Civic Intelligence

Literacy Connects

990 • Fiscal year 2022 • EIN 23-7047508

Jul 01, 2021 to Jun 30, 2022 • Filed on May 15, 2023

200 E Yavapai RoadTucson, AZ 85705

(520) 882-8006

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

62nd percentile

0.14x

Higher debt load relative to assets than 62% of similar nonprofits.

2022 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2022

Liabilities / Revenue

66th percentile

0.20x

Higher debt load relative to revenue than 66% of similar nonprofits.

2022 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2022

Net Margin

50th percentile

6.9%

Higher net margin than 50% of similar nonprofits.

2022 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2022

Top Officer Pay

74th percentile

$114,572

Higher top officer pay than 74% of similar nonprofits.

Top officer pay equals 4.9% of source-year revenue.

2022 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2022

Asset Growth

29th percentile

-5.1%

Faster asset growth than 29% of similar nonprofits.

2022 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2021 to 2022

Revenue Growth

35th percentile

-2.8%

Faster revenue growth than 35% of similar nonprofits.

2022 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2021 to 2022

Assets

Down

$3,371,260

Down $181,945 (-5.1%) from 2021

Net Assets

Up

$2,904,360

Up $136,075 (+4.9%) from 2021

Liabilities

Down

$466,900

Down $318,020 (-41%) from 2021

Revenue

Down

$2,329,327

Down $67,670 (-2.8%) from 2021

Expenses

Up

$2,167,820

Up $221,842 (+11%) from 2021

Net Income

Down

$161,507

Down $289,512 (-64%) from 2021

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$6.0M$4.0M$2.0M$0Assets 2011: $440,093Liabilities 2011: $47,248Net Assets 2011: $392,8452011Assets 2013: $601,569Liabilities 2013: $57,160Net Assets 2013: $544,4092013Assets 2014: $1,531,610Liabilities 2014: $1,001,578Net Assets 2014: $530,0322014Assets 2015: $1,395,195Liabilities 2015: $868,552Net Assets 2015: $526,6432015Assets 2016: $1,492,584Liabilities 2016: $836,950Net Assets 2016: $655,6342016Assets 2017: $1,367,695Liabilities 2017: $498,227Net Assets 2017: $869,4682017Assets 2018: $2,064,995Liabilities 2018: $499,508Net Assets 2018: $1,565,4872018Assets 2019: $2,667,288Liabilities 2019: $505,463Net Assets 2019: $2,161,8252019Assets 2020: $3,064,900Liabilities 2020: $802,806Net Assets 2020: $2,262,0942020Assets 2021: $3,553,205Liabilities 2021: $784,920Net Assets 2021: $2,768,2852021Assets 2022: $3,371,260Liabilities 2022: $466,900Net Assets 2022: $2,904,3602022Assets 2023: $4,287,982Liabilities 2023: $450,938Net Assets 2023: $3,837,0442023Assets 2024: $4,037,924Liabilities 2024: $137,407Net Assets 2024: $3,900,5172024

Highlighted filing

2022

Assets$3,371,260
Liabilities$466,900
Net Assets$2,904,360

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$4.0M$3.0M$2.0M$1.0M$0-$1.0MExpenses 2011: $833,9162011Expenses 2013: $1,336,6792013Revenue 2014: $1,542,997Expenses 2014: $1,560,127Net Income 2014: -$17,1302014Revenue 2015: $1,613,887Expenses 2015: $1,617,594Net Income 2015: -$3,7072015Revenue 2016: $1,759,785Expenses 2016: $1,588,167Net Income 2016: $171,6182016Revenue 2017: $1,846,933Expenses 2017: $1,622,752Net Income 2017: $224,1812017Revenue 2018: $2,264,862Expenses 2018: $1,667,843Net Income 2018: $597,0192018Revenue 2019: $2,359,247Expenses 2019: $1,763,836Net Income 2019: $595,4112019Revenue 2020: $2,113,001Expenses 2020: $2,012,732Net Income 2020: $100,2692020Revenue 2021: $2,396,997Expenses 2021: $1,945,978Net Income 2021: $451,0192021Revenue 2022: $2,329,327Expenses 2022: $2,167,820Net Income 2022: $161,5072022Revenue 2023: $3,461,579Expenses 2023: $2,489,413Net Income 2023: $972,1662023Revenue 2024: $3,105,516Expenses 2024: $3,057,022Net Income 2024: $48,4942024

