Mission: Methodist Children's Home (MCH) is a childcare ministry affiliated with the six United Methodist Annual Conferences of Texas and New Mexico. Founded in 1890, MCH began as an orphanage and has developed into a comprehensive program of care. MCH serves annually more than 6,000 children, youth and families through residential care, a Boys Ranch, foster care, in-home services to strengthen the family and a transition living program. The mission of MCH is to equip children, youth and families to flourish by offering hope through Christ-centered relationships, services and support.

Methodist Children's Home is a 501(c)(3) organization, with an IRS ruling year of 1942, and donations are tax-deductible.

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Contact Information

  http://www.mch.org/

 1111 Herring Avenue
Waco TX 76708 

  800-853-1272


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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 90.15, 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

80.0%


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

12.7%


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

7.2%


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

0.7%


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

$0.19


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

18.69 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

-1.22%


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.
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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 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



TIM BROWN, PRESIDENT/CEO

$272,827


MARK DOZIER, VP FOR PROGRAMS

$192,905


LON TREY OAKLEY, PRESIDENT/CEO

$188,406


JUDY BROADWAY, VP FOR HUMAN RESOURCES

$174,995


JULIE MITCHELL, VP FOR FINANCE/CEO

$172,572


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:

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

Combat juvenile delinquency (BMF activity code: 328)

Other school related activities (BMF activity code: 059)


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.


Methodist Children's Home reported being impacted by COVID-19 in the following ways:
  • Program Delivery

  • Fundraising Capacity

  • Revenue

  • Staffing

  • Grants Received

  • Grants Sent

  • Balance Sheet


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

Soliciting donor support is traditionally most effective when conducted in-person. However, due to pandemic conditions and safety precautions, almost all fundraising events and activities shifted to virtual meetings and online campaigns. Donations during July 1st, 2020 – June 30th, 2021 in support of the annual budget, endowment, capital campaign and other non-budgetary fundraising projects totaled $10,433,899. Most noteworthy is the increase in annual budget support, donor acquisition, donor retention, and online gifts. Thanks to technological resources, online, mail and phone call cultivation strategies, and the contributions from generous donors, MCH exceeded all fundraising goals. These positive fundraising results and revenue received through the PPP loan were crucial in the organization’s ability to employ a full staff and prevent a disruption of services.


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

Services moved as remote as possible to keep clients and staff safe. This required technology purchases to allow clients and staff to have access to laptops, remote hot spots, and other resources for remote work and services. As shelter-at-home protocols were ordered in many areas, staff in MCH Family Outreach offices across Texas and New Mexico served families as they would in the event of a natural disaster, such as a hurricane. The quick response and continuing needs led to an escalation of services from the 13 outreach offices. Offices increased the availability of parenting classes and hosted online resources and community fairs. MCH staff also increased their in-person visits to client families to provide socially distanced time for families sheltering at home. Case managers traveled with lawn chairs and boxes of essential supplies for outdoor visits. Staff and clients living in residential homes moved to all online education and homes were quarantined as necessary.


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

All programs and services received assessment to ensure best processes were in place. MCH was able to conduct work groups and collaborate effectively online and produced a strategic plan, comprised of staff input across the agency. MCH implemented a screening protocol for youth in care. MCH also developed extensive procedures and guidelines that met licensing and health regulations and recommendations. Staff support and safety measures were created, including: furloughed staff at 100% pay; extended COVID-19 Support Pay; extended flexible remote working options; health and safety protocols, procedures and training; access to technology and learning resources. A COVID-19 resource page was constructed. From this platform, employees could access messages related to actions being taken, procedures and organizational changes. In all MCH facilities and activities, screening measures continued to be enforced to maintain the health and safety of MCH youth and staff.


Innovations the organization intends to continue permanently after the pandemic:

MCH implemented the Staff of Standby (SOS) program. The SOS program is designed for employees who do not serve in direct childcare roles but want to support the residential childcare program. Through the SOS program, MCH was able to help alleviate some of the additional burdens placed on frontline staff and utilize employees to lend support for approved childcare projects outside their normal job roles. This program is continuing as an additional way to continue supporting frontline staff. Remote work was implemented as job duties allowed. This flexible work schedule is continuing across areas of the agency when applicable. This has provided additional opportunities for employment across Texas and New Mexico. MCH also created a “Year of Innovation” appreciation bonus for the special efforts and work ethic employees demonstrated throughout the pandemic. Bonuses have continued to be provided to staff as recognition for above-and-beyond work being done across the agency.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
6/1/20202019 90.15
10/1/20192018 92.41
6/1/20182017 93.04
7/1/20172016 91.51
8/1/20162015 89.79
7/1/20162015 89.41

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.

6/1/20162014 90.98
Rating Version: 2.0
9/1/20152014 90.16
7/1/20142013 90.93
6/1/20132012 87.08
2/1/20132011 80.03
8/1/20122011 72.05
11/1/20112010 86.95
9/20/20112009 91.27
Rating Version: 1.0
11/1/20102009 90.42
9/1/20092008 89.67
10/1/20082007 89.81
6/1/20082006 82.25
3/1/20062005 86.83
1/5/20052004 77.92
1/1/20042003 77.97
10/15/20022002 73.97

...   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

Methodist Children's Home 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 Methodist Children's Home? Join the waitlist for an updated Impact & Results score.


