Civic Intelligence

Covenant Academies Foundation

990 • Fiscal year 2019 • EIN 47-5613722

Jul 01, 2018 to Jun 30, 2019 • Filed on Feb 20, 2020

125 Catherine AvenueMuskegon, MI 49442

(231) 720-3100

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

85th percentile

0.62x

Higher debt load relative to assets than 85% of similar nonprofits.

2019 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2019

Liabilities / Revenue

89th percentile

1.40x

Higher debt load relative to revenue than 89% of similar nonprofits.

2019 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2019

Net Margin

28th percentile

-4.3%

Higher net margin than 28% of similar nonprofits.

2019 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2019

Top Officer Pay

70th percentile

$102,419

Higher top officer pay than 70% of similar nonprofits.

Top officer pay equals 8.9% of source-year revenue.

2019 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2019

Asset Growth

51st percentile

3.2%

Faster asset growth than 51% of similar nonprofits.

2019 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2018 to 2019

Revenue Growth

54th percentile

5.7%

Faster revenue growth than 54% of similar nonprofits.

2019 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2018 to 2019

Assets

Up

$2,607,722

Up $80,461 (+3.2%) from 2018

Net Assets

Down

$994,093

Down $48,835 (-4.7%) from 2018

Liabilities

Up

$1,613,629

Up $129,296 (+8.7%) from 2018

Revenue

Up

$1,148,868

Up $62,440 (+5.7%) from 2018

Expenses

Up

$1,197,703

Up $555,132 (+86%) from 2018

Net Income

Down

-$48,835

Down $492,692 (-111%) from 2018

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$4.0M$3.0M$2.0M$1.0M$0Assets 2016: $36,610Liabilities 2016: $50,0002016Assets 2017: $1,465,852Liabilities 2017: $866,781Net Assets 2017: $599,0712017Assets 2018: $2,527,261Liabilities 2018: $1,484,333Net Assets 2018: $1,042,9282018Assets 2019: $2,607,722Liabilities 2019: $1,613,629Net Assets 2019: $994,0932019Assets 2020: $2,452,444Liabilities 2020: $1,329,395Net Assets 2020: $1,123,0492020Assets 2021: $2,790,053Liabilities 2021: $1,243,871Net Assets 2021: $1,546,1822021Assets 2022: $2,847,877Liabilities 2022: $1,007,831Net Assets 2022: $1,840,0462022Assets 2023: $3,152,315Liabilities 2023: $963,072Net Assets 2023: $2,189,2432023Assets 2024: $3,494,021Liabilities 2024: $929,278Net Assets 2024: $2,564,7432024

Highlighted filing

2019

Assets$2,607,722
Liabilities$1,613,629
Net Assets$994,093

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$1.5M$1.0M$500K$0-$500KRevenue 2016: $0Expenses 2016: $13,390Net Income 2016: -$13,3902016Revenue 2017: $896,417Expenses 2017: $283,956Net Income 2017: $612,4612017Revenue 2018: $1,086,428Expenses 2018: $642,571Net Income 2018: $443,8572018Revenue 2019: $1,148,868Expenses 2019: $1,197,703Net Income 2019: -$48,8352019Revenue 2020: $1,281,862Expenses 2020: $1,152,906Net Income 2020: $128,9562020Revenue 2021: $1,341,997Expenses 2021: $918,864Net Income 2021: $423,1332021Revenue 2022: $1,154,910Expenses 2022: $861,046Net Income 2022: $293,8642022Revenue 2023: $1,128,682Expenses 2023: $788,314Net Income 2023: $340,3682023Revenue 2024: $1,404,523Expenses 2024: $1,029,023Net Income 2024: $375,5002024

Highlighted filing

2019

Revenue$1,148,868
Expenses$1,197,703
Net Income-$48,835
Jump To
Filing Snapshot
Filing Period
Jul 1, 2018 to Jun 30, 2019
Signed
Feb 20, 2020
Return Version
2018v3.2
Gross Receipts
$1,276,576
Mission and Program Overview

