Three Roots Capital EIN 62-1624472

Three Roots Capital

EIN  62-1624472 Public charity (501(c)(3)) Knoxville, TN Founded 1995
Form 990 (PDF) Compare with another nonprofit →
Verified accurate 8/18/26 · see original filing: IRS
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Size
$1–10M
What they do
Provides capital and advice to help businesses succeed.
Leadership
Grady Vanderhoofven · President & CEO · $565K
Money in and out
$6.8M revenue, $3.9M expenses
Bottom line
87% program efficiency

Provides capital and advice to help businesses succeed. For fiscal year 2024 it reported $6.8M in revenue, $3.9M in expenses, and $9.5M in net assets.Pt I

Where the money goes · FY2024
Total revenue
$6.8M
Pt VIII · Ln 12
Total expenses
$3.9M
Pt IX · Ln 25
Net assets
$9.5M
Pt X · Ln 32
Revenue less expenses (Pt I · Ln 19): $2.9M
Where spending went · Part IX cols B–D
Program services $0.87 Management & general $0.13
Program efficiency
87%
of spending reaches programs▲ +7% vs prior filing year
Operating runway
12.5mo
months of highly liquid reserves at operating expense rate▲ +11% vs prior filing year
Surplus margin
+43%
revenue over expenses, this year0% vs prior filing year

Summary of the Filing

Part I · fiscal year 2024 · Form 990
Revenue
$6.8M
FY2024▲ +82%
Expenses
$3.9M
FY2024▲ +82%
Total assets
$190.1M
FY2024▲ +8%
Total liabilities
$180.7M
FY2024▲ +6%
Total revenue
$6.8M
Pt VIII · Ln 12
Total expenses
$3.9M
Pt IX · Ln 25
Net assets
$9.5M
Pt X · Ln 32
Revenue less expensesPt I · Ln 19$2.9M
Total assetsPt X · Ln 16$190.1M
Program-expense ratioPt IX · col B87%
Voting members of governing bodyPt I · Ln 35
Independent voting membersPt I · Ln 44
Mission & Programs · Part III

Where the work happens

3 program services account for $3.4M of program spending, described in the organization's own filed words · FY2024.
01

Loan and Investment Programs

Three roots capital makes loans and investments to qualified companies and projects in underserved and distressed areas of east tennessee and broader southern and central appalachia. In addition to satisfying underwriting requirements, companies and projects must provide a measurable positive community impact or outcome.

$2.8Mprogram expense
02

Business Coaching

Three roots capital provides business coaching to client companies and community partners through technical assistance, mentorship, coaching, and other engagement activities.

$568Kprogram expense
03

Capital Services

Three roots capital provides professional services to impact-focused and community development focused private equity and venture capital funds. This activiity includes administration, business development, compliance, due diligence, portfolio management, and reporting.

$22Kprogram expense

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Identity & Classification

Form 990 Header · IRS Business Master File
Legal nameHdr · item CThree Roots Capital
EINHdr · item D62-1624472
Principal addressHdr · item CKnoxville, TN
WebsiteHdr · item Jwww.3rootscapital.org
Year of formationHdr · item L1995
State of legal domicileHdr · item MTN
Exempt statusHdr · item I501(c)(3) · active
NTEE classificationIRS BMFCommunity Development (S30)
Ruling yearIRS BMFNov 1996

Governance & Policies

Part VI
Voting members of the governing bodyPt VI · Ln 1a5
Independent voting membersPt VI · Ln 1b4
Conflict-of-interest policyPt VI · Ln 12aYes
Whistleblower policyPt VI · Ln 13Yes
Document retention policyPt VI · Ln 14Yes
CEO/top-official compensation independently reviewedPt VI · Ln 15aYes
Family or business relationships among officers/directorsPt VI · Ln 2No

Officers, Directors & Key Employees

Part VII, Section A · reportable compensation
President & CEO
$565,384Pt VII · Sec A
Chief Financial Officer
$264,143Pt VII · Sec A
Director, Lending & Investing
$174,802Pt VII · Sec A
$0Pt VII · Sec A
$0Pt VII · Sec A
$0Pt VII · Sec A
$0Pt VII · Sec A

Grady Vanderhoofven’s $565K as President & CEO is at the 98th percentile of top reported officer pay among 2834 $1–10M community development nonprofits. Peer set: organizations in the same NTEE major field of work and revenue-size band, compared on each org’s own highest-paid officer/key-employee, from Form 990 Part VII / 990-PF Part VIII. Descriptive placement, not a verdict on whether the pay is appropriate.

