Downtown Boston Business Improvement District Corporation

Nonprofit profile at a glance

EIN
273596446
IRS 990 coverage
2011–2024
Forms available
Form 990 2024
Location
Boston, MA, USA
Phone
6172611457
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Chambers of Commerce & Business Leagues

Official website

Reported finances

Revenue
$7,542,870
Expenses
$7,528,957
Assets
$4,761,530
Liabilities
$1,288,595

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

Leadership & pay

34 people listed

Executive titles in this filing

  • MICHAEL NICHOLS (PRESIDENT & CEO)

Highest reported compensation

  • MICHAEL NICHOLS (PRESIDENT & CEO): $254,659 total reported compensation
  • ROSEMARIE BOARDMAN (CFO): $195,238 total reported compensation

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

Overview

Mission

To create a clean, welcome, and vibrant environment that will increase business activity in the downtown boston area, including downtown crossing, the ladder district, and parts of the theater and financial districts.

What it reported doing in 2024

Programs and services provided by the corporation include the following: cleaning and hospitality - supplemental cleaning of public ways, including cleaning curb lines, litter removal, sidewalk pressure-washing, supplemental cleaning of big belly solar compactors, and removal of handbills, gum, and graffiti. Hiring and training uniformed ambassadors to give directions, answer questions, distribute maps and other district information, and provide other assistance to residents, employees, property and business owners, and visitors in the district. These services enhance the cleanliness of the district and make it more inviting, encouraging tourism and business development in the area. During the year ended december 31, 2024, approximately 44% of the corporations time and resources will be expended on these areas. District promotions - programming activities and special events, promotion of downtown businesses and amenities, maintaining website to serve as the definitive resource to downtown, business attraction and retention, promotion of economic development through market and real estate analyses. During the year ended december 31, 2024, approximately 25% of the corporation's time and resources will be expended on these areas. Capital improvements & beautification: investment in public space beautification including but not limited to year-round plantings, hanging baskets, tables and chairs, public art; support of additional capital investment by both private and public entities. During the year ended december 31, 2024, approximately 18% of the corporation's time and resources will be expended on these areas.

Operating model

Revenue model
Membership-supported. 89% of the money available for current operations came from membership dues.
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. Some related-organization disclosures are missing and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 83
  • Transparency & Controls: 76
  • Accountability: 94
  • Sustainability: 33
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 92.6%; rating input score 93
  • Program expense ratio: 92.6%; rating input score 93
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 93.8%; rating input score 94; 20th percentile among comparable filings
  • Pay-setting controls: 3 of 6 controls in place; rating input score 50
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • 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: No; rating input score 0

Accountability

  • Independent voting board: 97%; rating input score 97; 26th percentile among comparable filings
  • Governance controls: 8 of 9 controls in place; rating input score 89
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • 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: 0.2%; rating input score 34; 34th percentile among comparable filings
  • Total-asset coverage ratio: 0.63; rating input score 23; 23rd percentile among comparable filings
  • Liabilities to assets ratio: 0.27; rating input score 37; 37th percentile among comparable filings
  • Officer compensation ratio: 6%; rating input score 47; 47th percentile among comparable filings

Growth

  • Program expense growth: 4.6% per year; rating input score 100; 37th percentile among comparable filings
  • Revenue growth: 5.1% per year; rating input score 100; 42nd percentile among comparable filings
  • Asset growth: 12% per year; rating input score 100; 66th percentile among comparable filings

Details

  • Where the money goes: 92.6% of revenue deployed · 92.6% of spending went to programs
  • Governance: 32 of 33 board members independent · 8 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $7M in reported program spending
  • Leadership: top reported pay $255K · 34 people listed · 3 of 6 pay-setting controls reported
  • Highest-paid contractors: 2 contractors listed · $3.4M reported
  • Consistency: 28 of 29 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 14 filing years from 2011 to 2024
  • Contacts: How to reach this organization
  • Money network: 2 filed money-flow records
  • Related organizations: 1 filed related-organization link
  • 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: Related-party transparency scored 0/100.
  • Moderate — Sustainability: Operating margin scored 34/100.
  • High — Sustainability: Total-asset coverage ratio scored 23/100.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.
  • Moderate — Sustainability: Liabilities to assets ratio scored 37/100.
  • Moderate — Sustainability: Officer compensation ratio scored 47/100.