Little Hearts Preschool & Childcare

Nonprofit profile at a glance

EIN
814723400
IRS 990 coverage
2017–2024
Forms available
Form 990 2024
Location
Duluth, MN, USA
Phone
6125542737
Rating
72
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Child Day Care

Reported finances

Revenue
$41,164
Expenses
$200,157
Assets
$0
Liabilities
$0

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

Leadership & pay

5 people listed

Executive titles in this filing

  • KATIE JONES (PRESIDENT)

Highest reported compensation

  • MELISSA J REISDORF (ADMINISTRATO): $14,681 total reported compensation
  • KATIE JONES (PRESIDENT): $599 total reported compensation
  • SHANNON MODEN (SECRETARY): $599 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 corporation is organized exclusively for educational purposes as specified in section 501(c)(3) of the internal revenue code

What it reported doing in 2024

Disburse assets to other 501(c)(3) organizations in dissolution of entity

Operating model

Revenue model
Earned-program. 67% of the money available for current operations came from fees and other program revenue.
Distribution model
Hybrid. The nonprofit split its reported program spending across 44% for direct work, and 56% for grants.

The verdict

SUPPORTED - 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: 83
  • Transparency & Controls: 81
  • Accountability: 48
  • Sustainability: 7
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 81.7%; rating input score 82
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 91.7%; rating input score 92; 22nd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 76.8%; rating input score 77; 50th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 75%; rating input score 75; 24th percentile among comparable filings
  • Governance controls: 1 of 9 controls in place; rating input score 11
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • 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: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -386.2%; rating input score 9; 9th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 3; 3rd percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 8.5%; rating input score 16; 16th percentile among comparable filings

Growth

  • Program expense growth: 12% per year; rating input score 100; 78th percentile among comparable filings
  • Revenue growth: 7.4% per year; rating input score 100; 83rd percentile among comparable filings
  • Asset growth: 6.8% per year; rating input score 100; 72nd percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 81.7% of spending went to programs
  • Governance: 3 of 4 board members independent · 1 of 9 filing controls reported
  • Programs: 2 filed program accomplishments · $164K in reported program spending
  • Leadership: top reported pay $15K · 5 people listed
  • Consistency: 22 of 23 current checks pass · 1 finding to review
  • Schedules: 4 filed schedules · includes grants
  • Filing history: 7 filing years from 2017 to 2024
  • Contacts: How to reach this organization
  • Money network: 10 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.

Key Signals

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

  • High — Accountability: Governance controls: 7 of 8 not reported.
  • High — Sustainability: Operating margin scored 9/100.
  • High — Sustainability: Total-asset coverage ratio scored 3/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
  • High — Sustainability: Officer compensation ratio scored 16/100.