The Democracy Collaborative Foundation Inc

Nonprofit profile at a glance

EIN
200387511
IRS 990 coverage
2012–2024
Forms available
Form 990 2024
Location
Shaker Heights, OH, USA
Phone
2162822022
Rating
66
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Professional Societies, Associations

Official website

Reported finances

Revenue
$957,542
Expenses
$2,172,200
Assets
$1,079,205
Liabilities
$1,008,983

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

Leadership & pay

10 people listed

Executive titles in this filing

  • STEPHANIE MCHENRY (CEO)
  • JOE GUINAN (PRESIDENT)

Highest reported compensation

  • STEPHANIE MCHENRY (CEO): $190,771 total reported compensation
  • JOE GUINAN (PRESIDENT): $170,935 total reported compensation
  • MARVIN BROOKSHIRE (DIRECTOR OF FINANCE): $119,561 total reported compensation

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

Overview

Mission

See schedule othe democracy collaborative was established in 2000 to advance understanding of democracy for the 21st century and to promote emerging strategies and innovations in community development that enhance democratic life. In particular, our work focuses on the critical role local economic stability plays in strengthening civic life, providing meaningful employment, enhancing family security, and promoting environmental sustainability. The democracy collaborative sponsors a range of education projects involving research, training, and community-focused work designed to increase support for wealth building innovations at the local level.

What it reported doing in 2024

Theory, research and policy programs: in 2024, we produced the 2024 second edition of the u.s. Index of systemic trends, written up in the guardian. We partnered with ussen and pnll on "resist & build" to grow the solidarity economy movement. We convened the next system movement lab, a re-founding five-day meeting at pocantico on the strategy and movement for system change with thirty key partners from across north america. We launched marjorie kelly's wealth supremacy, using the book to reach hundreds of thousands, perhaps even millions, of people through media channels with its critique of financialized capitalism.

Operating model

Revenue model
Donor-supported. 78% 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.
  • Includes noncash contributions: Reported contributions include donated property or goods.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and most voting board members are independent. The filing reports few safeguards for money sent abroad and the filing does not identify recipients for some grant dollars.

Rating breakdown

  • Financial Efficiency: 77
  • Transparency & Controls: 51
  • Accountability: 95
  • Sustainability: 9
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 60.9%; rating input score 61
  • Fundraising efficiency: $4.03 raised per $1 spent on fundraising; rating input score 13; 13th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Pass
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Scored; rating input score 0
  • Grant itemization coverage: Scored; rating input score 0
  • 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: 8 of 9 controls in place; rating input score 89
    • 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: Fail
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -126.9%; rating input score 1; 1st percentile among comparable filings
  • Total-asset coverage ratio: 0.5; rating input score 23; 23rd percentile among comparable filings
  • Liabilities to assets ratio: 0.93; rating input score 7; 7th percentile among comparable filings
  • Officer compensation ratio: 22.2%; rating input score 12; 12th percentile among comparable filings

Growth

  • Program expense growth: -0.3% per year; rating input score 0; 17th percentile among comparable filings
  • Revenue growth: -0.2% per year; rating input score 0; 14th percentile among comparable filings
  • Asset growth: -0.1% per year; rating input score 0; 17th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 60.9% of spending went to programs
  • Governance: 7 of 7 board members independent · 8 of 9 filing controls reported
  • Programs: 2 filed program accomplishments · $1.3M in reported program spending
  • Leadership: top reported pay $191K · 10 people listed · 2 of 6 pay-setting controls reported
  • Consistency: 29 of 29 current checks pass
  • Schedules: 8 filed schedules · includes major donors, foreign activity, and executive pay
  • Filing history: 11 filing years from 2012 to 2024
  • Contacts: How to reach this organization
  • Money network: 3 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Transparency & Controls: Foreign activity oversight scored 0/100.
  • High — Transparency & Controls: Grant itemization coverage scored 0/100.
  • High — Financial Efficiency: Fundraising efficiency scored 13/100.
  • High — Sustainability: Operating margin scored 1/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 23/100.
  • High — Growth: Asset growth scored 0/100.
  • Review — Accountability: Governance controls: Audit committee oversight not reported.
  • High — Sustainability: Liabilities to assets ratio scored 7/100.
  • High — Sustainability: Officer compensation ratio scored 12/100.