Friendship Foundation

What it reported doing in 2024

Friendship rl, llc ("frl") was formed in october 2023 as part of the acquisition of richfield living, llc. Frl is owned by friendship foundation and has multiple accounting entities under their employer identification number ("EIN"). Entities under the frl EIN number includes richfield health center ("rhc"), richfield living independent living ("rl il"), the joseph c. Thomas center ("jct"), the oaks ("oaks"), the professional building ("prof"), the daugherty road building ("dr"), and town center ("tc"). Rhc consists of a 112-bed skilled nursing facility. Rl il furnishes independent living accommodations across four buildings on their campus. Jct and oaks primarily provide assisted living accommodations. Prof is a commercial real estate building that houses two professional tenants and collects rental income monthly. Tc is composed of a community center with restaurants, a chapel, and hosts various activities for the related frl entities. Lastly, dr is mainly a storage facility that houses the building inventory acquired during the richfield living acquisition.the facilities had an occupancy rate of the following: rhc - 95%, jct: 78.62%, oaks: 76.61%, and rlil - 96.69%friendship ridgecrest, llc ("ridgecrest") was formed in late june 2024 as part of the acquisition of a section 8 subsidized 106-unit apartment building. This acquisition was completed in december 2024. Ridgecrest is owned by the foundation and has its own EIN. Ridgecrest is now the entity that is responsible for operating and accounting for the section 8 subsidized housing property. Ridgecrest had an occupancy rate of 98.07%

Financial Efficiency

• Mission deployment rate: 65.8%; rating input score 66
• Program expense ratio: 75.7%; rating input score 76
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 94.4%; rating input score 94; 22nd percentile among comparable filings
• Pay-setting controls: 6 of 6 controls in place; rating input score 100
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Pass
  • Written employment contract: Pass
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 100%; rating input score 100; 72nd percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 66th 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: 11.9%; rating input score 71; 71st percentile among comparable filings
• Total-asset coverage ratio: 2.8; rating input score 73; 73rd percentile among comparable filings
• Liabilities to assets ratio: 0.88; rating input score 11; 11th percentile among comparable filings
• Officer compensation ratio: 0.9%; rating input score 86; 86th percentile among comparable filings

Growth

• Program expense growth: 37.9% per year; rating input score 100; 97th percentile among comparable filings
• Revenue growth: 26.4% per year; rating input score 100; 95th percentile among comparable filings
• Asset growth: 24.1% per year; rating input score 100; 93rd percentile among comparable filings