Hearth Connection

Nonprofit profile at a glance

EIN
411945956
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Saint Paul, MN, USA
Phone
9206368351
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Housing, Shelter N.E.C.

Official website

Reported finances

Revenue
$14,026,896
Expenses
$14,002,738
Assets
$1,506,305
Liabilities
$633,659

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

Leadership & pay

19 people listed

Executive titles in this filing

  • MARCUS SCHMIT (EXECUTIVE DIRECTOR)
  • KRISTINE DAVIS (DEPUTY EXECUTIVE DIRECTOR)

Highest reported compensation

  • MARCUS SCHMIT (EXECUTIVE DIRECTOR): $191,134 total reported compensation
  • ERIC HANDS (DIRECTOR OF SOFTWARE DEVELOPMENT): $135,257 total reported compensation
  • KRISTINE DAVIS (DEPUTY EXECUTIVE DIRECTOR): $132,075 total reported compensation

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

Overview

Mission

Strengthening Minnesota's supportive housing community to advance long-term solutions to homelessness.

What it reported doing in 2024

Hearth connection works with a broad range of stakeholders to strengthen Minnesota's network of supportive housing for people experiencing long histories of homelessness. As an intermediary between government, philanthropy, and direct service providers, hearth connection provides funding and administrative support, as well as fiscal and programmatic oversight to community organizations in 46 counties in Minnesota.in 2024, hearth connection managed finances, administration, service provider oversight, reporting and other functions for four (4) regional collaboratives that supported 1,764 people across 1,111 households in the metro, northeastern, southeastern and central Minnesota regions.

Operating model

Revenue model
Grant-funded. 85% of the money available for current operations came from government grants.
Distribution model
Grant intermediary. The nonprofit sent 95% of its reported program spending out as grants.

The verdict

STRONG - 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: 80
  • Transparency & Controls: 79
  • Accountability: 100
  • Sustainability: 27
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 90.2%; rating input score 90
  • Program expense ratio: 90.4%; rating input score 90
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Pass
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 41st percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 66th 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: 0.2%; rating input score 33; 33rd percentile among comparable filings
  • Total-asset coverage ratio: 0.11; rating input score 2; 2nd percentile among comparable filings
  • Liabilities to assets ratio: 0.42; rating input score 35; 35th percentile among comparable filings
  • Officer compensation ratio: 4.1%; rating input score 59; 59th percentile among comparable filings

Growth

  • Program expense growth: 2.3% per year; rating input score 100; 21st percentile among comparable filings
  • Revenue growth: 6.6% per year; rating input score 100; 56th percentile among comparable filings
  • Asset growth: -2.3% per year; rating input score 0; 5th percentile among comparable filings

Details

  • Where the money goes: 90.2% of revenue deployed · 90.4% of spending went to programs
  • Governance: 14 of 14 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $12.7M in reported program spending
  • Leadership: top reported pay $191K · 19 people listed · 2 of 6 pay-setting controls reported
  • Consistency: 36 of 36 current checks pass
  • Schedules: 7 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 14 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 40 filed money-flow records
  • Related organizations: 35 filed related-organization links
  • 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.

  • Moderate — Sustainability: Operating margin scored 33/100.
  • High — Sustainability: Total-asset coverage ratio scored 2/100.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 35/100.
  • Review — Sustainability: Officer compensation ratio scored 59/100.