The Change Reaction

Nonprofit profile at a glance

EIN
384128902
IRS 990 coverage
2019–2024
Forms available
Form 990 2024
Location
Sherman Oaks, CA, USA
Phone
8188080600
Rating
73
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Emergency Assistance

Reported finances

Revenue
$3,034,870
Expenses
$1,437,585
Assets
$1,716,891
Liabilities
$11,175

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

Leadership & pay

6 people listed

Executive titles in this filing

  • GREGORY F PERLMAN (CEO)
  • WADE TRIMMER (President)

People named in this filing

  • GREGORY F PERLMAN (CEO)
  • JODI D PERLMAN (Secretary)
  • WADE TRIMMER (President)

Selected names, not a complete roster or a statement of current roles. Open leadership details for the complete filed list.

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

Overview

Mission

The Change Reaction is a philosophy of giving that offers maximum joy for donors and maximum impact for recipients. We provide direct grants to hardworking people who are experiencing hardships or who have opportunities to further their success but do not have the financial support they need to succeed. By partnering with well-established organizations, we transfer philanthropy to frontline staff who have access to resources not previously available. The result is that caseworkers on the frontlines say yes more often than no to clients in need.

What it reported doing in 2024

In 2019, we had the ability to establish The Change Reaction as a 501(c)(3). From that, we created partnerships with about 250 different organizations in the greater Los Angeles area. In 2024 we gave $1,387,114 in grants to hard working individuals through these organizations.

Operating model

Revenue model
Donor-supported. 100% of the money available for current operations came from contributions and gifts.
Distribution model
Grant intermediary. The nonprofit sent 99% of its reported program spending out as grants.

The verdict

SUPPORTED - A large share of total spending goes to programs and the filed numbers largely add up. A relatively small share of available resources goes toward mission work and a relatively small share of voting board members are independent.

Rating breakdown

  • Financial Efficiency: 69
  • Transparency & Controls: 89
  • Accountability: 47
  • Sustainability: 77
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 46.5%; rating input score 46
  • Program expense ratio: 97.9%; rating input score 98
  • Fundraising efficiency: $1,123.76 raised per $1 spent on fundraising; rating input score 98; 98th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 93.3%; rating input score 93; 17th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 96%; rating input score 96; 31st percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 50%; rating input score 50; 8th percentile among comparable filings
  • Governance controls: 3 of 7 controls in place; rating input score 43
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Fail
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 52.6%; rating input score 93; 93rd percentile among comparable filings
  • Total-asset coverage ratio: 1.19; rating input score 43; 43rd percentile among comparable filings
  • Liabilities to assets ratio: 0.01; rating input score 88; 88th percentile among comparable filings
  • Officer compensation ratio: 0%; rating input score 91; 91st percentile among comparable filings

Growth

  • Program expense growth: 18% per year; rating input score 100; 83rd percentile among comparable filings
  • Revenue growth: 22.3% per year; rating input score 100; 90th percentile among comparable filings
  • Asset growth: 46.8% per year; rating input score 100; 97th percentile among comparable filings

Details

  • Where the money goes: 46.5% of revenue deployed · 97.9% of spending went to programs
  • Governance: 2 of 4 board members independent · 3 of 7 filing controls reported
  • Programs: 1 filed program accomplishment · $1.4M in reported program spending
  • Leadership: top reported pay $0 · 6 people listed
  • Consistency: 25 of 26 current checks pass · 1 finding to review
  • Schedules: 5 filed schedules · includes major donors and grants
  • Filing history: 6 filing years from 2019 to 2024
  • Contacts: How to reach this organization
  • Money network: 7 filed money-flow records
  • Related organizations: 4 filed related-organization links
  • 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: Mission deployment rate scored 46/100.
  • Review — Accountability: Independent voting board scored 50/100.
  • Moderate — Accountability: Governance controls: 4 of 7 not reported.
  • Moderate — Sustainability: Total-asset coverage ratio scored 43/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.