Free Bikes 4 Kidz

Nonprofit profile at a glance

EIN
850780785
IRS 990 coverage
2022–2022
Forms available
Form 990 2022, Form 990-EZ 2021
Location
St Louis Park, MN, USA
Phone
9524574858
Rating
82
Verdict
STRONG
Rating confidence
Moderate
Sector
Youth Development Programs

Official website

Reported finances

Revenue
$308,020
Expenses
$370,292
Assets
$39,261
Liabilities
$12,009

Source: IRS Form 990. Selected filing: tax year 2022. Amounts in USD.

Leadership & pay

6 people listed

Executive titles in this filing

  • Terry Esau (Executive Director)

Highest reported compensation

  • Terry Esau (Executive Director): $90,998 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2022. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Passionate about the wellbeing of children, Free Bikes 4 Kidz(R) brinbgs communities together to sustainably furnish bikes to kids in need, providing a pathway to health, happiness and opportunity.

What it reported doing in 2022

Free Bikes 4 Kidz (FB4K) currently has affiliates in 19 cities with a goal of expanding to 100 markets nationally. In 2022, our affiliates collected donated bikes from members of their communities, organized thousands of volunteers to clean and refurbish them, and finally, partnering with local nonprofits, they gave over 26,000 bikes to children in need. As a byproduct of this process, we have kept tens of thousands of bikes out of landfills in 2022. Any bike that is beyond repair is stripped down for salvageable parts and then sent to a local recycling center. Not only have we made 26,000 kids smile in 2022, enabling them to ride into a happier and healthier future, we have engaged the community in doing so, while doing our part to save the planet.

Operating model

Revenue model
Donor-supported. 90% of the money available for current operations came from contributions and gifts.
Distribution model
Grant intermediary. The nonprofit sent 67% 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: 88
  • Transparency & Controls: 94
  • Accountability: 80
  • Sustainability: 13
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 88.2%; rating input score 88
  • Fundraising efficiency: $7.69 raised per $1 spent on fundraising; rating input score 31; 31st percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 61st percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 83.3%; rating input score 83; 22nd 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: -20.2%; rating input score 16; 16th percentile among comparable filings
  • Total-asset coverage ratio: 0.11; rating input score 6; 6th percentile among comparable filings
  • Liabilities to assets ratio: 0.31; rating input score 17; 17th percentile among comparable filings
  • Officer compensation ratio: 24.6%; rating input score 15; 15th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: 50.7% per year; rating input score 100; 96th percentile among comparable filings
  • Asset growth: -94.9% per year; rating input score 0; 0th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 88.2% of spending went to programs
  • Governance: 5 of 6 board members independent · 6 of 8 filing controls reported
  • Programs: 2 filed program accomplishments · $327K in reported program spending
  • Leadership: top reported pay $91K · 6 people listed
  • Consistency: 25 of 25 current checks pass
  • Schedules: 5 filed schedules · includes major donors and grants
  • Contacts: How to reach this organization
  • Money network: 11 filed money-flow records
  • Related organizations: 9 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.

  • Moderate — Financial Efficiency: Fundraising efficiency scored 31/100.
  • High — Sustainability: Operating margin scored 16/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 6/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Sustainability: Officer compensation ratio scored 15/100.
  • High — Sustainability: Liabilities to assets ratio scored 17/100.