2024-06-19T08:04:55-05:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 220 S 6TH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2023-01-01 411801498 MDI COMMERCIAL SERVICES MDIC 6519998200 3501 BROADWAY ST NE 100 MINNEAPOLIS MN 55413 MARVIN HANNON CFO 6519998200 2024-06-17 1 MARVIN HANNON 999009999 1 MACKENZIE MCNAUGHTON P02025805 6123764500 2024-06-17 2 AAL1 IAL1 2023 2023-04-26 12:10:37Z ERIC BLACK 3501 BROADWAY ST NE 100 MINNEAPOLIS MN 55413 31709612 0 X WWW.MDI.ORG X 1994 MN SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. 9 9 166 9 0 0 0 0 28006063 31709612 0 -13128 0 0 28006063 31696484 0 0 0 0 6801255 7532304 0 0 0 18132900 19600001 24934155 27132305 3071908 4564179 16804376 9216222 14939853 2787520 1864523 6428702 X MDI'S VISION IS MEANINGFUL EMPLOYMENT OPPORTUNITIES FOR ALL PEOPLE WITH DISABILITIES AND IS SUPPORTED THROUGH OUR MISSION TO SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. REFER TO SCHEDULE O FOR ADDITIONAL DETAIL. 1 0 24619279 0 31709612 IN 2023, MDI AND ITS AFFILIATES EMPLOYED 449 EMPLOYEES AND CONTRACT WORKERS WHICH INCLUDED APPROXIMATELY 56% OF THE WORKFORCE WITH DISABILITIES. MDI HAS FACILITIES IN MINNEAPOLIS, GRAND RAPIDS, HIBBING AND COHASSET, MINNESOTA. ALL EMPLOYEES EARN AT LEAST MINIMUM WAGE AND RECEIVE FULL BENEFITS. PEOPLE WITH AND WITHOUT DISABILITIES WORK SIDE-BY-SIDE PROVIDING THE BEST POSSIBLE PRODUCTS AND SERVICES FOR OUR BUSINESS-TO-BUSINESS CUSTOMERS. MDI'S EMPLOYMENT SERVICES PROVIDE JOB TRAINING AND COACHING AT MDI OR JOB PLACEMENT IN THE COMMUNITY. MDI'S TRAINING AND DEVELOPMENT PROGRAM PROVIDES ONGOING SUPPORT AND SERVICES RESULTING IN THE INDIVIDUALIZED DEVELOPMENT AND ADVANCEMENT OF ALL EMPLOYEES, WITH AND WITHOUT DISABILITIES. MDI OFFERS PLACEMENT SERVICES PRIMARILY IN THE GRAND RAPIDS AND HIBBING AREAS. THIS PROGRAM PARTNERS WITH STATE AND COUNTY REFERRAL AGENCIES TO PROVIDE EMPLOYMENT AND OPPORTUNITIES FOR PEOPLE WITH DISABILITIES. 24619279 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 166 1 0 0 0 0 0 0 0 0 0 0 0 0 X 9 9 1 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X X MARVIN HANNON 6519998200 3501 BROADWAY STREET NE SUITE 100 MINNEAPOLIS MN 55413 MIKE RAICH CHAIR 0.45 3.55 X X 0 0 0 ELAINE RASMUSSEN TREASURER & FINANCE CHAIR 0.45 3.55 X X 0 0 0 FRED KLIETZ DIRECTOR 0.45 2.55 X 0 0 0 JILL HESSELROTH DIRECTOR 0.45 2.55 X 0 0 0 JONATHAN PALMER DIRECTOR 0.45 2.05 X 0 0 0 RHONDA GRAVES DIRECTOR 0.45 2.05 X 0 0 0 STEVE GLIENKE DIRECTOR 0.45 2.05 X 0 0 0 NICK WILKIE DIRECTOR 0.45 2.55 X 0 0 0 MEGAN KELIN DIRECTOR 0.45 2.05 X 0 0 0 BARBARA MAJERUS VP SALES 25.00 30.00 X 0 189607 47752 ERIC BLACK PRESIDENT & CEO 12.00 43.00 X 0 322232 29181 RODNEY WOOD CHIEF OPERATING OFFICER 10.00 46.00 X 0 210151 59235 MARVIN HANNON CHIEF FINANCIAL OFFICER 10.00 45.00 X 0 166078 33186 LAINE SATTER KEY ACCOUNT MANAGER-COMMERCIAL SERVICES 35.00 10.00 X 0 116409 39762 KATHLEEN