Mission: LIGHTHOUSE MI ENDEAVORS TO BUILD EQUITABLE COMMUNITIES AND ALLEVIATE POVERTY IN PARTNERSHIP WITH AND IN SERVICE TO INDIVIDUALS, FAMILIES, AND ORGANIZATIONS.

Lighthouse MI is a 501(c)(3) organization, with an IRS ruling year of 1989, and donations are tax-deductible.

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Contact Information

  www.lighthousemi.org

  46156 WOODWARD AVE
Pontiac MI 48342-5033



...  ...  ...  ...  

Encompass Rating System by Charity Navigator


Overall Score

88

out of 100

This charity's score is a passing score.
This overall score is calculated from multiple beacon scores: 35% Finance & Accountability, 50% Impact & Results, 10% Leadership & Adaptability, and 5% Culture & Community


Learn about the Encompass Rating System: Overview | FAQ | Release Notes

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...   Finance & Accountability


This score provides an assessment of a nonprofit's financial health (stability, efficiency and sustainability) and its commitment to governance practices and policies.


Finance & Accountability Score

100

out of 100

The score earned by Lighthouse MI is a passing score

This V5 of the Finance & Accountability Score provides a baseline measure of an organization’s health including the indicators listed in the report below.

This score represents Form 990 data from 2020, the latest year electronically filed and published by the IRS.



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Finance & Accountability Report

100

of 100 points

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Program Expense

Program Expense Ratio

76.76%

Higher effect on score

More data  


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.


Program Expense Percentage

Amount of Credit Received

70% or higherFull Credit
60% - 69.9%Partial Credit
Below 50%Zero Points for Both Program Expense percentage AND Liabilities to Assets

Source: IRS Form 990

Board Composition

26/27 Independent

Higher effect on score


Charity Navigator looks for at least 3 board members, with more than 50% of those members identified as independent (not salaried).


The presence of an independent governing body is strongly recommended by many industry professionals to allow for full deliberation and diversity of thinking on governance and other organizational matters.


Source: IRS Form 990

Independent Audit or Financial Review

Audited

Higher effect on score


An Audit, Review, or Compilation provides important information about financial accountability and accuracy. Organizations are scored based on their Total Revenue Amount:

Total Revenue Amount

Expectation to Receive Credit

$1 million or higherExpected to complete an audit
$500,000 - $1 millionExpected to complete an audit, review, or compilation
Less than $500,000No expectation (removed from scoring methodology)

Source: IRS Form 990

Liabilities to Assets Ratio

24.10%

Lower effect on score


The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990). This ratio is an indicator of an organization’s solvency and/or long-term sustainability.

Liabilities to Assets Ratio

Amount of Credit Received

Less than 50%Full Credit
50% - 59.9%Partial Credit
60% or moreNo Credit

Source: IRS Form 990

Website

Listed

Lower effect on score


Charity Navigator looks for a website on the Form 990 as an accountability and transparency metric.


Nonprofits act in the public trust and reporting publicly on activities is an important component.


Source: IRS Form 990

Conflict of Interest Policy

Listed

Lower effect on score


Charity Navigator looks for the existence of a conflict of interest policy on the Form 990 as an accountability and transparency measure.


This policy protects the organization and by extension those it serves, when it is considering entering into a transaction that may benefit the private interest of an officer, director and/or key employee of the organization.


Source: IRS Form 990

Board Meeting Minutes

Documented

Lower effect on score


Charity Navigator looks to confirm on the Form 990 that the organization has this process in place as an accountability and transparency measure.


An official record of the events that take place during a board meeting ensures that a contemporaneous document exists for future reference.


Source: IRS Form 990

Document Retention and Destruction

Listed

Lower effect on score


Charity Navigator looks for the existence of a document retention and destruction policy per the Form 990 as an accountability and transparency measure.


This policy establishes guidelines for the handling, backing up, archiving and destruction of documents. These guidelines foster good record keeping procedures that promote data integrity.


Source: IRS Form 990

Whistleblower Policy

Listed

Lower effect on score


Charity Navigator looks for the existence of a whistleblower policy per the Form 990 as an accountability and transparency measure.


This policy outlines procedures for handling employee complaints, as well as a confidential way for employees to report financial or other types of mismanagement.


Source: IRS Form 990

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 up to five of this organization's highest compensated employees. 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 Form W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting



RYAN HERTZ, PRESIDENT & CEO

$155,425


RUSSELL RUSSELL, EMPLOYEE

$110,150


RICHARD LEWNAU, VICE CHAIR

$0


JIM CIROLI, TREASURER

$0


JACKIE BUCHANAN, SECRETARY

$0


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:

Supplying money, goods or services to the poor (BMF activity code: 560)


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.


