The Prosperity Lab

Nonprofit profile at a glance

EIN
850495873
IRS 990 coverage
2021–2024
Forms available
Form 990 2024, Form 990-EZ 2020
Location
San Jose, CA, USA
Phone
4088962336
Rating
54
Verdict
MIXED
Rating confidence
Moderate
Sector
Economic Development

Official website

Reported finances

Revenue
$753,622
Expenses
$592,270
Assets
$161,352
Liabilities
$0

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

Leadership & pay

7 people listed

Executive titles in this filing

  • MIRIAM M HERNANDEZ (PRESIDENT)
  • CONNIE ALVAREZ (VICE PRESIDENT)

Highest reported compensation

  • MIRIAM M HERNANDEZ (PRESIDENT): $89,438 total reported compensation

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

Overview

Mission

Prosperity lab serves micro-enterprises, small businesses, organic business, students, low income residents, and guidance on enterpreneurship in santa clara & san mateo county

What it reported doing in 2024

Provided human resources business skills training, mentoring and shared resources to remedy HR compliance issues to over 500 unique business. Served food service industry businesses in HR Training, provided operation certification trainings and mentoring to avoid labor violations and unique food service businesses in Santa Clara County

Operating model

Revenue model
Grant-funded. 61% of the money available for current operations came from government grants.
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

MIXED - The filed numbers largely add up and program spending has grown recently. 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: 51
  • Transparency & Controls: 65
  • Accountability: 34
  • Sustainability: 54
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 45%; rating input score 45
  • Program expense ratio: 57.3%; rating input score 57
  • Fundraising efficiency: $21.52 raised per $1 spent on fundraising; rating input score 60; 60th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 14.3%; rating input score 14; 9th percentile among comparable filings
  • Governance controls: 5 of 8 controls in place; rating input score 62
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Fail
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 21.4%; rating input score 78; 78th percentile among comparable filings
  • Total-asset coverage ratio: 0.27; rating input score 13; 13th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 91; 91st percentile among comparable filings
  • Officer compensation ratio: 15.1%; rating input score 23; 23rd percentile among comparable filings

Growth

  • Program expense growth: 16.8% per year; rating input score 100; 78th percentile among comparable filings
  • Revenue growth: 32.2% per year; rating input score 100; 93rd percentile among comparable filings
  • Asset growth: 20.4% per year; rating input score 100; 82nd percentile among comparable filings

Details

  • Where the money goes: 45% of revenue deployed · 57.3% of spending went to programs
  • Governance: 1 of 7 board members independent · 5 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $339K in reported program spending
  • Leadership: top reported pay $89K · 7 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 25 of 25 current checks pass
  • Schedules: 4 filed schedules · includes major donors and executive pay
  • Filing history: 4 filing years from 2021 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: Mission deployment rate scored 45/100.
  • High — Accountability: Independent voting board scored 14/100.
  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • Review — Financial Efficiency: Program expense ratio scored 57/100.
  • Review — Accountability: Governance controls: 3 of 8 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 13/100.
  • High — Sustainability: Officer compensation ratio scored 23/100.