JOHNSON DIRECTOR OF MARKETING 12.50 37.50 X 0 114000 16159 JEANNE EGLINTON DIRECTOR OF EMPLOYMENT SERVICES 5.00 45.00 X 0 133788 37240 LAURA SCHWARTZ DIRECTOR OF HUMAN RESOURCES 10.00 45.00 X 0 139109 38773 TODD WITHERILL DIRECTOR OF OPERATIONS 14.00 41.00 X 0 147109 43810 0 1538483 345098 0 0 1 0 MINNESOTA DIVERSIFIED INDUSTRIES INC 3501 BROADWAY ST NE SUITE 100 MINNEAPOLIS MN 55413 MANAGEMENT SERVICES 2513026 ATLAS STAFFING INC 189 7TH PLACE EAST ST PAUL MN 55101 TEMPORARY LABOR 1512524 DOHERTY STAFFING SOLUTIONS INC 6940 BROOKLYN BLVD 1 BROOKLYN CENTER MN 55429 TEMPORARY LABOR 288729 EXPRESS SERVICES INC 102 NORTHEAST 3RD STREET SUITE 100 GRAND RAPIDS MN 55744 TEMPORARY LABOR 246601 THE DPI GROUP 4950 NE MARTIN LUTHER KING JR BLVD PORTLAND OR 97211 TEMPORARY LABOR 158903 5 MANUFACTURING SERVICES 310000 31709612 31709612 31709612 13128 -13128 -13128 -13128 31696484 31709612 0 -13128 X 6025683 6025683 1084364 1084364 422257 422257 2513026 2513026 3662594 3662594 41141 41141 30743 30743 3945 3945 2031558 2031558 30640 30640 1117167 1117167 COST OF GOODS SOLD 8821019 8821019 SUPPLIES 985734 985734 MISCELLANEOUS 354593 354593 EQUIPMENT RENTAL 7841 7841 27132305 24619279 2513026 0 1813260 1930793 2768189 1719357 19821895 14255823 5482011 5566072 6740916 0 16804376 9216222 14939853 2787520 14939853 2787520 X 1864523 6428702 1864523 6428702 16804376 9216222 4564179 0 X X 0 1 X 1 0 X X 1 MDI GOVERNMENT SERVICES 411801370 7 1 0 24619279 1 0 24619279 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1169035 606416 562619 18652860 13649407 5003453 5566072 INTERCOMPANY PAYABLE 2787520 2787520 X PART X, LINE 2: MDI COMMERCIAL SERVICES IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. HOWEVER, MDI COMMERCIAL SERVICES IS SUBJECT TO INCOME TAX ON CERTAIN ACTIVITIES NOT DIRECTLY RELATED TO THEIR TAX-EXEMPT PURPOSE AS NET UNRELATED BUSINESS INCOME. THE ORGANIZATION REVIEWS INCOME TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN INCOME TAX RETURNS TO DETERMINE IF THERE ARE ANY INCOME TAX UNCERTAINTIES. THE ORGANIZATION RECOGNIZES TAX BENEFITS FROM UNCERTAIN TAX POSITIONS ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITIONS. THE ORGANIZATION HAS IDENTIFIED NO INCOME TAX UNCERTAINTIES. 0 1 0 1 0 0 1 1 0 ERIC BLACK PRESIDENT & CEO 0 246238 0 75994 0 0 0 8119 0 21062 0 351413 0 0 RODNEY WOOD CHIEF OPERATING OFFICER 0 194244 0 15907 0 0 0 6477 0 52758 0 269386 0 0 BARBARA MAJERUS VP SALES 0 147746 0 41861 0 0 0 5794 0 41958 0 237359 0 0 MARVIN HANNON CHIEF FINANCIAL OFFICER 0 154211 0 11867 0 0 0 4925 0 28261 0 199264 0 0 TODD WITHERILL DIRECTOR OF OPERATIONS 0 136586 0 10523 0 0 0 4296 0 39514 0 190919 0 0 LAURA SCHWARTZ DIRECTOR OF HUMAN RESOURCES 0 127942 0 11167 0 0 0 162 0 38611 0 177882 0 0 JEANNE EGLINTON DIRECTOR OF EMPLOYMENT SERVICES 0 123597 0 10191 0 0 0 4254 0 32986 0 171028 0 0 LAINE SATTER KEY ACCOUNT MANAGER-COMMERCIAL SERVI 0 