Mission: Covenant House New Jersey (CHNJ) was founded and incorporated in 1989. CHNJ is the largest provider in the state of services to homeless and at-risk adolescents unde ... (More)

Covenant House New Jersey is a 501(c)(3) organization, with an IRS ruling year of 1989, and donations are tax-deductible.

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Contact Information

  http://www.covenanthousenj.org/

 330 Washington Street
Newark NJ 07102 

  973-621-8705


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Star Rating System by Charity Navigator


Charity Navigator evaluates a nonprofit organization’s financial health including measures of stability, efficiency and sustainability. We also track accountability and transparency policies to ensure the good governance and integrity of the organization.




Exceptional

This charity's score is 93.10, earning it a 4-Star rating. Donors can "Give with Confidence" to this charity. 

This score is calculated from two sub-scores:

This score represents Form 990 data from 2019, the latest year published by the IRS.

View this organization’s historical ratings.


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Star Rated Report

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Program Expense

Program Expense Ratio

84.7%


The Program Expense Ratio is determined by Program Expenses divided by Total Expense (average of most recent three 990s).


This measure reflects the percent of its total expenses a charity spends on the programs and services it exists to deliver. Dividing a charity's average program expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Administrative Expenses

8.3%


As reported by charities on their IRS Form 990, this measure reflects what percent of its total budget a charity spends on overhead, administrative staff and associated costs, and organizational meetings. Dividing a charity's average administrative expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Fundraising Expenses

6.8%


This measure reflects what a charity spends to raise money. Fundraising expenses can include campaign printing, publicity, mailing, and staffing and costs incurred in soliciting donations, memberships, and grants. Dividing a charity's average fundraising expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Liabilities to Assets Ratio

26.6%


The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990).


Part of our goal in rating the financial performance of charities is to help donors assess the financial capacity and sustainability of a charity. As do organizations in other sectors, charities must be mindful of their management of total liabilites in relation to their total assets. This ratio is an indicator of an organization’s solvency and or long term sustainability. Dividing a charity's total liabilities by its total assets yields this percentage.


Source: IRS Form 990

Fundraising Efficiency

$0.06


The amount spent to raise $1 in charitable contributions. To calculate a charity's fundraising efficiency, we divide its average fundraising expenses by the average total contributions it receives. We calculate the charity's average expenses and average contributions over its three most recent fiscal years.


Source: IRS Form 990

Working Capital Ratio

1.32 years


Determines how long a charity could sustain its level of spending using its net available assets, or working capital, as reported on its most recently filed Form 990. We include in a charity's working capital unrestricted and temporarily restricted net assets, and exclude permanently restricted net assets. Dividing these net available assets in the most recent year by a charity's average total expenses, yields the working capital ratio. We calculate the charity's average total expenses over its three most recent fiscal years.


Source: IRS Form 990

Program Expense Growth

4.34%


We compute the average annual growth of program expenses using the following formula: [(Yn/Y0)(1/n)]-1, where Y0 is a charity's program expenses in the first year of the interval analyzed, Yn is the charity's program expenses in the most recent year, and n is the interval of years passed between Y0 and Yn.


Source: IRS Form 990

Governance


Charity Navigator looks to confirm on the Form 990 that the organization has these governance practices in place.


Sources Include: IRS Form 990

Governance:
Independent Voting Board Members  ... (More)
No Material Diversion of Assets ... (More)

A diversion of assets – any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft – can seriously call into question a charity's financial integrity. We check the charity's last two Forms 990 to see if the charity has reported any diversion of assets. If the charity does report a diversion, then we check to see if it complied with the Form 990 instructions by describing what happened and its corrective action. This metric will be assigned to one of the following categories:

  • Full Credit: There has been no diversion of assets within the last two years.

