Under the Rainbow Early Education Center

Nonprofit profile at a glance

EIN
411822820
IRS 990 coverage
2011–2024
Forms available
Form 990 2024
Location
Red Wing, MN, USA
Phone
6513886433
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Child Day Care

Reported finances

Revenue
$1,604,735
Expenses
$1,735,231
Assets
$1,346,806
Liabilities
$394,857

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

Leadership & pay

3 people listed

Highest reported compensation

  • MICHELLE FINHOLDT (CHAIRMAN): $126,688 total reported compensation

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

Overview

Mission

Opening the pathway to allow children to grow, learn and develop to their full potential.

What it reported doing in 2024

Under the rainbow early education center operated 12 months in 2024 fulfilling its mission of 'opening the pathway to allow children to learn, grow and develop to their full potential.' we work daily on promoting physical, intellectual, social, and emotional development for the children. We take great pride in the work we do! We served the general public of red wing and surrounding communitites allowng them the opportunity to be employed or to further their education. During the year we had an average enrollment of 180 full/part time children. Children of low income parents receiving financial assistance made up approximately 25% of the enrollment. We work with social services from goodhue, wabasha, pierce and dunn counties, the state of Washington as well as the prairie island tribal community.

Operating model

Revenue model
Earned-program. 91% 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

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 80
  • Transparency & Controls: 92
  • Accountability: 69
  • Sustainability: 28
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 92.1%; rating input score 92
  • Program expense ratio: 85.7%; rating input score 86
  • Fundraising efficiency: $1.94 raised per $1 spent on fundraising; rating input score 5; 5th 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: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 2 of 8 controls in place; rating input score 25
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -8.1%; rating input score 19; 19th percentile among comparable filings
  • Total-asset coverage ratio: 0.78; rating input score 35; 35th percentile among comparable filings
  • Liabilities to assets ratio: 0.29; rating input score 25; 25th percentile among comparable filings
  • Officer compensation ratio: 7.3%; rating input score 46; 46th percentile among comparable filings

Growth

  • Program expense growth: 7.2% per year; rating input score 100; 52nd percentile among comparable filings
  • Revenue growth: 7.6% per year; rating input score 100; 57th percentile among comparable filings
  • Asset growth: 4.9% per year; rating input score 100; 38th percentile among comparable filings

Details

  • Where the money goes: 92.1% of revenue deployed · 85.7% of spending went to programs
  • Governance: 3 of 3 board members independent · 2 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $1.5M in reported program spending
  • Leadership: top reported pay $127K · 3 people listed
  • Consistency: 28 of 28 current checks pass
  • Schedules: 4 filed schedules · includes major donors
  • Filing history: 12 filing years from 2011 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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 — Accountability: Governance controls: 5 of 7 not reported.
  • High — Financial Efficiency: Fundraising efficiency scored 5/100.
  • High — Sustainability: Operating margin scored 19/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 35/100.
  • High — Sustainability: Liabilities to assets ratio scored 25/100.
  • Moderate — Sustainability: Officer compensation ratio scored 46/100.