80891 0 35518 0 0 0 3707 0 36055 0 156171 0 0 PART I, LINE 3 THE ORGANIZATION RELIED ON A RELATED ORGANIZATION TO DETERMINE THE COMPENSATION FOR THE CHIEF EXECUTIVE OFFICER. THE RELATED ORGANIZATION USED THE FOLLOWING METHODS TO DETERMINE THE COMPENSATION: COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATIONS, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PART I, LINE 4B ERIC BLACK - PARTICIPATED IN AND RECEIVED PAYMENT FROM IN THE AMOUNT $8,119 RODNEY WOOD - PARTICIPATED IN AND RECEIVED PAYMENT FROM IN THE AMOUNT $6,477 BARBARA MAJERUS - PARTICIPATED IN AND RECEIVED PAYMENT FROM IN THE AMOUNT $5,794 MARVIN HANNON - PARTICIPATED IN AND RECEIVED PAYMENT FROM IN THE AMOUNT $4,925 PART I, LINE 5 BARBARA MAJERUS, VP OF SALES, RECEIVED COMPENSATION IN 2023 FOR COMMERCIAL SALES GROWTH THAT OCCURRED IN 2022 FROM MDI COMMERCIAL SERVICES, A RELATED ORGANIZATION. IN ADDDITION, MS. MAJERUS ACCRUED INCENTIVE COMPENSATION FOR 2023 COMMERCIAL SALES GROWTH FROM MDI COMMERCIAL SERVICES, A RELATED ORGANIZATION THAT WILL BE PAID OUT IN 2024. PART I, LINE 6 ALL EMPLOYEES, INCLUDING OFFICERS AND HIGHEST COMPENSATED EMPLOYEES, PARTICIPATED IN A DISCRETIONARY BONUS PROGRAM APPROVED BY THE BOARD OF DIRECTORS. THE DISCRETIONARY BONUS PROGRAM WAS BASED ON TWO COMPONENTS: (1) SEMI-ANNUAL FINANCIAL PERFORMANCE AND (2) MISSION ACHIEVEMENT BASED ON THE NUMBER OF EMPLOYEES EMPLOYED WITH DISABILITIES. THE FIRST HALF YEAR DISCREPTIONARY BONUS FOR 2023 WAS ACHIEVED, ACCRUED, APPROVED BY THE BOARD OF DIRECTORS AND PAID OUT IN 2023. THE SECOND HALF YEAR DISCREPTIONARY BONUS FOR FY2023 WAS NOT ACHIEVED. HOWEVER, THE BOARD OF DIRECTORS DID APPROVED A SECOND HALF DISCREPTIONARY BONUS BASED ON THE OVERALL ANNUAL FINANCIAL RESULTS AND TOTAL NUMBER OF EMPLOYEES EMPLOYED WITH DISABILITIES FOR FY2023. THIS BONUS WAS PAID OUT IN 2024. PART I, LINE 7 ERIC BLACK, PRESIDENT & CEO, IS ELIGIBLE TO RECEIVE AN ANNUAL DISCRETIONARY BONUS OF 30% OF BASE SALARY BASED ON JOB AND COMPANY PERFORMANCE. MR BLACK DID RECEIVED COMPENSATION IN 2023 FOR JOB AND COMPANY PERFORMANCE RELATING TO 2022. MR. BLACK'S 2023 DISCRETIONARY BONUS WAS REVIEWED WITH THE EXECUTIVE COMMITTEE, ACCRUED AND APPROVED BY BOARD CHAIR IN 2024 AND PAID OUT IN 2024. FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION MDI COMMERCIAL SERVICES IS ONE OF FOUR RELATED NONPROFIT CORPORATIONS, WHICH ALSO INCLUDE MINNESOTA DIVERSIFIED INDUSTRIES, INC.; MDI GOVERNMENT SERVICES; AND MDI HIRED HANDS. THESE NONPROFIT CORPORATIONS WORK TOGETHER TO SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. THE ORGANIZATIONS FILE SEPARATE FORM 990'S WITH THE IRS EACH YEAR. THE SEPARATE FORM 990'S EACH PRESENT ONLY A PIECE OF THE ORGANIZATIONS' PROGRAMS, AND SHOULD BE VIEWED IN CONJUNCTION WITH ONE ANOTHER TO UNDERSTAND THE ACTUAL OPERATIONS AS A WHOLE. WE RECOMMEND THAT THE READER OF THE FORM 990'S ALSO REVIEW THE CONSOLIDATED