  • Partial Credit: There has been a diversion of assets within the last two years and the charity has used Schedule O on the Form 990 to explain: the nature of the diversion, the amount of money or property involved and the corrective action taken to address the matter. In this situation, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: There has been a diversion of assets within the last two years and the charity's explanation on Schedule O is either non-existent or not sufficient. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Audited Financials Prepared by Independent Accountant ... (More)

Audited financial statements provide important information about financial accountability and accuracy. They should be prepared by an independent accountant with oversight from an audit committee. (It is not necessary that the audit committee be a separate committee. Often at smaller charities, it falls within the responsibilities of the finance committee or the executive committee.) The committee provides an important oversight layer between the management of the organization, which is responsible for the financial information reported, and the independent accountant, who reviews the financials and issues an opinion based on its findings. We check the charity's Form 990 reporting to see if it meets this criteria.

  • Full Credit: The charity's audited financials were prepared by an independent accountant with an audit oversight committee.

  • Partial Credit: The charity's audited financials were prepared by an independent accountant, but it did not have an audit oversight committee. In this case, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: The charity did not have its audited financials prepared by an independent accountant. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Does Not Provide Loan(s) to or Receive Loan(s) From Related Parties ... (More)
Documents Board Meeting Minutes ... (More)
Distributes 990 to Board Before Filing ... (More)
Compensates Board ... (More)

Policies


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization has these policies in place.


Sources Include: IRS Form 990 and organization's website

Policies:
Conflict of Interest  ... (More)
Whistleblower ... (More)
Records Retention and Destruction ... (More)
CEO Compensation Process ... (More)
Donor Privacy ... (More)

Donors have expressed extreme concern about the use of their personal information by charities and the desire to have this information kept confidential. The exchanging and sale of lists for telemarketing and the mass distribution of "junk mail," among other things, can be minimized if the charity assures the privacy of its donors. Privacy policies are assigned to one of the following categories:

  • Yes: This charity has a written donor privacy policy published on its website, which states unambiguously that (1) it will not share or sell a donor's personal information with anyone else, nor send donor mailings on behalf of other organizations or (2) it will only share or sell personal information once the donor has given the charity specific permission to do so.

  • Opt-out: The charity has a written privacy policy published on its website which enables donors to tell the charity to remove their names and contact information from lists the charity shares or sells. How a donor can have themselves removed from a list differs from one charity to the next, but any and all opt-out policies require donors to take specific action to protect their privacy.
  • No: This charity either does not have a written donor privacy policy in place to protect their contributors' personal information, or the existing policy does not meet our criteria.

The privacy policy must be specific to donor information. A general website policy which references "visitor" or "user" personal information will not suffice. A policy that refers to donor information collected on the website is also not sufficient as the policy must be comprehensive and applicable to both online and offline donors. The existence of a privacy policy of any type does not prohibit the charity itself from contacting the donor for informational, educational, or solicitation purposes.

(Less)

Transparency


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization makes this information easily accessible.


Sources Include: IRS Form 990 and organization's website

Transparency:
CEO Salary Listed on 990 ... (More)
Board of Directors Listed on Website ... (More)
Key Staff Listed on Website ... (More)
Audited Financial Statements on Website ... (More)
Form 990 Available on Website ... (More)

Additional Information

Unscored

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Total Revenue and Expenses

Total Revenue and Expenses

This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.

Salary of Key Persons

Presented here are this organizations key compensated staff members as identified by our analysts. This compensation data includes salary, cash bonuses and expense accounts and is displayed exactly how it is reported to the IRS. The amounts do not include nontaxable benefits, deferred compensation, or other amounts not reported on W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting



James White, Executive Director

$275,751 (2.20% of Total Expenses)


Source: IRS Form 990 (page 7), filing year 2020

Business Master File Data

Below are some key data points from the Exempt Organization IRS Business Master File (BMF) for this organization. Learn more about the BMF on the IRS website


Activities:

Care and housing of children (orphanage, etc) (BMF activity code: 326)

Combat juvenile delinquency (BMF activity code: 328)

Other youth organization or activities (BMF activity code: 349)


Foundation Status:

Organization which receives a substantial part of its support from a governmental unit or the general public   170(b)(1)(A)(vi) (BMF foundation code: 15)


Affiliation:

Independent - the organization is an independent organization or an independent auxiliary (i.e., not affiliated with a National, Regional, or Geographic grouping of organizations). (BMF affiliation code: 3)

Data Sources: IRS Forms 990

The Form 990 is a document that nonprofit organizations file with the IRS annually. We leverage finance and accountability data from it to form Encompass ratings. Click here to view this organization's Forms 990 on the IRS website (if any are available).

