Lasting Change INC

Nonprofit profile at a glance

EIN
351167389
IRS 990 coverage
2010–2024
Forms available
Form 990 2024, Form 990-T 2024
Location
Fort Wayne, IN, USA
Phone
2607023803
Rating
85
Verdict
STRONG
Rating confidence
Standard
Sector
Prison Alternatives

Reported finances

Revenue
$21,018,587
Expenses
$25,521,859
Assets
$42,129,884
Liabilities
$34,244,261

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

Leadership & pay

14 people listed

Executive titles in this filing

  • Jim Houlihan (Board Vice President)
  • Tom Rhoades (Board President)
  • Timothy M Smith (Chief Executive Officer)
  • Mark Terrell (FORMER PRESIDENT)

Highest reported compensation

  • Timothy M Smith (Chief Executive Officer): $368,154 total reported compensation
  • Mark Terrell (FORMER PRESIDENT): $328,104 total reported compensation
  • Debra L Johnson (Executive State Director): $240,894 total reported compensation

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

Overview

Mission

The mission statement of the organization is changing hearts and bringing hope to individuals, families, and communities.

What it reported doing in 2024

Residential services - an average of 50 boys were housed and served at our 24-hour residential facilities in Pierceton, Indiana and Fort Wayne, Indiana. The residents participate in a sexual offender relapse prevention, substance abuse and behavior, and/or independent living program. The facilities offer housing, a school, gymnasium, a wood workshop, and a horticultural greenhouse. We help our residential students focus on overcoming the past and seeking hope for the future.

Operating model

Revenue model
Other-operating. 97% of the money available for current operations came from other operating 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. Fundraising costs are high for each dollar raised and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 86
  • Transparency & Controls: 81
  • Accountability: 100
  • Sustainability: 24
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 84.6%; rating input score 85
  • Fundraising efficiency: $5.04 raised per $1 spent on fundraising; rating input score 20; 20th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 93.3%; rating input score 93; 14th percentile among comparable filings
  • Pay-setting controls: 4 of 6 controls in place; rating input score 67
    • Compensation committee: Missing
    • Independent consultant: Pass
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: No; rating input score 0

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: -21.4%; rating input score 4; 4th percentile among comparable filings
  • Total-asset coverage ratio: 1.65; rating input score 55; 55th percentile among comparable filings
  • Liabilities to assets ratio: 0.81; rating input score 13; 13th percentile among comparable filings
  • Officer compensation ratio: 7.2%; rating input score 34; 34th percentile among comparable filings

Growth

  • Program expense growth: 27.8% per year; rating input score 100; 94th percentile among comparable filings
  • Revenue growth: 7.5% per year; rating input score 100; 62nd percentile among comparable filings
  • Asset growth: 10.9% per year; rating input score 100; 69th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 84.6% of spending went to programs
  • Governance: 6 of 6 board members independent · 9 of 9 filing controls reported
  • Programs: 2 filed program accomplishments · $21.6M in reported program spending
  • Leadership: top reported pay $368K · 14 people listed · 4 of 6 pay-setting controls reported
  • Consistency: 35 of 36 current checks pass · 1 finding to review
  • Schedules: 7 filed schedules · includes major donors, executive pay, and related organizations
  • Filing history: 14 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 8 filed money-flow records
  • Related organizations: 5 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.

  • High — Financial Efficiency: Fundraising efficiency scored 20/100.
  • High — Sustainability: Operating margin scored 4/100.
  • High — Transparency & Controls: Related-party transparency scored 0/100.
  • Review — Sustainability: Total-asset coverage ratio scored 55/100.
  • High — Sustainability: Liabilities to assets ratio scored 13/100.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.
  • Moderate — Sustainability: Officer compensation ratio scored 34/100.