Rain Source Capital

Nonprofit profile at a glance

EIN
411912041
IRS 990 coverage
2011–2017
Forms available
Form 990 2017
Location
Lake Geneva, WI, USA
Phone
6516322140
Rating
83
Verdict
STRONG
Rating confidence
Moderate
Sector
Economic Development

Official website

Reported finances

Revenue
$66,063
Expenses
$246,490
Assets
$3,411,532
Liabilities
$5,989,131

Source: IRS Form 990. Selected filing: tax year 2017. Amounts in USD.

Leadership & pay

4 people listed

Executive titles in this filing

  • STEVEN B MERCIL (CEO)

People named in this filing

  • LINDA LAITALA (CHAIR)
  • KEITH ANDERSON (DIRECTOR)
  • MARK DAVIS (DIRECTOR)

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 2017. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Rain source capital is a non-profit corporation dedicated to promoting community economic development by building the capacity for equity investment. This is accomplished by making equity investments in companies directly from rain source capital and catalyzing envestment.

What it reported doing in 2017

Rain source capital makes investments to advance strategic imperatives that result in technology-proficient, high growth businesses capable of creating good jobs. They also provide appropriate business expertise to increase the likelihood of success, and assure self-sufficiency for rain source capital by providing a return appropriate for the risk in order to assure the funding permanence and allow the gains to be reinvested in new opportunities. Investment decisions are based on disciplined, professional and sound business evaluation in order to protect the mission of rain source capital.rain source capital strives to correct identified barriers to capital formation by building stronger, more accessible, regional and/or locally based pools of capital. This will lead to a coordinated process to discover, evaluate, and monitor investment opportunities in a given geographic area.

Operating model

Revenue model
Earned-program. 96% 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. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 90
  • Accountability: 82
  • Sustainability: 33
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 98.7%; rating input score 99
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd 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: 100%; rating input score 100; 64th percentile among comparable filings
  • Governance controls: 4 of 7 controls in place; rating input score 57
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • 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: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -273.1%; rating input score 9; 9th percentile among comparable filings
  • Total-asset coverage ratio: 13.84; rating input score 73; 73rd percentile among comparable filings
  • Liabilities to assets ratio: 1.76; rating input score 2; 2nd percentile among comparable filings
  • Officer compensation ratio: 0%; rating input score 61; 61st percentile among comparable filings

Growth

  • Program expense growth: 3.9% per year; rating input score 100; 64th percentile among comparable filings
  • Revenue growth: -1% per year; rating input score 0; 57th percentile among comparable filings
  • Asset growth: -6% per year; rating input score 0; 24th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 98.7% of spending went to programs
  • Governance: 3 of 3 board members independent · 4 of 7 filing controls reported
  • Programs: 1 filed program accomplishment · $243K in reported program spending
  • Leadership: top reported pay $0 · 4 people listed
  • Consistency: 15 of 15 current checks pass
  • Schedules: 4 filed schedules
  • Filing history: 7 filing years from 2011 to 2017
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

  • Review — Accountability: Governance controls: 2 of 6 not reported.
  • High — Sustainability: Operating margin scored 9/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Liabilities to assets ratio scored 2/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.