R3 Rehabilitation Restoration & Respite

Nonprofit profile at a glance

EIN
452500858
IRS 990 coverage
2023–2024
Forms available
Form 990 2024, Form 990-EZ 2022, Form 990-N 2020
Location
Salinas, CA, USA
Phone
8312140964
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Residential Mental Health Treatment

Reported finances

Revenue
$3,522,587
Expenses
$3,640,921
Assets
$21,056
Liabilities
$101

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

Leadership & pay

5 people listed

Executive titles in this filing

  • Eric Johnsen (President & CEO)
  • David Balch (Vice President)

People named in this filing

  • Eric Johnsen (President & CEO)
  • David Elliot (Secretary)
  • Allan Stark (CFO)

Selected names, not a complete roster or a statement of current roles. Open leadership details for the complete filed list.

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

Overview

Mission

Providing creative housing solutions and innovative work programs for unsheltered families and individuals with a focus on ending recidivism.

What it reported doing in 2024

R3's mission is to provide housing and support solutions for unsheltered families and individuals. We partner with the California Department of Corrections and Rehabilitation CDCR and Rancho Cielo to build housing units to meet this mission. R3 works to coordinate activities with cities, counties, churches, and others to both develop these villages as well as ensure the wrap around services for the campus are provided and coordinated with local agencies. The most recent village project in San Benito County reached its final phase during 2024. The San Benito village will accommodate 16 housing units serving over 50 persons and families for the purpose of transitional housing for those recovering from homelessness. During 2024, in conjunction with the Department of Industrial Relations, R3 began construction on a new Veterans Transition Center in Marina, CA. With additional grant applications in progress, R3 expects additional facilities for the building program in 2025 that will expand the capacity to build more homes and village communities throughout California, with a focus on underserved and rural communities.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
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. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 81
  • Accountability: 70
  • Sustainability: 32
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 98.8%; rating input score 99
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 90%; rating input score 90; 4th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 80%; rating input score 80; 14th percentile among comparable filings
  • Governance controls: 4 of 7 controls in place; rating input score 57
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Fail
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -3.4%; rating input score 23; 23rd percentile among comparable filings
  • Total-asset coverage ratio: 0.01; rating input score 1; 1st percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 89; 89th percentile among comparable filings
  • Officer compensation ratio: 0%; rating input score 91; 91st percentile among comparable filings

Growth

  • Program expense growth: 122% per year; rating input score 100; 99th percentile among comparable filings
  • Revenue growth: 109.2% per year; rating input score 100; 99th percentile among comparable filings
  • Asset growth: -15.5% per year; rating input score 0; 1st percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 98.8% of spending went to programs
  • Governance: 4 of 5 board members independent · 4 of 7 filing controls reported
  • Programs: 1 filed program accomplishment · $3.6M in reported program spending
  • Leadership: top reported pay $0 · 5 people listed
  • Consistency: 18 of 19 current checks pass · 1 finding to review
  • Schedules: 3 filed schedules
  • Filing history: 2 filing years from 2023 to 2024
  • Contacts: How to reach this organization
  • 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.

  • Review — Accountability: Governance controls: 2 of 6 not reported.
  • High — Sustainability: Operating margin scored 23/100.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • High — Sustainability: Total-asset coverage ratio scored 1/100.
  • High — Growth: Asset growth scored 0/100.