Mission

Covenant academies foundation provides support for the operation of charter schools.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$1,320,654$1,595,082▲ $274,428
Other Notes and Loans Receivable, Net$241,662$541,658▲ $299,996
Accounts Receivable$102,615$319,814▲ $217,199
Cash and Non-Interest-Bearing Accounts$862,330$130,833▼ $731,497
Savings and Temporary Cash Investments-$15,335-
Prepaid Expenses and Deferred Charges-$5,000-
Total Assets$2,527,261$2,607,722▲ $80,461
Liabilities
Unsecured Notes Loans Payable$1,413,723$1,538,179▲ $124,456
Accounts Payable and Accrued Expenses$39,110$38,950▼ $160
Deferred Revenue$31,500$36,500▲ $5,000
Total Liabilities$1,484,333$1,613,629▲ $129,296
Net Assets / Fund Balance
Unrestricted Net Assets$532,594$940,746▲ $408,152
Temporarily Rstr Net Assets$510,334$53,347▼ $456,987
Total Net Assets Fund Balance$1,042,928$994,093▼ $48,835
Total Liabilities and Net Assets / Fund Balance$2,527,261$2,607,722▲ $80,461

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$1,584,582$56,925$1,641,507
Land$10,500-$10,500
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Jon FelskeChief Exec OFT$94,440$7,979$102,419
Gretchen LahaieChief Oper OFT$74,225$16,953$91,178
Sam JosephFounderFT$72,388$10,626$83,014

Board Members and Trustees

NameTitle
Edd SnyderPresident
Gregory PittmanDirector
Sam BealsDirector
Sandi JonesDirector
Jim WolohanSecretary
Jim HeathTreasurer
Joe KaplanVice Preside
Revenue and Support

Revenue Composition

Contributions and Grants
$544,210
Program Service Revenue
$672,267
Investment Income
$-102,123
Other Revenue
$34,514
All Other Contributions
$265,407
Change in Net Assets
$-48,835

Audited Revenue Reconciliation

Revenue per Audited Statements
$1,148,868
Total Revenue per Audited Statements
$1,148,868
Total Revenue per Form 990
$1,148,868
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$665,457
Salaries, Compensation, and Employee Benefits$532,246
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Current Officers, Directors, Trustees, and Key Employees$238,976$28,842-$267,818
Other Salaries and Wages$188,312$7,419-$195,731
Occupancy$59,627$1,614-$61,241
Interest$50,343--$50,343
Depreciation Depletion$45,698--$45,698
Fees for Services Other$44,498--$44,498
Payroll Taxes$39,844$2,953-$42,797
Fees for Services Legal$21,539$19,482-$41,021
Travel$25,660$4,140-$29,800
Other Employee Benefits$24,744$1,156-$25,900
Fees for Services Accounting$11,800--$11,800
All Other Expenses$5,578$1,075-$6,653
Conferences and Meetings$675$5,777-$6,452
Other Expenses$4,200$310-$4,200
Information Technology$1,628$698-$2,326
Office Expenses$258--$258
Advertising$150--$150
Total Functional Expenses$1,124,237$73,466$0$1,197,703

Audited Expense Reconciliation

Line ItemAmount
Expenses per Audited Statements$1,197,703
Total Expenses per Audited Statements$1,197,703
Total Expenses per Form 990$1,197,703
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Audit committee
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
No
Other officer compensation reviewed
No
Conflict-of-interest policy
No
Audited financial statements prepared
No
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Form 990, Page 6, Part VI, Line 11B

Management reviews form 990 prior to signing. The ceo and board chairman reviews form 990 prior to filing.

Form 990, Page 6, Part VI, Line 19

The organization's governing documents and financial statements are available upon request. Contact information is provided on the organization's website. Additionally, the articles of nonprofit incorporation and annual reports are available from michigan dept of energy, labor & economic growth at www.dleg.state.mi.us/bcs_corp.

Form 990, Part VII

The organization pays axios charter hr llc for contract personnel services for jon felske as chief executive officer, sam joseph as founder and gretchen lahaie as chief operating officer. The amount paid for those services is disclosed in part vii and part ix, line 5.

Filing and Contact Details

Filer

Filer Name
Covenant Academies Foundation
EIN
47-5613722
Phone
2317203100
Address
125 CATHERINE AVENUE, MUSKEGON, MI 49442

Signing Officer

Name
Edd Snyder
Title
President
Phone
2317203100
Signed
2020-02-20
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Edd Snyder
Formed
2015
Legal Domicile
Mi
Voting Board Members
7
Independent Board Members
7
Employees
0

Preparer

Firm
Brickley Delong Pc
Address
PO BOX 999, MUSKEGON, MI 49443-0999
Preparer
Brian M Mcfarren
Phone
2317265800
Supplemental Narrative

Financial Statement Notes

Schedule D, Page 3, Part X

In the preparation of tax returns, tax positions are taken based on interpretation of federal and state income tax laws. Management periodically reviews and evaluates the status of uncertain tax positions and makes estimates of amounts, including interest and penalties, ultimately due or owed. No amounts have been identified, or recorded, as uncertain tax positions. Federal and state tax returns generally remain open for examination by the various taxing authorities for a period of three or four years.

