Wharton Economic Development Corp

Nonprofit profile at a glance

EIN
760573917
IRS 990 coverage
2009–2024
Forms available
Form 990 2024
Location
Wharton, TX, USA
Phone
9795320999
Rating
65
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Public, Societal Benefit

Reported finances

Revenue
$1,156,159
Expenses
$966,926
Assets
$2,214,063
Liabilities
$9,023,653

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

Leadership & pay

7 people listed

Executive titles in this filing

  • FREDDIE PEKAR (PRESIDENT)

Highest reported compensation

  • COURTLAND HOLMAN (EXECUTIVE DI): $129,692 total reported compensation

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

Overview

Mission

To develop a positive climate for businesses and industrial growth and investment; assist in the creation of jobs; increase the tax base of the various taxing entities; diversify the local economy to make it more impervious to state and national economic recession; and make plans and take necessary actions to insure that all necessary infrastructure is in place to allow for proper development of wharton, Texas.

What it reported doing in 2024

Economic development programs benefit the approximately 9,500 residents of wharton, Texas. They preserve, protect, enhance, and encourage activity in the existing buildings in downtown and on the gateways of wharton, Texas.

Operating model

Revenue model
Grant-funded. 94% of the money available for current operations came from government grants.
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

SUPPORTED - 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: 42
  • Transparency & Controls: 84
  • Accountability: 76
  • Sustainability: 57
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 45.4%; rating input score 45
  • Program expense ratio: 50.2%; rating input score 50
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.9%; rating input score 93; 19th percentile among comparable filings
  • Pay-setting controls: Limited
  • 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; 63rd percentile among comparable filings
  • Governance controls: 3 of 7 controls in place; rating input score 43
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • 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: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 16.4%; rating input score 72; 72nd percentile among comparable filings
  • Total-asset coverage ratio: 2.29; rating input score 68; 68th percentile among comparable filings
  • Liabilities to assets ratio: 4.08; rating input score 1; 1st percentile among comparable filings
  • Officer compensation ratio: 13.4%; rating input score 27; 27th percentile among comparable filings

Growth

  • Program expense growth: 13.7% per year; rating input score 100; 73rd percentile among comparable filings
  • Revenue growth: 4.1% per year; rating input score 100; 38th percentile among comparable filings
  • Asset growth: 4.2% per year; rating input score 100; 35th percentile among comparable filings

Details

  • Where the money goes: 45.4% of revenue deployed · 50.2% of spending went to programs
  • Governance: 7 of 7 board members independent · 3 of 7 filing controls reported
  • Programs: 2 filed program accomplishments · $485K in reported program spending
  • Leadership: top reported pay $130K · 7 people listed
  • Consistency: 29 of 30 current checks pass · 1 finding to review
  • Schedules: 3 filed schedules
  • Filing history: 16 filing years from 2009 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.

  • Moderate — Financial Efficiency: Mission deployment rate scored 45/100.
  • Review — Financial Efficiency: Program expense ratio scored 50/100.
  • Moderate — Accountability: Governance controls: 4 of 7 not reported.
  • Moderate — Transparency & Controls: Schedule D land buildings reconciliation did not reconcile in the filed values.
  • High — Sustainability: Liabilities to assets ratio scored 1/100.
  • High — Sustainability: Officer compensation ratio scored 27/100.