Lions Hearing Center of Michigan

Nonprofit profile at a glance

EIN
201311803
IRS 990 coverage
2011–2016
Forms available
Form 990 2016, Form 990-EZ 2009
Location
Detroit, MI, USA
Phone
3135770645
Rating
71
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Ear and Throat Diseases

Reported finances

Revenue
$179,637
Expenses
$189,117
Assets
$92,077
Liabilities
$6,788

Source: IRS Form 990. Selected filing: tax year 2016. Amounts in USD.

Leadership & pay

25 people listed

Highest reported compensation

  • PHIL WELLS (EXECUTIVE DI): $88,989 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2016. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To provide comprehensive, state of the art hearing-related services to individuals and communities through screening, diagnosis, treatment, education and research, regardless of ability to pay.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
Distribution model
Direct operator. The filing allocates 98% 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. Fundraising costs are high for each dollar raised and program spending has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 75
  • Transparency & Controls: 70
  • Accountability: 95
  • Sustainability: 26
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 84.2%; rating input score 84
  • Program expense ratio: 78.9%; rating input score 79
  • Fundraising efficiency: $4.03 raised per $1 spent on fundraising; rating input score 19; 19th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • 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: 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: 7 of 8 controls in place; rating input score 88
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • 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: -5.3%; rating input score 29; 29th percentile among comparable filings
  • Total-asset coverage ratio: 0.49; rating input score 26; 26th percentile among comparable filings
  • Liabilities to assets ratio: 0.07; rating input score 37; 37th percentile among comparable filings
  • Officer compensation ratio: 47.1%; rating input score 4; 4th percentile among comparable filings

Growth

  • Program expense growth: -15.8% per year; rating input score 0; 12th percentile among comparable filings
  • Revenue growth: -9.2% per year; rating input score 0; 12th percentile among comparable filings
  • Asset growth: -2.3% per year; rating input score 0; 27th percentile among comparable filings

Details

  • Where the money goes: 84.2% of revenue deployed · 78.9% of spending went to programs
  • Governance: 20 of 20 board members independent · 7 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $149K in reported program spending
  • Leadership: top reported pay $89K · 25 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 29 of 29 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 5 filing years from 2011 to 2016
  • Contacts: How to reach this organization
  • Money network: 2 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: Fundraising efficiency scored 19/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Operating margin scored 29/100.
  • High — Sustainability: Total-asset coverage ratio scored 26/100.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 4/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 37/100.