.4%; rating input score 98
  • Program expense ratio: 71.9%; rating input score 72
  • Fundraising efficiency: $2.7 raised per $1 spent on fundraising; rating input score 8; 8th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 93.8%; rating input score 94; 24th 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: 99.3%; rating input score 99; 49th percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Yes; rating input score 100

Accountability

  • Independent voting board: 89.5%; rating input score 89; 22nd percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 88
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Limited
    • 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: -24.1%; rating input score 8; 8th percentile among comparable filings
  • Total-asset coverage ratio: 6.68; rating input score 88; 88th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 75; 75th percentile among comparable filings
  • Officer compensation ratio: 21.9%; rating input score 13; 13th percentile among comparable filings

Growth

  • Program expense growth: -6.9% per year; rating input score 0; 6th percentile among comparable filings
  • Revenue growth: -5.5% per year; rating input score 0; 5th percentile among comparable filings
  • Asset growth: 0.7% per year; rating input score 100; 20th percentile among comparable filings

Details

  • Where the money goes: 98.4% of revenue deployed · 71.9% of spending went to programs
  • Governance: 17 of 19 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $729K in reported program spending
  • Leadership: top reported pay $660K · 21 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 28 of 29 current checks pass · 1 finding to review
  • Schedules: 8 filed schedules · includes major donors, grants, executive pay, and related organizations
  • Filing history: 16 filing years from 2009 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 309 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 — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Financial Efficiency: Fundraising efficiency scored 8/100.
  • High — Sustainability: Operating margin scored 8/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • High — Sustainability: Officer compensation ratio scored 13/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.