Denton Freedom House

Nonprofit profile at a glance

EIN
030540364
IRS 990 coverage
2016–2024
Forms available
Form 990 2024
Location
Aubrey, TX, USA
Phone
9405655990
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Half-Way House for Offenders, Ex-Offenders
Affiliation
Christianity

Official website

Reported finances

Revenue
$2,914,689
Expenses
$2,649,263
Assets
$1,481,633
Liabilities
$159,271

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

Leadership & pay

8 people listed

Executive titles in this filing

  • ALTON SCHMIDT (CEO/DIRECTOR)

Highest reported compensation

  • ALTON SCHMIDT (CEO/DIRECTOR): $74,225 total reported compensation
  • KEN WILLINGHAM (CFO/DIRECTOR/CHAIRMAN/TREASURER): $30,000 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 liberate the broken from their bondage of sin and addiction by the transforming power of the gospel of jesus christ and to equip them to become prosperous disciples of christ with kingdom vision, purpose, and direction.

What it reported doing in 2024

Denton freedom house (dfh) assists hundreds of men and women struggling with drug and alcohol addictions. In 2024, dfh admitted 59 new residents and 17 returning residents, for a total of 76. Residents include men and women coming out of a variety of situations including prisons, homelessness, as well as traditional homes. There is no cost to the residents entering the discipleship program. The program is funded by donations from individuals, churches, and businesses. In 2024, dfh had over 715 donors supporting the program. The dfh program includesdiscipleship, mentoring, and work training in areas which include landscaping, facilities repair and maintenance, construction, culinary arts, and office administration. The residents who enter dfh become the future leaders of dfh. Discipline, structure, and servant leadership are the key characteristics of the program. Men and women who arrive at dfh are restored and sent back to serve the community.

Operating model

Revenue model
Donor-supported. 88% of the money available for current operations came from contributions and gifts.
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.
  • Includes noncash contributions: Reported contributions include donated property or goods.

The verdict

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

Rating breakdown

  • Financial Efficiency: 77
  • Transparency & Controls: 87
  • Accountability: 83
  • Sustainability: 49
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 82.2%; rating input score 82
  • Program expense ratio: 81.5%; rating input score 81
  • Fundraising efficiency: $10.1 raised per $1 spent on fundraising; rating input score 38; 38th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 94.4%; rating input score 94; 24th 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: 71.4%; rating input score 71; 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: 9.1%; rating input score 61; 61st percentile among comparable filings
  • Total-asset coverage ratio: 0.56; rating input score 20; 20th percentile among comparable filings
  • Liabilities to assets ratio: 0.11; rating input score 57; 57th percentile among comparable filings
  • Officer compensation ratio: 3.9%; rating input score 62; 62nd percentile among comparable filings

Growth

  • Program expense growth: 14.5% per year; rating input score 100; 77th percentile among comparable filings
  • Revenue growth: 14.9% per year; rating input score 100; 81st percentile among comparable filings
  • Asset growth: 9.9% per year; rating input score 100; 58th percentile among comparable filings

Details

  • Where the money goes: 82.2% of revenue deployed · 81.5% of spending went to programs
  • Governance: 5 of 7 board members independent · 9 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $2.2M in reported program spending
  • Leadership: top reported pay $74K · 8 people listed
  • Consistency: 33 of 33 current checks pass
  • Schedules: 7 filed schedules · includes major donors
  • Filing history: 8 filing years from 2016 to 2024
  • Contacts: How to reach this organization
  • Money network: 2 filed money-flow records
  • 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.

  • Moderate — Financial Efficiency: Fundraising efficiency scored 38/100.
  • High — Sustainability: Total-asset coverage ratio scored 20/100.
  • Review — Sustainability: Liabilities to assets ratio scored 57/100.