Mission: Homeboy Industries assists at-risk and formerly gang-involved youth to become positive and contributing members of society through job placement, training and educat ... (More)
Homeboy Industries is a 501(c)(3) organization, with an IRS ruling year of 2001, and donations are tax-deductible.
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Important note on the timeliness of ratings
The IRS is significantly delayed in processing nonprofits' annual tax filings (Forms 990). As a result, the Financial and Accountability & Transparency score for Homeboy Industries is outdated and the overall rating may not be representative of its current operations. Please check with the charity directly for any questions you may have.
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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.
Good
This charity's score is 89.68, earning it a 3-Star rating. Donors can "Give with Confidence" to this charity.
This score is calculated from two sub-scores:
Finance: 85.97 View details
Accountability & Transparency: 96.00 View details
This score represents Form 990 data from 2019, the latest year published by the IRS.
View this organization’s historical ratings.
Star Rated Report
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Program Expense Ratio
77.9%
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
12.4%
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
9.6%
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
16.6%
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
$0.11
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
0.72 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
4.50%
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:
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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.
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| 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 can be reluctant to contribute to a charity when their name, address, or other basic information may become part of donor lists that are exchanged or sold, resulting in an influx of charitable solicitations from other organizations. Our analysts check the charity's website to see if the organization has a donor privacy policy in place and what it does and does not cover. Privacy policies are assigned to one of the following categories:
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
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 Form W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting
Gregory Boyle, Executive Director
$81,937 (0.46% of Total Expenses)
Andrew Platt, Information Technology Director
$104,344 (0.58% of Total Expenses)
Arlin Crane, Director of Social Enterprises
$139,457 (0.77% of Total Expenses)
Thomas Vozzo, CEO
$0 (0.00% of Total Expenses)
Francis Hota, CFO
$104,344 (0.58% of Total Expenses)
Current CEO and Board Chair can be found in the Leadership & Adaptability report below.
Source: IRS Form 990 (page 7), filing year 2019
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:
Activity data not reported from the IRS
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.
Homeboy Industries reported being impacted by COVID-19 in the following ways:
Program Delivery
Revenue
How COVID-19 impacted the organization's operations financially:
In 2020, Homeboy’s budgeted revenue was projected to be $21.3 million. With the COVID-19 crisis, we forecasted a $3 million loss in revenue from our social enterprise businesses and a $2 million loss from fundraising—mainly because we had to cancel our largest fundraising event of the year, Lo Maximo, set for April 2020. To make up for these losses, we pursued COVID-19 relief funding through foundation grants, corporate grants, and government sources as they became available, and we stayed connected with our major donors. We also were fortunate to receive $1.7 million from the Paycheck Protection Program. As a result, we had a positive net income in 2020 and ended the year with a strong balance sheet and zero debt.
How COVID-19 impacted the organization's delivery of programs:
Initially, in response to COVID-19 and statewide shelter-in-place restrictions, we transitioned to virtual services for nearly 260 clients in our 18-month reentry program and their families. The move to virtual service delivery and online instruction was challenging for our community because most clients do not have high speed internet nor computers at home, and they mostly rely on cell phone service for their tech needs. To overcome this challenge, Homeboy Industries provided laptops and technology support to our trainees, helping minimize obstacles. Homeboy sustained all but one of our key programs (temporarily ceasing our Tattoo Removal program) and kept 90% of our program participants engaged throughout 2020. In June 2020, as an essential service provider, we reopened our doors practicing safety modifications. We remain adaptable with the ability to meet in-person, by phone, or by video conference as safety restrictions allow.
How this organization adapted to changing conditions caused by COVID-19:
As the COVID-19 pandemic heightened food insecurity, we recognized that our café could be redeployed to feed communities in need. We launched Feed HOPE to provide meals to food insecure citizens of Los Angeles. This new social enterprise is a win-win, providing jobs and meals to those in need. At a time when unemployment and food insecurity were at the highest levels our community had experienced in decades, Feed HOPE became a critical resource both for people who need jobs, and people who need food. We also noticed how COVID-19 was widening the digital divide among the population we serve. Families that relied on work, school, libraries, and other public places for computer and internet access are at an increasing disadvantage with regard to working/learning from home, applying for jobs, and more. So, our Homeboy Electronic Recycling team launched Connect HOPE; a 3-pronged program to fast track getting computers into the hands that need them most.