Highlighted filing

2022

Revenue$2,329,327
Expenses$2,167,820
Net Income$161,507
Jump To
Filing Snapshot
Filing Period
Jul 1, 2021 to Jun 30, 2022
Signed
May 15, 2023
Return Version
2021v4.0
Gross Receipts
$2,431,151
Mission and Program Overview

Mission

Connecting people of all ages to a world of opportunities through literacy and creative expression.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$1,815,498$1,789,808▼ $25,690
Savings and Temporary Cash Investments$1,203,422$1,062,501▼ $140,921
Investments in Publicly Traded Securities-$77,394-
Cash and Non-Interest-Bearing Accounts$200,313$72,464▼ $127,849
Accounts Receivable$15,164$31,686▲ $16,522
Pledges and Grants Receivable$27,500--
Prepaid Expenses and Deferred Charges$12,955$25,979▲ $13,024
Total Assets$3,553,205$3,371,260▼ $181,945
Other Assets Total$278,353$311,428▲ $33,075
Liabilities
Mortgage Notes Payable Secured by Investment Property$657,736$370,869▼ $286,867
Accounts Payable and Accrued Expenses$127,184$96,031▼ $31,153
Total Liabilities$784,920$466,900▼ $318,020
Net Assets / Fund Balance
Net Assets Without Donor Restrictions$2,355,065$2,471,878▲ $116,813
Net Assets With Donor Restrictions$413,220$432,482▲ $19,262
Total Net Assets Fund Balance$2,768,285$2,904,360▲ $136,075
Total Liabilities and Net Assets / Fund Balance$3,553,205$3,371,260▼ $181,945

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$1,619,067$240,464$1,859,531
Equipment$47,024$79,618$126,642
Land$91,690-$91,690
Other Land Buildings$2,037$33,267$35,304
Leasehold Improvements$29,990-$29,990
Other Assets Org$3,224--

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2021$275,129$51,432▼ $18,357-$308,204
2020$210,136$9,821▲ $55,172-$275,129
2019$210,317$5,000▼ $5,181-$210,136
2018$62,736$145,585▲ $1,996-$210,317
2017$53,555$14,400▼ $4,969-$62,736
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Matthew WahlquistExecutive DiFT$110,000$4,572$114,572
Rebecca WernerFinance/opsFT$55,681$5,598$61,279

Board Members and Trustees

NameTitle
Tim KinneyBoard Chair
Amber MathewsonChair Elect
Tim HenryPast Board C
Reyna MendozaConstituent
Bobbie Jo Buel CarterMember
Chris GutierrezMember
Danielle GomezMember
Jill CastekMember
Katri TyppoMember
Lori GarmusMember
Matt KopecMember
Sally LanyonMember
Sunny BaeMember
Susan PetrusMember
Amy BeiterSecretary
Minnette PowellSecretary
Kim EgitaTreasurer
Revenue and Support

