Lexington Cardiac Research Foundation Inc

Nonprofit profile at a glance

EIN
204242792
IRS 990 coverage
2013–2014
Forms available
Form 990 2014
Location
Lexington, KY, USA
Phone
8592606109
Rating
70
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Heart, Circulatory Research

Reported finances

Revenue
$602,788
Expenses
$490,533
Assets
$513,021
Liabilities
$155,434

Source: IRS Form 990. Selected filing: tax year 2014. Amounts in USD.

Leadership & pay

7 people listed

Executive titles in this filing

  • Aaron B Hesselson MD (President/Director(thru 12/14))

Highest reported compensation

  • Aaron B Hesselson MD (President/Director(thru 12/14)): $565,882 total reported compensation
  • Cathy S Mobley (Director/Chair): $328,132 total reported compensation
  • John Franke (Treasurer): $236,289 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2014. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The lcrf is organized for three main purposes 1) to promote and support medical research, training and teaching, clinical trials, and public health, 2) to serve as an instrument to assist, advance and strengthen baptist health lexington, a hospital owned and operated by baptist healthcare system, inc. In its mission and ministry of healing, including performing and fostering medical research, training and teaching, and clinical trials for its patients and 3) to encourage, solicit, receive and administer grants, gifts, bequests and donations for medical research, training, teaching, clinical trials, and for other purposes and activities consistent with the corporation's charitable purposes.

What it reported doing in 2014

Through lcrf, physicians at baptist health lexington are able to conduct research studies and improve treatment options for cardiovascular disease. For fiscal year 2015, there were 38 active ep or cardiovascular studies open for patient enrollment. The patient enrollment in these studies totaled 167 with a total screening effort of 1,266 screened patients. Through lcrf's support, this clinical research is able to provide treatment options to baptist health lexington patients that they might not otherwise have access to.

Operating model

Revenue model
Donor-supported. 100% of the money available for current operations came from contributions and gifts.
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 - A large share of available resources goes toward mission work and the filed numbers largely add up. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 77
  • Transparency & Controls: 60
  • Accountability: 67
  • Sustainability: 56
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 79.7%; rating input score 80
  • Program expense ratio: 98%; rating input score 98
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 90.9%; rating input score 91; 6th 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: No; rating input score 0

Accountability

  • Independent voting board: 66.7%; rating input score 67; 13th percentile among comparable filings
  • Governance controls: 6 of 9 controls in place; rating input score 67
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 18.6%; rating input score 81; 81st percentile among comparable filings
  • Total-asset coverage ratio: 1.05; rating input score 48; 48th percentile among comparable filings
  • Liabilities to assets ratio: 0.3; rating input score 32; 32nd percentile among comparable filings
  • Officer compensation ratio: 32.5%; rating input score 4; 4th percentile among comparable filings

Growth

  • Program expense growth: 16.1% per year; rating input score 100; 76th percentile among comparable filings
  • Revenue growth: 20.1% per year; rating input score 100; 85th percentile among comparable filings
  • Asset growth: 158.7% per year; rating input score 100; 100th percentile among comparable filings

Details

  • Where the money goes: 79.7% of revenue deployed · 98% of spending went to programs
  • Governance: 2 of 3 board members independent · 6 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $481K in reported program spending
  • Leadership: top reported pay $566K · 7 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 21 of 22 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors, executive pay, and related organizations
  • Filing history: 2 filing years from 2013 to 2014
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 28 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.

Key Signals

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

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • Review — Accountability: Governance controls: 3 of 9 not reported.
  • High — Transparency & Controls: Related-party transparency scored 0/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 48/100.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.
  • High — Sustainability: Officer compensation ratio scored 4/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 32/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.