Reach Out and Read Inc

What it reported doing in 2024

Reach out and read is the only national early literacy organization working directly with pediatric care providers to incorporate the promotion of reading aloud to children every day. Reach out and read's mission is to give young children a foundation for success by incorporating books into pediatric care and encouraging families to read aloud together. Reading aloud to young children is one core strategy for promoting healthy relationships and positive interactions early in life. The program begins in infancy and continues through age 5, with a special emphasis on children growing up in low-income communities.pediatricians and other pediatric clinicians who are involved in the organization share brand-new, age- and language-appropriate books and literacy advice with children and parents at each well-child visit up to the age of 5. The effectiveness of the organization's model is recognized by the american academy of pediatrics in a policy statement that recommends early literacy promotion as an essential component of pediatric care. The program is both cost-effective and evidence-based: research shows that the program results in more frequent reading at home, accelerated vocabulary and critical brain development.through generous support and revenue from individual contributions, corporate foundations, donated goods and services and government grants, the organization provides books and training to approved program sites in all 50 states and Washington, dc. Approved program sites are medical facilities that have demonstrated the ability to implement the model and have signed a letter of agreement with the organization. Funding sources are generated by program sites, regional affiliates, and the national center. During the year ended june 30, 2025, approximately 8 million books were distributed to approximately 6,800 sites.

Financial Efficiency

• Mission deployment rate: 86.2%; rating input score 86
• Program expense ratio: 81.2%; rating input score 81
• Fundraising efficiency: $9.53 raised per $1 spent on fundraising; rating input score 37; 37th percentile among comparable filings

Transparency & Controls

• Consistency checks: 94.1%; rating input score 94; 20th percentile among comparable filings
• Pay-setting controls: 5 of 6 controls in place; rating input score 83
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 62.3%; rating input score 62; 13th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 66th 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: -5%; rating input score 17; 17th percentile among comparable filings
• Total-asset coverage ratio: 1.06; rating input score 38; 38th percentile among comparable filings
• Liabilities to assets ratio: 0.09; rating input score 75; 75th percentile among comparable filings
• Officer compensation ratio: 6.9%; rating input score 36; 36th percentile among comparable filings

Growth

• Program expense growth: 8.7% per year; rating input score 100; 65th percentile among comparable filings
• Revenue growth: 5.2% per year; rating input score 100; 46th percentile among comparable filings
• Asset growth: 13.7% per year; rating input score 100; 77th percentile among comparable filings