Compensation history total reportable pay by year · 4 named individuals · Part VII

NameFY2024FY2023FY2022FY2021FY2020
Grady Vanderhoofven$565,384$398,772$338,825$356,034$261,185
Chris Miller$264,143$198,925$160,333$178,099$189,651
Dennis Corley Director of Small$174,802
Dennis Corley$157,924$135,565$142,495$135,522

Total reportable compensation (Form 990 Part VII column D / Schedule J column E) by filing year, matched by name within this organization. The Schedule J base / bonus / deferred breakdown is not parsed into this dataset.

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Statement of Revenue

Part VIII
Program service revenue$6.7M · 98%
Contributions & grants$148K · 2%
Program service revenue98%$6.7M
Contributions & grants2%$148K
Investment income$508
— government grantsLn 1e$52K
Total revenueLn 12$6.8M

Statement of Functional Expenses

Part IX · allocated across program, management, and fundraising
Allocation · columns B–D
Program services $0.87 Management & general $0.13
Program services87%$3.4M
Management & general13%$527K
Total functional expensesLn 25$3.9M

Balance Sheet

Part X · end of year
CashLn 1$3.5M
Total assetsLn 16$190.1M
Total liabilitiesLn 26$180.7M
Total net assetsLn 32$9.5M
Months of cash on handcomputed10.8

Financial Metrics

Form 990 · FY2024 · each ratio shown with the dollars behind it
Liquidity & Payout
Operating runway
Highly liquid reserves $4.1M · Operating expenses/yr $3.9M
12.5 months
Where the money goes
Program services
Program services $3.4M · Total expenses $3.9M
87%
Management & General
Management & general $527K · Total expenses $3.9M
13%
Fundraising
Fundraising $0 · Total expenses $3.9M
0%
Cost to raise $1
Fundraising expense (3-yr avg) $0 · Solicited contributions (3-yr avg) $458K
Solicited contributions below reporting floor
Where the money comes from
Contribution dependence
Contributions & grants $148K · Total revenue $6.8M
2%
Government reliance
Government grants $52K · Total revenue $6.8M
1%
Earned-income share
Program service revenue $6.7M · Total revenue $6.8M
98%
Investment reliance
Investment income $508 · Total revenue $6.8M
0%
Program self-sufficiency
Program service revenue $6.7M · Total expenses $3.9M
171%
Growth & trend
Revenue growth (YoY)
This year $6.8M · Prior year $3.8M
+82%
Revenue CAGR
FY2020 $1.9M · FY2024 $6.8M
+39%
Net-asset trend (YoY)
End of year $9.5M · Beginning of year —
Beginning net assets not meaningfully positive — showing dollar change
Balance sheet
Surplus Margin
Revenue $6.8M · Expenses $3.9M
+43%
Liabilities-to-Assets
Total liabilities — · Total assets $190.1M
Net-asset ratio
Net assets $9.5M · Total assets $190.1M
5%
Marketable Investment Share
Publicly traded securities (Pt X, ln 11) — · Other securities (Pt X, ln 12) $554K · Total assets (Pt X, ln 16) $190.1M
0%
People & payroll
Highest Reported Total Compensation
Individual Grady Vanderhoofven · Reported title PRESIDENT & CEO · Highest reported compensation $565K · Total expenses $3.9M
14%
Personnel share
Salaries, benefits & payroll (Pt IX 5-10) $1.6M · Total expenses $3.9M
40%
Peer comparison

Same NTEE category, revenue band, and state where available. Descriptive — not a grade.

MetricThis orgPeer medianPercentile
Program ratio 87%
Overhead ratio 13%
Fundraising cost ratio 0%
Revenue growth 82%
Legal fee ratio 1%

Straight from the Form 990 — descriptive, not an evaluation. A ratio is hidden when its base is zero or too small to be meaningful; the dollars are always shown.

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Filings & Schedule Manifest

Part IV
III · Programs I · Grants R · Related orgs G · Fundraising L · Interested persons A · Public support F · Foreign M · Noncash
FY2024 (Latest)$6.8M revenue · viewing · ⤓ 990 PDF
FY2023$3.8M revenue · ⤓ 990 PDF
FY2022$3.5M revenue · ⤓ 990 PDF
FY2021$3.1M revenue · ⤓ 990 PDF
FY2020$1.9M revenue · ⤓ 990 PDF

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Sources

Every figure above is drawn from these filings
Form 990 e-file (XML) · FY2024IRS
Classification, formation year, addressIRS Business Master File
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