Headwaters School of Music and Arts

Nonprofit profile at a glance

EIN
411730200
IRS 990 coverage
2016–2024
Forms available
Form 990 2024, Form 990-EZ 2015
Location
Bemidji, MN, USA
Phone
2184445606
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate

Reported finances

Revenue
$460,751
Expenses
$396,246
Assets
$338,506
Liabilities
$125,914

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

Leadership & pay

11 people listed

Executive titles in this filing

  • PATRICIA ANDREWS (EXECUTIVE DIRECTOR)
  • EMILY PILLER (PRESIDENT)
  • SACHEL JOSEFSON (PRESIDENT ELECT)

Highest reported compensation

  • PATRICIA ANDREWS (EXECUTIVE DIRECTOR): $56,449 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 provide opportunities for creativity through instruction and inspire the community through music and the arts.

What it reported doing in 2024

We provide private and group lessons in musical instruments, voice, art and pottery. We gave lessons to approximately 180 students in the past year.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
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

SUPPORTED - The filed numbers largely add up and a large share of available resources goes toward mission work. Some filing-based governance responses are negative or unanswered and total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 61
  • Transparency & Controls: 100
  • Accountability: 74
  • Sustainability: 46
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 65.4%; rating input score 65
  • Program expense ratio: 74.7%; rating input score 75
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 64th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 3 of 8 controls in place; rating input score 38
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 14%; rating input score 66; 66th percentile among comparable filings
  • Total-asset coverage ratio: 0.85; rating input score 36; 36th percentile among comparable filings
  • Liabilities to assets ratio: 0.37; rating input score 14; 14th percentile among comparable filings
  • Officer compensation ratio: 14.2%; rating input score 25; 25th percentile among comparable filings

Growth

  • Program expense growth: 8.3% per year; rating input score 100; 65th percentile among comparable filings
  • Revenue growth: 8.5% per year; rating input score 100; 68th percentile among comparable filings
  • Asset growth: 1.8% per year; rating input score 100; 32nd percentile among comparable filings

Details

  • Where the money goes: 65.4% of revenue deployed · 74.7% of spending went to programs
  • Governance: 10 of 10 board members independent · 3 of 8 filing controls reported
  • Programs: 1 filed program accomplishment
  • Leadership: top reported pay $56K · 11 people listed
  • Consistency: 28 of 28 current checks pass
  • Schedules: 4 filed schedules
  • Filing history: 9 filing years from 2016 to 2024
  • Contacts: How to reach this organization
  • Money network: 3 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.

Key Signals

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

  • Moderate — Accountability: Governance controls: 4 of 7 not reported.
  • Moderate — Sustainability: Total-asset coverage ratio scored 36/100.
  • High — Sustainability: Liabilities to assets ratio scored 14/100.
  • High — Sustainability: Officer compensation ratio scored 25/100.