Change Machine

Nonprofit profile at a glance

EIN
760833915
IRS 990 coverage
2014–2024
Forms available
Form 990 2024, Form 990-N 2013
Location
Brooklyn, NY, USA
Phone
7185527336
Rating
65
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Personal Social Services

Reported finances

Revenue
$1,648,392
Expenses
$2,180,213
Assets
$1,803,039
Liabilities
$325,544

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

11 people listed

Executive titles in this filing

  • Mae Watson Grote (CEO)

Highest reported compensation

  • Mae Watson Grote (CEO): $285,975 total reported compensation
  • Tamika Johnson (Chief Engmt/Adopti): $170,707 total reported compensation
  • Martinez PaniaguaJesus (Engineering Lead): $148,977 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Description of organization mission: change machines mission is to build financial security for low-income communities through people-powered technology. Change machine accomplishes this mission through a technology platform that amplifies the impact of social service organizations and public agencies working with people to achieve financial goals. Its partnerships build a community of practice, and its insights influence lasting economic change.

What it reported doing in 2024

Product development (platform) - building financial security using people-powered technology is core to change machines mission. Its revolutionary cloud-based platform, which operates as a b2b2c software as a service (saas) social enterprise, provides a single platform where practitioners can learn best financial coaching practices; access tools and information; and participate in a professional social network specifically designed for the field. Built by practitioners for practitioners, change machines financial coaching platform provides a one-stop shop for effective resources practitioners can use to address their customers underlying financial insecurity.

Operating model

Revenue model
Earned-program. 69% of the money available for current operations came from fees and other program revenue.
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: 74
  • Accountability: 100
  • Sustainability: 17
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 69.2%; rating input score 69
  • Program expense ratio: 52.4%; rating input score 52
  • Fundraising efficiency: $1.85 raised per $1 spent on fundraising; rating input score 5; 5th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • 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: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -32.3%; rating input score 5; 5th percentile among comparable filings
  • Total-asset coverage ratio: 0.83; rating input score 37; 37th percentile among comparable filings
  • Liabilities to assets ratio: 0.18; rating input score 33; 33rd percentile among comparable filings
  • Officer compensation ratio: 40.1%; rating input score 3; 3rd percentile among comparable filings

Growth

  • Program expense growth: -0.4% per year; rating input score 0; 16th percentile among comparable filings
  • Revenue growth: -5.7% per year; rating input score 0; 5th percentile among comparable filings
  • Asset growth: -0.5% per year; rating input score 0; 16th percentile among comparable filings

Details

  • Where the money goes: 69.2% of revenue deployed · 52.4% of spending went to programs
  • Governance: 6 of 6 board members independent · 9 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $1.1M in reported program spending
  • Leadership: top reported pay $286K · 11 people listed · 2 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $236K reported
  • Consistency: 30 of 30 current checks pass
  • Schedules: 5 filed schedules · includes major donors and executive pay
  • Filing history: 11 filing years from 2014 to 2024
  • Contacts: How to reach this organization
  • Money network: 5 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

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 5/100.
  • High — Sustainability: Operating margin scored 5/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 37/100.
  • High — Sustainability: Officer compensation ratio scored 3/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 33/100.