Better Business Bureau Report for
Stepping Stones of Rockford, Inc.

Better Business Bureau Report issued December 2014
Better Business Bureau Report expires December 2016


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Stepping Stones of Rockford, Inc.
Address: 706 N. Main St.
  Rockford, IL 61103
Phone: 815-963-0683
Web Address:
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Better Business Bureau Comments

Year, State Incorporated: 1969, Illinois
Affiliates: Supported Housing Management Corporation, River North of Rockford, Inc, and 2 chapters
Stated Purpose: To promote recovery and resiliency for people with behavioral healthcare illness. To provide the psychosocial skills necessary for clients to choose a stable social role in the community. To support the greatest degree of independence possible for our clients. To act as advocates for, and promote the general welfare of all people in our community with behavioral healthcare problems.

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Evaluation Conclusions

              

Stepping Stones of Rockford, Inc. does not meet the following 7 Standards for Charity Accountability.

Standard 1: Oversight of Operations and Staff - 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, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

Stepping Stones of Rockford, Inc. does not meet this Standard because its board of directors does not:

  • Review the performance of the chief executive officer at least once every two years.
  • Approve the organization’s budget.

Standard 3: Frequency and Attendance of Board Meetings - 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.

Stepping Stones of Rockford, Inc. does not meet this Standard because:

  • The board of directors did not hold a minimum of three evenly spaced meetings in the past fiscal year.

Standard 6: Board Policy on Effectiveness - 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.

Stepping Stones of Rockford, Inc. does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

Standard 7: Board Approval of Written Report on Effectiveness - 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.

Stepping Stones of Rockford, Inc. does not meet this Standard because:

  • It has never completed an effectiveness assessment.

Standard 14: Budget - Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

Stepping Stones of Rockford, Inc. does not meet this Standard because, when the organization provided budget information, it indicated that the budget:

  • Was not approved by the organization’s board of directors.
  • Did not identify total projected program service expenses.
  • Did not identify total projected fund raising expenses.
  • Did not identify total projected administrative expenses.

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, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

Stepping Stones of Rockford, Inc. does not meet this standard because:

  • The organization states it does not have an annual report covering activities conducted in the past year.

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.

Stepping Stones of Rockford, Inc. does not meet this Standard because the organization's website, , does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

  • A summary of program service accomplishments.
  • Total income.
  • Total program expenses.
  • Total fund raising expenses.
  • Total administrative expenses.
  • End of year net assets.
  • Electronic access to the organization’s most recent IRS Form 990.
In addition, the BBB of Chicago & Northern Illinois requested but did not receive complete information on the organization’s donor privacy and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 18.
Stepping Stones of Rockford, Inc. meets the remaining 12 Standards for Charity Accountability.
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Programs

              

Stepping Stones of Rockford Inc. provides housing and mental health services to fulfill our organization's purpose, as stated in Article I of the Corporation's bylaws.

For the fiscal year ended June 30, 2014, Stepping Stones of Rockford, Inc.'s program expenses were:

  
Salaries 2,115,606
Employee health benefits 471,799
Taxes-payroll 157,262
Insurance-workman's comp 105,397
Interest expense 102,171
Depreciation 82,708
Supplies-client 73,637
Program consultants 67,873
Assistance to individuals 43,575
Vehicle expense 43,519
Janitorial and maintenance 41,754
Utilities 40,347
Insurance-liability 37,792
Supplies-housekeeping 28,359
Telephone 28,226
Equipment lease 24,114
Bad debt expense 23,742
Loss on disposal of investment 21,022
Insurance-property 20,172
Client transportation 17,160
Staff transportation 11,367
Rent expense 8,880
Confrences 2,592
Outside services 2,231
Client recreation and crafts 1,209
Taxes-property 1,143
Miscellaneous expense 1,042
Postage expense 479
Outside services-translator 129
Total Program Expenses: $3,575,307
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Governance

              

Chief Executive : Stephen E. Langley, CEO
Compensation*: 
$112,738

Chair of the Board: Joseph Capone
Chair's Profession / Business Affiliation: President

Board Size: 6

Paid Staff Size: 110

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

direct mail
Fund raising costs were % of related contributions. (Related contributions, which totaled $4,025,980, are donations received as a result of fund raising activities.)
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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.
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Financial

              

The following information is based on Stepping Stones of Rockford, Inc.'s audited financial statements for the fiscal year ended June 30, 2014.

Source of Funds  
Medcaid/Non-Medicaid Grants 2,898,117
Department of Human Services Capacity Grants 1,113,495
Department of Children & Family Services Group Home 650,561
Client fees 332,428
Rental income 52,684
Department of Children & Family Services ILO 32,450
Food Stamps 18,743
Contributions 13,358
Other 11,379
Gain on sale of assets 6,124
Lease income 4,342
Pubic Aid 2,431
Contributions-in kind 1,010
Interest income -12,430
Total Income $5,124,692


chart



Uses of Funds as a % of Total Expenses

Programs: 74%  Fund Raising: 0  Administrative: 26% 

Total income $5,124,692
Program expenses $3,575,307
Fund raising expenses 319
Administrative expenses 1,254,216
Total expenses $4,829,842
Income in Excess of Expenses 294,850
Beginning net assets 1,773,947
Ending net assets 2,068,797
Total liabilities 1,328,184
Total assets $3,396,981


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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

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