Pandemic Response

Due to the unprecedented nature of the pandemic, we give charities such as this one the opportunity to share the story of COVID's impact on them. Charities may submit their own pandemic responses through their nonprofit portal.


Covenant House New Jersey reported being impacted by COVID-19 in the following ways:
  • Program Delivery

  • Decreased census capacity to as we adhered to COVID protocols.


How COVID-19 impacted the organization's operations financially:

We applied for and received a PPP loan which allowed us to avoid any reduction in staffing.


How COVID-19 impacted the organization's delivery of programs:

Covenant House needed to alter the physical layout of programming in order to ensure safe physical distancing. At the same time, our sites needed to accommodate youth who were required to shelter in place and/or quarantine. This lead to an increased need for meal provision among on-site supportive services. In addition, due to widespread job loss at the outset of the pandemic, we helped youth navigate a changing and challenging job market. We supported youth who were enrolled in school by facilitating access to virtual learning.


How this organization adapted to changing conditions caused by COVID-19:

Covenant House adapted largely through changes in intake, health screening protocols and sample collection for testing in partnership with the NJ Department of Health. Additionally, we had changes in the physical layout of our residential spaces. These changes included some reduction of the number of beds per room in order to accommodate for greater physical distancing, and we also converted office spaces and other communal spaces to allow for isolation and quarantine needs.


Innovations the organization intends to continue permanently after the pandemic:

We will continue with offering virtual programming for the young people we serve. Additionally, we will continue to use a virtual platform for all staff meetings and trainings. We installed a handwashing station in the lobby part of our building which we will continue to use to promote good hygiene.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
12/1/20202019 93.10
11/1/20192018 91.81
9/3/20192018 91.34

This organization received multiple star ratings within this fiscal year, due to an update to it's Accountability and Transparency data and/or the receipt of an amended Form 990.

12/1/20182017 91.77
12/1/20172016 94.57
11/1/20162015 95.00
7/1/20162014 94.73
6/1/20162014 94.02
Rating Version: 2.0
11/1/20152014 92.65
11/1/20142013 94.51
8/1/20132012 92.70
7/1/20132012 91.18
9/1/20122011 92.52
9/20/20112010 91.99
Rating Version: 1.0
12/1/20102009 95.65
3/1/20102008 81.78
4/1/20092007 70.29
10/1/20072006 63.92
10/1/20062005 66.74
9/1/20052004 67.28

...   Impact & Results


This score estimates the actual impact a nonprofit has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact.


Impact & Results Score

Not Currently Scored

Covenant House New Jersey cannot currently be evaluated by our Encompass Rating Impact & Results methodology because either (A) it is eligible, but we have not yet received data; (B) we have not yet developed an algorithm to estimate its programmatic impact; (C) its programs are not direct services; or (D) it is not heavily reliant on contributions from individual donors.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.

Learn more about Impact & Results.

Do you work at Covenant House New Jersey? Join the waitlist for an updated Impact & Results score.


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Additional Information

Unscored

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Largest Programs

Largest Programs



Covenant House New Jersey reported its three largest programs on its FY 2020 Form 990 as:


$3,211,690

Spent in most recent FY

32%

Percent of program expenses


EMERGENCY SHELTER AND CRISIS CARE COVENANT HOUSE NEW JERSEY WELCOMES ALL YOUNG PEOPLE FACING HOMELESSNESS WITH UNCONDITIONAL LOVE, ABSOLUTE RESPECT, AND RELENTLESS SUPPORT, AS OUR SHELTER DOORS ARE AL ... (More)


$2,339,560

Spent in most recent FY

23%

Percent of program expenses


RIGHTS OF PASSAGE (ROP) COVENANT HOUSE NEW JERSEY'S TRANSITIONAL LIVING PROGRAMS, OFTEN REFERRED TO AS "RIGHTS OF PASSAGE OR ROP, ARE WHERE YOUNG MEN AND WOMEN TAKE THEIR BOLDEST STEPS TOWARD INDEPEND ... (More)


