Youth for Understanding USA Inc

Nonprofit profile at a glance

EIN
020557010
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Saginaw, MI, USA
Phone
2027745200
Rating
68
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
International Cultural Exchange

Official website

Reported finances

Revenue
$6,000,905
Expenses
$6,090,039
Assets
$2,336,443
Liabilities
$3,287,182

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

Leadership & pay

8 people listed

Executive titles in this filing

  • SCOTT MESSING (CEO)

Highest reported compensation

  • SCOTT MESSING (CEO): $175,928 total reported compensation

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

Overview

Mission

Youth for understanding prepares young people for their responsibilities and opportunities in a changing, interdependent world.

What it reported doing in 2024

Study abroad program: u.s, high school students, ages 15-18, travel to one of thirty five countries for one academic year, semester or summer and live with a host family and attend school. Some summer programs incorporate special activities such as language classes, excursions or volunteer work in addition to the homestay experience.

Operating model

Revenue model
Earned-program. 70% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 90% 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

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 fundraising costs are high for each dollar raised.

Rating breakdown

  • Financial Efficiency: 71
  • Transparency & Controls: 63
  • Accountability: 95
  • Sustainability: 25
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 74.2%; rating input score 74
  • Program expense ratio: 73.1%; rating input score 73
  • Fundraising efficiency: $16.1 raised per $1 spent on fundraising; rating input score 53; 53rd percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • 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: 100%; rating input score 100; 72nd percentile among comparable filings
  • 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: 7 of 8 controls in place; rating input score 88
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -1.5%; rating input score 28; 28th percentile among comparable filings
  • Total-asset coverage ratio: 0.38; rating input score 13; 13th percentile among comparable filings
  • Liabilities to assets ratio: 1.41; rating input score 2; 2nd percentile among comparable filings
  • Officer compensation ratio: 2.9%; rating input score 70; 70th percentile among comparable filings

Growth

  • Program expense growth: -15.4% per year; rating input score 0; 2nd percentile among comparable filings
  • Revenue growth: -10% per year; rating input score 0; 2nd percentile among comparable filings
  • Asset growth: -13.5% per year; rating input score 0; 1st percentile among comparable filings

Details

  • Where the money goes: 74.2% of revenue deployed · 73.1% of spending went to programs
  • Governance: 7 of 7 board members independent · 7 of 8 filing controls reported
  • Programs: 2 filed program accomplishments · $4.5M in reported program spending
  • Leadership: top reported pay $176K · 8 people listed · 1 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $167K reported
  • Consistency: 31 of 31 current checks pass
  • Schedules: 7 filed schedules · includes major donors, foreign activity, grants, and executive pay
  • Filing history: 15 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

  • High — Transparency & Controls: Foreign activity oversight scored 0/100.
  • Review — Financial Efficiency: Fundraising efficiency scored 53/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Operating margin scored 28/100.
  • High — Sustainability: Total-asset coverage ratio scored 13/100.
  • Review — Accountability: Governance controls: Form 990 shared with the board not reported.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Liabilities to assets ratio scored 2/100.