TreeHouse has dropped from a 3-Star Financial Efficiency Rating to 0 Stars. As of its most recent publicly available Form 990, the ministry shows a negative net worth, making it impossible to assign a valid financial efficiency rating.
MinistryWatch recently reported on two other ministries facing the same challenge: Whole Word Institute and Set Free Alliance.
A negative net worth means a ministry’s liabilities exceed the value of its assets. In most cases, that is a precarious situation — it means the organization has financial obligations, usually debt or accounts payable, that it currently cannot meet.
Founded in 1984, TreeHouse is a teen rescue ministry that works to help young people “build relationships and resiliency rooted in living hope.” Through mentorships, retreats, and other off-site activities across the country, TreeHouse creates “safe spaces” where “teens have the opportunity to build even deeper relationships with peers and caring adults.”
Support groups are one expression of one of that mission, designed to give teens a voice for their struggles. Bible studies and curriculum like Connect aim to “help teens create an educational or vocational track for their future.”
Despite the rating drop, the ministry has shown real operational progress. CFO Ash SanFilippo reports that “through both direct-service ministry and partnerships, TreeHouse has expanded to 40 locations and serves 2,750 teens annually. At one point, our cost per teen served exceeded $2,000 annually; today it is under $1,000. We have also made substantial progress in reducing liabilities, paying off or obtaining forgiveness for more than $1 million in outstanding debt.”
TreeHouse’s Donor Confidence Score dropped to a 77 — but that still qualifies as a “Give With Confidence” rating. The ministry loses points for not posting a public statement of faith and for its lack of a financial efficiency score. The Donor Confidence Score (DCS) is based on 14 questions, only one of which involves financial data. The remaining questions address transparency, board composition, and other governance factors. That is why donors should consider all three components of a ministry’s profile — efficiency, transparency and donor confidence — not just the financials.
A negative net worth is not always an indication of financial inefficiency, but it should be a temporary condition.
TreeHouse’s board and leadership are aware of the deficit and have been actively working to address it. San Filippo attributed the problem in part to the pandemic, saying the ministry “reduced certain assets and took on debt in order to continue serving teens and sustain ministry operations. Those factors contributed to the negative net asset position reflected in our most recent filing.”
With longtime CEO Tim Clark’s retirement in 2025, San Filippo says the organization has pivoted: “Our board and leadership team have undertaken a comprehensive effort to right-size the organization, reduce administrative and leadership expenses, and focus resources more directly on mission delivery.”
Through it all, the ministry’s core work has continued. “Most importantly, TreeHouse continues to serve teens through Christ-centered support groups, mentoring relationships, and partnerships with churches and Christian community organizations,” San Filippo said. “We remain committed to helping teens navigate life’s challenges and discover that they are lovable, capable, and worthwhile through Christ.”
On the transparency front, TreeHouse earns an A Transparency Grade. The ministry files a public Form 990, posts audited financial statements and holds membership in the ECFA.
MinistryWatch Donor Confidence Score: 77 (out of a possible 100) “Give With Confidence”
MinistryWatch Financial Efficiency Rating: This ministry has a negative net worth, making it impossible to assign it a valid financial efficiency rating.
MinistryWatch Transparency Grade: A
ECFA Member? Yes
Revenue in Most Recent Year Available: $3,332,617
Five-Year Revenue Trend: Decreasing (by about 53%)
Percent of Revenue Spent on Fundraising: 12%
Percent of Revenue Peer Group Spends on Fundraising: 10%
CEO/President: Tim Clark
President’s Salary and Other Compensation: $50,764
A complete MinistryWatch profile for TreeHouse can be found here.
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