Sounds Academy

Nonprofit profile at a glance

EIN
463932746
IRS 990 coverage
2018–2024
Forms available
Form 990 2024, Form 990-EZ 2017, Form 990-N 2014
Location
Phoenix, AZ, USA
Phone
6233494774
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Arts Education

Reported finances

Revenue
$882,117
Expenses
$899,536
Assets
$444,398
Liabilities
$17,586

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

Leadership & pay

4 people listed

Executive titles in this filing

  • JOHNSON K (FOUNDER/CEO)

Highest reported compensation

  • JOHNSON K (FOUNDER/CEO): $80,997 total reported compensation

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

Overview

Mission

Our vision is to provide music education opportunities to a wide variety of children while removing any barriers that children may have in receiving quality music education.

What it reported doing in 2024

Sounds academy is a non-profit music education organization that teaches, mentors, and provides musical experiences and opportunities for underserved youth. Students receive individual lessons and group classes on all instruments and voice. Instruments are provided to those who cannot afford one. Sounds academy students learn the character values of creativity, leadership, perseverance, resilience, and teamwork through music education. We teach these values in our musical access program, which connects students to live music and instruments through our instrument petting zoos, our school programs for lower income schools and community centers, our solo program, which provides one-on-one instruction, and the collective ensembles that teach music theory and ensemble playing techniques.

Operating model

Revenue model
Donor-supported. 64% of the money available for current operations came from contributions and gifts.
Distribution model
Hybrid. The nonprofit split its reported program spending across 75% for direct work, and 25% for grants.
  • 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. Fundraising costs are high for each dollar raised and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 71
  • Transparency & Controls: 90
  • Accountability: 90
  • Sustainability: 27
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 77.7%; rating input score 78
  • Program expense ratio: 75.9%; rating input score 76
  • Fundraising efficiency: $5.47 raised per $1 spent on fundraising; rating input score 20; 20th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 94.1%; rating input score 94; 25th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 76th 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%; rating input score 30; 30th percentile among comparable filings
  • Total-asset coverage ratio: 0.49; rating input score 23; 23rd percentile among comparable filings
  • Liabilities to assets ratio: 0.04; rating input score 55; 55th percentile among comparable filings
  • Officer compensation ratio: Limited

Growth

  • Program expense growth: 20.7% per year; rating input score 100; 83rd percentile among comparable filings
  • Revenue growth: 23.1% per year; rating input score 100; 88th percentile among comparable filings
  • Asset growth: 28.2% per year; rating input score 100; 90th percentile among comparable filings

Details

  • Where the money goes: 77.7% of revenue deployed · 75.9% of spending went to programs
  • Governance: 4 of 4 board members independent · 6 of 8 filing controls reported
  • Programs: 2 filed program accomplishments · $683K in reported program spending
  • Leadership: top reported pay $81K · 4 people listed
  • Consistency: 27 of 28 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors and grants
  • Filing history: 7 filing years from 2018 to 2024
  • Contacts: How to reach this organization
  • Money network: 2 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.

  • High — Financial Efficiency: Fundraising efficiency scored 20/100.
  • Moderate — Sustainability: Operating margin scored 30/100.
  • High — Sustainability: Total-asset coverage ratio scored 23/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • Review — Sustainability: Liabilities to assets ratio scored 55/100.