Revenue Composition

Contributions and Grants
$2,352,216
Program Service Revenue
$7,630
Investment Income
$997
Other Revenue
$-31,516
All Other Contributions
$1,627,216
Change in Net Assets
$161,507
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$1,579,141
Other Expenses$529,324
Total Fundraising Expense$185,778
Professional Fundraising Fees$59,355
Grants and Similar Amounts Paid$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$1,097,779$32,212$28,527$1,158,518
Current Officers, Directors, Trustees, and Key Employees$76,807$47,873$51,558$176,238
Office Expenses$150,094$9,399$9,693$169,186
Payroll Taxes$101,277$6,905$6,905$115,087
Other Employee Benefits$90,642$6,180$6,180$103,002
Fees for Services Other$58,222$33,556$5,349$97,127
Fees for Services Professional Fundraising--$59,355$59,355
Depreciation Depletion$48,998$3,341$3,341$55,680
Pension Plan Contributions$23,140$1,578$1,578$26,296
Interest$23,052$1,572$1,572$26,196
Insurance$22,482$1,487$1,487$25,456
Occupancy$21,587$1,423$1,423$24,433
Fees for Services Accounting-$20,122-$20,122
Conferences and Meetings$17,472$476$1,072$19,020
Other Expenses$9,997$378$1,591$9,997
All Other Expenses$9,797$18-$9,815
Advertising$2,781$1,139$1,636$5,556
Fees for Services Management-$1,625$2,711$4,336
Total Functional Expenses$1,810,958$171,084$185,778$2,167,820
Fundraising, Events, and Gaming
Fundraising activities
Yes
Gaming activities
No
Professional fundraiser used
Yes

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Direct Expenses$61,788
Professional Fundraising Fees$59,355
Fundraising Gross Income$30,272

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Annual Event$137,246$30,272$61,788$-31,516
Total Events$137,246$30,272$61,788$-31,516
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
Yes
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with 35% controlled entity
No
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
No
Conflict-of-interest policy
Yes
Audited financial statements prepared
No
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Form 990, Page 6, Part VI, Line 11B

The organization provided a draft of its form 990 to its finance committee for review and distributed the completed form to all members of the board of directors prior to filing.

Form 990, Page 6, Part VI, Line 12C

The conflict of interest policy is discussed and signed by the board each year.

Form 990, Page 6, Part VI, Line 15A

On an annual basis the board reviews salary comparability data when setting compensation for the organization's executive director. The decision process is documented in the board minutes.

Form 990, Page 6, Part VI, Line 19

The annual return is available on guidestar.org and applicable information is available upon request.

Filing and Contact Details

Filer

Filer Name
Literacy Connects
EIN
23-7047508
Phone
5208828006
Address
200 E YAVAPAI ROAD, TUCSON, AZ 85705

Signing Officer

Name
Tim Kinney
Title
Board Chair
Phone
5208828006
Signed
2023-05-15

Organization Details

Principal Officer
Tim Kinney
Formed
1969
Legal Domicile
Az
Voting Board Members
17
Independent Board Members
17
Employees
35
Volunteers
747

Preparer

Firm
Ludwig Klewer & Rudner Pllc
Address
4783 E CAMP LOWELL DR, TUCSON, AZ 85712
Preparer
Julie S Klewer CPA
Phone
5205450500
Supplemental Narrative

Additional Explanations

Form 990, Page 1, Part I, Line 6

The statement of functional expenses is prepared on the gaap basis and therefore fails to account for the value of volunteer labor. Program expenses are kept very low due to the organization's use of volunteers to deliver most of the program's teaching. Volunteers gave over 24,205 teaching and preparation hours during the year. The independent sector has set 30.13 per hour as the value for volunteer hours in arizona. This means the work done by volunteers was worth approximately 729,297.

Form 990, Page 2, Part III, Line 4C

Literacy connects' reading seed program trained and supported 202 volunteer reading coaches to work one-to-one with 605 kindergarten through second grade students in title i schools. The students were provided extra support in improving their literacy skills and developing healthy relationships with books and reading through the mentorship of a caring adult. Reading coaches contributed 10,843 hours of service, resulting in students averaging 18 hours of reading support throughout the school year. The program offered a lending library of 19,000 books that match students' interests and distributed over 15,983 free books throughout the county to help children build home libraries and become independent readers so that they can become lifelong learners. The objective of reading seed in 2021- 2022 is to rebuild our volunteer numbers in order to return to pre-pandemic service levels. Our long-term goal is to expand our intensive kindergarten program to increase our impact at each school, resulting in an increased number of students reading at grade level by the end of third grade.

