Third Option Foundation

Nonprofit profile at a glance

EIN
464884866
IRS 990 coverage
2014–2024
Forms available
Form 990 2024
Location
Reston, VA, USA
Phone
5713868623
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Human Services N.E.C.

Official website

Reported finances

Revenue
$12,799,102
Expenses
$6,645,921
Assets
$41,473,053
Liabilities
$451,331

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

Leadership & pay

15 people listed

Executive titles in this filing

  • STEVEN T CASHEN (CEO)
  • MELISSA ALLEN (PRESIDENT AND COO)

Highest reported compensation

  • STEVEN T CASHEN (CEO): $255,000 total reported compensation
  • MELISSA ALLEN (PRESIDENT AND COO): $255,000 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 purpose of the foundation is to provide support to the families of government employees who have died or been seriously injured in the service of their country but whose employment status prohibits them from seeking assistance from normal governmental sources.

What it reported doing in 2024

Transition program: provide support to officers and their family members as officers end their current employment. Provides continued access to the medical and family resiliency & behavioral health programs. Facilitates contact with financial advisory assistance, professional coaching, networking, and certification programs, and participation in legacy events.

Operating model

Revenue model
Donor-supported. 93% of the money available for current operations came from contributions and gifts.
Distribution model
Grant intermediary. The nonprofit sent 66% of its reported program spending out as grants.
  • Includes noncash contributions: Reported contributions include donated property or goods.

The verdict

SUPPORTED - The filed numbers largely add up and a large share of total spending goes to programs. A relatively small share of available resources goes toward mission work and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 60
  • Transparency & Controls: 83
  • Accountability: 90
  • Sustainability: 84
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 46.5%; rating input score 47
  • Program expense ratio: 81.1%; rating input score 81
  • Fundraising efficiency: $21.66 raised per $1 spent on fundraising; rating input score 59; 59th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 3 of 6 controls in place; rating input score 50
    • Compensation committee: Pass
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Pass
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 72nd percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 66th percentile among comparable filings
  • Governance controls: 6 of 8 controls in place; rating input score 75
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • 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: 48.1%; rating input score 94; 94th percentile among comparable filings
  • Total-asset coverage ratio: 6.24; rating input score 87; 87th percentile among comparable filings
  • Liabilities to assets ratio: 0.01; rating input score 92; 92nd percentile among comparable filings
  • Officer compensation ratio: 7.7%; rating input score 32; 32nd percentile among comparable filings

Growth

  • Program expense growth: 23.5% per year; rating input score 100; 92nd percentile among comparable filings
  • Revenue growth: 18.7% per year; rating input score 100; 91st percentile among comparable filings
  • Asset growth: 25.6% per year; rating input score 100; 94th percentile among comparable filings

Details

  • Where the money goes: 46.5% of revenue deployed · 81.1% of spending went to programs
  • Governance: 13 of 13 board members independent · 6 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $5.4M in reported program spending
  • Leadership: top reported pay $255K · 15 people listed · 3 of 6 pay-setting controls reported
  • Consistency: 32 of 32 current checks pass
  • Schedules: 7 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 11 filing years from 2014 to 2024
  • Contacts: How to reach this organization
  • Money network: 2 filed money-flow records
  • Related organizations: Filed and resolved organization relationships.
  • 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 — Financial Efficiency: Mission deployment rate scored 47/100.
  • Review — Financial Efficiency: Fundraising efficiency scored 59/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • Moderate — Sustainability: Officer compensation ratio scored 32/100.