Employees Charity Organization

Nonprofit profile at a glance

EIN
364589633
IRS 990 coverage
2012–2019
Forms available
Form 990 2019
Location
Redondo Beach, CA, USA
Phone
3108126245
Rating
63
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Alliance/Advocacy

Reported finances

Revenue
$1,994,231
Expenses
$2,102,384
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2019. Amounts in USD.

Leadership & pay

18 people listed

People named in this filing

  • JEANNE MCGUIRK (BOARD MEMBER (JAN-APRIL))
  • THEDA DIXON (ASSISTANT TREASURER)
  • ALISON BAILEY (CHAIR)

Selected names, not a complete roster or a statement of current roles. Open leadership details for the complete filed list.

Source: IRS Form 990. Selected filing: tax year 2019. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Echo is a California nonprofit public benefit corporation that was formed to support charitable, educational, and religious organizations. Echo accomplishes its purposes by enabling and encouraging employees of northrop grumman to make contributions. Echo encourages workplace giving through two types of grant making programs. Echo solicits grant applications from community-based charities that serve the needs of several communities. After the applications have been reviewed and the board of directors has approved them, echo makes quarterly grants out of its community outreach fund. Echo encourages workplace giving by allowing employees to advise grants from a list of pre-approved public charities that echo maintains on its network. The echo office reviews the public charity status of each organization.

What it reported doing in 2019

In 2019, through its workplace giving program, echo made donations to 2,167 IRS-approved 501(c) (3) public charities. In addition, echo's board of directors approved 89 charitable grants. Echo donations are made possible by employee contributions and echo's community outreach fund. Echo has 2,907 northrop grumman employees participating in charitable workplace giving.during the course of 2019, the board of directors reached a consensus and took action to affirm that dissolution of echo as its own 501c3 is the right path forward in order to expand, sustain and develop a more robust workplace giving program. We have partnered with charities aid foundation of america (caf america) to disburse contributions (sch o) more frequently as well as the ability to provide electronic fund transfers directly to the nonprofit organizations. The transition of echo to caf america was seamless and transparent to donors and donees without disruption of payroll contributions. An echo advisory board is now in place and continues to strategize and develop the echo workplace giving program beyond the ability of a stand alone 501c3 organization.

Operating model

Revenue model
Donor-supported. 100% of the money available for current operations came from contributions and gifts.
Distribution model
Grant intermediary. The nonprofit sent 98% of its reported program spending out as grants.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. A relatively small share of voting board members are independent and the filing does not identify recipients for some grant dollars.

Rating breakdown

  • Financial Efficiency: 85
  • Transparency & Controls: 69
  • Accountability: 36
  • Sustainability: 21
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 97.7%; rating input score 98
  • Program expense ratio: 92.7%; rating input score 93
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.9%; rating input score 93; 16th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 16%; rating input score 16; 22nd percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 0%; rating input score 0; 4th percentile among comparable filings
  • Governance controls: 6 of 7 controls in place; rating input score 86
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -5.4%; rating input score 23; 23rd percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 0%; rating input score 83; 83rd percentile among comparable filings

Growth

  • Program expense growth: -3.5% per year; rating input score 0; 15th percentile among comparable filings
  • Revenue growth: -2.7% per year; rating input score 0; 13th percentile among comparable filings
  • Asset growth: -11.3% per year; rating input score 0; 5th percentile among comparable filings

Details

  • Where the money goes: 97.7% of revenue deployed · 92.7% of spending went to programs
  • Governance: 0 of 12 board members independent · 6 of 7 filing controls reported
  • Programs: 1 filed program accomplishment · $1.9M in reported program spending
  • Leadership: top reported pay $0 · 18 people listed
  • Consistency: 18 of 19 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors and grants
  • Filing history: 8 filing years from 2012 to 2019
  • Contacts: How to reach this organization
  • Money network: 38 filed money-flow records
  • Related organizations: 38 filed related-organization links
  • 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 — Accountability: Independent voting board scored 0/100.
  • High — Transparency & Controls: Grant itemization coverage scored 16/100.
  • High — Sustainability: Operating margin scored 23/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • Review — Accountability: Governance controls: Whistleblower policy not reported.
  • High — Growth: Asset growth scored 0/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.