2024-06-19T08:03:39-05:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 220 S 6TH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2023-01-01 410941924 MINNESOTA DIVERSIFIED INDUSTRIES INC MINN 6519998200 3501 BROADWAY ST NE 100 MINNEAPOLIS MN 55413 MARVIN HANNON CHIEF FINANCIAL OFFICER 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 MDI ERIC BLACK 3501 BROADWAY ST NE 100 MINNEAPOLIS MN 55413 9182556 0 X WWW.MDI.ORG X 1964 MN SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. 9 9 80 9 0 0 3551352 663659 6331007 7173336 61731 625727 542686 668104 10486776 9130826 0 0 0 0 4439314 4910622 0 0 265254 3242588 3843244 7681902 8753866 2804874 376960 24714909 28817194 8630661 12408500 16084248 16408694 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 1970966 0 7173336 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. 1970966 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 3 1 1 80 1 0 0 0 0 0 0 0 0 0 0 0 0 X 9 9 0 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 STE 100 MINNEAPOLIS MN 55413 MIKE RAICH CHAIR 3.00 1.00 X X 0 0 0 ELAINE RASMUSSEN TREASURER & FINANCE CHAIR 3.00 1.00 X X 0 0 0 FRED KLIETZ DIRECTOR 2.50 1.00 X 0 0 0 JILL HESSELROTH DIRECTOR 2.00 1.00 X 0 0 0 JONATHAN PALMER DIRECTOR 1.50 1.00 X 0 0 0 MEGAN KELIN DIRECTOR 1.50 1.00 X 0 0 0 NICK WILKIE DIRECTOR 2.00 1.00 X 0 0 0 RHONDA GRAVES DIRECTOR 1.50 1.00 X 0 0 0 STEVE GLIENKE DIRECTOR 1.50 1.00 X 0 0 0 BARBARA MAJERUS VP SALES 30.00 25.00 X 189607 0 47752 ERIC BLACK PRESIDENT & CEO 30.00 25.00 X 322232 0 29181 MARVIN HANNON CHIEF FINANCIAL OFFICER 34.00 21.00 X 166078 0 33186 RODNEY WOOD CHIEF OPERATING OFFICER 25.00 31.00 X 210151 0 59235 JEANNE EGLINTON DIRECTOR OF EMPLOYMENT SERVICES 30.00 20.00 X 133788 0 37240 KATHLEEN JOHNSON DIRECTOR OF MARKETING 20.00 30.00 X 114000 0 16159 LAINE SATTER KEY ACCOUNT MANAGER-COMMERCIAL SERVICES 10.00 35.00 X 116409 0 39762 LAURA SCHWARTZ DIRECTOR OF HUMAN RESOURCES 25.00 30.00 X 139109 0 38773 TODD WITHERILL DIRECTOR OF OPERATIONS 20.00 35.00 X 147109 0 43810 1538483 0 345098 11 0 1 0 0 109440 554219 21269 663659 MANAGEMENT FEES 624310 6500774 6500774 TRAINING/SERVICE GRANTS 624310 594588 594588 OTHER PROGRAM SERVICE REVENUE 624310 77974 77974 7173336 595727 595727 30000 0 30000 30000 30000 20720 109440 46261 -25541 -25541 10080 5469 4611 4611 LEASE INCOME 900003 689034 689034 689034 9130826 7173336 0 1293831 X 1057422 1057422 2842016 1037298 1644340 160378 787443 172768 598844 15831 223741 65723 148131 9887 43642 43642 81081 81081 1024609 127324 838351 58934 445868 253755 187083 5030 255122 10201 244316 605 327120 11351 315769 517778 517778 205124 80883 120625 3616 75004 75004 356292 356292 202800 202800 MISCELLANEOUS 248915 197091 41029 10795 EQUIPMENT RENTAL 30564 30564 SUPPLIES 29325 14572 14575 178 8753866 1970966 6517646 265254 9169004 16106183 2844016 942797 168195 453884 17416977 6135800 12451682 11281177 52921 33153 29091 0 24714909 28817194 3885115 3513254 2530674 2144274 2214872 6750972 8630661 12408500 X 16084248 16408694 16084248 16408694 24714909 28817194 X 376960 -32746 -19768 X X 0 1 X 1 0 X X X 1 MDI GOVERNMENT SERVICES 411801370 7 1 0 1970963 1 0 1970963 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 228290 228290 12264022 4074940 8189082 2364047 1219258 1144789 1341040 841602 499438 1219578 1219578 11281177 DEFERRED COMPENSATION 208969 LEASE LIABILITY 1309303 INTERCOMPANY PAYABLE 5232700 6750972 X PART X, LINE 2: MDI IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. HOWEVER, MDI IS SUBJECT TO INCOME TAX ON CERTAIN ACTIVITIES NOT DIRECTLY RELATED TO MDI'S 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. X