Gem Legacy Inc

Nonprofit profile at a glance

EIN
825351981
IRS 990 coverage
2024–2024
Forms available
Form 990 2024, Form 990-EZ 2023, Form 990-N 2021
Location
Royal Oak, MI, USA
Phone
2485453546
Rating
56
Verdict
MIXED
Rating confidence
Moderate
Sector
Gift Distribution

Official website

Reported finances

Revenue
$217,760
Expenses
$145,872
Assets
$389,462
Liabilities
$26,954

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

Leadership & pay

3 people listed

Highest reported compensation

  • RACHEL DERY MERISHEKI (SECRETARY): $3,070 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Expand the natural beneficiation of gemstone mining on the surrounding community through kids, education, and entrepreneurship

Operating model

Revenue model
Donor-supported. 100% of the money available for current operations came from contributions and gifts.
Distribution model
Grant intermediary. The nonprofit sent 63% of its reported program spending out as grants.

The verdict

MIXED - 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: 69
  • Transparency & Controls: 69
  • Accountability: 5
  • Sustainability: 66
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 65.7%; rating input score 66
  • Program expense ratio: 98.1%; rating input score 98
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 22nd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: 0 of 8 controls in place; rating input score 0
    • Claims monitoring procedures: Fail
    • Requires narrative reports: Fail
    • Conducts field audits: Fail
    • May suspend future funding: Fail
    • Requires financial reports: Fail
    • Conducts site visits: Fail
    • Requires grant agreements: Fail
    • May require repayment: Fail
  • Grant itemization coverage: 90.4%; rating input score 90; 52nd percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 0%; rating input score 0; 7th percentile among comparable filings
  • Governance controls: 1 of 8 controls in place; rating input score 12
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • 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: 33%; rating input score 84; 84th percentile among comparable filings
  • Total-asset coverage ratio: 2.67; rating input score 66; 66th percentile among comparable filings
  • Liabilities to assets ratio: 0.07; rating input score 29; 29th percentile among comparable filings
  • Officer compensation ratio: 2.1%; rating input score 35; 35th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: 15.6% per year; rating input score 100; 83rd percentile among comparable filings
  • Asset growth: 29.8% per year; rating input score 100; 91st percentile among comparable filings

Details

  • Where the money goes: 65.7% of revenue deployed · 98.1% of spending went to programs
  • Governance: 0 of 3 board members independent · 1 of 8 filing controls reported
  • Programs: 2 filed program accomplishments · $143K in reported program spending
  • Leadership: top reported pay $3K · 3 people listed
  • Consistency: 25 of 26 current checks pass · 1 finding to review
  • Schedules: 5 filed schedules · includes major donors and foreign activity
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: Filed and resolved organization relationships.
  • 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.

  • High — Accountability: Independent voting board scored 0/100.
  • High — Accountability: Governance controls: 6 of 7 not reported.
  • High — Transparency & Controls: Foreign activity oversight: 8 of 8 not reported.
  • Review — Transparency & Controls: Foreign grant itemization did not reconcile in the filed values.
  • High — Sustainability: Liabilities to assets ratio scored 29/100.
  • Moderate — Sustainability: Officer compensation ratio scored 35/100.