Raising A Reader

Nonprofit profile at a glance

EIN
943390149
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Milpitas, CA, USA
Phone
6504890550
Rating
80
Verdict
STRONG
Rating confidence
Standard
Sector
Educational Services and Schools - Other

Official website

Reported finances

Revenue
$4,911,900
Expenses
$5,354,343
Assets
$3,927,013
Liabilities
$503,235

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

Leadership & pay

17 people listed

Executive titles in this filing

  • MICHELLE TORGERSON (DIRECTOR/PRESIDENT & CEO)

Highest reported compensation

  • MICHELLE TORGERSON (DIRECTOR/PRESIDENT & CEO): $355,717 total reported compensation
  • JONATHAN THORNTON (VP, STRATEGIC GROWTH & REVENUE): $206,622 total reported compensation
  • MICHELLE HYMAN (SVP, PROGRAMS & PARTNERSHIPS): $204,168 total reported compensation

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

Overview

Mission

Raising a Reader supports families and inspires the development of literacy skills and a lifelong love for reading. We help children attain brighter futures in which they can thrive and contribute in school, the workforce and society.

What it reported doing in 2024

Raising A Reader (RAR) is a national nonprofit family engagement and literacy program that helps families develop, practice, and maintain home literacy habits essential for school success. RAR is operated through a diverse national network of affiliates (e.g., school systems, libraries, or community agencies) at more than 2,900 locations nationally, serving families with children between the ages of 0 to 8 years old. Children participating in our programs are exposed to high-quality, developmentally appropriate children's books, providing them with both a mirror reflecting their own world and a window to the world beyond. Through initial training and ongoing support, Raising A Reader parents, even those with limited English proficiency or low literacy skills, learn how to engage their children in storytelling with picture books. The program also includes an introduction to community resources, such as the public library, setting up families for a lifetime of book enjoyment. More than 39 independent evaluations confirm the valuable impact of RAR on family engagement and early literacy skills.

Operating model

Revenue model
Other-operating. 60% of the money available for current operations came from other operating revenue.
Distribution model
Direct operator. The filing allocates 93% 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

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: 77
  • Transparency & Controls: 82
  • Accountability: 95
  • Sustainability: 22
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 86.6%; rating input score 87
  • Program expense ratio: 79.3%; rating input score 79
  • Fundraising efficiency: $6.2 raised per $1 spent on fundraising; rating input score 23; 23rd 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: Pass
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 88.3%; rating input score 88; 25th percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 90.9%; rating input score 91; 21st percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -9%; rating input score 14; 14th percentile among comparable filings
  • Total-asset coverage ratio: 0.73; rating input score 27; 27th percentile among comparable filings
  • Liabilities to assets ratio: 0.13; rating input score 54; 54th percentile among comparable filings
  • Officer compensation ratio: 27%; rating input score 7; 7th percentile among comparable filings

Growth

  • Program expense growth: 2.2% per year; rating input score 100; 23rd percentile among comparable filings
  • Revenue growth: 2.8% per year; rating input score 100; 25th percentile among comparable filings
  • Asset growth: 2.6% per year; rating input score 100; 22nd percentile among comparable filings

Details

  • Where the money goes: 86.6% of revenue deployed · 79.3% of spending went to programs
  • Governance: 10 of 11 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $4.2M in reported program spending
  • Leadership: top reported pay $356K · 17 people listed · 3 of 6 pay-setting controls reported
  • Consistency: 35 of 36 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 14 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 23 filed money-flow records
  • Related organizations: 16 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: Fundraising efficiency scored 23/100.
  • High — Sustainability: Operating margin scored 14/100.
  • High — Sustainability: Total-asset coverage ratio scored 27/100.
  • High — Sustainability: Officer compensation ratio scored 7/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
  • Review — Sustainability: Liabilities to assets ratio scored 54/100.