Following the 7Th Direction

Nonprofit profile at a glance

EIN
475204292
IRS 990 coverage
2018–2019
Forms available
Form 990 2019, Form 990-EZ 2016, Form 990-N 2017
Location
Sioux Falls, SD, USA
Phone
6056795094
Rating
65
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Alcohol, Drug Abuse, Prevention Only

Reported finances

Revenue
$270,994
Expenses
$255,508
Assets
$435,666
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2019. Amounts in USD.

Leadership & pay

3 people listed

Executive titles in this filing

  • Kathy Summers (Vice President)

Highest reported compensation

  • Paul Summers (Executive Dir.): $24,757 total reported compensation
  • Kathy Summers (Vice President): $24,757 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2019. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To bring healing, inspiration and pride to minority youth and unity to cities with multi-cultural communities

What it reported doing in 2019

Bring "Concerts for Reconciliation of the Cultures" to multi-cultural communities and underprivileged minority youth (free of charge)

Operating model

Revenue model
Earned-program. 67% of the money available for current operations came from fees and other program revenue.
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. A relatively small share of voting board members are independent and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 81
  • Transparency & Controls: 90
  • Accountability: 0
  • Sustainability: 54
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 88.8%; rating input score 89
  • Program expense ratio: 94.2%; rating input score 94
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 0%; rating input score 0; 6th percentile among comparable filings
  • Governance controls: 0 of 9 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: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Fail
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 5.7%; rating input score 55; 55th percentile among comparable filings
  • Total-asset coverage ratio: 1.71; rating input score 55; 55th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 84; 84th percentile among comparable filings
  • Officer compensation ratio: 19.4%; rating input score 21; 21st percentile among comparable filings

Growth

  • Program expense growth: -38.7% per year; rating input score 0; 3rd percentile among comparable filings
  • Revenue growth: 31.1% per year; rating input score 100; 95th percentile among comparable filings
  • Asset growth: 52.3% per year; rating input score 100; 97th percentile among comparable filings

Details

  • Where the money goes: 88.8% of revenue deployed · 94.2% of spending went to programs
  • Governance: 0 of 3 board members independent · 0 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $241K in reported program spending
  • Leadership: top reported pay $25K · 3 people listed
  • Consistency: 19 of 19 current checks pass
  • Schedules: 3 filed schedules
  • Filing history: 2 filing years from 2018 to 2019
  • 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.

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 — Accountability: Governance controls: 8 of 8 not reported.
  • High — Growth: Program expense growth scored 0/100.
  • Review — Sustainability: Operating margin scored 55/100.
  • Review — Sustainability: Total-asset coverage ratio scored 55/100.
  • High — Sustainability: Officer compensation ratio scored 21/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.