Lighthouse MI reported being impacted by COVID-19 in the following ways:
  • Program Delivery

  • Fundraising Capacity


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

The community stepped in to help provide funds during the pandemic, which allowed the Lighthouse team to provide emergency support to thousands in need. The organization was also able to host fundraising events virtually.


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

The COVID-19 pandemic changed how many programs were run. First, our emergency shelter had historically been a rotating shelter model. To ensure social distancing and the safety of our clients and volunteers, the program was moved to area motels. Additionally, the capacity of the shelter has quadrupled. Additionally, our food distribution program has increased significantly. Before the pandemic, Lighthouse's food pantries provided food to approximately 225 individuals each week. The organization is now providing emergency food to 5,000 individuals a week.


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

Lighthouse stepped in to help the community immediately - greatly increasing the number of individuals we were providing emergency shelter and food supplies to. Lighthouse partnered with local organizations in Oakland County to create the COVID-19 Emergency Response Team to provide assistance to those in need.


Innovations the organization intends to continue permanently after the pandemic:

Lighthouse has seen the great need for emergency support in our community. Therefore, we expect to continue our increased food distribution efforts beyond the pandemic. Additionally, Lighthouse is working on ways to expand our emergency shelter efforts moving forward, as there are not enough shelter beds in Oakland County to keep up with the need.


...   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

75

out of 100

Lighthouse MI is cost-effective, earning a passing score.


Impact

$40 provides a night of shelter for a person experiencing homelessness.



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Impact & Results Report

75

of 100 points


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Rated Program

Rated Program


Program

Emergency Shelter

Activities

The nonprofit provides people experiencing homelessness with a temporary place to stay.

Program Type

Emergency Shelter

Beneficiaries Served

People experiencing homelessness; Adults; Men; Women; Families

Program Geography

Oakland County, MI

Time Period of Data

7/1/16 to 6/30/17


Learn how we assess the impact of nonprofits

Outcomes and Cost

Outcomes: Changes in the lives of those served by a nonprofit. They can be caused by the nonprofit.

Costs: The money spent by a nonprofit and its partners and beneficiaries.

Impact: Outcome caused by a nonprofit relative to its cost.

Cost-effectiveness: A judgment as to whether the cost was a good use of resources to cause the outcome.


Outcome Metric

A night of shelter for a person experiencing homelessness


Outcome Data Source

Ratings are based on data the nonprofit itself collects on its work. We use the most recent year with sufficient data. Typically, this data allows us to calculate direct changes in participants' lives, such as increased income.


We look for self-reported shelter nights. If we cannot find this information we estimate it using HIC data.


Method for Attributing Outcomes

We don't know if the observed changes were caused by the nonprofit's program or something else happening at the same time (e.g., a participant got a raise). To determine causation, we take the outcomes we observe and subtract an estimate of the outcomes that would have happened even without the program (i.e., counterfactual outcomes).


We assume that the provision of shelter by one nonprofit does not diminish the provision of shelter by any other (neighboring) nonprofit. We also assume there is, in general, no slack capacity in the homeless shelter system. In the absence of a given shelter, beneficiaries would not be able to stay at another shelter because other shelters are assumed to have no beds to spare. We therefore set the counterfactual to zero.


Cost Data Source

After estimating the program's outcomes, we need to determine how much it cost to achieve those outcomes. All monetary costs are counted, whether they are borne by a nonprofit service deliverer or by the nonprofit’s public and private partners.


Program cost data reported by the nonprofit. Partner and beneficiary costs reported by the nonprofit or estimated by Charity Navigator.


Cost Calculation

$510,706 program costs + $0 partner costs + $0 beneficiary costs = $510,706 total costs


Impact and Determination

We calculate impact, defined as the change in outcomes attributable to a program divided by the cost to achieve those outcomes.

Impact Calculation

$510,706 total costs / 12,578 nights of shelter provided = roughly $40 provides a night of shelter for a person experiencing homelessness.

Benchmark for Rating

Impact & Results scores of emergency shelters are based on the cost of providing a night of shelter relative to the Fair Market Rent in that county. Programs receive an Impact & Results score of 100 if they are less than 200% the Fair Market Rent and a score of 75 if they are less than 400%. If a nonprofit reports impact but doesn't meet the benchmark for cost-effectiveness, it earns a score of 50.

Determination

Cost-effective

Nonprofit Comment

Before publishing, we ask every nonprofit we can to review our work, offer corrections and provide a comment.


This nonprofit did not provide a comment

Analysis Details


Analysis conducted in 2019 by ImpactMatters. An analyst searched the Form 990s, annual reports, audited financials and the website of the nonprofit to calculate impact and rate cost-effectiveness. A second analyst conducted quality control.

