Next Step to Success

Nonprofit profile at a glance

EIN
882408724
IRS 990 coverage
2022–2024
Forms available
Form 990 2024
Location
Norfolk, VA, USA
Phone
7574041818
Rating
54
Verdict
MIXED
Rating confidence
Moderate
Sector
Educational Services and Schools - Other

Reported finances

Revenue
$6,685,736
Expenses
$1,612,161
Assets
$10,707,535
Liabilities
$320,254

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

Leadership & pay

7 people listed

Executive titles in this filing

  • Robert McCartney (Chief Executive Officer)
  • Charles V McPhillips (President)
  • Donald F Price (Vice President)

Highest reported compensation

  • Robert McCartney (Chief Executive Officer): $390,775 total reported compensation
  • Charles V McPhillips (President): $15,000 total reported compensation
  • Donald F Price (Vice President): $15,000 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 help youth in Norfolk build the independent, resilient character they will need to earn success and enjoy happy, fulfilling lives as adults.

What it reported doing in 2024

For far too long, Norfolk has been marked by concentrations of chronic, intergenerational poverty and dependency, with a poverty rate almost twice the state average and over 25% of our children growing up in poverty. Everyone always says that "they" should do something about this (whoever "they" are). Well, we decided that we and our community partners are "they". Next Step to Success is a free after-school and summer experiential learning program that empowers teenagers from low-income households in Norfolk to build the independent, resilient character they will need to earn success and enjoy happy, fulfilling lives as adults. By inspiring our youth to adhere to the data-validated "Success Sequence," our ultimate objective is to cut the poverty rate in our city by one-half within a generation. We will accomplish this by honing the character strengths, life skills, success strategies, and high self-expectations that will enable our youth to reach escape velocity from their economically disadvantaged backgrounds. These "Success Stories" (as we call our youth) will then become the "influencers" of their peers within the communities where poverty is most concentrated, gradually but steadily changing the educational outcomes, social norms, career expectations and living environment that have kept too many young folks in our city from reaching their full potential.

Operating model

Revenue model
Donor-supported. 69% 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

MIXED - The filed numbers largely add up and program spending has grown recently. A relatively small share of available resources goes toward mission work and a relatively small share of voting board members are independent.

Rating breakdown

  • Financial Efficiency: 39
  • Transparency & Controls: 76
  • Accountability: 32
  • Sustainability: 89
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 21.2%; rating input score 21
  • Program expense ratio: 83.1%; rating input score 83
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 94.1%; rating input score 94; 23rd percentile among comparable filings
  • Pay-setting controls: 3 of 6 controls in place; rating input score 50
    • Compensation committee: Missing
    • Independent consultant: Pass
    • Other Form 990s reviewed: Missing
    • Written employment contract: Pass
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: No; rating input score 0

Accountability

  • Independent voting board: 0%; rating input score 0; 3rd percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • 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: 75.9%; rating input score 97; 97th percentile among comparable filings
  • Total-asset coverage ratio: 6.64; rating input score 87; 87th percentile among comparable filings
  • Liabilities to assets ratio: 0.03; rating input score 76; 76th percentile among comparable filings
  • Officer compensation ratio: 1.4%; rating input score 79; 79th percentile among comparable filings

Growth

  • Program expense growth: 5.6% per year; rating input score 100; 43rd percentile among comparable filings
  • Revenue growth: 60.7% per year; rating input score 100; 98th percentile among comparable filings
  • Asset growth: 105.7% per year; rating input score 100; 99th percentile among comparable filings

Details

  • Where the money goes: 21.2% of revenue deployed · 83.1% of spending went to programs
  • Governance: 0 of 5 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $1.3M in reported program spending
  • Leadership: top reported pay $391K · 7 people listed · 3 of 6 pay-setting controls reported
  • Consistency: 30 of 31 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 3 filing years from 2022 to 2024
  • Contacts: How to reach this organization
  • Money network: Resolved incoming and outgoing counterparties from filed money flows.
  • Related organizations: 4 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.

  • High — Financial Efficiency: Mission deployment rate scored 21/100.
  • High — Accountability: Independent voting board scored 0/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Transparency & Controls: Related-party transparency scored 0/100.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.