Habilitat, Inc.
Standards Not Met
- 16
- 17
Standards Not Met
Standards Legend
- Meets Standards
- Standards Not Met
- Did Not Disclose
- Review In Progress
- Unable to Verify
Standards For Charity Accountability
Governance
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Board Oversight
Oversight of Operations and Staff: Standard 1
Description
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fundraising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.The organization meets this standard.
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Board Size
Number of Board Members: Standard 2
Description
Soliciting organizations shall have a board of directors with a minimum of five voting members.The organization meets this standard.
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Board Meetings
Frequency and Attendance of Board Meetings: Standard 3
Description
An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.The organization meets this standard.
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Board Compensation
Compensated Board Members: Standard 4
Description
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.The organization meets this standard.
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Conflict of Interest
Conflict of Interest: Standard 5
Description
No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.The organization meets this standard.
Measuring Effectiveness
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Effectiveness Policy
Board Policy on Effectiveness: Standard 6
Description
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.The organization meets this standard.
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Effectiveness Report
Board Approval of Written Report on Effectiveness: Standard 7
Description
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.The organization meets this standard.
Finances
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Program Expenses
Program Service Expense Ratio: Standard 8
Description
Spend at least 65% of its total expenses on program activities.The organization meets this standard.
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Fundraising Expenses
Fundraising Expense Ratio: Standard 9
Description
Spending should be no more than 35% of related contributions on fundraising. Related contributions include donations, legacies, and other gifts received as a result of fundraising efforts.The organization meets this standard.
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Accumulating Funds
Ending Net Assets: Standard 10
Description
Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.The organization meets this standard.
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Audit Report
Financial Statements: Standard 11
Description
Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $1 million, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $1 million, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.The organization meets this standard.
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Detailed Expense Breakdown
Detailed Functional Breakdown of Expenses: Standard 12
Description
Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fundraising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.The organization meets this standard.
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Accurate Expense Reporting
Accuracy of Expenses in Financial Statements: Standard 13
Description
Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fundraising expenses or otherwise understate the amount a charity spends on fundraising, and/or overstate the amount it spends on programs will not meet this standard.The organization meets this standard.
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Budget Plan
Budget: Standard 14
Description
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fundraising, and administration.The organization meets this standard.
Fundraising & Info
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Truthful Materials
Misleading Appeals: Standard 15
Description
Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.The organization meets this standard.
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Annual Report
Annual Report: Standard 16
Description
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fundraising and administrative categories as in the financial statements, and (iii) ending net assets.Habilitat, Inc. does not meet this standard because:The financial review in its 2020-2021 annual report does not clearly provide the organization's program, fundraising and administrative expense totals; or ending net assets.
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Website Disclosures
Web Site Disclosures: Standard 17
Description
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.Habilitat, Inc. does not meet this standard because:Its website, habilitat.com, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include a link to the organization's most recent IRS Form 990. The most recent copy of the IRS Form 990 available on their website is for 2019.
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Donor Privacy
Privacy for Written Appeals & Internet Privacy: Standard 18
Description
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.The organization meets this standard.
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Cause Marketing Disclosures
Cause Related Marketing: Standard 19
Description
Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).The organization meets this standard.
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Complaints
Complaints: Standard 20
Description
Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fundraising practices, privacy policy violations and/or other issues.The organization meets this standard.
Conclusion
Habilitat, Inc. does not meet the following 2 Standards for Charity Accountability:
Standard 16: Annual Report - Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fundraising and administrative categories as in the financial statements, and (iii) ending net assets.
Habilitat, Inc. does not meet this standard because:The financial review in its 2020-2021 annual report does not clearly provide the organization's program, fundraising and administrative expense totals; or ending net assets.
Standard 17: Web Site Disclosures - Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.
Habilitat, Inc. does not meet this standard because:Its website, habilitat.com, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include a link to the organization's most recent IRS Form 990. The most recent copy of the IRS Form 990 available on their website is for 2019.
Habilitat, Inc. meets the remaining 18 Standards for Charity Accountability.
Purpose
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Year, State Incorporated
1971, HI
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Stated Purpose
To guide and empower individuals to make positive choices in their own lives.
