Valley Economic Development Center Inc

Nonprofit profile at a glance

EIN
953139419
IRS 990 coverage
2012–2020
Forms available
Form 990 2020
Location
Encino, CA, USA
Phone
8185397200
Rating
50
Verdict
MIXED
Rating confidence
Moderate
Sector
Small Business Development

Official website

Reported finances

Revenue
$13,840,242
Expenses
$447,460
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2020. Amounts in USD.

Leadership & pay

5 people listed

People named in this filing

  • EDWARD ARNOLD (COMPLIANCE DIRECTOR)
  • ROBERT J DENNEN (FINANCIAL CONSULTANT)
  • PEGI MATSUDA (BOARD MEMBER)

Selected names, not a complete roster or a statement of current roles. Open leadership details for the complete filed list.

Source: IRS Form 990. Selected filing: tax year 2020. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To provide financing assistance, management consulting, and training to entrepreneurs and small business owners in and around los angeles county and throughout California. On july 2, 2019 valley economic development center filed for bankruptcy. The filing for bankruptcy impacted all of vedc's programs.

What it reported doing in 2020

Winding down operations. To provide financing assistance, management consulting, and training to entrepreneurs and small business owners in and around los angeles county and throughout California. On july 2, 2019 valley economic development center filed for bankruptcy. The filing for bankruptcy impacted all of vedc's programs.

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

MIXED - The filed numbers largely add up and most voting board members are independent. A relatively small share of available resources goes toward mission work and a relatively small share of total spending goes to programs.

Rating breakdown

  • Financial Efficiency: 18
  • Transparency & Controls: 77
  • Accountability: 82
  • Sustainability: 58
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 1.7%; rating input score 2
  • Program expense ratio: 50%; rating input score 50
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd 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: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 67th percentile among comparable filings
  • Governance controls: 4 of 7 controls in place; rating input score 57
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 96.8%; rating input score 99; 99th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 0%; rating input score 97; 97th percentile among comparable filings

Growth

  • Program expense growth: -11.9% per year; rating input score 0; 2nd percentile among comparable filings
  • Revenue growth: -7.6% per year; rating input score 0; 2nd percentile among comparable filings
  • Asset growth: -10.4% per year; rating input score 0; 1st percentile among comparable filings

Details

  • Where the money goes: 1.7% of revenue deployed · 50% of spending went to programs
  • Governance: 3 of 3 board members independent · 4 of 7 filing controls reported
  • Programs: 1 filed program accomplishment · $224K in reported program spending
  • Leadership: top reported pay $0 · 5 people listed · 3 of 6 pay-setting controls reported
  • Consistency: 24 of 24 current checks pass
  • Schedules: 4 filed schedules · includes executive pay
  • Filing history: 9 filing years from 2012 to 2020
  • Contacts: How to reach this organization
  • 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 — Financial Efficiency: Mission deployment rate scored 2/100.
  • Review — Financial Efficiency: Program expense ratio scored 50/100.
  • Review — Accountability: Governance controls: 2 of 6 not reported.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Grant Readiness: California registration: this organization is not authorized to operate as a charity in California.
  • High — Grant Readiness: Federal audit findings: this organization reported findings in its latest federal Single Audit.