Civic Intelligence

Prepare and Prosper

990 • Fiscal year 2017 • EIN 23-7131829

Jul 01, 2016 to Jun 30, 2017 • Filed on Oct 27, 2017

2610 University Ave W 450St Paul, MN 55114

(651) 287-0187

Siviq Scores

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

Liabilities / Assets

46th percentile

0.07x

Higher debt load relative to assets than 46% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2017

Liabilities / Revenue

39th percentile

0.06x

Higher debt load relative to revenue than 39% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2017

Net Margin

36th percentile

-1.1%

Higher net margin than 36% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2017

Top Officer Pay

70th percentile

$102,648

Higher top officer pay than 70% of similar nonprofits.

Top officer pay equals 5.5% of source-year revenue.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2017

Asset Growth

23rd percentile

-3.8%

Faster asset growth than 23% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2016 to 2017

Revenue Growth

13th percentile

-20%

Faster revenue growth than 13% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2016 to 2017

Assets

Down

$1,524,222

Down $60,230 (-3.8%) from 2016

Net Assets

Down

$1,419,891

Down $10,292 (-0.7%) from 2016

Liabilities

Down

$104,331

Down $49,938 (-32%) from 2016

Revenue

Down

$1,877,255

Down $465,077 (-20%) from 2016

Expenses

Up

$1,898,719

Up $184,760 (+11%) from 2016

Net Income

Down

-$21,464

Down $649,837 (-103%) from 2016

Historical Trend

Balance Sheet Trend

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

$4.0M$3.0M$2.0M$1.0M$0Assets 2011: $619,237Liabilities 2011: $69,725Net Assets 2011: $549,5122011Assets 2012: $552,513Liabilities 2012: $93,619Net Assets 2012: $458,8942012Assets 2013: $671,057Liabilities 2013: $91,912Net Assets 2013: $579,1452013Assets 2015: $930,570Liabilities 2015: $115,392Net Assets 2015: $815,1782015Assets 2016: $1,584,452Liabilities 2016: $154,269Net Assets 2016: $1,430,1832016Assets 2017: $1,524,222Liabilities 2017: $104,331Net Assets 2017: $1,419,8912017Assets 2018: $1,710,439Liabilities 2018: $67,373Net Assets 2018: $1,643,0662018Assets 2019: $1,703,249Liabilities 2019: $72,648Net Assets 2019: $1,630,6012019Assets 2020: $2,435,005Liabilities 2020: $271,475Net Assets 2020: $2,163,5302020Assets 2021: $2,795,257Liabilities 2021: $324,201Net Assets 2021: $2,471,0562021Assets 2022: $2,509,288Liabilities 2022: $108,091Net Assets 2022: $2,401,1972022Assets 2023: $3,147,378Liabilities 2023: $632,342Net Assets 2023: $2,515,0362023Assets 2024: $1,996,108Liabilities 2024: $447,405Net Assets 2024: $1,548,7032024Assets 2025: $1,478,737Liabilities 2025: $564,797Net Assets 2025: $913,9402025

Highlighted filing

2017

Assets$1,524,222
Liabilities$104,331
Net Assets$1,419,891

Operations Trend

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

$4.0M$2.0M$0-$2.0MExpenses 2011: $1,032,1162011Expenses 2012: $1,082,4192012Expenses 2013: $1,290,9002013Revenue 2015: $1,748,412Expenses 2015: $1,494,107Net Income 2015: $254,3052015Revenue 2016: $2,342,332Expenses 2016: $1,713,959Net Income 2016: $628,3732016Revenue 2017: $1,877,255Expenses 2017: $1,898,719Net Income 2017: -$21,4642017Revenue 2018: $2,190,112Expenses 2018: $1,971,242Net Income 2018: $218,8702018Revenue 2019: $2,086,114Expenses 2019: $2,095,497Net Income 2019: -$9,3832019Revenue 2020: $2,338,121Expenses 2020: $1,798,363Net Income 2020: $539,7582020Revenue 2021: $2,505,131Expenses 2021: $2,242,173Net Income 2021: $262,9582021Revenue 2022: $2,156,071Expenses 2022: $2,195,120Net Income 2022: -$39,0492022Revenue 2023: $2,572,017Expenses 2023: $2,472,462Net Income 2023: $99,5552023Revenue 2024: $2,006,950Expenses 2024: $2,983,297Net Income 2024: -$976,3472024Revenue 2025: $2,777,225Expenses 2025: $3,407,399Net Income 2025: -$630,1742025