Form 990, Page 2, Part III, Line 4D

Reach out and read southern arizona (rorsa) promotes healthy brain growth, positive social-emotional development, and school readiness by giving families resources and information to make reading aloud part of their daily routine. By integrating reading into pediatric practices, rorsa partners with doctors in 56 clinics, reaching 42,414 children from birth to 5 years old, to prescribe 84,830 free books that serve as a catalyst for healthy childhood development.

Financial Statement Notes

Schedule D, Page 2, Part V, Line 4

The organization's endowment consists of two funds, one of which is designated by the board of directors to function as an endowment to support general operations. Income from this endowment may be used at the board's discretion. The other fund is a permanently restricted, donor-designated endowment fund.

Schedule D, Page 3, Part X

The organization's policy is to disclose or recognize income tax positions based on management's estimate of whether it is reasonably possible or probable, respectively, that a liability has been incurred for unrecognized income tax positions. As of june 30, 2022, management is not aware of any uncertain tax positions that are potentially material. In addition, management is not aware of any matters which would casue the organization to lose its tax-exempt status.

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IRS990/Form990PartVIISectionAGrp/TitleTxt0EXECUTIVE DI
IRS990/Form990PartVIISectionAGrp/TitleTxt1FINANCE/OPS
IRS990/Form990PartVIISectionAGrp/TitleTxt2BOARD CHAIR
IRS990/Form990PartVIISectionAGrp/TitleTxt3CHAIR ELECT
IRS990/Form990PartVIISectionAGrp/TitleTxt4SECRETARY
IRS990/Form990PartVIISectionAGrp/TitleTxt5PAST BOARD C
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IRS990/Form990PartVIISectionAGrp/TitleTxt7MEMBER
IRS990/Form990PartVIISectionAGrp/TitleTxt8MEMBER
IRS990/Form990PartVIISectionAGrp/TitleTxt9MEMBER
IRS990/Form990PartVIISectionAGrp/TitleTxt10MEMBER
IRS990/Form990PartVIISectionAGrp/TitleTxt11MEMBER
IRS990/Form990PartVIISectionAGrp/TitleTxt12MEMBER
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IRS990/Form990PartVIISectionAGrp/TitleTxt14MEMBER
IRS990/Form990PartVIISectionAGrp/TitleTxt15MEMBER
IRS990/Form990PartVIISectionAGrp/TitleTxt16TREASURER
IRS990/Form990PartVIISectionAGrp/TitleTxt17SECRETARY
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IRS990/OtherExpensesGrp/Desc2DUES AND SUBSCRIPTIONS
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IRS990/ProgramServiceRevenueGrp/Desc0PROGRAM SERVICES FEES
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IRS990/ProgSrvcAccomActy2Grp/Desc0STORIES THAT SOAR IS A LITERACY AND ARTS INTEGRATION PROGRAM THAT PROMOTES WRITING AND CREATIVE EXPRESSION BY HONORING CHILDREN'S ORIGINAL STORIES THROUGH THE ARTS. THIS FISCAL YEAR, THEIR PROFESSIONAL THEATRE PROGRAM INSPIRED 5,220 ELEMETARY AND MIDDLE SCHOOL CHILDREN TO WRITE 7,254 STORIES, 324 OF WHICH WERE PRESENTED BACK TO STUDENTS VIA ON-LINE PLATFORMS, 95 THROUGH LIVE THEATRE, AND 10 THROUGH PUBLIC RADIO. SEE SCHEDULE O FOR MORE INFORMATION ON REVENUE AND THE VALUE OF VOLUNTEERS LABOR NOT REFLECTED ON THIS RETURN.
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IRS990/ProgSrvcAccomActy2Grp/RevenueAmt01908
IRS990/ProgSrvcAccomActy3Grp/Desc0LITERACY CONNECTS' READING SEED PROGRAM TRAINED AND SUPPORTED 202 VOLUNTEER READING COACHES TO WORK ONE-TO-ONE WITH 605 KINDERGARTEN THROUGH SECOND GRADE STUDENTS IN TITLE I SCHOOLS. THE STUDENTS WERE PROVIDED EXTRA SUPPORT IN IMPROVING THEIR LITERACY SKILLS AND DEVELOPING HEALTHY RELATIONSHIPS WITH BOOKS AND READING THROUGH THE MENTORSHIP OF A CARING ADULT. READING COACHES CONTRIBUTED 10,843 HOURS OF SERVICE, RESULTING IN STUDENTS AVERAGING 18 HOURS OF READING SUPPORT THROUGHOUT THE SCHOOL YEAR. THE PROGRAM OFFERED A LENDING LIBRARY OF 19,000 BOOKS THAT MATCH STUDENTS' INTERESTS AND DISTRIBUTED OVER 15,983 FREE BOOKS THROUGHOUT THE COUNTY TO HELP CHILDREN BUILD HOME LIBRARIES AND BECOME INDEPENDENT READERS SO THAT THEY CAN BECOME LIFELONG LEARNERS. THE OBJECTIVE OF READING SEED IN 2021- 2022 IS TO REBUILD OUR VOLUNTEER NUMBERS IN ORDER TO RETURN TO PRE-PANDEMIC SERVICE LEVELS. OUR LONG-TERM GOAL IS TO EXPAND OUR INTENSIVE KINDERGARTEN PROGRAM TO INCREASE OUR IMPACT AT EACH SCHOOL, RESULTING IN AN INCREASED NUMBER OF STUDENTS READING AT GRADE LEVEL BY THE END OF THIRD GRADE.
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IRS990/ProgSrvcAccomActy3Grp/RevenueAmt01526
IRS990/ProgSrvcAccomActyOtherGrp/Desc0REACH OUT AND READ SOUTHERN ARIZONA (RORSA) PROMOTES HEALTHY BRAIN GROWTH, POSITIVE SOCIAL-EMOTIONAL DEVELOPMENT, AND SCHOOL READINESS BY GIVING FAMILIES RESOURCES AND INFORMATION TO MAKE READING ALOUD PART OF THEIR DAILY ROUTINE. BY INTEGRATING READING INTO PEDIATRIC PRACTICES, RORSA PARTNERS WITH DOCTORS IN 56 CLINICS, REACHING 42,414 CHILDREN FROM BIRTH TO 5 YEARS OLD, TO PRESCRIBE 84,830 FREE BOOKS THAT SERVE AS A CATALYST FOR HEALTHY CHILDHOOD DEVELOPMENT.
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IRS990/ProgSrvcAccomActyOtherGrp/RevenueAmt01144
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Document Assets

