Essential Needs

Nonprofit profile at a glance

EIN
472488626
IRS 990 coverage
2015–2021
Forms available
Form 990 2021, Form 990-EZ 2014
Location
Madison, TN, USA
Phone
6159288262
Rating
54
Verdict
MIXED
Rating confidence
Moderate
Sector
Nutrition

Reported finances

Revenue
$254,096
Expenses
$255,556
Assets
$-1,455
Liabilities
$74,476

Source: IRS Form 990. Selected filing: tax year 2021. Amounts in USD.

Leadership & pay

1 person listed

Executive titles in this filing

  • VALERIA LOPEZ (President)

Highest reported compensation

  • VALERIA LOPEZ (President): $54,077 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2021. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Essential Needs is a non-profit organization that aims to build a healthy mind and body for all. Through a variety of outreach programs and services, our committed team of professionals and trained volunteers help make the healthy the choice the easiest choice for individuals and communities in need by: identifying and distributing social, educational, and economic resources to support healthy decisions and behaviors; and participating in volunteer and advocacy efforts focused on improving quality of life, health, and overall wellbeing.

What it reported doing in 2021

CACFP-provides reimbursement for meals and snacks served to small groups of children receiving nonresidential day care in private homes that are licensed, registered, or approved to provide family child care.

Operating model

Revenue model
Grant-funded. 100% of the money available for current operations came from government grants.
Distribution model
Grant intermediary. The nonprofit sent 73% of its reported program spending out as grants.

The verdict

MIXED - A large share of available resources goes toward mission work. A relatively small share of voting board members are independent and the filing does not identify recipients for some grant dollars.

Rating breakdown

  • Financial Efficiency: 88
  • Transparency & Controls: 59
  • Accountability: 0
  • Sustainability: 16
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 99.2%; rating input score 99
  • Program expense ratio: 98.6%; rating input score 99
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 21st percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 0%; rating input score 0; 19th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 0%; rating input score 0; 7th percentile among comparable filings
  • Governance controls: 0 of 8 controls in place; rating input score 0
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Fail
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Fail
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -0.6%; rating input score 30; 30th percentile among comparable filings
  • Total-asset coverage ratio: -0.01; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 21.2%; rating input score 19; 19th percentile among comparable filings

Growth

  • Program expense growth: -14.5% per year; rating input score 0; 11th percentile among comparable filings
  • Revenue growth: -3.1% per year; rating input score 0; 20th percentile among comparable filings
  • Asset growth: -51.4% per year; rating input score 0; 1st percentile among comparable filings

Details

  • Where the money goes: 99.2% of revenue deployed · 98.6% of spending went to programs
  • Governance: 0 of 1 board members independent · 0 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $252K in reported program spending
  • Leadership: top reported pay $54K · 1 people listed
  • Consistency: 24 of 25 current checks pass · 1 finding to review
  • Schedules: 4 filed schedules · includes grants
  • Filing history: 7 filing years from 2015 to 2021
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • High — Accountability: Independent voting board scored 0/100.
  • High — Transparency & Controls: Grant itemization coverage scored 0/100.
  • High — Accountability: Governance controls: 7 of 7 not reported.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • Moderate — Sustainability: Operating margin scored 30/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
  • High — Sustainability: Officer compensation ratio scored 19/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.