Root Cause Research Center Inc

Nonprofit profile at a glance

EIN
611260839
IRS 990 coverage
2021–2024
Forms available
Form 990 2024, Form 990-EZ 2020, Form 990-N 2018
Location
Louisville, KY, USA
Phone
5025443834
Rating
73
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Arts, Cultural Organizations - Multipurpose

Reported finances

Revenue
$323,949
Expenses
$324,450
Assets
$180,226
Liabilities
$18

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

Leadership & pay

3 people listed

Executive titles in this filing

  • DONNA GOLDSMITH (President)

Highest reported compensation

  • LINDA OMER (Executive Dir.): $78,500 total reported compensation
  • JOSHUA POE (Treasurer): $73,749 total reported compensation
  • DONNA GOLDSMITH (President): $27,083 total reported compensation

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

Overview

Mission

Root Cause Research Center - We build structured tenant-lead campaigns and produce knowledge in solidarity with communities under threat of displacement, surveillance, and police violence. We define our base-building practices as (1) expanding the number of people committed to struggling alongside you politically; (2) developing their skills, analysis, and leadership; and (3) deepening our relationships with them. Our base-building practices include regular canvasses and phone banks to connect with new people; deepening relationships with people in our base through regular one-on-ones; providing training for members to develop skills and analysis; and identifying members of our base to develop into leaders and working with them on leadership development plans. Our target base is poor and working-class people in Kentucky, who are impacted by houselessness and police violence, especially Black people and people living in rural areas. We build economic power by organizing tenant unions in

What it reported doing in 2024

Root Cause Research Center - We build structured tenant-lead campaigns and produce knowledge in solidarity with communities under threat of displacement, surveillance, and police violence. We define our base-building practices as (1) expanding the number of people committed to struggling alongside you politically; (2) developing their skills, analysis, and leadership; and (3) deepening our relationships with them. Our base-building practices include regular canvasses and phone banks to connect with new people; deepening relationships with people in our base through regular one-on-ones; providing training for members to develop skills and analysis; and identifying members of our base to develop into leaders and working with them on leadership development plans. Our target base is poor and working-class people in Kentucky, who are impacted by houselessness and police violence, especially Black people and people living in rural areas. We build economic power by organizing tenant unions in apartment buildings for collectively bargained leases and political power by fighting for policies that protect tenants.

Operating model

Revenue model
Donor-supported. 100% 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

SUPPORTED - The filed numbers largely add up and a large share of available resources goes toward mission work. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 67
  • Transparency & Controls: 92
  • Accountability: 58
  • Sustainability: 33
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 75.6%; rating input score 76
  • Program expense ratio: 75.4%; rating input score 75
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 64th 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: 0 of 9 controls in place; rating input score 0
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Fail
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -0.2%; rating input score 38; 38th percentile among comparable filings
  • Total-asset coverage ratio: 0.56; rating input score 27; 27th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 59; 59th percentile among comparable filings
  • Officer compensation ratio: 55.3%; rating input score 3; 3rd percentile among comparable filings

Growth

  • Program expense growth: 9.2% per year; rating input score 100; 68th percentile among comparable filings
  • Revenue growth: 24.3% per year; rating input score 100; 91st percentile among comparable filings
  • Asset growth: 36.6% per year; rating input score 100; 94th percentile among comparable filings

Details

  • Where the money goes: 75.6% of revenue deployed · 75.4% of spending went to programs
  • Governance: 3 of 3 board members independent · 0 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $245K in reported program spending
  • Leadership: top reported pay $78K · 3 people listed
  • Consistency: 24 of 24 current checks pass
  • Schedules: 3 filed schedules · includes major donors
  • Filing history: 4 filing years from 2021 to 2024
  • Contacts: How to reach this organization
  • Money network: 3 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 — Accountability: Governance controls: 8 of 8 not reported.
  • Moderate — Sustainability: Operating margin scored 38/100.
  • High — Sustainability: Total-asset coverage ratio scored 27/100.
  • High — Sustainability: Officer compensation ratio scored 3/100.
  • Review — Sustainability: Liabilities to assets ratio scored 59/100.