Redemption House

Nonprofit profile at a glance

EIN
461057549
IRS 990 coverage
2018–2024
Forms available
Form 990 2024
Location
Minnetonka, MN, USA
Phone
6512702358
Rating
74
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Religion Related N.E.C.
Affiliation
Christianity

Reported finances

Revenue
$563,936
Expenses
$610,190
Assets
$1,226,932
Liabilities
$851,956

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

Leadership & pay

4 people listed

Executive titles in this filing

  • John Leonard (Chairman and CEO)

Highest reported compensation

  • John Leonard (Chairman and CEO): $168,355 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 liberate people from the enslavement and idolatry of addiction, by radical transformation of the heart, through a redemptive fellowship with Christ, for His glory and our joy.

What it reported doing in 2024

Phase one-residential recovery--redemption house is a heart-focused, gospel-centered residential recovery ministry. We help men worship their way out of addiction through the practice of honoring god in the details of their lives. Our innovative, private-pay model is not only sustainable but unique in the addiction ministry landscape. Men commmit to a minimum of three months in our continuum. Some choose to spend another year or more in phase two, where they can work and reengage with the stresses and triggers of daily life while living in the safety of our discipleship community.

Operating model

Revenue model
Earned-program. 82% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 99% 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. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 73
  • Transparency & Controls: 70
  • Accountability: 84
  • Sustainability: 30
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 84%; rating input score 84
  • Program expense ratio: 77.6%; rating input score 78
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Pass
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • 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; 63rd percentile among comparable filings
  • Governance controls: 5 of 8 controls in place; rating input score 62
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • 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: -8.2%; rating input score 19; 19th percentile among comparable filings
  • Total-asset coverage ratio: 2.01; rating input score 65; 65th percentile among comparable filings
  • Liabilities to assets ratio: 0.69; rating input score 11; 11th percentile among comparable filings
  • Officer compensation ratio: 27.6%; rating input score 8; 8th percentile among comparable filings

Growth

  • Program expense growth: 2.8% per year; rating input score 100; 31st percentile among comparable filings
  • Revenue growth: 2.3% per year; rating input score 100; 26th percentile among comparable filings
  • Asset growth: 17.4% per year; rating input score 100; 77th percentile among comparable filings

Details

  • Where the money goes: 84% of revenue deployed · 77.6% of spending went to programs
  • Governance: 4 of 4 board members independent · 5 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $473K in reported program spending
  • Leadership: top reported pay $168K · 4 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 28 of 28 current checks pass
  • Schedules: 4 filed schedules · includes executive pay
  • Filing history: 7 filing years from 2018 to 2024
  • 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.

  • Review — Accountability: Governance controls: 2 of 7 not reported.
  • High — Sustainability: Operating margin scored 19/100.
  • High — Sustainability: Officer compensation ratio scored 8/100.
  • High — Sustainability: Liabilities to assets ratio scored 11/100.