New Directions Inc

Nonprofit profile at a glance

EIN
341313806
IRS 990 coverage
2010–2021
Forms available
Form 990 2021
Location
Cleveland, OH, USA
Phone
2165910324
Rating
73
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Mental Health Treatment F31 Psychiatric, Mental Health Hospital

Official website

Reported finances

Revenue
$2,959,458
Expenses
$3,257,601
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2021. Amounts in USD.

Leadership & pay

26 people listed

Executive titles in this filing

  • DIANNE VOGT (PRESIDENT)
  • MELISSA COLE (VICE PRESIDENT)
  • MICHAEL MATONEY (EXECUTIVE DIRECTOR)

Highest reported compensation

  • MICHAEL MATONEY (EXECUTIVE DIRECTOR): $168,379 total reported compensation
  • CRAIG HARGENRADER (CFO): $157,612 total reported compensation
  • ALICE IDEN (COO): $143,378 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2021. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

New directions, inc. Provides quality life-changing treatment to chemically dependent adolescents and their families dealing with emotional, behavioral, or psychiatric needs.

What it reported doing in 2021

New directions, inc. Is a residential and outpatient treatment program for chemically dependent adolescents, adults and their families in the greater cleveland area. New directions will be the provider of choice for adolescents and their families from assessment to continuing care. We deliver proven and innovative evidence-based services and collaborate with organizations sharing similar values. New directions served approximately 578 adolescents and their families during the fiscal year ended june 30, 2021.

Operating model

Revenue model
Earned-program. 62% of the money available for current operations came from fees and other program revenue.
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. Fundraising costs are high for each dollar raised and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 80
  • Transparency & Controls: 74
  • Accountability: 91
  • Sustainability: 7
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 95.2%; rating input score 95
  • Program expense ratio: 75.4%; rating input score 75
  • Fundraising efficiency: $6.57 raised per $1 spent on fundraising; rating input score 18; 18th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • 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 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -10.1%; rating input score 8; 8th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 10.1%; rating input score 25; 25th percentile among comparable filings

Growth

  • Program expense growth: -5.2% per year; rating input score 0; 9th percentile among comparable filings
  • Revenue growth: -2.6% per year; rating input score 0; 8th percentile among comparable filings
  • Asset growth: -3.2% per year; rating input score 0; 7th percentile among comparable filings

Details

  • Where the money goes: 95.2% of revenue deployed · 75.4% of spending went to programs
  • Governance: 22 of 22 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $2.5M in reported program spending
  • Leadership: top reported pay $168K · 26 people listed · 2 of 6 pay-setting controls reported
  • Consistency: 30 of 30 current checks pass
  • Schedules: 8 filed schedules · includes major donors and executive pay
  • Filing history: 11 filing years from 2010 to 2021
  • Contacts: How to reach this organization
  • Money network: 2 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 — Financial Efficiency: Fundraising efficiency scored 18/100.
  • High — Sustainability: Operating margin scored 8/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 25/100.