Greater Fargo Moorhead Economic Development Corporation

Nonprofit profile at a glance

EIN
456011769
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Fargo, ND, USA
Phone
7013641900
Rating
70
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Urban, Community Economic Development

Official website

Reported finances

Revenue
$3,370,498
Expenses
$3,283,509
Assets
$1,909,036
Liabilities
$407,028

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

Leadership & pay

19 people listed

Executive titles in this filing

  • JOSEPH RASO (PRESIDENT/CEO)

Highest reported compensation

  • JOSEPH RASO (PRESIDENT/CEO): $329,307 total reported compensation
  • RYAN AASHEIM (CHIEF BUSINESS DEVELOPMENT): $168,745 total reported compensation
  • JOHN MACHACEK (CHIEF INNOVATION OFFICER): $134,913 total reported compensation

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

Overview

Mission

The greater fargo moorhead economic development corporation (gfmedc) is a catalyst for economic growth and prosperity. Using a comprehensive approach to economic development, the gfmedc accelerates job and wealth creation in cass county, nd and clay county, mn.

What it reported doing in 2024

Our overarching mission of the gfmedc is to lead the development of a robust economy where people and businesses thrive which includes efforts to:- strategically pursue job creation and business attraction.- work with and support companies with demand-driven workforce development. - support a vibrant entrepreneurial ecosystem.- collaborate with public and private sectors and partner organizations to enhance programs and processes that make doing business easier in the region.the gfmedc promotes and enhances the industrial and economic development of cass county, North Dakota and clay county, Minnesota, which encompasses the fargo-moorhead msa as delineated by the office of management and budget. This promotion and enhancement is done through deployment of programs and activities designed to facilitate job creation and by informing existing and potential businesses about the benefits of locating or expanding business in this region. The overall aim is to improve the economic well-being of the residents of the area. The organization works with the nd department of commerce and Minnesota department of employment and economic development as well as directly with global site selectors and companies to bring new business to the state. We work to recruit and retain primary-sector companies. Job creation - we successfully supported 20 projects in 2024 helped to create more than 221 direct jobs and $164 million in capital investment (equipment and buildings). Companies assisted - in addition to the aforementioned projects, the organization provided meaningful assistance to 75 companies in 2024. Newly utilized sq./ft. - companies utilized an additional 653,000 sq./ft. To support their growth strategies.

Operating model

Revenue model
Donor-supported. 65% of the money available for current operations came from contributions and gifts.
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. Expenses are high relative to revenue and total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 60
  • Transparency & Controls: 71
  • Accountability: 95
  • Sustainability: 33
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 66.9%; rating input score 67
  • Program expense ratio: 67.8%; rating input score 68
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.9%; rating input score 93; 13th 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: 8 of 9 controls in place; rating input score 89
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 2.6%; rating input score 43; 43rd percentile among comparable filings
  • Total-asset coverage ratio: 0.58; rating input score 21; 21st percentile among comparable filings
  • Liabilities to assets ratio: 0.21; rating input score 42; 42nd percentile among comparable filings
  • Officer compensation ratio: 19.3%; rating input score 13; 13th percentile among comparable filings

Growth

  • Program expense growth: 4.2% per year; rating input score 100; 34th percentile among comparable filings
  • Revenue growth: 6.6% per year; rating input score 100; 52nd percentile among comparable filings
  • Asset growth: -1.8% per year; rating input score 0; 8th percentile among comparable filings

Details

  • Where the money goes: 66.9% of revenue deployed · 67.8% of spending went to programs
  • Governance: 16 of 16 board members independent · 8 of 9 filing controls reported
  • Programs: 4 filed program accomplishments · $2.2M in reported program spending
  • Leadership: top reported pay $329K · 19 people listed · 2 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $1.1M reported
  • Consistency: 31 of 32 current checks pass · 1 finding to review
  • Schedules: 5 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: 3 filed money-flow records
  • 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.

  • Moderate — Sustainability: Operating margin scored 43/100.
  • High — Sustainability: Total-asset coverage ratio scored 21/100.
  • High — Growth: Asset growth scored 0/100.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • High — Sustainability: Officer compensation ratio scored 13/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 42/100.