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Additional Information

Unscored

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Largest Programs

Largest Programs



Methodist Children's Home reported its three largest programs on its FY 2020 Form 990 as:


$11,403,974

Spent in most recent FY

54%

Percent of program expenses


RESIDENTIAL GROUP CARE YOUTH (GENERALLY) AGES 11-18 ARE PROVIDED WITH CARE THAT ENABLES THEM TO EXPERIENCE LIFE TO THE FULLEST. BY BUILDING RELATIONSHIPS WITH CARING AND PROFESSIONAL STAFF MEMBERS, RE ... (More)


$7,841,342

Spent in most recent FY

37%

Percent of program expenses


FAMILY OUTREACH PROGRAMS MCH FAMILY OUTREACH OFFERS HOPE TO THOUSANDS OF CHILDREN AND THEIR FAMILIES EACH YEAR IN 13 LOCATIONS THROUGHOUT TEXAS AND NEW MEXICO THROUGH FAMILY SUPPORT, FOSTER CARE AND F ... (More)


$1,362,072

Spent in most recent FY

6%

Percent of program expenses


TRANSITION SERVICES - YOUNG ADULT AGES 18-25 ARE ASSISTED WITH PREPARATION FOR COLLEGE, VOCATIONAL SCHOOL, OR EMPLOYMENT IN ORDER TO MAKE A SUCCESSFUL TRANSITION INTO INDEPENDENT LIVING. STAFF WORK WI ... (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 Methodist Children's Home 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


We equip children, youth and families to flourish by offering hope through Christ-centered relationships, services and support.


Source: Nonprofit submitted responses

Vision

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


We empower all we serve to experience life to the fullest.


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: Focus on Continuum of Care

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


Goal Two: Focus on Organizational Culture & Communication

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


Goal Three: Focus on Funding, Stewardship & Collaboration

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


Source: Nonprofit submitted responses

Leadership Development

The nonprofit provides evidence of investment in leadership development


Describe an investment in leadership

Over the past 18 months, MCH has undergone several structural changes which have provided us the opportunity to create new leadership positions and invest in additional staff and growth opportunities. MCH has also created a series of Five-Star Service appreciation bonuses for employees who demonstrated exemplary service while providing the highest level of care to those served. A foundational job training for case managers across the agency was implemented that included organizational knowledge; program and service overviews and responsibilities; job roles, skills and expectations; best practices and evidence-based model research; ethics; communication and documentation procedures; and, new agency initiatives. MCH coordinated with a lawyer in the Waco community to develop a supervisor training focused on health-related workplace laws, including Health Information Portability and Accountability Act (HIPPA), Americans with Disabilities Act (ADA) and Family and Medical Leave Act (FMLA).

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

  • Policy Advocacy

What are this organization’s external mobilizaton efforts?

MCH collaborates with One Heart Project, an evidence-based mentoring program. MCH received the TBRI Ambassador Organization Distinction from the KPICD at Texas Christian University for MCH’s experience in trauma-informed care. MCH is one of four agencies in the world to receive this designation. Staff present at the CORE Conference, TCCA Conference, NASW Conference, UMA Meeting, and PIP Conference. MCH provides emergency behavior intervention training for staff at The COVE, a homeless shelter for teens in Waco, TX. Staff are members of the National Association of Social Workers, Coalition of Residential Excellence, Texas Coalition of Homes for Children, and Texas Alliance of Child and Family Services. We partner with TACFS, CORE and TCHC for local, state, and federal policy advocacy. MCH conducts marketing through a website, Facebook, Instagram, Twitter, Pinterest, YouTube, billboards, bench ads, news articles, speaking engagements, and printed materials.

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.


COVID-19 was the biggest external change that affected MCH. The organization approached the pandemic as an opportunity to find innovative ways to provide care to children, youth and families across Texas and New Mexico. Residential programs made significant changes to ensure the safety of clients and staff living on campus. MCH implemented a screening tool in order to screen youth before returning from home visits. Likewise, drive-through nursing screenings allowed for safe social distancing while continuing to focus on the health and well-being of those in care. In order to continue providing residents with activities, clients participated in outdoor events by home to allow social distancing for recreation, learning, and development. End of school year celebrations transitioned to an outdoor senior parade as well as in-home parties to enable students to experience normalcy while staying safe. MCH shifted resources to focus on services provided remotely. Staff conducted drive by check-ins with clients, dropping items off at their home and on their porches, to maintain proper safety and social distancing. By utilizing technology, MCH provided online case management services, parenting classes, foster home trainings, and other services while maintaining best practice protocols throughout the pandemic. All essential and regularly-occurring team meetings were moved online, and MCH transitioned much of its funding, such as travel budgets, to provide financial flexibility to offer services in new and innovative ways. MCH encountered several changes to state licensing regulations and laws. Licensing monitoring increased significantly, along with changing rules and regulations. MCH quickly adapted to this changing environment and created a new position to focus on these shifts in policy. This new position, the Clinical and Compliance Program Administrator is focusing on compliance across the agency to ensure MCH services meet or exceed licensing and contracting standards.

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

Not Currently Scored

Methodist Children's Home is currently not eligible for a Culture & Community score because we have not received its Constituent Feedback data. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.

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.


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Culture & Community Report

Unscored

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Constituent Feedback

Constituent Feedback


Constituent Feedback and Listening Practice data are not available for this organization. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.


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 award every nonprofit that completes the Candid survey full credit for this Beacon, in recognition of their willingness to publicly share this information with the nonprofit and philanthropic communities. Although the data is not evaluated for quality at this time, future iterations of this Beacon will include third party or other data that will serve to validate the information provided by the nonprofit.

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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