Formative Foundation

Nonprofit profile at a glance

EIN
261115393
IRS 990 coverage
2014–2024
Forms available
Form 990 2024
Location
Goleta, CA, USA
Phone
8059682541
Rating
86
Verdict
STRONG
Rating confidence
Moderate
Sector
Educational Services and Schools - Other

Official website

Reported finances

Revenue
$488,002
Expenses
$1,016,236
Assets
$5,062,295
Liabilities
$1,004,667

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

Leadership & pay

10 people listed

Executive titles in this filing

  • MIKE BROWN (VICE PRESIDENT)
  • MICHELLE PICKETT (PRESIDENT)
  • GARY SIMPSON (CEO)

Highest reported compensation

  • GARY SIMPSON (CEO): $101,604 total reported compensation

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

Overview

Mission

The foundation's mission is to provide funding, connections and guidance in support of transformative learning experiences in steam (science, technology, engineering, art and math) for people of all ages to develop the critical thinkers and creative problem solvers needed to meet the challenges of tomorrow.

What it reported doing in 2024

Steam museum - the foundation and the santa barbara unified school district are collaborating on improving and expanding the academy facilities through the addition of a new state-of-the-art career technical education pavilion facility that will support the product innovation and design and media arts pathways at dphs. As planned, the facility will include a first-of-its-kind, steam teaching and learning museum in which students will display and demonstrate their professional-quality work and serve as docents and guides. The facility will be open to serve the community and be experienced as a year-round maker faire. The facility will also serve as a training institute for teachers from around the country.

Operating model

Revenue model
Donor-supported. 62% of the money available for current operations came from contributions and gifts.
Distribution model
Grant intermediary. The nonprofit sent 60% of its reported program spending out as grants.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Fundraising costs are high for each dollar raised and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 84
  • Transparency & Controls: 94
  • Accountability: 90
  • Sustainability: 30
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 81.7%; rating input score 82
  • Fundraising efficiency: $3.09 raised per $1 spent on fundraising; rating input score 14; 14th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 64th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 80th 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: 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: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -108.2%; rating input score 2; 2nd percentile among comparable filings
  • Total-asset coverage ratio: 4.98; rating input score 79; 79th percentile among comparable filings
  • Liabilities to assets ratio: 0.2; rating input score 20; 20th percentile among comparable filings
  • Officer compensation ratio: 10%; rating input score 29; 29th percentile among comparable filings

Growth

  • Program expense growth: 2.5% per year; rating input score 100; 42nd percentile among comparable filings
  • Revenue growth: 1.7% per year; rating input score 100; 33rd percentile among comparable filings
  • Asset growth: 21.9% per year; rating input score 100; 86th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 81.7% of spending went to programs
  • Governance: 9 of 9 board members independent · 6 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $831K in reported program spending
  • Leadership: top reported pay $102K · 10 people listed
  • Consistency: 22 of 22 current checks pass
  • Schedules: 4 filed schedules · includes major donors and grants
  • Filing history: 11 filing years from 2014 to 2024
  • 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: Fundraising efficiency scored 14/100.
  • High — Sustainability: Operating margin scored 2/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Sustainability: Liabilities to assets ratio scored 20/100.
  • High — Sustainability: Officer compensation ratio scored 29/100.