Additional Information

Unscored

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Largest Programs

Largest Programs



Lighthouse MI reported its three largest programs on its FY 2020 Form 990 as:


$2,865,025

Spent in most recent FY

67%

Percent of program expenses


SOUTH OAKLAND SHELTER'S EMERGENCY SHELTER PROGRAM PROVIDES LODGING, MEALS, TRANSPORTATION AND CASE MANAGEMENT TO MEN, WOMEN AND CHILDREN. IN 2019/2020, WE PROVIDED 297 INDIVIDUALS WITH 14,157 NIGHTS O ... (More)


$1,308,650

Spent in most recent FY

30%

Percent of program expenses


SOUTH OAKLAND SHELTER IMPLEMENTS HOUSING-FIRST PROGRAMMING THAT MOVES PEOPLE FROM HOMELESSNESS TO LONG-TERM STABILITY. HOUSING PROVIDES THE FOUNDATION FOR WHICH INDIVIDUALS AND FAMILIES CAN ACCESS THE ... (More)


$97,085

Spent in most recent FY

2%

Percent of program expenses


ALL CLIENTS WHO SUCCESSFULLY SECURE HOUSING MAY PARTICIPATE IN SOUTH OAKLAND SHELTER'S FOLLOW-UP CARE PROGRAM. FOLLOW-UP CARE CASE MANAGERS PROVIDE IN-HOME CASE MANAGEMENT SERVICES FOR ONE FULL YEAR T ... (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 Lighthouse MI 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


Lighthouse endeavors to build equitable communities and alleviate poverty in partnership with and in service to individuals, families and organizations.


Source: Nonprofit submitted responses

Vision

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


Our vision for Lighthouse reflects pursuit of our core purpose and values - the alleviation of poverty in Southeast Michigan. Our clients see us as family, giving them the comfort and confidence that someone genuinely cares and is concerned over their well-being, someone they can trust and who offers them much more than a box of food or shelter for the night. Our clients confidently look at us for compassionate service, for community, and a path to a more fulfilling life. Our vision includes clients who frequently become volunteers; volunteers who become staff, management, and board members. We value building long-term, meaningful relationships by listening to our clients, partners, funders, and other stakeholders. We continuously engage in dialogue and then adapt to fill identified faps and offer services that meet the unique and changing needs of our clients and the local community.


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: Advocacy - Engage and educate our community on the importance of poverty alleviation, and champion policies that reduce barriers for struggling families and individuals to succeed.

Goal Type: This goal reflects our commitment to further our advocacy work for our organization and or cause area.


Goal Two: Housing & Shelter - Increase capacity of temporary & permanent housing solutions for anyone experiencing homelessness, & increase housing affordability for low- to mid-income families and individuals.

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


Goal Three: Food Security - Increase capacity, supply, and selection of emergency food so that no household goes hungry in our community.

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

Lighthouse's Executive Team has begun working with The Bridgespan Group to develop a plan for all leaders within the organization. Goals are to provide a development plan to improve upon leadership competencies and core/role competencies.

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

What are this organization’s external mobilizaton efforts?

Lighthouse leadership is committed to working together with local organizations and experts in the field to work towards our mission of building equitable communities and alleviating poverty. In addition to partnerships and external communications, Lighthouse leadership also serve on multiple councils or task forces related to our mission. Lighthouse's CEO, Ryan Hertz was appointed by Gov. Gretchen Whitmer to the Michigan Interagency Council on Homelessness.

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.


At the start of the pandemic, Lighthouse leadership knew that the need in the community was growing quickly, as many families were out of work and more and more individuals were calling us for help. We immediately began planning on how to meet this increased need. Lighthouse has gone from serving 225 individuals a week with emergency food at two food pantry locations to serving over 5,000 individuals a week regularly now. In addition to the two original food pantries, Lighthouse has opened up a packing and distribution warehouse, began a food delivery program to get food to clients' homes, and began doing distributions at sites across the county, including multiple partner congregations.

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 Lighthouse MI 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

This beta feature is currently viewable only on desktop or tablet screens. Check back later for updates.

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?

SMS text surveys, Electronic surveys (by email, tablet, etc.), Focus groups or interviews (by phone or in person), Paper surveys, Case management notes, Community meetings or town halls


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

To identify and remedy poor client service experiences, To identify bright spots and enhance positive service experiences, To make fundamental changes to our programs and/or operations, To inform the development of new programs/projects, To identify where we are less inclusive or equitable across demographic groups, To strengthen relationships with the people we serve


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

The people we serve, Our staff, Our board, Our funders, Our community partners


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

It is difficult to get the people we serve to respond to requests for feedback


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

The agency’s telephone system was redesigned so that clients now dial one telephone number in order to be connected with any of the agency’s resources or supportive services. Before, clients or potential clients would have to call specific departments, each with their own unique telephone number, to gain assistance. Clients stated this process, when they were already in crisis, left them feeling overwhelmed and frustrated. In response, a centralized telephone system was created and now clients dial one telephone number and can respond to either phone prompts or speak to a live individual for assistance with any of our services.



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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