No mirrored PDF or thumbnail assets are attached yet.

Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$4.04$0.14$3.90$3.11$3.06$0.05
2023XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$4.29$0.45$3.84$3.46$2.49$0.97
2022Detailed filing. Detailed filing data is available for this year.$3.37$0.47$2.90$2.33$2.17$0.16
2021XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$3.55$0.78$2.77$2.40$1.95$0.45
2020Facts available. Structured filing facts are available, but richer extracted sections are limited.$3.06$0.80$2.26$2.11$2.01$0.10
2019Facts available. Structured filing facts are available, but richer extracted sections are limited.$2.67$0.51$2.16$2.36$1.76$0.60
2018Facts available. Structured filing facts are available, but richer extracted sections are limited.$2.06$0.50$1.57$2.26$1.67$0.60
2017XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$1.37$0.50$0.87$1.85$1.62$0.22
2016Detailed filing. Detailed filing data is available for this year.$1.49$0.84$0.66$1.76$1.59$0.17
2015Detailed filing. Detailed filing data is available for this year.$1.40$0.87$0.53$1.61$1.62$0.00
2014Detailed filing. Detailed filing data is available for this year.$1.53$1.00$0.53$1.54$1.56$0.02
2013Facts available. Structured filing facts are available, but richer extracted sections are limited.$0.60$0.06$0.54$1.34
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$0.44$0.05$0.39$0.83