X X X X X 1 BIG PICTURES UNLIMITED INC PO BOX 814 GRAND RAPIDS MN 55744 GRANT WRITER 0 510000 43200 466800 510000 43200 466800 MN ABILITY BASH 130160 109440 20720 1500 18608 500 25653 130160 109440 20720 1500 18608 500 25653 46261 -25541 X X X X X 0 1 0 0 1 1 0 1 0 ERIC BLACK PRESIDENT & CEO 246238 0 75994 0 0 0 8119 0 21062 0 351413 0 0 0 RODNEY WOOD CHIEF OPERATING OFFICER 194244 0 15907 0 0 0 6477 0 52758 0 269386 0 0 0 BARBARA MAJERUS VP SALES 147746 0 41861 0 0 0 5794 0 41958 0 237359 0 0 0 MARVIN HANNON CHIEF FINANCIAL OFFICER 154211 0 11867 0 0 0 4925 0 28261 0 199264 0 0 0 TODD WITHERILL DIRECTOR OF OPERATIONS 136586 0 10523 0 0 0 4296 0 39514 0 190919 0 0 0 LAURA SCHWARTZ DIRECTOR OF HUMAN RESOURCES 127942 0 11167 0 0 0 162 0 38611 0 177882 0 0 0 JEANNE EGLINTON DIRECTOR OF EMPLOYMENT SERVICES 123597 0 10191 0 0 0 4254 0 32986 0 171028 0 0 0 LAINE SATTER KEY ACCOUNT MANAGER-COMMERCIAL SERVI 80891 0 35518 0 0 0 3707 0 36055 0 156171 0 0 0 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. A CITY OF HIBBING MINNESOTA 416005232 2012-07-20 4500000 CONSTRUCTION 0 0 0 A 4500000 4500000 2012 0 0 1 1 A 0 0 0 0 0 0 1 A 0 0 1 0 1 1 PACIFIC COAST BANKERS' BANK 15.000000000000 0 0 0 0 1 A 1 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 VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE CONSISTS OF THE CHAIR OF THE BOARD, VICE CHAIR, TREASURER AND PAST CHAIR. THE EXECUTIVE COMMITTEE HAS ALL OF 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 7A DIRECTORS ELECTED TO THE BOARD OF DIRECTORS OF MDI COMMERCIAL SERVICES, INC.; MDI GOVERNMENT SERVICES, INC.; AND MDI HIRED HANDS, ALL RELATED ORGANIZATIONS, ARE ALSO ELECTED TO THE BOARD OF DIRECTORS OF MINNESOTA DIVERSIFIED INDUSTRIES, INC. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT OF THE 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 PERSON, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISIONS. THIS PROCESS WAS MOST RECENTLY UNDERTAKEN IN 2023. 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 WRITTEN REQUEST. FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 127,324. MANAGEMENT AND GENERAL EXPENSES 838,351. FUNDRAISING EXPENSES 58,934. TOTAL EXPENSES 1,024,609. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF INTEREST RATE SWAP -19,768. FORM 990, PART XII, LINE 2C: THE PROCESS FOR OVERSIGHT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART I, LINE 1 DESCRIPTION OF ORGANIZATION MISSION: MINNESOTA DIVERSIFIED INDUSTRIES, INC IS ONE OF FOUR RELATED NONPROFIT CORPORATIONS, WHICH ALSO INCLUDE MDI GOVERNEMENT SERVICES, MDI COMMERCIAL SERVICES AND MDI HIRED HANDS. THESE NONPROFIT CORPORATIONS WORK TOGETHER TO SERVE PEOPLE WITH DISABILITEIS BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. THE ORGANIZATION FILE SERPARATE 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 CONJUNCTON 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 FINANICAL REPRESENTATION OF THE ORGANIZATIONS. THE FINANCIAL STATEMENTS ARE POSTED ON OUR WEBSITE, WWW.MDI.ORG, AND ARE AVAILABLE UPON REQUEST. MDI REAL ESTATE LLC 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 0 6532575 MINNESOTA DIVERSIFIED INDUSTRIES INC 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 1 MDI COMMERCIAL SERVICES 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 411801498 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 12C, III-FI MINNESOTA DIVERSIFIED INDUSTRIES INC 1 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 1 0 0 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1 MDI COMMERCIAL SERVICES L 2206756 COST BASIS MDI GOVERNMENT SERVICES L 2899449 COST BASIS