The Difference Principle Inc

Nonprofit profile at a glance

EIN
462088738
IRS 990 coverage
2019–2024
Forms available
Form 990 2024, Form 990-N 2013
Location
Milwaukee, WI, USA
Phone
4149080282
Rating
46
Verdict
MIXED
Rating confidence
Moderate
Sector
Education N.E.C.

Official website

Reported finances

Revenue
$3,379,892
Expenses
$2,948,314
Assets
$4,646,512
Liabilities
$3,070,107

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

Leadership & pay

12 people listed

Executive titles in this filing

  • DOE GREGERSEN (PRESIDENT)
  • NICHOLAS SAYNER (EXECUTIVE DIRECTOR)

Highest reported compensation

  • EDWARD GORDON (CHIEF OPERATING OFFICER): $257,580 total reported compensation
  • NICHOLAS SAYNER (EXECUTIVE DIRECTOR): $257,578 total reported compensation
  • JULIE MURDOCK (CHIEF HUMAN RESOURCE OFFIC): $177,781 total reported compensation

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

Overview

Mission

Organized to act as the parent corporation for its subsidiary 501(c)(3) organization, providing administrative support services.

What it reported doing in 2024

The difference principle provides administrative services to nonprofit organizations, including human resources, accounting and consulting.

Operating model

Revenue model
Earned-program. 98% 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

MIXED - The filed numbers largely add up and most filed governance safeguards are in place. A relatively small share of available resources goes toward mission work and a relatively small share of total spending goes to programs.

Rating breakdown

  • Financial Efficiency: 4
  • Transparency & Controls: 77
  • Accountability: 77
  • Sustainability: 49
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 4.4%; rating input score 4
  • Program expense ratio: 5.1%; rating input score 5
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 3 of 6 controls in place; rating input score 50
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 60%; rating input score 60; 9th 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: 12.8%; rating input score 67; 67th percentile among comparable filings
  • Total-asset coverage ratio: 1.58; rating input score 53; 53rd percentile among comparable filings
  • Liabilities to assets ratio: 0.66; rating input score 14; 14th percentile among comparable filings
  • Officer compensation ratio: 37.7%; rating input score 3; 3rd percentile among comparable filings

Growth

  • Program expense growth: -46.5% per year; rating input score 0; 0th percentile among comparable filings
  • Revenue growth: 14% per year; rating input score 100; 79th percentile among comparable filings
  • Asset growth: 38.7% per year; rating input score 100; 96th percentile among comparable filings

Details

  • Where the money goes: 4.4% of revenue deployed · 5.1% of spending went to programs
  • Governance: 3 of 5 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $152K in reported program spending
  • Leadership: top reported pay $258K · 12 people listed · 3 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $132K reported
  • Consistency: 29 of 29 current checks pass
  • Schedules: 6 filed schedules · includes executive pay
  • Filing history: 5 filing years from 2019 to 2024
  • Contacts: How to reach this organization
  • Money network: 6 filed money-flow records
  • Related organizations: 3 filed related-organization links
  • 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.

  • High — Financial Efficiency: Mission deployment rate scored 4/100.
  • High — Financial Efficiency: Program expense ratio scored 5/100.
  • High — Growth: Program expense growth scored 0/100.
  • Review — Sustainability: Total-asset coverage ratio scored 53/100.
  • High — Sustainability: Officer compensation ratio scored 3/100.
  • High — Sustainability: Liabilities to assets ratio scored 14/100.