Shared Knowledge Literacy

What it reported doing in 2011

See schedule o. The organization maintains alliances with various non-profit thrift stores (such as the salvation army and goodwill industries) to assist such thrift stores in fundraising efforts. As donors contribute books to the various thrift stores, employees at the respective thrift store utilize computer laptops provided by the organization to read each book's barcode using wand based scanning technology. In the event a book does not possess a barcode, the thrift store employees enter the book's issn usually found on the title page of each book. The computer laptops are loaded with the organization's proprietary software which is linked to a dynamic database that contains market data (demand, price, etc.) for each book. Books that do not meet the organization's criteria are offered for sale at the thrift store; books that meet the organization's criteria are cleaned, categorized, etc. And forwarded to the organization. Generally speaking, the organization prefers non-fiction books ("how to" books, manuals, textbooks, etc.) and avoids fiction and can market its pre-selected books at a price substantially in excess of the originating thrift stores. As discussed above, the organization provides its thrift store allies with the requisite hardware and proprietary software to identify books meeting its criteria. During the fiscal year ended march 31, 2012, the organization donated 13,131 of new hardware to its thrift store allies. Such hardware and software is designed to enable the thrift stores to employ individuals who often have financial, emotional, physical or mental challenges who might otherwise be unemployed reliant solely on government based social programs. The organization markets the books using a contractual relationship with amazon, inc. Utilizing amazon's website (www.amazon.com) and associated search engine functionality. As books are sold, the organization provides the originating thrift store with 50% of the gross sales price of each book; the remaining 50% of the gross proceeds are retained by the organization to cover direct costs of the book sale (shipping, handling, etc.) and the organization's indirect costs such as employee compensation, rent, etc. During the fiscal year ended march 31, 2012, the organization provided the following amounts to its thrift store allies, as follows: diversity thrift 9,632 goodwill industries 189,213 salvation army 200,429 these remittances have been reflected in the accompanying schedule i, form 990, as "grants and other assistance to organizations", as these remittances are intended to enable the recipient thrift stores to further their collective missions. In addition, the organization makes contributions to various non-profit organizations supporting public libraries throughout Virginia in support of literacy, rehabilitation and job training. Examples of such donee organizations include friends of henrico county library and friends of atlee library. During the fiscal year ended march 31, 2012, the organization contributed 76,840 to 14 such library-related organizations; these remittances have also been reported in the accompanying schedule i, form 990, as "grants and other assistance to organizations." in addition to the above, the organization funds scholarships to criteria eligible individuals to further literacy in the community. During the fiscal year ended march 31, 2012, four scholarships were awarded to qualifying individuals in the amount of 1,000 per individual (4,000 in total). Collected books that no longer meet the organization's criteria are donated to public libraries who hold bulk fundraising/book sale events to raise proceeds to promote literacy in the community. During the fiscal year ended march 31, 2012, the organization donated approximately 14,000 pounds of books to public libraries and estimates the value received by the recipients at approximately 14,000.

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 60th percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: 100%; rating input score 100; 73rd percentile among comparable filings
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 0%; rating input score 0; 4th percentile among comparable filings
• Governance controls: 5 of 9 controls in place; rating input score 56
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Fail
  • Document-retention policy: Fail
  • 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: Missing
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: 8.1%; rating input score 67; 67th percentile among comparable filings
• Total-asset coverage ratio: 0.17; rating input score 9; 9th percentile among comparable filings
• Liabilities to assets ratio: 0.15; rating input score 49; 49th percentile among comparable filings
• Officer compensation ratio: 20.8%; rating input score 11; 11th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: Limited
• Asset growth: Limited