Innovations the organization intends to continue permanently after the pandemic:
While Feed HOPE was started in a crisis, we see this as a social enterprise business that will not only support Angelenos in need now, but also become an ongoing business that will continue well beyond the pandemic. Secondly, we intend to keep pursuing our pandemic-born Connect HOPE project through Homeboy Electronic Recycling. This program has been created to address the digital divide—an issue that will continue to affect the population we serve post-pandemic as well. The pandemic also informed the need of a robust technology operations team. With so many coworkers facing technological issues, and our headquarters needing significant support and modifications, we tripled our technology team from one member to three—both new members being internally promoted and coming from lived experience.
Historical Ratings
| Date Published | Form 990 FYE | Overall Score | Overall Rating |
| Rating Version: 2.1 | |||
| 10/1/2021 | 2019 | 89.68 | |
| 6/1/2021 | 2018 | 87.43 | |
| 6/1/2020 | 2018 | 84.83 | |
This organization received multiple star ratings within this fiscal year, due to an update to its Accountability and Transparency data and/or the receipt of an amended Form 990. | |||
| 4/1/2019 | 2017 | 81.86 | |
| 6/1/2018 | 2016 | 79.10 |  |
| 8/1/2017 | 2015 | 83.62 | |
| 2/1/2017 | 2014 | 80.01 | |
| 6/1/2016 | 2014 | 76.25 | |
| Rating Version: 2.0 | |||
| 8/1/2015 | 2013 | 80.38 | |
| 4/1/2014 | 2012 | 82.91 | |
| 4/1/2013 | 2011 | 82.96 | |
| 3/1/2012 | 2010 | 86.10 | |
| 9/20/2011 | 2009 | 82.95 | |
| Rating Version: 1.0 | |||
| 5/1/2011 | 2009 | 89.49 | |
| 6/1/2010 | 2008 | 85.46 | |
| 5/1/2009 | 2007 | 92.70 |  |
Previous: Finance & Accountability / Next: Leadership & Adaptability
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
Homeboy Industries 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.
Do you work at Homeboy Industries? Join the waitlist for an updated Impact & Results score.
Additional Information
Unscored
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Largest Programs
Homeboy Industries reported its three largest programs on its FY 2019 Form 990 as:
$4,775,670
Spent in most recent FY
35%
Percent of program expenses
Homeboy Bakery
$4,703,675
Spent in most recent FY
34%
Percent of program expenses
Job Training
$1,878,568
Spent in most recent FY
13%
Percent of program expenses
Workforce Development
Previous: Impact & Results / Next: Culture & Community
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 Homeboy Industries is a passing score. This score has no effect on the organization's Star Rating.
Encompass Rating V4 provides an evaluation of the organization's Leadership & Adaptability through the nonprofit organization submitting a survey response directly to Charity Navigator.
Leadership & Adaptability Report
100
of 100 points
Mission
The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission
Homeboy Industries provides hope, training, and support to formerly gang-involved and previously incarcerated people, allowing them to redirect their lives and become contributing members of our community.
Source: Nonprofit submitted responses
Vision
The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.
Our vision is anchored to our 2030 Ambition to change the way the world views, judges and treats our most marginalized and demonized – the formerly incarcerated and gang involved. We are what we hope the world will become – a community of kinship.
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: We strive to serve as many people in our population seeking help and transformation that we can. Our strategic plan outlines a goal of doubling our reach and impact over the next five years.
Goal Type: Grow, expand, scale or increase access to the existing programs and services.
Goal Two: We are committed to a service delivery model that resides in leveraging the talent and skills of people with lived experience as front-line service providers, and will continue to expand these hires
Goal Type: Invest in the capacity of our organization (financial, management, technical, etc.).
