Modest Needs Foundation

Nonprofit profile at a glance

EIN
470863430
IRS 990 coverage
2011–2022
Forms available
Form 990 2022
Location
New York, NY, USA
Phone
8446673776
Rating
84
Verdict
STRONG
Rating confidence
Moderate
Sector
Emergency Assistance

Official website

Reported finances

Revenue
$1,595,548
Expenses
$1,865,407
Assets
$1,107,508
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2022. Amounts in USD.

Leadership & pay

4 people listed

Executive titles in this filing

  • DR KEITH P TAYLOR (PRESIDENT)

Highest reported compensation

  • DR KEITH P TAYLOR (PRESIDENT): $198,544 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2022. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Modest Needs Foundation helps low-income workers to afford short-term emergency expenses that would otherwise threaten their ability to support themselves. In this way, Modest Needs bolsters the self-sufficiency of the "working poor" while simultaneously lessening the burden of state and federal agencies charged with the care of the truly indigent.

What it reported doing in 2022

In 2022, modest needs provided 1,618 grants reaching 5,286 individuals and families who had applied for assistance under our self-sufficiency, homecoming heroes, and covid-19 relief grant programs.

Operating model

Revenue model
Donor-supported. 100% of the money available for current operations came from contributions and gifts.
Distribution model
Hybrid. The nonprofit split its reported program spending across 42% for direct work, and 58% for grants.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Expenses are high relative to revenue and program spending has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 93
  • Transparency & Controls: 83
  • Accountability: 95
  • Sustainability: 28
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 91.3%; rating input score 91
  • Fundraising efficiency: $27.64 raised per $1 spent on fundraising; rating input score 66; 66th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 3 of 6 controls in place; rating input score 50
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 76th 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: Pass
    • 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: Fail

Sustainability

  • Operating margin: -16.9%; rating input score 12; 12th percentile among comparable filings
  • Total-asset coverage ratio: 0.59; rating input score 26; 26th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 93; 93rd percentile among comparable filings
  • Officer compensation ratio: 10.6%; rating input score 34; 34th percentile among comparable filings

Growth

  • Program expense growth: -3.2% per year; rating input score 0; 13th percentile among comparable filings
  • Revenue growth: 0.1% per year; rating input score 100; 19th percentile among comparable filings
  • Asset growth: -5.8% per year; rating input score 0; 6th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 91.3% of spending went to programs
  • Governance: 3 of 3 board members independent · 7 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $1.7M in reported program spending
  • Leadership: top reported pay $199K · 4 people listed · 3 of 6 pay-setting controls reported
  • Consistency: 44 of 44 current checks pass
  • Schedules: 6 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 9 filing years from 2011 to 2022
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • High — Sustainability: Operating margin scored 12/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 26/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Officer compensation ratio scored 34/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.