Encouraging Leaders

Nonprofit profile at a glance

EIN
844229585
IRS 990 coverage
2022–2023
Forms available
Form 990 2023, Form 990-EZ 2021
Location
Minneapolis, MN, USA
Phone
6126625323
Rating
77
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Youth Development Programs

Official website

Reported finances

Revenue
$728,698
Expenses
$728,614
Assets
$205,986
Liabilities
$78,327

Source: IRS Form 990. Selected filing: tax year 2023. Amounts in USD.

Leadership & pay

7 people listed

Highest reported compensation

  • TEZZAREE EL-AMIN CHAMPION (EXECUTIVE DI): $156,922 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2023. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Our mission is to inspire underserved youth and young adults, helping them recognize their inner talents and gain confidence in their ability to shape a positive future for themselves and their community. We provide them with the necessary tools and resources to support youth and young adults experiencing poverty, trauma, or social injustice, enabling them to become thriving contributors to society through career readiness, educational programming, outreach, and awareness efforts.

What it reported doing in 2023

4. During the year under review, we re-enforced our social media activities and awareness campaigns. Statistics revealed taht we have reached more than 155,000 individuals through program campaigns and activities on our different social media platforms sharing information on family violence, opiods, shelter, homeless services etc. 5. In 2023, we lauched another social media flagship service through a platform called "Minnesota blessing accelerated case management service". This program has a membership of over 24,000 persons across Minnesota. During 2023, it received more than 5,000 requests for emergency services from different members of communities and has fulfilled more than 3,000 of the requests received. The program was structured to assist people with some basic needs such as food, minimal financial aid, housing, mentorships, and case management. 6. Covid-19 vaccination outreach: in 2023, we provided covid 19 vaccines and other covid related information to over 50,000 people through our social media network and outreach services. These interventions helped our local communities access services that trememdously transformed a significant portion of the youthful population in the minneapolis area and part adjacent. We are poised to improving our service delivery in the year 2024 and reaching out to a greater number of our local population.

Operating model

Revenue model
Grant-funded. 81% of the money available for current operations came from government grants.
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.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 87
  • Transparency & Controls: 70
  • Accountability: 74
  • Sustainability: 26
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 86%; rating input score 86
  • Program expense ratio: 86.1%; rating input score 86
  • Fundraising efficiency: $232.29 raised per $1 spent on fundraising; rating input score 93; 93rd percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd 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: Limited
  • 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: 3 of 8 controls in place; rating input score 38
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 0%; rating input score 38; 38th percentile among comparable filings
  • Total-asset coverage ratio: 0.28; rating input score 13; 13th percentile among comparable filings
  • Liabilities to assets ratio: 0.38; rating input score 21; 21st percentile among comparable filings
  • Officer compensation ratio: 21.5%; rating input score 12; 12th percentile among comparable filings

Growth

  • Program expense growth: 7.6% per year; rating input score 100; 56th percentile among comparable filings
  • Revenue growth: 57.9% per year; rating input score 100; 97th percentile among comparable filings
  • Asset growth: 61.4% per year; rating input score 100; 97th percentile among comparable filings

Details

  • Where the money goes: 86% of revenue deployed · 86.1% of spending went to programs
  • Governance: 6 of 6 board members independent · 3 of 8 filing controls reported
  • Programs: 4 filed program accomplishments · $627K in reported program spending
  • Leadership: top reported pay $157K · 7 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 23 of 23 current checks pass
  • Schedules: 5 filed schedules · includes major donors and executive pay
  • Filing history: 2 filing years from 2022 to 2023
  • Contacts: How to reach this organization
  • Money network: 2 filed money-flow records
  • 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 — Accountability: Governance controls: 4 of 7 not reported.
  • Moderate — Sustainability: Operating margin scored 38/100.
  • High — Sustainability: Total-asset coverage ratio scored 13/100.
  • High — Sustainability: Officer compensation ratio scored 12/100.
  • High — Sustainability: Liabilities to assets ratio scored 21/100.