$1,605,631

Spent in most recent FY

16%

Percent of program expenses


COMMUNITY SERVICE CENTER - THE NEWARK AND ATLANTIC CITY COMMUNITY SERVICE CENTERS (CSC) ARE THE CORE OF OUR SERVICE PROVISION IN NORTH AND SOUTH JERSEY. THERE, WE PROVIDE AN ARRAY OF IMPORTANT SUPPORT ... (More)


...   Leadership & Adaptability


This score provides an assessment of the organization's leadership capacity, strategic thinking and planning, and ability to innovate or respond to changes in constituent demand/need or other relevant social and economic conditions to achieve the organization's mission.


Leadership & Adaptability Score

100

out of 100

The score earned by Covenant House New Jersey is a passing score.

Encompass Rating V4 provides an evaluation of the organization's Leadership & Adaptability through the nonprofit organization submitting a survey response directly to Charity Navigator.


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Leadership & Adaptability Report

100

of 100 points

Mission

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission


In 31 cities across six countries, Covenant House builds bridges to hope for young people facing homelessness and survivors of human trafficking, meeting their immediate needs for food, clothing, protection, and medical care, and supporting them to advance their goals of education and employment. Covenant House encompasses a robust network of "houses," with best-in-class services and a shared commitment to unconditional love, absolute respect, and relentless support for each young person who walks through our doors. Founded as a drop-in center in New York City in 1972, Covenant House now serves tens of thousands of children and youth every year in our residential, outreach, and drop-in programs. Our dedicated staff across the United States, Guatemala, Honduras, Mexico, Nicaragua, and Canada employ a strengths-based, trauma-informed practice model that helps young people discover and develop their resilience to overcome adversity now and into the future.


Source: Nonprofit submitted responses

Vision

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.


We seek to bring high-quality housing and supportive services to youth experiencing homeless and to help to put an end to youth homelessness.


Source: Nonprofit submitted responses

Strategic Goals

The nonprofit organization presents evidence of strategic thinking and goal setting through sharing their most important strategic goals.


Goal One: Increase capacity to provide the highest quality services by providing trauma-informed, resilience-oriented services through staff training.

Goal Type: Focus on core programs to achieve mission and scale back on programs not seen as core.


Goal Two: Improve our intentional messaging to the community to ensure that our internal and external community are connected to the goals, objectives and operations of the organization.

Goal Type: Invest in the capacity of our organization (financial, management, technical, etc.).


Goal Three: Accelerate the development of our next generation of leaders in order to foster workplace satisfaction and create a sustainable, experienced workforce.

Goal Type: Grow, expand, scale or increase access to the existing programs and services.


Source: Nonprofit submitted responses

Leadership Development

The nonprofit provides evidence of investment in leadership development


Describe an investment in leadership

Over the last 12-18 months, we have invested in leadership development within the organization. We created a COVID-19 Task Force that meets weekly with representatives across all departments and locations in order to foster community, collaboration and inclusiveness across the strategy and management of all aspects of our organizational response to the global pandemic. Additionally, we created the Diversity, Equity & Inclusion Task Force to lead a holistic commitment to racial justice, and proactively promote anti-racism, diversity, equality, and inclusion in our organization and our community. Racism has caused our youth to be routinely marginalized and denied access to quality education, employment, and housing. We are working together to develop concrete outcomes that will provide growth, change, and healing opportunities. Our leadership all participate in our annual supervisor training sessions to ensure quality care of our employees.

Source: Nonprofit submitted responses

Mobilizing for Mission

The nonprofit provides evidence of leadership through focusing externally and mobilizing resources for the mission.


This organization mobilizes for mission in the following ways:
  • Strategic Partnerships

  • Networks of Collective Impact Efforts

  • Thought Leadership

  • Raising Awareness

  • Community Building

What are this organization’s external mobilizaton efforts?

