Mercy Projects

Nonprofit profile at a glance

EIN
953535105
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Murrieta, CA, USA
Phone
9516965244
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Affiliation
Christianity

Reported finances

Revenue
$817,502
Expenses
$949,472
Assets
$1,001,544
Liabilities
$127,530

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

Leadership & pay

5 people listed

Executive titles in this filing

  • Jeff Thompson (President & CEO)

Highest reported compensation

  • Jeff Thompson (President & CEO): $134,286 total reported compensation
  • Paula Thompson (Secretary): $19,303 total reported compensation

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

Overview

Mission

Mercy Projects is a Christian 501c3 organization with a "Christ-centered, family-focused" vision of assisting vulnerable children and families. We work primarily in Ukraine, Armenia, and Kosovo.

What it reported doing in 2024

2024 Ministry AccomplishmentsUKRAINE 1. Staff expanded teen discipleship ministry and new Teen Club.2. Housing and support for refugees, and deliver humanitarian aid to the war zones. 3. A new Learning Center in Kyiv was established for private education.4. Sponsored families received firewood, warm clothing, financial help, medicine, and vitamins.5. Monthly support for the Hearts of Love Center for Special Needs Children in Konotop.6. Support Ukrainian missionaries serving their people.7. We supported multiple Christian Camps inside Ukraine along with a camp for our Foster Families.KOSOVO - 18 Families in the Sponsorship ProgramFamilies in Kosovo are primarily widows or those with special needs such as mental illness, blindness, or emotional trauma. We provide basic groceries through vouchers redeemable at a local grocery store for these families. Our local partner is planting a church in this Muslim community. The local pastor visits each family, invites them to church, and provides classes for their children. Womens meetings to support mothers are held on a regular basis.ARMENIA The primary Armenia project is a Dairy Farm in Stepanavan, Armenia, in the northern region hit hardest by the earthquake in 1986. This farm provides local jobs. 27 dairy cows produce milk which is sold daily.We also provide Airbnb type cabins for rent as well as a dining hall for party rental. Refugees from Karabakh worked on the farm for two years. Now the farm has 3 cabins and a large dining hall to host conferences and retreats.Our vision is to host and facilitate Christian groups who minister in the unreached Caucasus region of southern Russia, Chechnya, etc.

Operating model

Revenue model
Donor-supported. 95% of the money available for current operations came from contributions and gifts.
Distribution model
Grant intermediary. The nonprofit sent 73% of its reported program spending out as grants.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. The filing reports few safeguards for money sent abroad and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 91
  • Transparency & Controls: 72
  • Accountability: 58
  • Sustainability: 26
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 88.8%; rating input score 89
  • Fundraising efficiency: $18 raised per $1 spent on fundraising; rating input score 56; 56th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 16th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: 1 of 8 controls in place; rating input score 12
    • Claims monitoring procedures: Pass
    • Requires narrative reports: Fail
    • Conducts field audits: Fail
    • May suspend future funding: Fail
    • Requires financial reports: Fail
    • Conducts site visits: Fail
    • Requires grant agreements: Fail
    • May require repayment: Fail
  • Grant itemization coverage: 90.6%; rating input score 91; 39th percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 60%; rating input score 60; 12th percentile among comparable filings
  • Governance controls: 5 of 9 controls in place; rating input score 56
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • 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: Fail
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -16.1%; rating input score 12; 12th percentile among comparable filings
  • Total-asset coverage ratio: 1.05; rating input score 44; 44th percentile among comparable filings
  • Liabilities to assets ratio: 0.13; rating input score 39; 39th percentile among comparable filings
  • Officer compensation ratio: 16.2%; rating input score 21; 21st percentile among comparable filings

Growth

  • Program expense growth: 5.1% per year; rating input score 100; 43rd percentile among comparable filings
  • Revenue growth: 2.7% per year; rating input score 100; 29th percentile among comparable filings
  • Asset growth: 3.9% per year; rating input score 100; 34th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 88.8% of spending went to programs
  • Governance: 3 of 5 board members independent · 5 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $843K in reported program spending
  • Leadership: top reported pay $134K · 5 people listed
  • Consistency: 33 of 34 current checks pass · 1 finding to review
  • Schedules: 7 filed schedules · includes major donors, foreign activity, and grants
  • Filing history: 11 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 4 filed money-flow records
  • Related organizations: 1 filed related-organization link
  • 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 — Transparency & Controls: Foreign activity oversight: 7 of 8 not reported.
  • Review — Accountability: Governance controls: 4 of 9 not reported.
  • High — Sustainability: Operating margin scored 12/100.
  • Review — Financial Efficiency: Fundraising efficiency scored 56/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 44/100.
  • High — Sustainability: Officer compensation ratio scored 21/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
  • Moderate — Sustainability: Liabilities to assets ratio scored 39/100.