Highlighted filing

2017

Revenue$1,877,255
Expenses$1,898,719
Net Income-$21,464
Jump To
Filing Snapshot
Filing Period
Jul 1, 2016 to Jun 30, 2017
Signed
Oct 27, 2017
Return Version
2016v3.0
Gross Receipts
$1,907,362
Mission and Program Overview

Mission

Prepare and prosper is dedicated to providing high quality tax preparation and related financial services to individuals and families of limited means by leveraging volunteer resources and advising and assisting others to provide similar services in their communities.

Balance Sheet Detail
LineBeginningEndChange
Assets
Savings and Temporary Cash Investments$904,219$811,184▼ $93,035
Pledges and Grants Receivable$460,000$485,000▲ $25,000
Investments in Publicly Traded Securities$105,528$121,612▲ $16,084
Land, Buildings, and Equipment, Net$70,592$59,592▼ $11,000
Accounts Receivable$36,500$39,279▲ $2,779
Prepaid Expenses and Deferred Charges$58--
Total Assets$1,584,452$1,524,222▼ $60,230
Other Assets Total$7,555$7,555→ $0
Liabilities
Accounts Payable and Accrued Expenses$154,269$104,331▼ $49,938
Total Liabilities$154,269$104,331▼ $49,938
Net Assets / Fund Balance
Temporarily Rstr Net Assets$893,161$769,977▼ $123,184
Unrestricted Net Assets$429,868$527,175▲ $97,307
Permanently Rstr Net Assets$107,154$122,739▲ $15,585
Total Net Assets Fund Balance$1,430,183$1,419,891▼ $10,292
Total Liabilities and Net Assets / Fund Balance$1,584,452$1,524,222▼ $60,230

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$30,797$85,011$115,808
Leasehold Improvements$28,795$12,872$41,667

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2016$107,154$300▲ $16,965$501$122,739
2015$111,962$350▼ $4,053-$107,154
2014$107,469$200▲ $5,419-$111,962
2013$90,997$1,000▲ $16,339-$107,469
2012$78,147$225▲ $13,158-$90,997
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Tracy FischmanExecutive DirectorFT$99,855$2,793$102,648

Board Members and Trustees

NameTitle
Jane EastwoodChair
Gordon GoodwinVice Chair
Bill RakerDirector
David WieseDirector
Greg PeskyDirector
Jerry MorrisDirector
Jessica McDonaldDirector
Mariam MohammedDirector
Matt LorenzDirector
Robin FrancisDirector
Teshite WakoDirector
Carole SpecktorSecretary
Patty BongaartsTreasurer
Revenue and Support

Revenue Composition

Contributions and Grants
$1,851,332
Program Service Revenue
$12,557
Investment Income
$7,385
Other Revenue
$5,981
All Other Contributions
$1,256,982
Change in Net Assets
$-21,464

Audited Revenue Reconciliation

Revenue per Audited Statements
$1,876,076
Revenue Not Reported on Financial Statements
$1,179
Revenue Not Reported on Form 990
$112,898
Total Revenue per Audited Statements
$1,988,974
Total Revenue per Form 990
$1,877,255
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$1,269,094
Other Expenses$629,625
Total Fundraising Expense$121,454
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$940,280$5,518$61,105$1,006,903
Occupancy$166,694$14,197$14,453$195,344
Fees for Services Other$134,212$26,165$417$160,794
Office Expenses$116,590$5,733$9,015$131,338
Current Officers, Directors, Trustees, and Key Employees$44,539$45,166$23,299$113,004
Payroll Taxes$81,216$2,941$6,476$90,633
Other Employee Benefits$55,305$560$2,689$58,554
Fees for Services Lobbying$24,000--$24,000
Depreciation Depletion$13,784$538$804$15,126
Travel$9,549$-198$488$9,839
Insurance-$5,534-$5,534
Conferences and Meetings$2,608$1,248$625$4,481
Other Expenses$369$2,590$183$2,959
Advertising$175--$175
Total Functional Expenses$1,664,956$112,309$121,454$1,898,719