FINANCIAL STATEMENTS OF MDI, INC. AND AFFILIATES, WHICH PROVIDE THE MOST MEANINGFUL FINANCIAL REPRESENTATION OF THE ORGANIZATIONS. THE FINANCIAL STATEMENTS ARE POSTED ON OUR WEBSITE, WWW.MDI.ORG, AND ARE AVAILABLE UPON REQUEST. FORM 990, PART III, LINE 2 MDI HAS ACCUMULATED A SIGNIFICANT AMOUNT OF INSTITUTIONAL KNOWLEDGE OVER 59 YEARS REGARDING HOW TO INCREASE THE EMPLOYABILITY OF INDIVIDUALS WITH A DISABILITY BY PURPOSELY DEVELOPING THEIR SKILLS, BEHAVIORS, AND EXPERIENCES WITHIN AN INCLUSIVE TEAM-BASED ENVIRONMENT. TO SPREAD THIS KNOWLEDGE WITH INDIVIDUALS, SUPPORT CENTERS, AND EMPLOYERS, MDI CREATED UNIFIED WORK. THIS DEPARTMENT WORKS TO ACHIEVE MDI'S VISION OF MEANINGFUL WORK FOR ALL PEOPLE WITH A DISABILITY. IT SEEKS TO ACCOMPLISH THIS THROUGH A 4-PART MODEL. 1) DIRECT TRAINING OF INDIVIDUALS WITH A DISABILITY IN-PERSON OR VIRTUALLY ON SOFT SKILLS. THIS TRAINING HAS BEEN USED INSIDE OF MDI FOR YEARS, AND THE RESULTED IN INCREASED COMMUNICATION AND WELL-ARTICULATED PERSONAL GOALS BY EMPLOYEES. 2) ON-LINE LEARNING PLATFORM TAILORED FOR PEOPLE WITH DISABILITIES, BOTH IN CONTENT AND CONFIGURATION. THIS SYSTEM IS A FLEXIBLE ASYNCHRONOUS LEARNING PLATFORM, WITH A DIVERSE CONTENT LIBRARY THAT CAN BE ACCESSED BY INDIVIDUAL LEARNERS OR A GROUP OF LEARNERS. 3) BUSINESS CONSULTING IS A NECESSITY TO HELP EMPLOYERS OVERCOME THE INTERNAL BARRIERS OF A FOCUSED DIVERSITY EQUITY AND INCLUSION EFFORT TOWARDS PEOPLE WITH A DISABILITY, AND TO PROVIDE THE SOURCING PARTNERS AND SCREENING TOOLS TO CREATE THE BEST MATCH. 4) EXPERIENTIAL LEARNING CREATES THE OPPORTUNITY FOR INDIVIDUALS WITH A DISABILITY TO TRY VARIOUS CORE JOB FUNCTIONS WITHIN A SAFE NURTURING LEARNING ENVIRONMENT TO DETERMINE THE TYPE OF WORK THAT THEY ARE PASSIONATE ABOUT DOING. THIS ALLOWS THEM TO PRACTICE THEIR TRAINING, RECEIVE ENCOURAGEMENT, AND BUILD TALKING POINTS FOR COMMUNICATING WITH POTENTIAL EMPLOYERS. THESE JOBS ARE COMPLETED IN INTERNSHIPS, SIMULATED VIRTUALLY IN VR, CROSS-TRAINING WITHIN AN EXISTING WORK ENVIRONMENT, AND THROUGH SUPPORTING PARTNER SITES. MDI'S UNIQUENESS COMES FROM THE ABILITY TO CONDUCT INTERNAL PILOTS TO PROVE CONCEPT EFFICACY WITH OUR OVER 200 EMPLOYEES WITH A DISABILITY. IN ADDITION, MDI PROVIDES THESE SERVICES WITH A GOAL OF FREE-OF-COST TO COMMUNITY PARTNERS AND INDIVIDUALS WHO WISH TO PARTICIPATE IN THE PROGRAM. FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENTS: MDI IS A SOCIAL ENTERPRISE OPERATING WITH A WORKFORCE OF BOTH INDIVIDUALS WITH DISABILITIES AND WITHOUT DISABILITIES. INDIVIDUALS WITH DISABILITIES DEVELOP SKILLS WITH SUPPORT AND TRAINING, GAINING WORK EXPERIENCE WHILE EARNING COMPETITIVE WAGES AND BENEFITS. PLACEMENT OR ADVANCEMENT OF THESE INDIVIDUALS WITH DISABILITIES IN MEANINGFUL COMPETITIVE EMPLOYMENT INSIDE OR OUTSIDE OF THE COMPANY IS INHERENT IN OUR MISSION. MDI ALSO OFFERS WORK AND TRAINING PROGRAMS FOR SCHOOLS, COUNTY AND REHABILITATION AGENCIES IN THE COMMUNITY. MDI'S VISION IS TO GROW THE NUMBER OF JOBS FOR INDIVIDUALS WITH AND WITHOUT DISABILITIES. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE CONSISTS OF THE CHAIR OF THE BOARD, VICE CHAIR, TREASURER AND PAST CHAIR. THE EXECUTIVE COMMITTEE SHALL HAVE ALL THE POWERS OF THE BOARD OF DIRECTORS IF ACTION IS REQUIRED BETWEEN MEETINGS OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 2 ALL DIRECTORS AND OFFICERS HAVE A BUSINESS RELATIONSHIP. THE BUSINESS RELATIONSHIP IS AN EMPLOYER/EMPLOYEE RELATIONSHIP AT MINNESOTA DIVERSIFIED INDUSTRIES, INC, A RELATED 501(C)(3) TAX EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A THE DIRECTORS ELECTED TO THE BOARD OF DIRECTORS OF MINNESOTA DIVERSIFIED INDUSTRIES, INC.; MDI GOVERNMENT SERVICES; AND MDI HIRED HANDS, ALL RELATED ORGANIZATIONS, ARE ALSO ELECTED TO THE BOARD OF DIRECTORS OF MDI COMMERCIAL SERVICES. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT OF FORM 990 WILL BE REVIEWED AND APPROVED BY THE FINANCE & AUDIT COMMITTEE, WHICH WILL REPORT SIGNIFICANT ITEMS TO THE BOARD. THE FULL 990 IS ALSO MADE AVAILABLE TO THE BOARD BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C THE POLICY IS BROUGHT TO THE ATTENTION OF THE BOARD OF DIRECTORS AT LEAST ANNUALLY AT A REGULAR MEETING AND RECORDED IN THE MINUTES OF SUCH MEETING. BOARD MEMBERS HAVE SPECIFICALLY AGREED TO DISCLOSURE OF ANY POTENTIAL CONFLICT OF INTEREST RELATING TO THE SUBJECT MATTER OF A MEETING OF THE BOARD OF DIRECTORS OR A COMMITTEE ON WHICH THEY SERVE, AND WITHDRAWAL FROM SUCH MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE SUBJECT MATTER THAT RESULTS IN THE POTENTIAL CONFLICT OF INTEREST. ADDITIONALLY, EACH BOARD MEMBER SIGNS A CONFLICT OF INTEREST STATEMENT. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE OF THE BOARD IS RESPONSIBLE FOR DETERMINING COMPENSATION OF OFFICERS AND KEY EMPLOYEES. THE PROCESS INCLUDES REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISIONS. THIS PROCESS WAS MOST RECENTLY UNDERTAKEN IN 2022. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G TEMPORARY STAFFING: PROGRAM SERVICE EXPENSES 3,662,594. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,662,594. FORM 990, PART XII, LINE 2C: THE PROCESS FOR OVERSIGHT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. MINNESOTA DIVERSIFIED INDUSTRIES INC 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 410941924 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 12C, III-FI N/A 0 MDI GOVERNMENT SERVICES 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 411801370 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 7 MINNESOTA DIVERSIFIED INDUSTRIES INC 0 MDI HIRED HANDS 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 411587363 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 11 MINNESOTA DIVERSIFIED INDUSTRIES INC 0 0 0 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1