Kidznotes Inc

Nonprofit profile at a glance

EIN
270446845
IRS 990 coverage
2016–2024
Forms available
Form 990 2024, Form 990-EZ 2010, Form 990-N 2009
Location
Durham, NC, USA
Phone
9193214475
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Music

Official website

Reported finances

Revenue
$625,090
Expenses
$820,819
Assets
$185,217
Liabilities
$16,076

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

Leadership & pay

15 people listed

Highest reported compensation

  • DR THOMAS HOWARD JR (EXECUTIVE DI): $111,830 total reported compensation

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

Overview

Mission

Kidznotes empowers youth through music education, fostering personal growth, deepening community engagement, and driving social change.

What it reported doing in 2024

Kidznotes is a music for social change program based on the el sistema international model of youth orchestras. Our program enrolls students of title i schools in first through twelfth grade in an out-of-school music program that includes instrumental provision and instructions, orchestra, band, chamber ensemble coaching and general music classes of beginning, intermediate and advanced proficiency levels, tuition-free for families. Kidznotes uses music education to provide students with the structure, responsibility, and opportunities for success that help to build transferable skills. Our tool is music; our goal is to build the next generation of community leaders. Students attending durham public schools and several public charter schools in the North Carolina triangle area whose families are eligible for the ncdpi free & reduced price school meals program receive priority acceptance into the kidznotes program. Our program provides services to students from under resourced communities in the durham and surrounding triangle area of North Carolina.

Operating model

Revenue model
Donor-supported. 88% 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.
  • Includes noncash contributions: Reported contributions include donated property or goods.

The verdict

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

Rating breakdown

  • Financial Efficiency: 65
  • Transparency & Controls: 92
  • Accountability: 95
  • Sustainability: 14
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 79%; rating input score 79
  • Program expense ratio: 60.1%; rating input score 60
  • Fundraising efficiency: $2.76 raised per $1 spent on fundraising; rating input score 8; 8th 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: 7 of 8 controls in place; rating input score 88
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • 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: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -31.3%; rating input score 6; 6th percentile among comparable filings
  • Total-asset coverage ratio: 0.23; rating input score 10; 10th percentile among comparable filings
  • Liabilities to assets ratio: 0.09; rating input score 44; 44th percentile among comparable filings
  • Officer compensation ratio: 13.6%; rating input score 26; 26th percentile among comparable filings

Growth

  • Program expense growth: -8.3% per year; rating input score 0; 5th percentile among comparable filings
  • Revenue growth: 3.7% per year; rating input score 100; 36th percentile among comparable filings
  • Asset growth: 0% per year; rating input score 100; 18th percentile among comparable filings

Details

  • Where the money goes: 79% of revenue deployed · 60.1% of spending went to programs
  • Governance: 14 of 14 board members independent · 7 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $493K in reported program spending
  • Leadership: top reported pay $112K · 15 people listed
  • Consistency: 35 of 35 current checks pass
  • Schedules: 6 filed schedules · includes major donors
  • Filing history: 9 filing years from 2016 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 8/100.
  • High — Sustainability: Operating margin scored 6/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 10/100.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • High — Sustainability: Officer compensation ratio scored 26/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 44/100.