The Reading Connection Inc

Nonprofit profile at a glance

EIN
541628863
IRS 990 coverage
2011–2016
Forms available
Form 990 2016
Location
Mclean, VA, USA
Phone
7035288317
Rating
83
Verdict
STRONG
Rating confidence
Moderate
Sector
Educational Services and Schools - Other

Official website

Reported finances

Revenue
$519,652
Expenses
$765,526
Assets
$214,457
Liabilities
$130,718

Source: IRS Form 990. Selected filing: tax year 2016. Amounts in USD.

Leadership & pay

22 people listed

Highest reported compensation

  • COURTNEY KISSELL (FORMER SECY/EX. DIRECTOR): $79,519 total reported compensation
  • CATHERINE KEIGHTLEY (FORMER EX. DIRECTOR): $22,917 total reported compensation
  • CAROL SHEN (VICE CHAIR/ FORMER INTER.EXE.DIRECTOR): $21,000 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2016. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The reading connection is dedicated to improving the lives of at-risk children and families by helping them create and sustain literacy-rich environments and motivation for reading.

What it reported doing in 2016

The reading connection reaches children through our programs by distributing books across the dc metro region; holding reading family workshops; offering literacy advocates trainings for social service agencies; and offering launching young readers trainings for public school personnel.

Operating model

Revenue model
Donor-supported. 98% 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

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 some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 83
  • Transparency & Controls: 92
  • Accountability: 84
  • Sustainability: 10
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 75.7%; rating input score 76
  • Fundraising efficiency: $4.49 raised per $1 spent on fundraising; rating input score 16; 16th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • 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: 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: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -47.3%; rating input score 3; 3rd percentile among comparable filings
  • Total-asset coverage ratio: 0.28; rating input score 15; 15th percentile among comparable filings
  • Liabilities to assets ratio: 0.61; rating input score 16; 16th percentile among comparable filings
  • Officer compensation ratio: 16.1%; rating input score 18; 18th percentile among comparable filings

Growth

  • Program expense growth: 17.1% per year; rating input score 100; 81st percentile among comparable filings
  • Revenue growth: 4.3% per year; rating input score 100; 52nd percentile among comparable filings
  • Asset growth: 4% per year; rating input score 100; 49th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 75.7% of spending went to programs
  • Governance: 20 of 20 board members independent · 5 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $579K in reported program spending
  • Leadership: top reported pay $80K · 22 people listed
  • Consistency: 33 of 33 current checks pass
  • Schedules: 6 filed schedules · includes major donors
  • Filing history: 6 filing years from 2011 to 2016
  • Contacts: How to reach this organization
  • Money network: 3 filed money-flow records
  • 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 16/100.
  • Review — Accountability: Governance controls: 2 of 7 not reported.
  • High — Sustainability: Operating margin scored 3/100.
  • High — Sustainability: Total-asset coverage ratio scored 15/100.
  • High — Sustainability: Liabilities to assets ratio scored 16/100.
  • High — Sustainability: Officer compensation ratio scored 18/100.