Recreational Music Center

Nonprofit profile at a glance

EIN
900603019
IRS 990 coverage
2011–2020
Forms available
Form 990 2020, Form 990-EZ 2010
Location
San Diego, CA, USA
Phone
6192259597
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Arts, Culture, and Humanities

Reported finances

Revenue
$375,363
Expenses
$366,388
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2020. Amounts in USD.

Leadership & pay

6 people listed

Executive titles in this filing

  • DAVID GEREGHTY (EXECUTIVE DIRECTOR)
  • CRYSTAL TRULL (PRESIDENT)

Highest reported compensation

  • DAVID GEREGHTY (EXECUTIVE DIRECTOR): $27,619 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2020. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Cultivate the joy of making music through relevant, cutting edge teaching methods, making them available to everyone regardless of financial resources or other barriers.

What it reported doing in 2020

On-site services - provide private lessons on any instrument, group classes, student ensembles, homeschool theory classes and lessons, summer camps, and music clubs to transform and enrich students' lives with music education. Instructors utilize innovative teaching methods and technology to identify the music style that best suits each student's interest to achieve the best results. All lessons, classes and events were offered as pay for service with reduced rates (scholarships) granted based on application showing financial hardship.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
Distribution model
Direct operator. The filing allocates 98% 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

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Total assets are small relative to annual expenses; liquid coverage is unknown and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 72
  • Transparency & Controls: 94
  • Accountability: 90
  • Sustainability: 23
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 72.7%; rating input score 73
  • Program expense ratio: 72.6%; rating input score 73
  • Fundraising efficiency: $27.42 raised per $1 spent on fundraising; rating input score 60; 60th 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: 100%; rating input score 100; 79th 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; 63rd percentile among comparable filings
  • Governance controls: 6 of 8 controls in place; rating input score 75
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 2.4%; rating input score 39; 39th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 1; 1st percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 7.5%; rating input score 37; 37th percentile among comparable filings

Growth

  • Program expense growth: 0.8% per year; rating input score 100; 50th percentile among comparable filings
  • Revenue growth: 10.3% per year; rating input score 100; 79th percentile among comparable filings
  • Asset growth: -0.2% per year; rating input score 0; 27th percentile among comparable filings

Details

  • Where the money goes: 72.7% of revenue deployed · 72.6% of spending went to programs
  • Governance: 5 of 5 board members independent · 6 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $266K in reported program spending
  • Leadership: top reported pay $28K · 6 people listed
  • Consistency: 24 of 24 current checks pass
  • Schedules: 5 filed schedules · includes major donors and grants
  • Filing history: 10 filing years from 2011 to 2020
  • 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.

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

  • High — Sustainability: Total-asset coverage ratio scored 1/100.
  • Moderate — Sustainability: Operating margin scored 39/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Officer compensation ratio scored 37/100.
  • High — Grant Readiness: California registration: this organization is recorded as not currently operating in California.