Bounce DC

Nonprofit profile at a glance

EIN
271349287
IRS 990 coverage
2010–2021
Forms available
Form 990 2021
Location
Chicago, IL, USA
Phone
3129223863
Rating
69
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Kindergarten, Preschool, Nursery School, Early Admissions

Reported finances

Revenue
$3
Expenses
$160,406
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2021. Amounts in USD.

Leadership & pay

3 people listed

Executive titles in this filing

  • Diana Rauner (Co-President)
  • Jessie Rasmussen (Co-President)

Highest reported compensation

  • Donna Iwanski (Secretary-Treasurer): $297,150 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2021. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The corporation is organized exclusively for one or more of the purposes specified in Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code") and exclusively for the benefit of, to perform the functions of, or to carry out the purposes of Start Early, an Illinois not for profit corporation, within the meaning of Section 509(a)(3) of the Code, so long as Start Early shall qualify as an organization described in Section 501(c)(3) and Section 509(a)(1) or Section 509(a)(2) of the Code.

What it reported doing in 2021

In November 2009, Bounce DC, a 501(c)(3) supporting organization of Start Early, was established with the purpose of developing and building Educare DC and funding the broader birth-to-five quality improvement efforts in the District of Columbia. Bounce DC has also provided substantial financial, technical and managerial support to Educare DC. In September 2012, Bounce DC, as leverage lender, made a loan to Educare DC NMTC Investment Fund, LLC, a qualified equity investment fund involved in financing obtained through the NMTC transaction. The loan has interest-only payments for seven years at a 1% rate, payable quarterly. The initial NMTC compliance period ended on September 12, 2019. Effective September 13, 2019, the NMTC unwind began when the equity investor of Educare DC NMTC Investment Fund, LLC exercised its put option and sold its ownership interest to Bounce DC for $1,000. In conjunction with this event, Bounce DC paid legal fees of $8,900. This action, in combination with other agreements, resulted in the forgiveness of a $10,700,070 note from Educare DC. The loan forgiveness was reflected as an expense on Bounce DC's consolidated statement of activities in fiscal 2020. This reduction to Bounce DC's net assets is in line with the purpose of the entity, which was primarily to facilitate NMTC transaction.

Operating model

Revenue model
Investment-supported. 100% of the money available for current operations came from recurring investment income.
Distribution model
Grant intermediary. The nonprofit sent 92% of its reported program spending out as grants.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 85
  • Transparency & Controls: 65
  • Accountability: 76
  • Sustainability: 2
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 87.8%; rating input score 88
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 24th percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 82nd percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: No; rating input score 0

Accountability

  • Independent voting board: 66.7%; rating input score 67; 22nd percentile among comparable filings
  • Governance controls: 7 of 8 controls in place; rating input score 88
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -5,346,766.7%; rating input score 0; 0th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 3; 3rd percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 18.8%; rating input score 13; 13th percentile among comparable filings

Growth

  • Program expense growth: -42.8% per year; rating input score 0; 10th percentile among comparable filings
  • Revenue growth: -43.6% per year; rating input score 0; 11th percentile among comparable filings
  • Asset growth: -16% per year; rating input score 0; 10th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 87.8% of spending went to programs
  • Governance: 2 of 3 board members independent · 7 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $141K in reported program spending
  • Leadership: top reported pay $297K · 3 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 18 of 19 current checks pass · 1 finding to review
  • Schedules: 7 filed schedules · includes grants and executive pay
  • Filing history: 12 filing years from 2010 to 2021
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 3 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Sustainability: Operating margin scored 0/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 3/100.
  • High — Transparency & Controls: Related-party transparency scored 0/100.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • High — Growth: Asset growth scored 0/100.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.
  • High — Sustainability: Officer compensation ratio scored 13/100.