The Third Chair

Nonprofit profile at a glance

EIN
770693331
IRS 990 coverage
2018–2024
Forms available
Form 990 2024, Form 990-N 2008
Location
Grand Rapids, MI, USA
Phone
6169163711
Rating
71
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Centers to Support the Independence of Specific Populations

Reported finances

Revenue
$1,432,238
Expenses
$1,415,462
Assets
$179,785
Liabilities
$77,709

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

Leadership & pay

3 people listed

Executive titles in this filing

  • Scott McKnight (President)

Highest reported compensation

  • Scott McKnight (President): $113,673 total reported compensation
  • Joni Cook (Treasurer): $32,454 total reported compensation

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

Overview

Mission

The Third Chair is a mental health counseling service that focuses on the struggles of young adults - focus on 1 on 1 counseling and outreach programs with other community organizations.

What it reported doing in 2024

The Third Chair provided mental health counseling for young adults from West Michigan - reaching out and serving vulnerable populations that otherwise would not have access to mental health services.

Operating model

Revenue model
Other-operating. 100% of the money available for current operations came from other operating 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

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. A relatively small share of voting board members are independent and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 68
  • Transparency & Controls: 90
  • Accountability: 52
  • Sustainability: 27
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 76.3%; rating input score 76
  • Program expense ratio: 77.2%; rating input score 77
  • Fundraising efficiency: $0.22 raised per $1 spent on fundraising; rating input score 2; 2nd percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd 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: 33.3%; rating input score 33; 10th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • 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: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 1.2%; rating input score 40; 40th percentile among comparable filings
  • Total-asset coverage ratio: 0.13; rating input score 6; 6th percentile among comparable filings
  • Liabilities to assets ratio: 0.43; rating input score 18; 18th percentile among comparable filings
  • Officer compensation ratio: 10.3%; rating input score 36; 36th percentile among comparable filings

Growth

  • Program expense growth: 19.3% per year; rating input score 100; 82nd percentile among comparable filings
  • Revenue growth: 19.4% per year; rating input score 100; 85th percentile among comparable filings
  • Asset growth: 16.9% per year; rating input score 100; 76th percentile among comparable filings

Details

  • Where the money goes: 76.3% of revenue deployed · 77.2% of spending went to programs
  • Governance: 1 of 3 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $1.1M in reported program spending
  • Leadership: top reported pay $114K · 3 people listed
  • Consistency: 30 of 30 current checks pass
  • Schedules: 3 filed schedules
  • Filing history: 7 filing years from 2018 to 2024
  • Contacts: How to reach this organization
  • Money network: 2 filed money-flow records
  • 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.

  • Moderate — Accountability: Independent voting board scored 33/100.
  • High — Financial Efficiency: Fundraising efficiency scored 2/100.
  • Moderate — Sustainability: Operating margin scored 40/100.
  • High — Sustainability: Total-asset coverage ratio scored 6/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Sustainability: Liabilities to assets ratio scored 18/100.
  • Moderate — Sustainability: Officer compensation ratio scored 36/100.