Goal Three: As we add services to grow our impact, we are seeking to expand our campus to provide more programming space and housing for our clients, 70% of whom meet the federal definition of homeless.
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
In partnership with a L.A. based foundation, Homeboy Industries has developed an executive training program for emerging leaders. The second cohort of leaders is receiving individual coaching from executive trainers from RHR International, a global talent development firm. Additionally, the program creates connections between these developing leaders and C-Suite professionals from other industries. These connections are anchored in case discussions on leadership challenges providing the opportunity for robust exchange and mentorship on leadership principles.
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
Community Building
Policy Advocacy
What are this organization’s external mobilizaton efforts?
We are an expert in the field of re-entry services and Alternatives To Incarceration (ATI). We are faced with a significant opportunity to expand our impact now that LA County has adopted a new paradigm that reflects Homeboy’s theory of change that moves towards eliminating jail and starting in a completely different place. Our clients possess the power and expertise needed to transform their communities to advocate for systemic change. We build power in emerging leaders through our Local Organizing Committee (LOC), creating a pathway for participants to advocate for their community. Our LOC connects with key decision makers to share their experiences with the criminal justice system and how conditions can improve to support healthy communities through a “Care First, Jails Last” paradigm. We focus on power-building activities such as civic education workshops on history of voting, the real-life impact of voting, voter registration 101, and ballot review.
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.
The pandemic has emboldened us to provide a greater impact to our community through the ongoing expansion of our 18-month reentry program, the launch of the Homeboy Art Academy, and the launch of the Youth Re-entry Center. As we expand our campus to provide essential healing services, work therapy, and job training to our clients, we continue to aspire to double our service impact over the next five years. This aspiration is connected to our ongoing priority to invest in and develop leaders in our organization with lived experience and central to our theory of change. We are in the process of building an internal training center for our staff, which will align human resource initiatives and social service teams to build best practices and elevate core competencies in the spaces of mental health, housing, and substance abuse. This multi-year initiative will bolster the trauma-informed lens of all practitioners as those with lived experience build expertise in constructing healthy communities. Additionally, we were able to take our annual Global Homeboy Network gathering virtual for 2020 and 2021. This gathering creates space for hundreds of like-minded organizations around the world to collaborate to enhance their change models and advocate for policy change that promotes healing and the formation of therapeutic communities in trauma-informed contexts.
Source: Nonprofit submitted responses
Additional Information
Unscored
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Organization Leadership
Thomas Vozzo
CEO
Pernille Spiers-Lopez
Chair
Previous: Leadership & Adaptability
Culture & Community
This score provides an assessment of the organization's culture and connectedness to the community it serves. Learn more about how and why we rate Culture & Community.
Culture & Community Score
Not Currently Scored
Homeboy Industries is currently not eligible for a Culture & Community score because we have not received its Constituent Feedback or Diversity, Equity, & Inclusion data. Nonprofit organizations are encouraged to fill out the How We Listen and Equity Practices sections of their Candid profile.
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.
Culture & Community Report
Unscored
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Diversity, Equity, & Inclusion
This organization has not provided information regarding the diversity, equity and inclusion (DEI) practices it is presently implementing. As such, the organization has not earned a score on this metric. Charity Navigator believes nonprofit organizations implementing effective DEI policies and practices can enhance a nonprofit's decision-making, staff motivation, innovation, and effectiveness.
Methodology
We are utilizing data collected by Candid to document and assess the DEI practices implemented by the organization. Nonprofit organizations are encouraged to fill out the Equity Strategies section of their Candid profiles to receive a rating.
Learn more about the methodology.
Constituent Feedback
Constituent Feedback and Listening Practice data are not available for this organization. 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.
Methodology
We've partnered with 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.
Learn more about the methodology.
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. Below you can find more information about the metrics we currently evaluate in this beacon and their relevance to nonprofit performance.
Constituent Feedback
Diversity, Equity, and Inclusion