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Also Known As:
All Kine Grindz, Habilitat Construction
Programs
Habilitat is a residentialrehabilitation facility licensed by the State of Hawaii, Department of Health. Habilitatis an alternative to the 12-step program and has understood for many years thata long-term drug treatment program alone is not enough to ensure long-termsuccess. Their vision is to teach people to live beyond addiction,incarceration and homelessness and graduation requires the completion of threemandatory, transitional phases. Habilitat is a large capacity treatment center,with 150 beds. The phases of Habiltat's treatment include:Treatment:“Treatment” is a highly structured phasewhere most of an individual’s inclinations, strengths and weaknesses areestablished. Residents are also encouraged to get-to-know each other andestablish healthy friendships. As the treatment phase progresses, time isconsumed by regular job functions, academics, seminars and encounter groups;leaving no time for non-constructive endeavors. The Treatment phase providesthe foundations of a new lifestyle, one focused on responsibility,self-reliance, self- awareness, confidence and commitment to change. Mostprospective residents come into Habilitat because they lack purpose and meaningin their lives or cannot cope with day-to-day pressures, anxieties anddisappointments. In the “treatment phase”, these residents are taught a new wayto deal with their feelings. Individuals will begin to develop regular sleepingand eating habits. Simple principles such as being on time, cleaning up afterthemselves and other seemingly simple tasks have to be relearned. Residents whodo not have their high school diploma or GED will be enrolled in Habilitat’sGED program and attend regular classes. It is a goal that everyone leaves theprogram with a high school diploma.Re-Entry:A resident advances to the Re-Entry phase of theprogram approximately six months after induction. At this stage much of thestructure found in the treatment phase has been reduced and the individual iscompelled to make gradual adjustments working toward self-reliance. In thisphase greater demands are placed on the individual, starting with vocationaltraining. Emphasis is placed on responsibility and accountability. At thispoint a resident is expected to cope with a normal workday agenda. From thispoint of the program residents are obliged to learn a practicable andmarketable skill. They earn a normal stipend and are taught to formulate abudget, as they would normally do in society.Contact with people andelements outside of the program becomes mandatory; thereby providing the exposureneeded while gradually re-entering society. The encounter group is still a partof their program. Played two evenings a week, it keeps individuals in tune withwhy they came to Habilitat and what they came to accomplish. After the normalworkday, re-entry residents are made to assume various responsibilities whichinclude the filtering down of information to the younger residents. The act of“giving back what was given to you” is an important concept taught in theprogram.Post Re-Entry:The post re-entry phase is designed to alleviate“culture shock” syndrome. Based on considerable past experience with residentswho encountered serious problems after completing the program, gradualtransition is necessary to increase the prospective graduate’s chances forsuccess. It is in essence stepping down from the highly structured, controlledenvironment and beginning to enter society. There is a gradual winding down ofclinical controls and residents make more and more decisions regarding theirfuture goals, education and occupation. In the “post” phase, residents areencouraged and given more freedom to re-establish family bonds especially thosewith children. Habilitat provides a safe environment for families to interactand the needed support to help guide the residents. In the post phaseresidents have earned a “day off” where they can engage in healthy leisureactivities. Habilitat offers a number activities but residents are alsoencouraged to find things off of the facility to do such as movies, beachtrips, theater or partake in some of Hawaii’s historical activities.
For the year ended June 30, 2021, Habilitat, Inc. program expenses were:
| Treatment | $1,385,770 |
| Vocational rehabilitation | $1,139,416 |
| Program Expenses | $2,525,186 |
Governance & Staff
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CEO
Mr. Jeff Nash, Executive Director
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Board Chair
Mr. James Duffy, Dispute, Prevention & Resolution, Mediator/Arbitrator/ Special Master
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Chair's Profession / Business Affiliation
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Board Size
9
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Paid Staff Size
19
Fundraising
Method(s) Used:
Invitations to fundraising events, Grant proposals, Internet, Appeals via Social Media (Facebook, etc.).
% of Related Contributions on Fundraising: 10.44%
Tax Status
This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
Financial
The following information is based on Habilitat, Inc.'s Audited financial statements for the fiscal year ending June 30, 2021
| Source of Funds | |
|---|---|
| Vocational and rehabilitation program | $1,799,661 |
| Grants and donations | $1,687,433 |
| Net investment return | $1,109,279 |
| Resident fees | $893,200 |
| Special fundraising events, net of direct expenses of $677,908 | $514,761 |
| Other income, net | $85,852 |
| Total Income | $6,090,186 |
Breakdown of Expenses
| Total Income | $6,090,186 |
| Total Expenses: | $3,607,469 |
| Program Expenses | $2,525,186 |
| Fundraising Expenses | $229,857 |
| Administrative Expenses | $852,426 |
| Other Expenses | $0 |
| Income in Excess of Expenses | $2,482,717 |
| Beginning Net Assets | $5,324,767 |
| Other Changes In Net Assets | $0 |
| Ending Net Assets | $7,807,484 |
| Total Liabilities | $694,204 |
| Total Assets | $8,501,688 |
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