Transformance Inc

Nonprofit profile at a glance

EIN
751437638
IRS 990 coverage
2011–2015
Forms available
Form 990 2015
Location
Dallas, TX, USA
Phone
2146382227
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Financial Counseling

Official website

Reported finances

Revenue
$4,299,371
Expenses
$5,980,228
Assets
$4,681,154
Liabilities
$1,548,509

Source: IRS Form 990. Selected filing: tax year 2015. Amounts in USD.

Leadership & pay

35 people listed

Executive titles in this filing

  • Kenneth Goodgames (President/CEO)

Highest reported compensation

  • Kenneth Goodgames (President/CEO): $158,253 total reported compensation
  • Sharon King (EVP Strategic Initiatives): $95,328 total reported compensation
  • Yolanda Perez (Chief Operating Officer): $91,831 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2015. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The mission of Transformance, Inc. is to empower individuals and families to achieve financial freedom.

What it reported doing in 2015

Budget/Credit Counseling and Debt Management Plans: Transformance, Inc. provides budget and credit counseling to consumers free of charge. During budget and credit counseling sessions, our certified counselors assist clients in assessing their current position, developing workable budgets and spending plans, setting financial goals and determining an ongoing action plan. During the year 2015, Transformance, Inc. provided 8,655 debt management plans and budget and credit counseling sessions. Clients sometimes have the option to enroll in a debt management plan developed to help reduce debt, bring accounts current with manageable monthly payments, and assist in becoming debt free within three to five years. Full budget reviews are provided to ensure consumers are living within their means and prioritizing their expenses. Interest rates on credit cards are reviewed, and clients are advised on how they can best pay down their own debts, including how to negotiate with creditors to improve the situation.

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

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Expenses are high relative to revenue and program spending has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 95
  • Transparency & Controls: 74
  • Accountability: 100
  • Sustainability: 18
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 85.7%; rating input score 86
  • Fundraising efficiency: $3,126.72 raised per $1 spent on fundraising; rating input score 99; 99th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Pass
    • Independent consultant: Pass
    • 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: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 65th 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: -39.1%; rating input score 2; 2nd percentile among comparable filings
  • Total-asset coverage ratio: 0.78; rating input score 37; 37th percentile among comparable filings
  • Liabilities to assets ratio: 0.33; rating input score 39; 39th percentile among comparable filings
  • Officer compensation ratio: 12.8%; rating input score 17; 17th percentile among comparable filings

Growth

  • Program expense growth: -5% per year; rating input score 0; 15th percentile among comparable filings
  • Revenue growth: -12.9% per year; rating input score 0; 4th percentile among comparable filings
  • Asset growth: -12.9% per year; rating input score 0; 5th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 85.7% of spending went to programs
  • Governance: 21 of 21 board members independent · 9 of 9 filing controls reported
  • Programs: 6 filed program accomplishments · $5.1M in reported program spending
  • Leadership: top reported pay $158K · 35 people listed · 2 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $102K reported
  • Consistency: 38 of 38 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 4 filing years from 2011 to 2015
  • Contacts: How to reach this organization
  • Money network: 12 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.

Key Signals

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

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • High — Sustainability: Operating margin scored 2/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 37/100.
  • High — Sustainability: Officer compensation ratio scored 17/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 39/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.