Providers Choice

Legal name: Providers Choice Inc

Nonprofit profile at a glance

EIN
363347057
IRS 990 coverage
2009–2024
Official website data refreshed
Sep 2026
Forms available
Form 990 2024
Location
Minneapolis, MN, US
Phone
952.944.7010
Rating
90
Verdict
STRONG
Rating confidence
Moderate

Official website

Reported finances

Revenue
$25,102,865
Expenses
$25,055,515
Assets
$3,275,404
Liabilities
$2,620,055

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

Leadership & pay

9 people listed

Executive titles in this filing

  • KATHLEEN ABERNATHY (CEO)

Highest reported compensation

  • KATHLEEN ABERNATHY (CEO): $167,203 total reported compensation
  • MICHELLE TRIPLETT (DIR OF BUSINESS OPERATIONS): $146,060 total reported compensation
  • DONALD DETERS (IT SYSTEMS ADMINISTRATOR): $138,841 total reported compensation

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

Overview

Mission

To promote healthy nutrition for children by securing reimbursements and funding from federal nutrition programs and grants to provide program payments, education, training and technical assistance to help child care providers operate successful businesses while ethically prioritizing the health and wellness of children.

What it reported doing in 2024

In fiscal year 2025, providers choice's sponsorship of the child and adult care food program supported childcare providers in serving 13,684,869 meals and snacks across Minnesota. Providers choice sponsored 2,572 family day care home programs (a 7.6% decrease from the prior year), serving 40,663 children. Of these homes, 62% qualified for tier 1 rates and 38% qualified for tier 2 rates. Providers choice also sponsored 139 childcare center programs (a 3.8% increase from the prior year), serving 14,128 children. Of the children enrolled in center programs, 58% qualified for free meal reimbursement, 4% qualified for reduced-price reimbursement, and 38% qualified for paid meal reimbursement based on household income eligibility.

Operating model

Revenue model
Grant-funded. 99% of the money available for current operations came from government grants.
Distribution model
Grant intermediary. The nonprofit sent 87% of its reported program spending out as 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 total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 99
  • Transparency & Controls: 79
  • Accountability: 100
  • Sustainability: 27
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 99.3%; rating input score 99
  • Program expense ratio: 99.5%; rating input score 99
  • Fundraising efficiency: $3,791.56 raised per $1 spent on fundraising; rating input score 99; 99th 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: Pass
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 72nd 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; 66th percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 0.2%; rating input score 33; 33rd percentile among comparable filings
  • Total-asset coverage ratio: 0.13; rating input score 3; 3rd percentile among comparable filings
  • Liabilities to assets ratio: 0.8; rating input score 14; 14th percentile among comparable filings
  • Officer compensation ratio: 2.3%; rating input score 74; 74th percentile among comparable filings

Growth

  • Program expense growth: 0.1% per year; rating input score 100; 11th percentile among comparable filings
  • Revenue growth: 0.2% per year; rating input score 100; 9th percentile among comparable filings
  • Asset growth: 2.7% per year; rating input score 100; 21st percentile among comparable filings

Details

  • What they do: 4 programs and campaigns described on the official site · 1 operating location identified
  • Where the money goes: 99.3% of revenue deployed · 99.5% of spending went to programs
  • Governance: 5 of 5 board members independent · 9 of 9 filing controls reported
  • Programs: 2 filed program accomplishments · $24.9M in reported program spending
  • Leadership: top reported pay $167K · 9 people listed · 2 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $220K reported
  • Consistency: 30 of 30 current checks pass
  • Schedules: 6 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 16 filing years from 2009 to 2024
  • Contacts: How to reach this organization
  • Money network: 4 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.
  • 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 — Sustainability: Operating margin scored 33/100.
  • High — Sustainability: Total-asset coverage ratio scored 3/100.
  • High — Sustainability: Liabilities to assets ratio scored 14/100.