Preservation Freehold Company

Nonprofit profile at a glance

EIN
900475369
IRS 990 coverage
2014–2024
Forms available
Form 990 2024, Form 990-N 2014
Location
Lewisville, TX, USA
Phone
2147252837
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Housing Development, Construction, Management

Reported finances

Revenue
$215,279,684
Expenses
$222,147,818
Assets
$561,000,473
Liabilities
$602,018,068

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

Leadership & pay

9 people listed

Executive titles in this filing

  • JAMES CHANCE (PRESIDENT & CEO)

Highest reported compensation

  • LEE SUDBECK (FACILITY EMPLOYEE): $304,450 total reported compensation
  • GIBSON VERNON (FACILITY EMPLOYEE): $264,754 total reported compensation
  • EDWARD FOSAM (FACILITY EMPLOYEE): $252,541 total reported compensation

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

Overview

Mission

See schedule o for the organization's defined mission statementpreservation freehold company is a public charity organized for the purpose of relieving the distressed through the provision of housing designed specifically to accommodate and address certain physical, social, and civic needs of the elderly, while promoting the continued dignity and well-being of its residents. The corporation is organized and shall be operated exclusively for charitable and educational purposes within the meaning of section 501(c)(3) of the internal revenue code. Within the scope of the foregoing purposes, but not by way of limitation thereof, the corporation shall carry out these purposes primarily by owning and operating, either directly or through affiliated entities, nonprofit health care facilities and senior living communities.

What it reported doing in 2024

Preservation freehold company, a public charity organized for the purpose of relieving the distressed through the provision of housing designed specifically to accommodate and address certain physical, social, and civic needs of the elderly, while promoting the continued dignity and well-being of its residents, operated exclusively for charitable and educational purposes within the meaning of section 501(c)(3) of the internal revenue code, carried out these purposes primarily by owning and operating, either directly or through affiliated entities, nonprofit health care facilities and senior living communities.

Operating model

Revenue model
Earned-program. 98% 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

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 some related-organization disclosures are missing.

Rating breakdown

  • Financial Efficiency: 80
  • Transparency & Controls: 89
  • Accountability: 75
  • Sustainability: 38
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 90.5%; rating input score 90
  • Program expense ratio: 89.1%; rating input score 89
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
  • Pay-setting controls: 5 of 6 controls in place; rating input score 83
    • Compensation committee: Pass
    • Independent consultant: Missing
    • Other Form 990s reviewed: Pass
    • Written employment contract: Pass
    • 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: Scored; rating input score 0

Accountability

  • Independent voting board: 75%; rating input score 75; 24th percentile among comparable filings
  • Governance controls: 6 of 8 controls in place; rating input score 75
    • 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: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -3.2%; rating input score 16; 16th percentile among comparable filings
  • Total-asset coverage ratio: 2.53; rating input score 70; 70th percentile among comparable filings
  • Liabilities to assets ratio: 1.07; rating input score 5; 5th percentile among comparable filings
  • Officer compensation ratio: 0.6%; rating input score 81; 81st percentile among comparable filings

Growth

  • Program expense growth: 37.3% per year; rating input score 100; 97th percentile among comparable filings
  • Revenue growth: 37.4% per year; rating input score 100; 98th percentile among comparable filings
  • Asset growth: 37% per year; rating input score 100; 98th percentile among comparable filings

Details

  • Where the money goes: 90.5% of revenue deployed · 89.1% of spending went to programs
  • Governance: 3 of 4 board members independent · 6 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $197.9M in reported program spending
  • Leadership: top reported pay $304K · 9 people listed · 5 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $29.9M reported
  • Consistency: 31 of 31 current checks pass
  • Schedules: 7 filed schedules · includes major donors, executive pay, and related organizations
  • Filing history: 9 filing years from 2014 to 2024
  • Contacts: How to reach this organization
  • Money network: 6 filed money-flow records
  • Related organizations: 33 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 — Sustainability: Operating margin scored 16/100.
  • High — Transparency & Controls: Related-party transparency scored 0/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Sustainability: Liabilities to assets ratio scored 5/100.