Independent Beauty Association Inc

Nonprofit profile at a glance

EIN
521062287
IRS 990 coverage
2017–2024
Forms available
Form 990 2024
Location
Addison, TX, USA
Phone
8479914499
Rating
41
Verdict
MIXED
Rating confidence
Moderate

Reported finances

Revenue
$2,485,186
Expenses
$2,663,286
Assets
$922,714
Liabilities
$1,103,874

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

Leadership & pay

34 people listed

Executive titles in this filing

  • DONALD H FREY (President/CEO)

Highest reported compensation

  • DONALD H FREY (President/CEO): $251,088 total reported compensation
  • Meredith Petillo (DIR OF TECH & REG): $163,731 total reported compensation
  • Akemi Ooka (VP of Glbl Sup Chn): $163,731 total reported compensation

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

Overview

Mission

Independent Beauty Association (IBA) was founded in 1974 to empower the beauty and personal care industry for the betterment of consumers and our members. Our membership represents the entire beauty supply chain and offers equal benefit access to all our member firms.

What it reported doing in 2024

Membership - IBA provides educational resources to its members via two virtual conferences and regular newsletters. The conferences focus on Regulatory and Sustainability issues with sessions led by experts in the field including FDA heads, representatives from various state regulatory agencies, representatives from international countries where US goods are exported to, as well as industry renowned presenters. IBA also offers in-person networking opportunities in conjunction with leading trade shows helping members to grow their businesses and make new contacts. Member companies can also access our Export Certificates program which provides legalized documents required for product export and sale in various countries around the world. Regular newsletters inform members of industry activities and provide updates as new regulations are being considered at the Federal and State levels. IBA represents members interests by providing information to legislators and regulators as they consider new laws affecting the beauty industry. In particular, IBA advocates for small businesses to assure they can innovate and compete with large multi-nationals. Additional services include an on-line member directory, a concierge information service exclusive to members and discounts on key business services from strategic partners.

Operating model

Revenue model
Earned-program. 97% of the money available for current operations came from fees and other program revenue.
Distribution model
Cannot be determined from the filing. The filing does not provide enough consistent spending detail to tell whether the nonprofit works directly or through others.

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: 0
  • Transparency & Controls: 65
  • Accountability: 95
  • Sustainability: 13
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 0%; rating input score 0
  • Program expense ratio: 0%; rating input score 0
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • 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: -7.2%; rating input score 17; 17th percentile among comparable filings
  • Total-asset coverage ratio: 0.35; rating input score 11; 11th percentile among comparable filings
  • Liabilities to assets ratio: 1.2; rating input score 3; 3rd percentile among comparable filings
  • Officer compensation ratio: 25.4%; rating input score 8; 8th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: 0.9% per year; rating input score 100; 15th percentile among comparable filings
  • Asset growth: -1.7% per year; rating input score 0; 8th percentile among comparable filings

Details

  • Where the money goes: 0% of revenue deployed · 0% of spending went to programs
  • Governance: 30 of 30 board members independent · 8 of 9 filing controls reported
  • Programs: 4 filed program accomplishments
  • Leadership: top reported pay $251K · 34 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $170K reported
  • Consistency: 14 of 15 current checks pass · 1 finding to review
  • Schedules: 4 filed schedules · includes major donors and executive pay
  • Filing history: 8 filing years from 2017 to 2024
  • Contacts: How to reach this organization
  • Money network: 4 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.

  • High — Financial Efficiency: Mission deployment rate scored 0/100.
  • High — Financial Efficiency: Program expense ratio scored 0/100.
  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Sustainability: Operating margin scored 17/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 11/100.
  • Moderate — Transparency & Controls: Functional expense sum did not reconcile in the filed values.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • High — Sustainability: Liabilities to assets ratio scored 3/100.
  • High — Sustainability: Officer compensation ratio scored 8/100.