Education in Action

Nonprofit profile at a glance

EIN
263255655
IRS 990 coverage
2010–2014
Forms available
Form 990 2014
Location
Providence, RI, USA
Phone
4014614224
Rating
70
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Educational Services and Schools - Other

Official website

Reported finances

Revenue
$292,041
Expenses
$313,910
Assets
$974,030
Liabilities
$383,126

Source: IRS Form 990. Selected filing: tax year 2014. Amounts in USD.

Leadership & pay

10 people listed

Executive titles in this filing

  • HENRY JOHNSON (EXECUTIVE DIRECTOR)

Highest reported compensation

  • HENRY JOHNSON (EXECUTIVE DIRECTOR): $4,675 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2014. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Education in action's primary mission is to provide hands-on learning opportunities that educate and inspire youth for real world success.

What it reported doing in 2014

Education in action's mission is to provide hands-on learning opportunities that educate and inspire youth for real world success. Our programs include exchange city, exchange city after school, young star business club (ysbc), exchange city summer, and the providence transition academy.our hallmark program exchange city, is a classroom curriculum combined with a full day simulation at the exchange city facility. Focused on financial literacy, economics, and civics - this program enables youth to utilize lessons learned through practical application. Students experience the joy of learning through a fun, innovative curriculum that leaves them wanting more.exchange city after school and ysbc are both after school versions of the classroom based exchange city program. Exchange city after school is taught by eia facilitators and concludes with a full day simulation at the city. Ysbc is also taught by eia facilitators but provides an alternative culminating experience. In place of the simulation portion of the program, youth present business plans to a group of volunteer investors who critique the students' work.exchange city summer is an extension of the classroom based program. Co-taught by both public school educators and eia facilitators, exchange city summer is an alternative to the typical summer school model. The summer program is organized in partnership with the providence school dept and the providence after school alliance. Exchange city summer is aimed at efforts to bridge the gap for those youth who have fallen behind.finally, education in action is proud to partner with the providence school dept on the providence transition academy. Pta provides fifth year high school students who possess developmental disabilities with a year of transitional services. Students receive life skills, independent living skills, internship placements, and ultimately employment or continuing education upon graduation.serving youth from a variety of backgrounds throughout Rhode Island, southern Massachusetts and Connecticut, education in action makes its services available to all students through collaborative community and regional funding as well as independent fundraising. A priority of education in action is accessibility to all students, regardless of their background and or financial means. Since 2008 over 4,000 youth have either received a discounted or in kind rate to enroll in exchange city. Eia is committed to ensuring that no child will ever be turned away due to financial constraints.

Operating model

Revenue model
Earned-program. 67% 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: 53
  • Transparency & Controls: 86
  • Accountability: 90
  • Sustainability: 39
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 60.5%; rating input score 61
  • Program expense ratio: 56.3%; rating input score 56
  • Fundraising efficiency: $1.44 raised per $1 spent on fundraising; rating input score 7; 7th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 19th percentile among comparable filings
  • Pay-setting controls: Limited
  • 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: Fail
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -7.5%; rating input score 24; 24th percentile among comparable filings
  • Total-asset coverage ratio: 3.1; rating input score 70; 70th percentile among comparable filings
  • Liabilities to assets ratio: 0.39; rating input score 19; 19th percentile among comparable filings
  • Officer compensation ratio: 1.5%; rating input score 44; 44th percentile among comparable filings

Growth

  • Program expense growth: -11.4% per year; rating input score 0; 23rd percentile among comparable filings
  • Revenue growth: 5.6% per year; rating input score 100; 60th percentile among comparable filings
  • Asset growth: 18% per year; rating input score 100; 81st percentile among comparable filings

Details

  • Where the money goes: 60.5% of revenue deployed · 56.3% of spending went to programs
  • Governance: 9 of 9 board members independent · 6 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $177K in reported program spending
  • Leadership: top reported pay $5K · 10 people listed
  • Consistency: 27 of 28 current checks pass · 1 finding to review
  • Schedules: 5 filed schedules · includes major donors
  • Filing history: 4 filing years from 2010 to 2014
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • Review — Financial Efficiency: Program expense ratio scored 56/100.
  • High — Financial Efficiency: Fundraising efficiency scored 7/100.
  • Review — Accountability: Governance controls: 2 of 8 not reported.
  • High — Growth: Program expense growth scored 0/100.
  • High — Sustainability: Operating margin scored 24/100.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • High — Sustainability: Liabilities to assets ratio scored 19/100.
  • Moderate — Sustainability: Officer compensation ratio scored 44/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.