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Audited Statements$1,999,266
Expenses per Audited Statements$1,898,719
Total Expenses per Form 990$1,898,719
Expenses Not Reported on Form 990$100,547
Expenses Not Reported on Financial Statements$0
Fundraising, Events, and Gaming
Fundraising activities
Yes
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Direct Expenses$21,268
Fundraising Gross Income$21,083
Professional Fundraising Fees$0

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Surly Event$11,833$11,833$341$11,492
Tee off for Taxes$39,745$9,250$4,814$4,436
Total Events$51,578$21,083$21,268$-185
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
Yes
Subject to proxy tax
No
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
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
Yes
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, Part VI, Section B, line 11B

The finance committee selected by the board of directors and chaired by a certified public accountant, reviewed the form 990. The form 990 was presented to the board of directors for approval prior to filing with the IRS.

Form 990, Part VI, Section B, line 12C

Board members are required to sign a conflict of interest disclosure statement annually. The board will not enter into any contract or transaction where a conflict of interest may exist unless all of the following three conditions are met 1) the interest in conflict is disclosed to the board of directors at the time the contract or transaction is considered 2) a quorum (not counting the interested director) is present at the meeting where the contract or transaction is considered 3) a majority of directors (not counting the interested director) approves, authorizes or ratifies the action.

Form 990, Part VI, Section B, line 15

Compensation for the executive director is determined by the board of directors after each annual performance review. The executive director's review is based on (1) accomplishments to date; (2) operations of the organization as executed within the boundaries of prudence & ethics established in board policies on executive limitations; & (3) evaluation of the professional relationship between the executive director & the board & staff. The board's executive committee is responsible for collecting & evaluating information based on the three areas listed above. The performance review is conducted with the board of directors. Comparability salary & benefits is assessed through the Minnesota Council of Nonprofits salary survey and examination of current advertised positions in the field.

Form 990, Part VI, Section C, line 19

Governing documents, policies & financial statements are made available for public inspection by request through the organization.

Filing and Contact Details

Filer

Filer Name
Prepare and Prosper
EIN
23-7131829
Phone
6512870187
Address
2610 University Ave W 450, St Paul, MN 55114

Signing Officer

Name
Tracy Fischman
Title
Executive Director
Phone
6512870187
Signed
2017-10-27
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Tracy Fischman
Formed
1971
Legal Domicile
Mn
Voting Board Members
13
Independent Board Members
13
Employees
87
Volunteers
550

Preparer

Firm
Abdo Eick & Meyers LLP
Address
5201 Eden Avenue Suite 250, Edina, MN 55436
Preparer
John N Abdo CPA
Phone
9528359090
Supplemental Narrative

Additional Explanations

Form 990, Part XII, Line 2C

The Organization's Finance Committee is responsible for the oversight of the audit of its financial statements and selection of the independent accountant. This process has not changed from the prior year.

Financial Statement Notes

Part V, Line 4:

Endowment fund income may be used for the operating or program expenses of Prepare and Prosper.

Part X, Line 2:

The Organization has evaluated for uncertain tax positions. Management has expressed that there are no uncertain tax positions as of June 30, 2017. The Organization's tax returns are subject to possible examination by the taxing authorities. For federal tax purposes the tax returns essentially remain open for possible examination for a period of three years after the date on which those returns are filed.

