Innovate Birmingham

Nonprofit profile at a glance

EIN
815327975
IRS 990 coverage
2018–2022
Forms available
Form 990 2022
Location
Birmingham, AL, USA
Phone
2059198324
Rating
79
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Job Training

Reported finances

Revenue
$343,555
Expenses
$554,606
Assets
$219,808
Liabilities
$119,565

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

Leadership & pay

9 people listed

Executive titles in this filing

  • MARTHA UNDERWOOD (PRESIDENT)
  • DELPHINE CARTER (VICE PRESIDENT)

Highest reported compensation

  • DENITA BEARDEN (DIRECTOR OF OPERATIONS): $79,366 total reported compensation

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

Overview

Mission

Innovate birmingham is a nonprofit organization working to promote economic mobility and fill the tech talent gap in central Alabama.

What it reported doing in 2022

In 2016, following the award of the us department of labor's america'spromise grant (led by the university of Alabama at birmingham (uab)), acoalition of over 15 community partners and 30 employers came together tosolve two problems: (1) meet the demand of an it workforce growing at thesecond-fastest pace in the country; (2) harness the potential of under- andunemployed residents in central Alabama. Innovate birmingham and our partners are driven by a shared belief: talent is distributed equally in our community but opportunity is not. Our programs are designed to address this challenge by identifying talent needs with employers; connecting with area residents who are disconnected from the labor market; and providing holistic support, professional development, and training for our students.as a demand-driven nonprofit organization, our programs are updated andaligned with industry needs along with input from employers andparticipants.

Operating model

Revenue model
Donor-supported. 100% 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 - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 83
  • Transparency & Controls: 92
  • Accountability: 74
  • Sustainability: 12
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 74.7%; rating input score 75
  • Fundraising efficiency: $5.16 raised per $1 spent on fundraising; rating input score 21; 21st 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: 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: 3 of 8 controls in place; rating input score 38
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -61.4%; rating input score 5; 5th percentile among comparable filings
  • Total-asset coverage ratio: 0.4; rating input score 18; 18th percentile among comparable filings
  • Liabilities to assets ratio: 0.54; rating input score 11; 11th percentile among comparable filings
  • Officer compensation ratio: 14.3%; rating input score 26; 26th percentile among comparable filings

Growth

  • Program expense growth: 3.8% per year; rating input score 100; 53rd percentile among comparable filings
  • Revenue growth: -3% per year; rating input score 0; 18th percentile among comparable filings
  • Asset growth: 9.4% per year; rating input score 100; 64th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 74.7% of spending went to programs
  • Governance: 8 of 8 board members independent · 3 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $414K in reported program spending
  • Leadership: top reported pay $79K · 9 people listed
  • Consistency: 24 of 24 current checks pass
  • Schedules: 4 filed schedules · includes major donors
  • Filing history: 3 filing years from 2018 to 2022
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • Moderate — Accountability: Governance controls: 4 of 7 not reported.
  • High — Financial Efficiency: Fundraising efficiency scored 21/100.
  • High — Sustainability: Operating margin scored 5/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 18/100.
  • High — Sustainability: Liabilities to assets ratio scored 11/100.
  • High — Sustainability: Officer compensation ratio scored 26/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.