Small Business Majority Foundation Inc

Nonprofit profile at a glance

EIN
030576666
IRS 990 coverage
2013–2024
Forms available
Form 990 2024
Location
Washington, DC, USA
Phone
2028288357
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Small Business Development

Official website

Reported finances

Revenue
$5,565,308
Expenses
$5,358,596
Assets
$6,010,443
Liabilities
$3,514,024

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

Leadership & pay

12 people listed

Executive titles in this filing

  • JOHN ARENSMEYER (FOUNDER & CEO)
  • DAVID CHASE (VICE PRESIDENT, POLICY & ADVOCACY)
  • CASSIE MILLS (VICE PRESIDENT, COMMUNICATIONS)
  • BRIAN PIFER (VICE PRESIDENT, RESEARCH & INSIGHTS)

Highest reported compensation

  • JOHN ARENSMEYER (FOUNDER & CEO): $357,653 total reported compensation
  • DAVID CHASE (VICE PRESIDENT, POLICY & ADVOCACY): $212,885 total reported compensation
  • BRIAN PIFER (VICE PRESIDENT, RESEARCH & INSIGHTS): $206,626 total reported compensation

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

Overview

Mission

Small business majority is a national small business advocacy organization, founded by small business owners to ensure that small businesses are at the heart of a thriving, inclusive economy. We actively engage small business owners across america to drive smart public policy and get entrepreneurs the resources they need to thrive.

What it reported doing in 2024

Outreach, education & advocacy - we conduct outreach from our offices in Washington, dc, California, Colorado, Georgia, Illinois, New Mexico and New York, with a focus on serving the needs of under-resourced small business owners. We provide a suite of educational programs and connections to resources to empower entrepreneurs to start and grow their enterprises and maximize their economic prosperity on topics like access to responsible capital, healthcare and other essential benefits, and level playing field. Furthermore, we provide small business owners opportunities to advocate for public policy changes in these areas that advance entrepreneurship. Our network is comprised of more than 85,000 small business owners and more than 1,500 business organizations. Our work is guided by a national and state small business councils of active small business owners.

Operating model

Revenue model
Donor-supported. 96% 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

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: 84
  • Accountability: 90
  • Sustainability: 37
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 79.7%; rating input score 80
  • Program expense ratio: 81.9%; rating input score 82
  • Fundraising efficiency: $12.14 raised per $1 spent on fundraising; rating input score 44; 44th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 4 of 6 controls in place; rating input score 67
    • Compensation committee: Pass
    • Independent consultant: Missing
    • 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: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 83.3%; rating input score 83; 16th 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: 3.7%; rating input score 47; 47th percentile among comparable filings
  • Total-asset coverage ratio: 1.12; rating input score 41; 41st percentile among comparable filings
  • Liabilities to assets ratio: 0.58; rating input score 17; 17th percentile among comparable filings
  • Officer compensation ratio: 27.5%; rating input score 7; 7th percentile among comparable filings

Growth

  • Program expense growth: 3.8% per year; rating input score 100; 32nd percentile among comparable filings
  • Revenue growth: 2.9% per year; rating input score 100; 26th percentile among comparable filings
  • Asset growth: 12.3% per year; rating input score 100; 67th percentile among comparable filings

Details

  • Where the money goes: 79.7% of revenue deployed · 81.9% of spending went to programs
  • Governance: 5 of 6 board members independent · 9 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $4.4M in reported program spending
  • Leadership: top reported pay $358K · 12 people listed · 4 of 6 pay-setting controls reported
  • Consistency: 31 of 31 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 12 filing years from 2013 to 2024
  • Contacts: How to reach this organization
  • Money network: 7 filed money-flow records
  • Related organizations: Filed and resolved organization relationships.
  • 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.

  • Moderate — Financial Efficiency: Fundraising efficiency scored 44/100.
  • Moderate — Sustainability: Operating margin scored 47/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 41/100.
  • High — Sustainability: Officer compensation ratio scored 7/100.
  • High — Sustainability: Liabilities to assets ratio scored 17/100.