Thread Inc

Nonprofit profile at a glance

EIN
841700955
IRS 990 coverage
2012–2024
Forms available
Form 990 2024
Location
Baltimore, MD, USA
Phone
4106608343
Rating
89
Verdict
STRONG
Rating confidence
Moderate
Sector
Youth Development N.E.C.

Official website

Reported finances

Revenue
$5,327,000
Expenses
$10,521,931
Assets
$9,505,296
Liabilities
$813,040

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

Leadership & pay

16 people listed

Executive titles in this filing

  • SARAH HEMMINGER (CEO & CO-FOUNDER)

Highest reported compensation

  • SARAH HEMMINGER (CEO & CO-FOUNDER): $250,690 total reported compensation
  • ALLISON BUCHALTER (EVP OF INVOLVEMENT): $219,495 total reported compensation
  • BRIAN HALE (VP OF TECHNOLOGY): $183,281 total reported compensation

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

Overview

Mission

Thread harnesses the power of relationships to create a new social fabric of diverse individuals deeply engaged with young people facing the most significant opportunity & achievement gaps. Our community is committed to building a more equitable culture where everyone thrives.

What it reported doing in 2024

Thread enrolls the most academically underperforming 9th grade students in baltimore city schools, makes a 10-year commitment to them, & equips them with the tools & resources needed to complete high school, pursue a post-hs pathway, achieve self-efficacy & experience upward economic mobility. Thread pairs each young person with a group of volunteers that support them & their household. This individualized support is complemented by group programming where students & volunteers explore their passions, hone their skills, & realize how to apply them in the world. Pro-bono collaborators also provide expertise & support with legal, healthcare, housing, transportation, childcare & employment opportunities & barriers. This comprehensive approach facilitates building reciprocal, lasting relationships that transform lives.

Operating model

Revenue model
Donor-supported. 77% 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 expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 94
  • Accountability: 95
  • Sustainability: 21
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 89.1%; rating input score 89
  • Fundraising efficiency: $9.1 raised per $1 spent on fundraising; rating input score 35; 35th percentile among comparable filings

Transparency & Controls

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

Accountability

  • Independent voting board: 90.9%; rating input score 91; 21st percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • 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: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -97.5%; rating input score 1; 1st percentile among comparable filings
  • Total-asset coverage ratio: 0.9; rating input score 34; 34th percentile among comparable filings
  • Liabilities to assets ratio: 0.09; rating input score 61; 61st percentile among comparable filings
  • Officer compensation ratio: 10.1%; rating input score 30; 30th percentile among comparable filings

Growth

  • Program expense growth: 17.5% per year; rating input score 100; 82nd percentile among comparable filings
  • Revenue growth: 10.1% per year; rating input score 100; 69th percentile among comparable filings
  • Asset growth: 12.4% per year; rating input score 100; 67th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 89.1% of spending went to programs
  • Governance: 10 of 11 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $9.4M in reported program spending
  • Leadership: top reported pay $251K · 16 people listed · 6 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $165K reported
  • Consistency: 31 of 31 current checks pass
  • Schedules: 7 filed schedules · includes major donors and executive pay
  • Filing history: 12 filing years from 2012 to 2024
  • Contacts: How to reach this organization
  • Money network: 6 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.

  • Moderate — Financial Efficiency: Fundraising efficiency scored 35/100.
  • High — Sustainability: Operating margin scored 1/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 34/100.
  • Moderate — Sustainability: Officer compensation ratio scored 30/100.