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Functional Industries Inc

EIN 41-1223547 · Buffalo, MN

Public records show a registered, tax-exempt organization in good standing.

LegitimacyPassesRegistration and standingFinancial healthStrong100 out of 100GovernanceStrong100 out of 100Impact evidenceDescribes programsHow well its results are evidenced

What it says it does

TO CREATE AND PROMOTE INNOVATIVE OPPORTUNITIES THAT REVEAL THE NATURAL POTENTIAL OF EACH PERSON WE SERVE.

Income
$6.3 million
Spending
$5.5 million
Spent on programs
86%
Reserves
23.7 months of spending
Largest source of income
fees for its services, 77%
Employees
218
Volunteers
9
Highest pay
$368,378, president and ceo

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Financial health

Strong: 100 out of 100.

  • Reserves

    35 of 35

    Spendable reserves would cover 23.7 months of spending.

  • Debt

    20 of 20

    It owes 3% of what it owns.

  • Living within its means

    15 of 15

    Income exceeded spending by 13% of income.

  • Income trend

    15 of 15

    Income rose 12% on the year before.

  • Spending floor

    15 of 15

    86% of spending went to programs and raising each dollar of donations cost 0 cents.

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Governance

Strong: 100 out of 100.

  • Independent board

    25 of 25

    10 of 10 voting board members are independent.

  • Conflict of interest policy

    15 of 15

    Has a written conflict of interest policy.

  • Whistleblower policy

    8 of 8

    Has a written whistleblower policy.

  • Record keeping policy

    7 of 7

    Has a written policy on keeping and destroying records.

  • Board minutes

    5 of 5

    Keeps minutes of board meetings.

  • Board sees the tax return

    10 of 10

    Gave the board a copy of this return before filing it.

  • Pay set independently

    5 of 5

    Sets its chief executive's pay through independent review and comparison.

  • Independent check of accounts

    15 of 15

    Its accounts were audited by an independent accountant.

  • No reported misuse

    10 of 10

    Reports no diversion of assets, excess benefits or loans to insiders.

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Impact evidence

Describes programs. Its tax return describes what it does but we have found no measurable results in it.

Programs described in its return (3)
  1. $4.7 million spent. FUNCTIONAL INDUSTRIES HAD THE OPPORTUNITY TO ADD A PEER SUPPORT SPECIALIST THROUGH THE COMMUNITY ADULT MENTAL HEALTH INITIATIVE. THIS PROJECT FUNDS PROVIDERS SERVING INDIVIDUALS LIVING WITH A SEVERE AND PERSISTENT MENTAL ILLNESS WHO RESIDE IN BENTON, SHERBURNE, STEARNS AND WRIGHT COUNTIES. THE PEER SUPPORT SPECIALIST IS A TRAINED INDIVIDUALS WITH LIVED EXPERIENCE IN MENTAL HEALTH WHO PROVIDES SUPPORT, GUIDANCE AND ADVOCACY TO OTHERS FACING SIMILAR CHALLENGES. WITH GRANT FUNDS FROM THE COMMUNITY ADULT MENTAL HEALTH INITIATIVE (CAMHI) WE HAVE BEEN ABLE TO HAVE AN ONSITE PEER SUPPORT SPECIALIST SERVE INDIVIDUALS IN NEED.
  2. THROUGHOUT THE PAST YEAR, FUNCTIONAL INDUSTRIES CONTINUES TO HAVE A LONG WAITLIST OF INDIVIDUALS WHO ARE WANTING DAY SUPPORT SERVICES AND PREVOCATIONAL SERVICES. SINCE JANUARY 2025, THERE HAVE BEEN A TOTAL OF 10 NEW INDIVIDUALS BROUGHT INTO SERVICES OFF OF THE WAITLIST. THIS SHOWS THAT THERE IS A STAFF INCREASE TO SUPPORT THESE INDIVIDUALS AND CONTINUED GROWTH IN THE DREAM ENRICHMENT AND WORK TRAINING PROGRAMS AT FUNCTIONAL INDUSTRIES.
  3. IN OCTOBER 2025, FUNCTIONAL INDUSTRIES MADE THE DECISION TO INCREASE ALL HOURLY EMPLOYEES WAGES ONE DOLLAR. THIS ALSO PROVIDED AN OPPORTUNITY TO INCREASE STARTING WAGES FOR HOURLY POSITIONS, INCLUDING OUR DIRECT SUPPORT PROFESSIONALS. THE INCREASE DEMONSTRATED POSITIVE SUPPORT TOWARDS INDIVIDUALS CURRENTLY WORKING AT FUNCTIONAL INDUSTRIES IN HOPES OF RETENTION. WITH AN OPPORTUNITY TO INCREASE THE STARTING WAGE, THE GOAL IS TO APPEAL TO MORE PEOPLE IN THE COMMUNITY TO APPLY FOR OPEN POSITIONS, WHICH IN TURN THEN WE CAN BRING BACK MORE INDIVIDUALS OFF THE WAITLIST.

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Legitimacy checks

  1. Is it registered with the IRS? Passed.

    Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  2. Has the IRS revoked its tax-exempt status? Passed.

    Not on the IRS automatic revocation list.

    Source: Automatic revocation of exemption list, Internal Revenue Service, file dated October 13, 2026.

  3. Are donations tax-deductible? Passed.

    On the IRS list of organizations eligible to receive tax-deductible contributions.

    Source: Publication 78 data: organizations eligible for tax-deductible contributions, Internal Revenue Service, file dated October 13, 2026.

  4. Is it keeping up with its IRS filings? Passed.

    Most recent return on file covers the year ending June 2025.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  5. How long has it been tax-exempt? Passed.

    Recognized by the IRS since March 1974.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  6. Is it in good standing with state regulators? Passed.

    Not on California's list of charities barred from soliciting. Other states are not yet checked.

    Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated October 21, 2026.

Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.