Functional Industries Inc

Nonprofit profile at a glance

EIN
411223547
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Buffalo, MN, USA
Phone
7636824336
Rating
73
Verdict
SUPPORTED
Rating confidence
Moderate

Official website

Reported finances

Revenue
$6,300,331
Expenses
$5,476,416
Assets
$13,626,924
Liabilities
$383,486

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

Leadership & pay

14 people listed

Executive titles in this filing

  • LISA ZWART (PRESIDENT AND CEO)
  • AMBER OSTER (VICE PRESIDENT OF WORKFORC)
  • ASHLEY NORDLIE (VICE PRESIDENT OF PROGRAMS AND SERVICES)

Highest reported compensation

  • LISA ZWART (PRESIDENT AND CEO): $368,378 total reported compensation
  • STEPHANIE FEEKES (CHIEF FINANCIAL OFFICER): $171,499 total reported compensation
  • AMBER OSTER (VICE PRESIDENT OF WORKFORC): $155,239 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 create and promote innovative opportunities that reveal the natural potential of each person we serve.

What it reported doing in 2024

Functional industries had the opportunity to add a peer support specialist through the community adult mental health initiative. This project funds providers serving individuals living with a severe and persistent mental illness who reside in benton, sherburne, stearns and wright counties. The peer support specialist is a trained individuals with lived experience in mental health who provides support, guidance and advocacy to others facing similar challenges. With grant funds from the community adult mental health initiative (camhi) we have been able to have an onsite peer support specialist serve individuals in need.

Operating model

Revenue model
Earned-program. 77% 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.
  • Includes noncash contributions: Reported contributions include donated property or goods.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Program spending has declined or grown slowly and revenue has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 67
  • Transparency & Controls: 74
  • Accountability: 100
  • Sustainability: 64
  • Growth: 20

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 69%; rating input score 69
  • Program expense ratio: 86.2%; rating input score 86
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • 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: 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: 13.1%; rating input score 68; 68th percentile among comparable filings
  • Total-asset coverage ratio: 2.49; rating input score 69; 69th percentile among comparable filings
  • Liabilities to assets ratio: 0.03; rating input score 77; 77th percentile among comparable filings
  • Officer compensation ratio: 15%; rating input score 19; 19th percentile among comparable filings

Growth

  • Program expense growth: -2.2% per year; rating input score 0; 8th percentile among comparable filings
  • Revenue growth: -0.3% per year; rating input score 0; 10th percentile among comparable filings
  • Asset growth: 4.7% per year; rating input score 100; 33rd percentile among comparable filings

Details

  • Where the money goes: 69% of revenue deployed · 86.2% of spending went to programs
  • Governance: 10 of 10 board members independent · 9 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $4.7M in reported program spending
  • Leadership: top reported pay $368K · 14 people listed · 2 of 6 pay-setting controls reported
  • Consistency: 24 of 24 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 15 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 4 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 19/100.