Diamond Key Security Nfp

Nonprofit profile at a glance

EIN
820844682
IRS 990 coverage
2018–2018
Forms available
Form 990 2018
Location
Palatine, IL, USA
Phone
8474858685
Rating
34
Verdict
REVIEW
Rating confidence
Moderate
Sector
Professional Societies, Associations

Official website

Reported finances

Revenue
$1,330,490
Expenses
$1,060,372
Assets
$426,550
Liabilities
$9,617

Source: IRS Form 990. Selected filing: tax year 2018. Amounts in USD.

Leadership & pay

5 people listed

Executive titles in this filing

  • WESLEY STUART JONES (President/Treas)

Highest reported compensation

  • WESLEY STUART JONES (President/Treas): $189,269 total reported compensation
  • PHIL ROBERTS (Secretary): $189,269 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2018. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The Corporation promotes research and educational initiatives to advance transparent, auditable cybersecurity technologies for the Internet generally, and specifically in our nation's network infrastructures, as well as the stability, interoperability, and reliability of the global internet.

What it reported doing in 2018

The corporation began it's initial research activities in 2017 by developing its research plans and structures, and by confirming and securing research related assets, resources and research partners. The corporation further developed initial research objectives, and established project parameters. In 2018 the corporation executed on these research objectives and designed and built a prototype hardware security module which creates and stores digital cryptographic keys. The hardware security module was tested by key partners in the internet community.

Operating model

Revenue model
Donor-supported. 98% of the money available for current operations came from contributions and gifts.
Distribution model
No current program activity. The filing reports no program spending for the current year.

The verdict

REVIEW - The filed numbers largely add up. A relatively small share of available resources goes toward mission work and a relatively small share of total spending goes to programs.

Rating breakdown

  • Financial Efficiency: 0
  • Transparency & Controls: 66
  • Accountability: 58
  • Sustainability: 53
  • Growth: NotEnoughData

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 0%; rating input score 0
  • Program expense ratio: 0%; rating input score 0
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 60%; rating input score 60; 11th percentile among comparable filings
  • Governance controls: 5 of 9 controls in place; rating input score 56
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • 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: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 20.3%; rating input score 81; 81st percentile among comparable filings
  • Total-asset coverage ratio: 0.4; rating input score 21; 21st percentile among comparable filings
  • Liabilities to assets ratio: 0.02; rating input score 69; 69th percentile among comparable filings
  • Officer compensation ratio: 35.7%; rating input score 4; 4th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: Limited
  • Asset growth: Limited

Details

  • Where the money goes: 0% of revenue deployed · 0% of spending went to programs
  • Governance: 3 of 5 board members independent · 5 of 9 filing controls reported
  • Programs: 2 filed program accomplishments
  • Leadership: top reported pay $189K · 5 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 29 of 29 current checks pass
  • Schedules: 4 filed schedules · includes executive pay
  • Contacts: How to reach this organization
  • Money network: 2 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.

Key Signals

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

  • High — Financial Efficiency: Mission deployment rate scored 0/100.
  • High — Financial Efficiency: Program expense ratio scored 0/100.
  • Review — Accountability: Governance controls: 3 of 8 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 21/100.
  • High — Sustainability: Officer compensation ratio scored 4/100.