Encourage Kids Foundation

Nonprofit profile at a glance

EIN
133442216
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
New York, NY, USA
Phone
2123542878
Rating
69
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Children's, Youth Services

Reported finances

Revenue
$1,270,295
Expenses
$1,505,566
Assets
$2,392,117
Liabilities
$73,149

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

Leadership & pay

16 people listed

Executive titles in this filing

  • JEAN BUTLER (PRESIDENT AND CEO)

Highest reported compensation

  • JEAN BUTLER (PRESIDENT AND CEO): $248,613 total reported compensation

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

Overview

Mission

Making hospitals a better place to get better by helping seriously ill children and their families cope with their pain, fear and isolation through entertainment, education and family activities.

What it reported doing in 2024

Hospital heppenings: encourage kids partnered with iconic toy brand, fao schwarz, to create a new, high-quality plush bear. We deliver these beautiful co-branded teddy bears nationwide to help pediatric patients navigate the stress of treatment, illness, and hospitalization. These bears are also a vital resource in supporting kids during painful procedures, long hours of waiting, and any time when they need a reassuring hug while away from the comforts of home. The bear is also a powerful tool in fostering coping skills, preparing for medical procedures, and educating pediatric patients about diagnoses.

Operating model

Revenue model
Donor-supported. 96% of the money available for current operations came from contributions and gifts.
Distribution model
Hybrid. The nonprofit split its reported program spending across 75% for direct work, and 25% for grants.
  • Includes noncash contributions: Reported contributions include donated property or goods.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and most voting board members are independent. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 71
  • Transparency & Controls: 65
  • Accountability: 100
  • Sustainability: 31
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 83%; rating input score 83
  • Program expense ratio: 69.9%; rating input score 70
  • Fundraising efficiency: $4.3 raised per $1 spent on fundraising; rating input score 14; 14th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 88.9%; rating input score 89; 4th percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 91.5%; rating input score 91; 39th percentile among comparable filings
  • 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: 8 of 8 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: 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: -18.5%; rating input score 10; 10th percentile among comparable filings
  • Total-asset coverage ratio: 1.59; rating input score 58; 58th percentile among comparable filings
  • Liabilities to assets ratio: 0.03; rating input score 58; 58th percentile among comparable filings
  • Officer compensation ratio: 16.5%; rating input score 20; 20th percentile among comparable filings

Growth

  • Program expense growth: -6.4% per year; rating input score 0; 6th percentile among comparable filings
  • Revenue growth: -6.1% per year; rating input score 0; 4th percentile among comparable filings
  • Asset growth: -6% per year; rating input score 0; 6th percentile among comparable filings

Details

  • Where the money goes: 83% of revenue deployed · 69.9% of spending went to programs
  • Governance: 12 of 12 board members independent · 8 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $1.1M in reported program spending
  • Leadership: top reported pay $249K · 16 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 35 of 37 current checks pass · 2 findings to review
  • Schedules: 8 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 13 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 21 filed money-flow records
  • Related organizations: 20 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.
  • 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 — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Financial Efficiency: Fundraising efficiency scored 14/100.
  • High — Sustainability: Operating margin scored 10/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • Review — Sustainability: Total-asset coverage ratio scored 58/100.
  • High — Sustainability: Officer compensation ratio scored 20/100.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
  • Review — Sustainability: Liabilities to assets ratio scored 58/100.