Inclusive Action for the City

Nonprofit profile at a glance

EIN
270584116
IRS 990 coverage
2013–2024
Forms available
Form 990 2024, Form 990-N 2012
Location
Los Angeles, CA, USA
Phone
3236049765
Rating
72
Verdict
SUPPORTED
Rating confidence
Standard
Sector
Urban, Community Economic Development

Official website

Reported finances

Revenue
$7,080,631
Expenses
$5,608,207
Assets
$13,675,512
Liabilities
$3,563,116

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

Leadership & pay

15 people listed

Executive titles in this filing

  • RUDOLPH ESPINOZA (President & CEO)

Highest reported compensation

  • RUDOLPH ESPINOZA (President & CEO): $238,896 total reported compensation
  • NICOLE S ANAND (DEPUTY DIRECTOR): $184,264 total reported compensation
  • JULIE JAE JUNG (FINANCE DIRECTOR): $134,393 total reported compensation

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

Overview

Mission

To serve underinvested communities and build thriving local economies by improving access to transformative capital, and advancing policy through collaborative research and community-driven advocacy.

What it reported doing in 2024

In 2024, inclusive action supported nearly 1,500 community members across its various programs, providing services and advocacy efforts to help low-to-moderate income community members improve their financial stability, grow their small businesses, and access greater economic opportunity.inclusive actions access to capital and small business development progamming provided entrepreneurs and small businesses with nearly $1.25 million in low-interest loans and grants to exand their businesses, over 860 hours of tailored business coaching, and 36 business development workshops. The organizations policy advocacy efforts resulted in key victories for working class community members and entrepreneurs, including: helping pass the state of californias first ever commercial tenant protection laws; and successfully advocating for the removal of unlawfulno vending zones in the city of los angeles that banned street vendors from operating in some of the citys most trafficked areas.lastly, in 2024 inclusive action also advance key real estate projects to help create greater affordability and opportunities for community ownership. Inclusive action helped the los angeles county government launch their first-ever land bank project, which is dedicating $22 million between 2024-and 2026 to building affordable housing. Inclusive action also acquired its sixth commercial building in los angeles eastside as part of its community-owned real estate project. This sixth building houses two small businesses and several residential tenants, with whom inclusive action is working to transition into collective ownership of the property.

Operating model

Revenue model
Donor-supported. 71% of the money available for current operations came from contributions and gifts.
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 a large share of total spending goes to programs. A relatively small share of available resources goes toward mission work and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 60
  • Transparency & Controls: 80
  • Accountability: 79
  • Sustainability: 63
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 58%; rating input score 58
  • Program expense ratio: 70.9%; rating input score 71
  • Fundraising efficiency: $8.71 raised per $1 spent on fundraising; rating input score 33; 33rd percentile among comparable filings

Transparency & Controls

  • Consistency checks: 92.9%; rating input score 93; 13th percentile among comparable filings
  • Pay-setting controls: 3 of 6 controls in place; rating input score 50
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Pass
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • 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: 4 of 8 controls in place; rating input score 50
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Fail
    • 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: 20.8%; rating input score 78; 78th percentile among comparable filings
  • Total-asset coverage ratio: 2.44; rating input score 68; 68th percentile among comparable filings
  • Liabilities to assets ratio: 0.26; rating input score 38; 38th percentile among comparable filings
  • Officer compensation ratio: 16.8%; rating input score 16; 16th percentile among comparable filings

Growth

  • Program expense growth: 27.3% per year; rating input score 100; 91st percentile among comparable filings
  • Revenue growth: 25.9% per year; rating input score 100; 92nd percentile among comparable filings
  • Asset growth: 29.4% per year; rating input score 100; 93rd percentile among comparable filings

Details

  • Where the money goes: 58% of revenue deployed · 70.9% of spending went to programs
  • Governance: 9 of 9 board members independent · 4 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $4M in reported program spending
  • Leadership: top reported pay $239K · 15 people listed · 3 of 6 pay-setting controls reported
  • Highest-paid contractors: 4 contractors listed · $616K reported
  • Consistency: 26 of 27 current checks pass · 1 finding to review
  • Schedules: 7 filed schedules · includes major donors and executive pay
  • Filing history: 10 filing years from 2013 to 2024
  • Contacts: How to reach this organization
  • Money network: 6 filed money-flow records
  • Related organizations: 3 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.

  • Review — Financial Efficiency: Mission deployment rate scored 58/100.
  • Review — Accountability: Governance controls: 4 of 8 not reported.
  • Moderate — Financial Efficiency: Fundraising efficiency scored 33/100.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.
  • High — Sustainability: Officer compensation ratio scored 16/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 38/100.