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IRS990/PrepaidExpensesDefrdChargesGrp/EOYAmt05000
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IRS990/ProgramServiceRevenueGrp/Desc0MANAGEMENT FEES
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IRS990/ProgramServiceRevenueGrp/TotalRevenueColumnAmt0672267
IRS990/ProgSrvcAccomActy2Grp/Desc0COVENANT HALL - PROVIDES A HOME-LIKE ENVIRONMENT FOR STUDENTS WHO DO NOT HAVE A STABLE PLACE TO LIVE. THE HALL HAS 30 BEDS AND A STAFF TO HELP THE STUDENTS TAKE CARE OF THEMSELVES AND TEACH THEM HOW TO LIVE IN THE COMMUNITY.
IRS990/ProgSrvcAccomActy2Grp/ExpenseAmt0314125
IRS990/ProgSrvcAccomActy3Grp/Desc0SCHOLARSHIPS - SCHOLARSHIPS ARE PROVIDED TO ELIGIBLE GRADUATES WHO ENROLL AND ATTEND POST-SECONDARY EDUCATION.
IRS990/ProgSrvcAccomActy3Grp/ExpenseAmt03053
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IRS990/PYContributionsGrantsAmt0674406
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IRS990/PYInvestmentIncomeAmt06012
IRS990/PYOtherExpensesAmt0248119
IRS990/PYOtherRevenueAmt03010
IRS990/PYProgramServiceRevenueAmt0403000
IRS990/PYRevenuesLessExpensesAmt0443857
IRS990/PYSalariesCompEmpBnftPaidAmt0394452
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IRS990/ReconcilationRevenueExpnssAmt0-48835
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IRS990/RevenueAmt0672267
IRS990/SavingsAndTempCashInvstGrp/EOYAmt015335
IRS990ScheduleA/Form990ScheduleAPartVIGrp/ExplanationTxt0OTHER REVENUE 3,370
IRS990ScheduleA/Form990ScheduleAPartVIGrp/FormAndLineReferenceDesc0PART III, LINE 12
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IRS990ScheduleA/GiftsGrantsContrisRcvd509Grp/CurrentTaxYearMinus1YearAmt0674406
IRS990ScheduleA/GiftsGrantsContrisRcvd509Grp/CurrentTaxYearMinus2YearsAmt0597367
IRS990ScheduleA/GiftsGrantsContrisRcvd509Grp/TotalAmt01815983
IRS990ScheduleA/GrossInvestmentIncome509Grp/CurrentTaxYearAmt05585
IRS990ScheduleA/GrossInvestmentIncome509Grp/CurrentTaxYearMinus1YearAmt06012
IRS990ScheduleA/GrossInvestmentIncome509Grp/CurrentTaxYearMinus2YearsAmt01015
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IRS990ScheduleA/GrossReceiptsAdmissionsGrp/CurrentTaxYearMinus2YearsAmt0298000
IRS990ScheduleA/GrossReceiptsAdmissionsGrp/TotalAmt01422388
IRS990ScheduleA/InvestmentIncomeAndUBTIGrp/CurrentTaxYearAmt05585
IRS990ScheduleA/InvestmentIncomeAndUBTIGrp/CurrentTaxYearMinus1YearAmt06012
IRS990ScheduleA/InvestmentIncomeAndUBTIGrp/CurrentTaxYearMinus2YearsAmt01015
IRS990ScheduleA/InvestmentIncomeAndUBTIGrp/TotalAmt012612
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IRS990ScheduleA/InvestmentIncomePYPct00.00000
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IRS990ScheduleA/OtherIncome509Grp/CurrentTaxYearMinus1YearAmt03010
IRS990ScheduleA/OtherIncome509Grp/CurrentTaxYearMinus2YearsAmt035
IRS990ScheduleA/OtherIncome509Grp/TotalAmt03370
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IRS990ScheduleB/ContributorInformationGrp/TotalContributionsAmt0RESTRICTED
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IRS990ScheduleD/BuildingsGrp/BookValueAmt01584582
IRS990ScheduleD/BuildingsGrp/DepreciationAmt056925
