Seed Charities Dba Threads of Hope

Nonprofit profile at a glance

EIN
264580974
IRS 990 coverage
2011–2020
Forms available
Form 990 2020
Location
Plano, TX, USA
Phone
9726185306
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
International Relief

Official website

Reported finances

Revenue
$-3,156
Expenses
$93,557
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2020. Amounts in USD.

Leadership & pay

7 people listed

Executive titles in this filing

  • Kim Nimon (President)

People named in this filing

  • Kim Nimon (President)
  • Istvan Palagyi (Director)
  • Laura Palagyi (Treasurer)

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 2020. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The mission of Threads of Hope is to break the cycle of poverty through strategies that empower the economically disadvantaged.

What it reported doing in 2020

Threads of Hope sells textiles hand-made by over 100 artisans in Peru. The unique nature of this project, almost fully volunteer supported, allows for 90% of revenue to be returned to participating families. All revenue return is monitored throughout the process from the U.S., through Finca Peru, and then to the women so that financial accountability is transparent. Threads of Hope is also working with several villages in the Andes.The benefits of the project are clear. Families living in scrap shanties now have homes with concrete floors, brick walls, and roofs instead of tarps. Children of poverty are in school, well fed, and healthy.

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

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: 89
  • Transparency & Controls: 82
  • Accountability: 64
  • Sustainability: 9
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 99.3%; rating input score 99
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 90.9%; rating input score 91; 16th 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; 63rd percentile among comparable filings
  • Governance controls: 1 of 7 controls in place; rating input score 14
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Fail
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -3,064.4%; rating input score 3; 3rd percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 2; 2nd percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 0%; rating input score 61; 61st percentile among comparable filings

Growth

  • Program expense growth: 4.3% per year; rating input score 100; 75th percentile among comparable filings
  • Revenue growth: -2.6% per year; rating input score 0; 58th percentile among comparable filings
  • Asset growth: 2.3% per year; rating input score 100; 54th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 99.3% of spending went to programs
  • Governance: 8 of 6 board members independent · 1 of 7 filing controls reported
  • Programs: 1 filed program accomplishment · $93K in reported program spending
  • Leadership: top reported pay $0 · 7 people listed
  • Consistency: 15 of 17 current checks pass · 2 findings to review
  • Schedules: 4 filed schedules
  • Filing history: 10 filing years from 2011 to 2020
  • 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.

  • High — Accountability: Governance controls: 6 of 7 not reported.
  • High — Sustainability: Operating margin scored 3/100.
  • High — Growth: Revenue growth scored 0/100.
  • Moderate — Transparency & Controls: Independent members within voting members did not reconcile in the filed values.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • High — Sustainability: Total-asset coverage ratio scored 2/100.