Midwest Challenge Inc

Nonprofit profile at a glance

EIN
410983281
IRS 990 coverage
2011–2024
Forms available
Form 990 2024
Location
Minneapolis, MN, USA
Phone
7637727285
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Residential Mental Health Treatment
Affiliation
Christianity

Official website

Reported finances

Revenue
$1,848,674
Expenses
$1,765,294
Assets
$2,193,990
Liabilities
$853,450

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

Leadership & pay

11 people listed

Executive titles in this filing

  • Gary Parker (President & CEO)

Highest reported compensation

  • Gary Parker (President & CEO): $137,683 total reported compensation

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

Overview

Mission

Sharing the gospel while providing hope and transformation.

What it reported doing in 2024

Life Rebuilders provides transitional housing for adult men and women through a variety of programs that include: a work release program in partnership with the Minnesota Department of Corrections as a licensed and contracted agency. Transitional housing that provides short-term & long-term housing and care solutions for men who have been released from prisons, treatment centers or who are facing homelessness. Adult foster care that provides long-term care solutions for women and men who have been released from prisons and treatment centers or facing the challenges of homelessness. Independent sober living housing for men who are committed to living a renewed and transformed life. We serve a maximum of 108 residents within our 14 separate facilities.

Operating model

Revenue model
Earned-program. 80% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 99% 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

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. The filing does not identify recipients for some grant dollars and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 78
  • Transparency & Controls: 76
  • Accountability: 95
  • Sustainability: 45
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 90.4%; rating input score 90
  • Program expense ratio: 82.4%; rating input score 82
  • Fundraising efficiency: $2.86 raised per $1 spent on fundraising; rating input score 8; 8th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 93.8%; rating input score 94; 24th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 42.6%; rating input score 43; 28th percentile among comparable filings
  • 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: Fail
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 4.5%; rating input score 49; 49th percentile among comparable filings
  • Total-asset coverage ratio: 1.24; rating input score 50; 50th percentile among comparable filings
  • Liabilities to assets ratio: 0.39; rating input score 20; 20th percentile among comparable filings
  • Officer compensation ratio: 7.8%; rating input score 44; 44th percentile among comparable filings

Growth

  • Program expense growth: 4.9% per year; rating input score 100; 42nd percentile among comparable filings
  • Revenue growth: 4.6% per year; rating input score 100; 41st percentile among comparable filings
  • Asset growth: 6.5% per year; rating input score 100; 45th percentile among comparable filings

Details

  • Where the money goes: 90.4% of revenue deployed · 82.4% of spending went to programs
  • Governance: 9 of 9 board members independent · 7 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $1.5M in reported program spending
  • Leadership: top reported pay $138K · 11 people listed
  • Consistency: 35 of 36 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors and grants
  • Filing history: 14 filing years from 2011 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: Filed and resolved organization relationships.
  • 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

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

  • Moderate — Transparency & Controls: Grant itemization coverage scored 43/100.
  • High — Financial Efficiency: Fundraising efficiency scored 8/100.
  • Moderate — Sustainability: Operating margin scored 49/100.
  • Review — Accountability: Governance controls: Document-retention policy not reported.
  • Review — Sustainability: Total-asset coverage ratio scored 50/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
  • High — Sustainability: Liabilities to assets ratio scored 20/100.
  • Moderate — Sustainability: Officer compensation ratio scored 44/100.