IRS990ScheduleD/BuildingsGrp/OtherCostOrOtherBasisAmt01641507
IRS990ScheduleD/ExpensesSubtotalAmt01197703
IRS990ScheduleD/FootnoteTextInd0X
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IRS990ScheduleD/LandGrp/OtherCostOrOtherBasisAmt010500
IRS990ScheduleD/RevenueSubtotalAmt01148868
IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt0IN THE PREPARATION OF TAX RETURNS, TAX POSITIONS ARE TAKEN BASED ON INTERPRETATION OF FEDERAL AND STATE INCOME TAX LAWS. MANAGEMENT PERIODICALLY REVIEWS AND EVALUATES THE STATUS OF UNCERTAIN TAX POSITIONS AND MAKES ESTIMATES OF AMOUNTS, INCLUDING INTEREST AND PENALTIES, ULTIMATELY DUE OR OWED. NO AMOUNTS HAVE BEEN IDENTIFIED, OR RECORDED, AS UNCERTAIN TAX POSITIONS. FEDERAL AND STATE TAX RETURNS GENERALLY REMAIN OPEN FOR EXAMINATION BY THE VARIOUS TAXING AUTHORITIES FOR A PERIOD OF THREE OR FOUR YEARS.
IRS990ScheduleD/SupplementalInformationDetail/FormAndLineReferenceDesc0SCHEDULE D, PAGE 3, PART X
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IRS990ScheduleD/TotalExpensesPerForm990Amt01197703
IRS990ScheduleD/TotalRevenuePerForm990Amt01148868
IRS990ScheduleD/TotalRevEtcAuditedFinclStmtAmt01148868
IRS990ScheduleD/TotExpnsEtcAuditedFinclStmtAmt01197703
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IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt0MANAGEMENT REVIEWS FORM 990 PRIOR TO SIGNING. THE CEO AND BOARD CHAIRMAN REVIEWS FORM 990 PRIOR TO FILING.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt1THE ORGANIZATION'S GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. CONTACT INFORMATION IS PROVIDED ON THE ORGANIZATION'S WEBSITE. ADDITIONALLY, THE ARTICLES OF NONPROFIT INCORPORATION AND ANNUAL REPORTS ARE AVAILABLE FROM MICHIGAN DEPT OF ENERGY, LABOR & ECONOMIC GROWTH AT WWW.DLEG.STATE.MI.US/BCS_CORP.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt2THE ORGANIZATION PAYS AXIOS CHARTER HR LLC FOR CONTRACT PERSONNEL SERVICES FOR JON FELSKE AS CHIEF EXECUTIVE OFFICER, SAM JOSEPH AS FOUNDER AND GRETCHEN LAHAIE AS CHIEF OPERATING OFFICER. THE AMOUNT PAID FOR THOSE SERVICES IS DISCLOSED IN PART VII AND PART IX, LINE 5.
IRS990ScheduleO/SupplementalInformationDetail/FormAndLineReferenceDesc0FORM 990, PAGE 6, PART VI, LINE 11B
IRS990ScheduleO/SupplementalInformationDetail/FormAndLineReferenceDesc1FORM 990, PAGE 6, PART VI, LINE 19
IRS990ScheduleO/SupplementalInformationDetail/FormAndLineReferenceDesc2FORM 990, PART VII
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IRS990ScheduleR/IdRelatedTaxExemptOrgGrp/DisregardedEntityName/BusinessNameLine1Txt1KALAMAZOO COVENANT ACADEMY
IRS990ScheduleR/IdRelatedTaxExemptOrgGrp/DisregardedEntityName/BusinessNameLine1Txt2SAGINAW COVENANT ACADEMY
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IRS990ScheduleR/IdRelatedTaxExemptOrgGrp/PrimaryActivitiesTxt0EDUC/ADMIN
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IRS990ScheduleR/IdRelatedTaxExemptOrgGrp/USAddress/AddressLine1Txt1400 W CROSSTOWN
IRS990ScheduleR/IdRelatedTaxExemptOrgGrp/USAddress/AddressLine1Txt2508 S WASHINGTON AVE
IRS990ScheduleR/IdRelatedTaxExemptOrgGrp/USAddress/CityNm0MUSKEGON
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