Thread Capital Inc

Nonprofit profile at a glance

EIN
831284532
IRS 990 coverage
2018–2024
Forms available
Form 990 2024
Location
Raleigh, NC, USA
Phone
9192124950
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Support N.E.C.

Reported finances

Revenue
$1,612,726
Expenses
$4,458,425
Assets
$11,672,551
Liabilities
$2,952,788

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

Leadership & pay

14 people listed

Executive titles in this filing

  • JONATHAN BRERETON (EXECUTIVE DIRECTOR (TO AUG '23))

Highest reported compensation

  • PATRICK WOODIE (DIRECTOR): $435,546 total reported compensation
  • CAROLYN RHODES (COO): $340,237 total reported compensation
  • FRANKLIN ROBERTS (CFO & ASST TREASURER): $275,309 total reported compensation

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

Overview

Mission

Thread capital believes everyone deserves the chance to be successful. We give people the tools they need to pursue their small-business dreams, and create a better tomorrow for themselves, their families, and their communities.

What it reported doing in 2024

Lending program - in may of 2024, management of thread capital began a strategic assessment of operations, including temporarily ceasing loan originations while continuing to service existing loans outstanding. This assessment culminated in a new capital access framework where thread will support small business lending in an intermediary role instead of a direct lending role. Currently, thread is planning and iniating this new framework. It will continue to service loans that had already been originated. Prior to this assessment, thread capital offered small business loans from $500 to $250,000 to businesses that were not effectively served by the traditional financial system. It also provided loans to businesses that have been impacted by either natural disasters or the global pandemic. In addition to capital access, thread capital also provided coaching and connections to small businesses and entrepreneurs.

Operating model

Revenue model
Earned-program. 90% of the money available for current operations came from fees and other program revenue.
Distribution model
Grant intermediary. The nonprofit sent 78% of its reported program spending out as grants.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 87
  • Transparency & Controls: 71
  • Accountability: 95
  • Sustainability: 32
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 94.2%; rating input score 94
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • 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: 100%; rating input score 100; 76th percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 90.9%; rating input score 91; 23rd 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: -176.5%; rating input score 1; 1st percentile among comparable filings
  • Total-asset coverage ratio: 2.62; rating input score 72; 72nd percentile among comparable filings
  • Liabilities to assets ratio: 0.25; rating input score 27; 27th percentile among comparable filings
  • Officer compensation ratio: 2.8%; rating input score 57; 57th percentile among comparable filings

Growth

  • Program expense growth: 27.1% per year; rating input score 100; 88th percentile among comparable filings
  • Revenue growth: -11.4% per year; rating input score 0; 2nd percentile among comparable filings
  • Asset growth: 7.5% per year; rating input score 100; 50th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 94.2% of spending went to programs
  • Governance: 10 of 11 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $4.2M in reported program spending
  • Leadership: top reported pay $436K · 14 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $227K reported
  • Consistency: 30 of 30 current checks pass
  • Schedules: 8 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 7 filing years from 2018 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 2 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.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Sustainability: Operating margin scored 1/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Liabilities to assets ratio scored 27/100.
  • Review — Sustainability: Officer compensation ratio scored 57/100.