Economic Resources Corporation

Nonprofit profile at a glance

EIN
952546360
IRS 990 coverage
2014–2024
Forms available
Form 990 2024
Location
Lynwood, CA, USA
Phone
3105374610
Rating
66
Verdict
SUPPORTED
Rating confidence
Moderate

Official website

Reported finances

Revenue
$7,498,996
Expenses
$3,031,095
Assets
$32,578,274
Liabilities
$2,292,829

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

Leadership & pay

12 people listed

Executive titles in this filing

  • SAMUEL HUGHES (PRESIDENT/CEO)

Highest reported compensation

  • SAMUEL HUGHES (PRESIDENT/CEO): $417,212 total reported compensation
  • NANCY H IKEGAMI (VP OF FINANCE): $196,289 total reported compensation
  • ALBERT CARROL (INVESTMENT MANAGER): $191,903 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 promote economic growth and increased job opportunity in under-served communities by supporting business development, investing in commercial and industrial real estate and providing employment opportunities.

What it reported doing in 2024

See schedule o

Operating model

Revenue model
Earned-program. 68% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 99% 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

SUPPORTED - The filed numbers largely add up and most voting board members are independent. A relatively small share of available resources goes toward mission work and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 45
  • Transparency & Controls: 69
  • Accountability: 90
  • Sustainability: 79
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 31.2%; rating input score 31
  • Program expense ratio: 82.6%; rating input score 83
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 85.7%; rating input score 86; 1st percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 82.1%; rating input score 82; 22nd percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 90%; rating input score 90; 21st percentile among comparable filings
  • Governance controls: 8 of 9 controls in place; rating input score 89
    • 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: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 59.6%; rating input score 94; 94th percentile among comparable filings
  • Total-asset coverage ratio: 10.75; rating input score 91; 91st percentile among comparable filings
  • Liabilities to assets ratio: 0.07; rating input score 65; 65th percentile among comparable filings
  • Officer compensation ratio: 26.6%; rating input score 7; 7th percentile among comparable filings

Growth

  • Program expense growth: 6.1% per year; rating input score 100; 46th percentile among comparable filings
  • Revenue growth: 9.5% per year; rating input score 100; 66th percentile among comparable filings
  • Asset growth: 11% per year; rating input score 100; 62nd percentile among comparable filings

Details

  • Where the money goes: 31.2% of revenue deployed · 82.6% of spending went to programs
  • Governance: 9 of 10 board members independent · 8 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $2.5M in reported program spending
  • Leadership: top reported pay $417K · 12 people listed · 1 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $5M reported
  • Consistency: 29 of 31 current checks pass · 2 findings to review
  • Schedules: 7 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 11 filing years from 2014 to 2024
  • Contacts: How to reach this organization
  • Money network: 4 filed money-flow records
  • Related organizations: 13 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.

  • Moderate — Financial Efficiency: Mission deployment rate scored 31/100.
  • Review — Accountability: Governance controls: Form 990 shared with the board not reported.
  • High — Sustainability: Officer compensation ratio scored 7/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.