Hammond Development Corporation

Nonprofit profile at a glance

EIN
351581423
IRS 990 coverage
2010–2020
Forms available
Form 990 2020
Location
Hammond, IN, USA
Phone
2198536399
Rating
58
Verdict
MIXED
Rating confidence
Moderate
Sector
Community Coalitions

Official website

Reported finances

Revenue
$1,549,047
Expenses
$545,620
Assets
$2,835,512
Liabilities
$224,975

Source: IRS Form 990. Selected filing: tax year 2020. Amounts in USD.

Leadership & pay

16 people listed

Executive titles in this filing

  • MICHAEL WORTHAM (VICE PRESIDENT)
  • PHILLIP TAILLON (PRESIDENT)
  • JENNIFER BUSSEY (EXECUTIVE DIRECTOR)

Highest reported compensation

  • JENNIFER BUSSEY (EXECUTIVE DIRECTOR): $66,300 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2020. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Hammond development corporation (hdc), an Indiana not-for-profit organization, was formed to provide broad based charitable support for the development and redevelopment of the city of hammond, including the stimulation of historical renovation, general business development, increase in commerce and trade, and general stimulation of the revitalization of the city of hammond.

What it reported doing in 2020

Hdc expanded its small business incubator plan by acquiring abandoned and vacant buildings in the downtown hammond area through grants from the city of hammond and contributions from area businesses. Hdc rehabilitated certain buildings to make useable business space available through rental agreements and outright sales to fledgling businesses that are not able to afford such space at current market prices, nor would the businesses be able to afford to renovate the abandoned spaces to make them business ready. One of hdc's main initiatives has been to attract new high-tech internet start-up firms to downtown hammond to replace and supplement the rust belt industries that once and still dominate the local economy.on july 1, 1997, hdc created its business builders program to support the city of hammond's "incubator plan". The purpose of the incubator plan is to assist hammond-based women and minority owned business enterprises. The program includes a revolving loan arrangement and educational programs and activities.

Operating model

Revenue model
Grant-funded. 70% of the money available for current operations came from government grants.
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

MIXED - The filed numbers largely add up and most voting board members are independent. A relatively small share of available resources goes toward mission work and a relatively small share of total spending goes to programs.

Rating breakdown

  • Financial Efficiency: 15
  • Transparency & Controls: 92
  • Accountability: 79
  • Sustainability: 79
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 9.6%; rating input score 10
  • Program expense ratio: 27.9%; rating input score 28
  • 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: 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: 4 of 8 controls in place; rating input score 50
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Fail
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 64.8%; rating input score 95; 95th percentile among comparable filings
  • Total-asset coverage ratio: 5.2; rating input score 82; 82nd percentile among comparable filings
  • Liabilities to assets ratio: 0.08; rating input score 53; 53rd percentile among comparable filings
  • Officer compensation ratio: 12.2%; rating input score 33; 33rd percentile among comparable filings

Growth

  • Program expense growth: 16.3% per year; rating input score 100; 83rd percentile among comparable filings
  • Revenue growth: 10.8% per year; rating input score 100; 74th percentile among comparable filings
  • Asset growth: 0.2% per year; rating input score 100; 22nd percentile among comparable filings

Details

  • Where the money goes: 9.6% of revenue deployed · 27.9% of spending went to programs
  • Governance: 15 of 15 board members independent · 4 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $152K in reported program spending
  • Leadership: top reported pay $66K · 16 people listed
  • Consistency: 28 of 29 current checks pass · 1 finding to review
  • Schedules: 5 filed schedules · includes major donors
  • Filing history: 11 filing years from 2010 to 2020
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 1 filed related-organization link
  • 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 — Financial Efficiency: Mission deployment rate scored 10/100.
  • High — Financial Efficiency: Program expense ratio scored 28/100.
  • Review — Accountability: Governance controls: 4 of 8 not reported.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • Moderate — Sustainability: Officer compensation ratio scored 33/100.
  • Review — Sustainability: Liabilities to assets ratio scored 53/100.