Hope for Kids Childcare Center

Nonprofit profile at a glance

EIN
842085610
IRS 990 coverage
2020–2025
Forms available
Form 990 2025
Location
Duluth, MN, USA
Phone
2187241510
Rating
82
Verdict
STRONG
Rating confidence
Moderate
Sector
Child Day Care

Official website

Reported finances

Revenue
$787,183
Expenses
$810,338
Assets
$176,918
Liabilities
$21,211

Source: IRS Form 990. Selected filing: tax year 2025. Amounts in USD.

Leadership & pay

6 people listed

Highest reported compensation

  • MARCIA DEMEO-MORSE (EXECUTIVE DI): $45,302 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2025. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To provide an exceptional, safe, caring enironment that creates an enthusiasm in children for lifelong learning.

What it reported doing in 2025

This is a full-service childcare center, which began in the fall of 2019, offered childcare to 8 infants, 25 toddlers and 30 pre-schoolers. The program has 60 fte's with some part-time children attending and can service up to 66 children including the 8 infants. The childcare center currenty employs 18 full and part-time people with an annual payroll including benefits of 411,000. The primary service area is the metropolitan area of duluth, mn.

Operating model

Revenue model
Earned-program. 95% of the money available for current operations came from fees and other program revenue.
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

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 81
  • Transparency & Controls: 92
  • Accountability: 84
  • Sustainability: 24
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 92%; rating input score 92
  • Program expense ratio: 89.4%; rating input score 89
  • 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; 64th percentile among comparable filings
  • Governance controls: 5 of 8 controls in place; rating input score 62
    • 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: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -2.9%; rating input score 23; 23rd percentile among comparable filings
  • Total-asset coverage ratio: 0.22; rating input score 11; 11th percentile among comparable filings
  • Liabilities to assets ratio: 0.12; rating input score 32; 32nd percentile among comparable filings
  • Officer compensation ratio: 5.6%; rating input score 49; 49th percentile among comparable filings

Growth

  • Program expense growth: 21.5% per year; rating input score 100; 81st percentile among comparable filings
  • Revenue growth: 13.6% per year; rating input score 100; 71st percentile among comparable filings
  • Asset growth: -7.2% per year; rating input score 0; 4th percentile among comparable filings

Details

  • Where the money goes: 92% of revenue deployed · 89.4% of spending went to programs
  • Governance: 5 of 5 board members independent · 5 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $724K in reported program spending
  • Leadership: top reported pay $45K · 6 people listed
  • Consistency: 28 of 28 current checks pass
  • Schedules: 4 filed schedules · includes major donors
  • Filing history: 6 filing years from 2020 to 2025
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

  • Review — Accountability: Governance controls: 3 of 8 not reported.
  • High — Sustainability: Operating margin scored 23/100.
  • High — Sustainability: Total-asset coverage ratio scored 11/100.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 32/100.
  • Moderate — Sustainability: Officer compensation ratio scored 49/100.