Cause Effective Inc

Nonprofit profile at a glance

EIN
133083978
IRS 990 coverage
2012–2023
Forms available
Form 990 2023
Location
New York, NY, USA
Phone
2126437093
Rating
71
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Public, Society Benefit N.E.C.

Official website

Reported finances

Revenue
$1,234,731
Expenses
$1,585,642
Assets
$312,209
Liabilities
$68,096

Source: IRS Form 990. Selected filing: tax year 2023. Amounts in USD.

Leadership & pay

15 people listed

Executive titles in this filing

  • SONYA SHIELDS (EXECUTIVE DIRECTOR)
  • JUDY LEVINE (FORMER EXECUTIVE DIRECTOR)

Highest reported compensation

  • SONYA SHIELDS (EXECUTIVE DIRECTOR): $180,087 total reported compensation
  • DAVID MCGOY (DIRECTOR OF STRATEGIC GROWTH): $128,035 total reported compensation
  • SHYLA RIVERA (SENIOR DIRECTOR OF HUMAN CAPITAL & OPERATIONS): $120,134 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2023. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Cause effective transforms nonprofits by partnering with mission-driven leaders to achieve social change. We work with leadership to develop, employ & expand effective fundraising, governance & organizational strategies to advance equity & justice.

What it reported doing in 2023

Workshops - last year we led over 53 workshops and trainings designed to elevate nonprofit leadership's knowledge and skills in board governance and fundraising, made possible by collaborations with 11 funders and other partners.publications - we provide thought leadership on a sectoral level on issues pertaining to fundraising and governance, especially strategic concerns relating to equity, access, and ensuring that all have their rightful seat at the table. In 2019 cause effective released "money, power and race: the lived experience of fundraisers of color" - a searingly honest narrative uncovering the challenges faced by fundraisers of color across u.s. Nonprofits of all sizes. Which is still provoking sectoral conversations today.

Operating model

Revenue model
Donor-supported. 66% of the money available for current operations came from contributions and gifts.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - The filed numbers largely add up and most voting board members are independent. A relatively small share of total spending goes to programs and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 56
  • Transparency & Controls: 84
  • Accountability: 90
  • Sustainability: 10
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 66.2%; rating input score 66
  • Program expense ratio: 51.5%; rating input score 52
  • Fundraising efficiency: $5.66 raised per $1 spent on fundraising; rating input score 21; 21st percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 4 of 6 controls in place; rating input score 67
    • Compensation committee: Missing
    • Independent consultant: Pass
    • Other Form 990s reviewed: Pass
    • Written employment contract: Pass
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 6 of 8 controls in place; rating input score 75
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -28.4%; rating input score 7; 7th percentile among comparable filings
  • Total-asset coverage ratio: 0.2; rating input score 9; 9th percentile among comparable filings
  • Liabilities to assets ratio: 0.22; rating input score 31; 31st percentile among comparable filings
  • Officer compensation ratio: 31.9%; rating input score 6; 6th percentile among comparable filings

Growth

  • Program expense growth: 6.3% per year; rating input score 100; 50th percentile among comparable filings
  • Revenue growth: 7.6% per year; rating input score 100; 58th percentile among comparable filings
  • Asset growth: 6% per year; rating input score 100; 44th percentile among comparable filings

Details

  • Where the money goes: 66.2% of revenue deployed · 51.5% of spending went to programs
  • Governance: 11 of 11 board members independent · 6 of 8 filing controls reported
  • Programs: 2 filed program accomplishments · $817K in reported program spending
  • Leadership: top reported pay $180K · 15 people listed · 4 of 6 pay-setting controls reported
  • Consistency: 25 of 25 current checks pass
  • Schedules: 5 filed schedules · includes major donors and executive pay
  • Filing history: 7 filing years from 2012 to 2023
  • Contacts: How to reach this organization
  • Money network: 4 filed money-flow records
  • Related organizations: Filed and resolved organization relationships.
  • 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.

  • Review — Financial Efficiency: Program expense ratio scored 52/100.
  • High — Financial Efficiency: Fundraising efficiency scored 21/100.
  • High — Sustainability: Operating margin scored 7/100.
  • High — Sustainability: Total-asset coverage ratio scored 9/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Sustainability: Officer compensation ratio scored 6/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 31/100.