Democracy Works Inc

Nonprofit profile at a glance

EIN
272460359
IRS 990 coverage
2012–2024
Forms available
Form 990 2024, Form 990-EZ 2011
Location
Brooklyn, NY, USA
Phone
7189231400
Rating
87
Verdict
STRONG
Rating confidence
Moderate
Sector
Voter Education, Registration

Reported finances

Revenue
$4,090,831
Expenses
$9,515,520
Assets
$9,706,292
Liabilities
$806,394

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

Leadership & pay

18 people listed

Executive titles in this filing

  • LUIS LOZADA (CHIEF EXECUTIVE OFFICER)

Highest reported compensation

  • LUIS LOZADA (CHIEF EXECUTIVE OFFICER): $294,489 total reported compensation
  • SONYA GLAZER (CHIEF FINANCIAL OFFICER): $231,170 total reported compensation
  • JARELL LLOYD (VP OF ENGINEERING): $216,331 total reported compensation

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

Overview

Mission

The organization's mission is to leverage web-technologies to improve civic engagement and voter education.

What it reported doing in 2024

Democracy works builds tools and technology to drive voter access and participation. Turbovote is dw's flagship voter engagement tool, providing users with personalized election reminders, registration assistance, ballot information and more useful guidance to encourage participation in every election. The voting information project ("vip") is a partnership between democracy works and the states to uplift official election information. Vip data is published via google's civic information api and is a quick, easy way for voters to find their polling location and more. Democracy works also provides elections data and voting guidance through our elections api, surfacing unparalleled coverage of upcoming local, state, and federal elections to tech and social media platforms, as well as developers.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
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

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Fundraising costs are high for each dollar raised and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 83
  • Transparency & Controls: 94
  • Accountability: 100
  • Sustainability: 21
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 81.3%; rating input score 81
  • Fundraising efficiency: $2.38 raised per $1 spent on fundraising; rating input score 6; 6th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 6 of 6 controls in place; rating input score 100
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Pass
    • Written employment contract: Pass
    • Compensation survey or study: Pass
    • 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: -132.6%; rating input score 0; 0th percentile among comparable filings
  • Total-asset coverage ratio: 1.02; rating input score 38; 38th percentile among comparable filings
  • Liabilities to assets ratio: 0.08; rating input score 62; 62nd percentile among comparable filings
  • Officer compensation ratio: 15.7%; rating input score 18; 18th percentile among comparable filings

Growth

  • Program expense growth: 13.2% per year; rating input score 100; 74th percentile among comparable filings
  • Revenue growth: 14.6% per year; rating input score 100; 81st percentile among comparable filings
  • Asset growth: 21.6% per year; rating input score 100; 86th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 81.3% of spending went to programs
  • Governance: 11 of 11 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $7.7M in reported program spending
  • Leadership: top reported pay $294K · 18 people listed · 6 of 6 pay-setting controls reported
  • Highest-paid contractors: 3 contractors listed · $481K reported
  • Consistency: 29 of 29 current checks pass
  • Schedules: 5 filed schedules · includes major donors and executive pay
  • Filing history: 12 filing years from 2012 to 2024
  • Contacts: How to reach this organization
  • Money network: 8 filed money-flow records
  • 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.

  • High — Financial Efficiency: Fundraising efficiency scored 6/100.
  • High — Sustainability: Operating margin scored 0/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 38/100.
  • High — Sustainability: Officer compensation ratio scored 18/100.