Promise House Inc

Nonprofit profile at a glance

EIN
752180083
IRS 990 coverage
2009–2021
Forms available
Form 990 2021
Location
Dallas, TX, USA
Rating
72
Verdict
SUPPORTED
Rating confidence
Standard
Sector
Homeless Shelters

Official website

Reported finances

Revenue
$4,850,103
Expenses
$5,943,949
Assets
$2,019,995
Liabilities
$1,552,993

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

Leadership & pay

17 people listed

Executive titles in this filing

  • CHARLES M WOLFORD (CHIEF EXECUTIVE OFFICER)

Highest reported compensation

  • CHARLES M WOLFORD (CHIEF EXECUTIVE OFFICER): $182,378 total reported compensation
  • REGINA LEVINE (CHIEF PROGRAM OFFICER): $124,371 total reported compensation
  • DECOBIA GRAY-LAMBERT (CHIEF PHILANTHROPY OFFICER): $121,788 total reported compensation

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

Overview

Mission

Promise house embraces homeless, runaway & at-risk teens, giving them individualized support, skills, encouragement and hope to live a better life. We accomplish this through crisis intervention, emergency shelter and long-term housing, case management, counseling services,

What it reported doing in 2021

Transitional living services for young adults providing stabilization, independent living instruction and self-sufficiency.

Operating model

Revenue model
Grant-funded. 62% of the money available for current operations came from government grants.
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: 71
  • Transparency & Controls: 74
  • Accountability: 86
  • Sustainability: 10
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 81.7%; rating input score 82
  • Program expense ratio: 66.6%; rating input score 67
  • Fundraising efficiency: $8.49 raised per $1 spent on fundraising; rating input score 27; 27th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • 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: 6 of 9 controls in place; rating input score 67
    • 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: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -22.6%; rating input score 4; 4th percentile among comparable filings
  • Total-asset coverage ratio: 0.34; rating input score 10; 10th percentile among comparable filings
  • Liabilities to assets ratio: 0.77; rating input score 11; 11th percentile among comparable filings
  • Officer compensation ratio: 7.2%; rating input score 37; 37th percentile among comparable filings

Growth

  • Program expense growth: 9.7% per year; rating input score 100; 70th percentile among comparable filings
  • Revenue growth: 6.5% per year; rating input score 100; 56th percentile among comparable filings
  • Asset growth: -1.2% per year; rating input score 0; 12th percentile among comparable filings

Details

  • Where the money goes: 81.7% of revenue deployed · 66.6% of spending went to programs
  • Governance: 14 of 14 board members independent · 6 of 9 filing controls reported
  • Programs: 2 filed program accomplishments · $4M in reported program spending
  • Leadership: top reported pay $182K · 17 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 29 of 29 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 13 filing years from 2009 to 2021
  • Contacts: How to reach this organization
  • Money network: 3 filed money-flow records
  • 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 — Financial Efficiency: Fundraising efficiency scored 27/100.
  • High — Sustainability: Operating margin scored 4/100.
  • Review — Accountability: Governance controls: 2 of 8 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 10/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Liabilities to assets ratio scored 11/100.
  • Moderate — Sustainability: Officer compensation ratio scored 37/100.
  • High — Grant Readiness: Federal audit findings: this organization reported findings in its latest federal Single Audit.