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

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

Source: IRS Form 990

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

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

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

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

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

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.

This organization is receiving zero points for both financial metrics (Liabilities to Assets Ratio and Program Expense Ratio) due to their Program Expense Ratio being under 50%.

Source: IRS Form 990

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.

Good financial stewardship goes beyond financial metrics, and includes effectively using funds in pursuit of the declared mission. Organizations that spend less than half of their budget on programs are probably not adequately pursuing their mission. For this reason, our methodology applies zero points to both financial metrics in cases where the Program Expense ratio is under 50%

Source: IRS Form 990

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

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

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 search for this organization's Forms 990 on the IRS website (if any are available). Simply enter the organization's name (The Hyogo Business & Cultural Center) or EIN (911481060) in the 'Search Term' field.