Methodist University Cape Fear Valley Health School of Medicine Inc

Nonprofit profile at a glance

EIN
993705462
IRS 990 coverage
2023–2024
Forms available
Form 990 2024
Location
Fayetteville, NC, USA
Phone
9106154314
Rating
69
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Single Organization Support
Affiliation
Christianity

Reported finances

Revenue
$6,061,759
Expenses
$5,801,753
Assets
$1,296,916
Liabilities
$1,036,910

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

Leadership & pay

11 people listed

Executive titles in this filing

  • HERSHEY BELL (PRESIDENT/DEAN, SCHOOL OF MED)

Highest reported compensation

  • MICHAEL NAGOWSKI (BOARD MEMBER (CFVHS)): $1,778,609 total reported compensation
  • BRET JOHNSON (BOARD MEMBER (CFVHS)): $827,895 total reported compensation
  • HERSHEY BELL (PRESIDENT/DEAN, SCHOOL OF MED): $651,173 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 organization was formed to support the development and operation of the Methodist University Cape Fear Valley Health School of Medicine, a collaboration between Methodist University and Cape Fear Valley Health System to address regional physician shortages and improve access to care in southeastern North Carolina. During the fiscal year, the organization transitioned from planning to active implementation, making significant progress toward full accreditation. Key accomplishments included advancing LCME accreditation efforts, expanding administrative, academic, and operational infrastructure, hiring faculty and staff, developing the curriculum with integrated clinical partnerships, investing in facilities and technology, and strengthening governance and compliance systems. These efforts position the School of Medicine for inaugural student matriculation and long-term sustainability.

What it reported doing in 2024

The primary program service of the organization is the planning, development, and implementation of a community-based medical school in partnership with Methodist University and Cape Fear Valley Health System. During the fiscal year, the organization incurred program service expenses related to: Faculty and staff recruitment and compensation Curriculum design and academic program development Accreditation preparation and compliance activities Information technology, simulation, and educational infrastructure Administrative and operational support functions. These activities are directly aligned with the organization's exempt purpose of advancing medical education and improving healthcare access in the region.

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: 68
  • Transparency & Controls: 69
  • Accountability: 72
  • Sustainability: 35
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 74.7%; rating input score 75
  • Program expense ratio: 78%; rating input score 78
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd 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: Limited

Accountability

  • Independent voting board: 66.7%; rating input score 67; 11th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • 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: 4.3%; rating input score 49; 49th percentile among comparable filings
  • Total-asset coverage ratio: 0.22; rating input score 7; 7th percentile among comparable filings
  • Liabilities to assets ratio: 0.8; rating input score 10; 10th percentile among comparable filings
  • Officer compensation ratio: 1.8%; rating input score 77; 77th percentile among comparable filings

Growth

  • Program expense growth: 69.6% per year; rating input score 100; 98th percentile among comparable filings
  • Revenue growth: 93.8% per year; rating input score 100; 99th percentile among comparable filings
  • Asset growth: 200% per year; rating input score 100; 100th percentile among comparable filings

Details

  • Where the money goes: 74.7% of revenue deployed · 78% of spending went to programs
  • Governance: 6 of 9 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $4.5M in reported program spending
  • Leadership: top reported pay $1.8M · 11 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 41 of 41 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 2 filing years from 2023 to 2024
  • Contacts: How to reach this organization
  • Related organizations: 2 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 — Transparency & Controls: Pay-setting controls scored 0/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 7/100.
  • Moderate — Sustainability: Operating margin scored 49/100.
  • High — Sustainability: Liabilities to assets ratio scored 10/100.