Covenant House New Jersey recognizes the importance of its partners in the work that we do. These include partnerships with donors, volunteers, corporations, other service providers, government entities and the young people we serve. We have a robust volunteer program offering both in-person and virtual volunteering opportunities. We focus on corporate engagement to connect corporations with meaningful experiences as they work to make contributions in the community. Our anti-human trafficking work has been published in textbooks and journals. Our leadership our represented on both local and state level collaboratives to ensure that the unique issue of youth homelessness is part of the conversation.

Source: Nonprofit submitted responses

Story of Adaptability

The nonprofit has an opportunity to tell the story of how the organization adapted to tremendous external changes in the last year.


Over the last year Covenant House New Jersey adapted to the changing landscape of the environment within which we operate. In response to the global pandemic we had to adapt aspects of our service delivery to ensure the health and safety of the young people we serve and the staff who serve them . We also had to adapt our fundraising and development strategy and fully embrace the virtual space to connect our supporters to our mission in both our events and individual relationships. We pivoted our Human Resources Department to manage all stages of the recruitment, hiring and onboarding process to be conducted virtually in order to ensure that there was no disruption to any staff needs as we remained operational. Additionally, we created the Diversity, Equity & Inclusion Task Force to lead a holistic commitment to racial justice, and proactively promote anti-racism, diversity, equality, and inclusion in our organization and our community. Racism has caused our youth to be routinely marginalized and denied access to quality education, employment, and housing. We are working together to develop concrete outcomes that will provide growth, change, and healing opportunities.

Source: Nonprofit submitted responses

...   Culture & Community


This score provides an assessment of the organization's engagement with the constituents it serves, a practice we term Constituent Feedback. When organizations listen to constituents, they are able to better deliver on programs and meet the needs of stakeholders. A future version of this Beacon will also assess an organization's people operations and its Diversity, Equity and Inclusion (DEI) metrics.


Culture & Community Score

100

out of 100

The score earned by Covenant House New Jersey is a passing score.

Encompass Rating V4 provides an evaluation of an organization's Culture and Community by measuring its Constituent Feedback practices (see report below). Constituent Feedback data provides 100% of the basis for the initial evaluation of the Culture & Community Beacon.


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Culture & Community Report

100

of 100 points

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Constituent Feedback

Constituent Feedback

Full Credit


This organization reported that it is collecting feedback.


Here's how this organization is listening and learning from the people they serve:


How is your organization collecting feedback from the people you serve?

Note: The organization did not respond to this question.


How is your organization using feedback from the people you serve?

Note: The organization did not respond to this question.


With whom does your organization share the feedback you got from the people you serve?

Note: The organization did not respond to this question.


What challenges does your organization face in collecting feedback from the people you serve?

Note: The organization did not respond to this question.


Briefly describe a recent change that your organization made in response to feedback from the people you serve.

Note: The organization did not respond to this question.



Methodology


Charity Navigator believes nonprofit organizations that engage in inclusive practices, such as collecting feedback from the people and communities they serve, may be more effective. We've partnered with GuideStar by Candid to survey organizations about their feedback practices. Nonprofit organizations can fill out the How We Listen section of their Candid profile to receive a rating.


Charity Navigator awards full credit for this Beacon to every nonprofit that is eligible for an Encompass Rating that completes the survey, in recognition of their willingness to publicly share this information with the nonprofit and philanthropic communities. This data is not evaluated for quality at this time. Validation will be added in future iterations of this Beacon.

Analysis and Research


Like the overall Encompass Rating System, the Culture & Community Beacon is designed to evolve as metrics are developed and ready for integration. Our partnership with Feedback Labs and Guidestar by Candid, and other partners including Fund for Shared Insight, GlobalGiving, and Keystone Accountability, enables us to launch the first version of this beacon with Constituent Feedback information collected on Candid's site.


Feedback practices have been shown to support better Diversity, Equity, and Inclusion outcomes, an essential area of assessment that we intend to further expand and develop in the future. Feedback Labs has documented several studies which indicate that beyond achieving organizational goals, nonprofits that are attentive and responsive to concerns and ideas raised by beneficiaries establish stronger relationships with the people they serve, promote greater equity, and empower constituents in ways that can help to ensure better long-term outcomes. You can find resources to help nonprofits improve their feedback practices here.

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