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IRS990/ActivityOrMissionDesc0Prepare and Prosper is dedicated to providing high quality tax preparation and related financial services to individuals and families of limited means by leveraging volunteer resources and advising and assisting others to provide similar services in their communities.
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IRS990/Desc0In 2017, Prepare + Prosper rolled out a new organizational structure to help the organization improve service integration and enhance cross-department collaboration and efficiency. This work was the culmination of months of work and significant input from all staff. Several shifts came out of this re-design, which P+P rolled out in May of 2017. P+P combined all tax and financial services that occur at the tax sites into one unified department. P+P also created a new department of organizational capacity, and combined P+P's financial management, HR, volunteer management, operations, and IT programming. Finally, P+P created a new department of financial capability and learning to centralize all internal learning and evaluation; and to oversee its financial capability, inclusion, and coaching programming.This description of key activities, however, reflects P+P's former structure since the new structure went into effect late in the fiscal year. Tax Preparation ServicesPrepare + Prosper (P+P) strives to emulate its vision where all people have access to the resources and services they need to be financially stable. The organization has expanded its footprint and scope to move its vision forward and create long-lasting pathways to financial stability and health for people in Minnesota and around the country. By leveraging the power of more than 550 volunteers in the Twin Cities, P+P has served more than 12,500 people in 2017, and returned over $24 million in refunds. 976 of these customers were self-employed. P+P's tax and financial services are available to low-and moderate-income tax filers living in the Twin Cities metro area with annual income of $35,000 or less, and families and self-employed tax filers with annual income of $55,000 or less. The average annual income of P+P's services, however, is approximately $17,000.
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IRS990/Form990PartVIISectionAGrp/PersonNm0Gordon Goodwin
IRS990/Form990PartVIISectionAGrp/PersonNm1Jane Eastwood
IRS990/Form990PartVIISectionAGrp/PersonNm2Patty Bongaarts
IRS990/Form990PartVIISectionAGrp/PersonNm3Carole Specktor
IRS990/Form990PartVIISectionAGrp/PersonNm4Teshite Wako
IRS990/Form990PartVIISectionAGrp/PersonNm5Jessica McDonald
IRS990/Form990PartVIISectionAGrp/PersonNm6Greg Pesky
IRS990/Form990PartVIISectionAGrp/PersonNm7David Wiese
IRS990/Form990PartVIISectionAGrp/PersonNm8Bill Raker
IRS990/Form990PartVIISectionAGrp/PersonNm9Matt Lorenz
IRS990/Form990PartVIISectionAGrp/PersonNm10Jerry Morris
IRS990/Form990PartVIISectionAGrp/PersonNm11Mariam Mohammed
IRS990/Form990PartVIISectionAGrp/PersonNm12Robin Francis
IRS990/Form990PartVIISectionAGrp/PersonNm13Tracy Fischman
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IRS990/Form990PartVIISectionAGrp/TitleTxt0Vice Chair
IRS990/Form990PartVIISectionAGrp/TitleTxt1Chair
IRS990/Form990PartVIISectionAGrp/TitleTxt2Treasurer
IRS990/Form990PartVIISectionAGrp/TitleTxt3Secretary
IRS990/Form990PartVIISectionAGrp/TitleTxt4Director
IRS990/Form990PartVIISectionAGrp/TitleTxt5Director
IRS990/Form990PartVIISectionAGrp/TitleTxt6Director
IRS990/Form990PartVIISectionAGrp/TitleTxt7Director
IRS990/Form990PartVIISectionAGrp/TitleTxt8Director
IRS990/Form990PartVIISectionAGrp/TitleTxt9Director
IRS990/Form990PartVIISectionAGrp/TitleTxt10Director
IRS990/Form990PartVIISectionAGrp/TitleTxt11Director
IRS990/Form990PartVIISectionAGrp/TitleTxt12Director
IRS990/Form990PartVIISectionAGrp/TitleTxt13Executive Director
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IRS990/MissionDesc0Prepare + Prosper (P+P) is a nonprofit organization focused on financial capability and grounded in principles of economic and social justice. The mission of Prepare + Prosper is to provide high quality tax preparation and related financial services to individuals and families of limited means by leveraging volunteer resources and advising and assisting others to provide similar services in their communities.
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IRS990/ProgSrvcAccomActy2Grp/Desc0Financial Capability ServicesP+P is at the forefront, nationally, of augmenting tax time by promoting savings and financial capability. P+P offers financial services and products to help customers increase the financial impact of their tax refunds, and to change the ways in which taxpayers view tax time. In 2017, 950 of P+P's customers committed to saving $1.5 million of their refunds. Many more customers had their credit reports pulled, and engaged in conversations with a P+P staff member or volunteer about their money.P+P conducted or participated in several evaluation projects this last year to support its financial capability programming, two of which are highlighted here. The first, in collaboration with P+P's Chicago-based partner Center for Economic Progress, P+P hired an evaluator to measure the impact of savings interventions in the tax preparation process. The learnings will inform and improve P+P's service integration efforts and support the free tax preparation field overall. P+P also participated in a tax-time myRA evaluation, conducted by the Center for Social Development at Washington University. myRA was a Roth IRA retirement account offered to lower-income consumers, and P+P helped nearly 200 people open myRA accounts over two tax seasons. myRA was issued through the US Department of Treasury. Sadly, myRA was recently discontinued. Money Mentors Prepare + Prosper runs two specialized programs designed to increase the financial well-being of individuals, families, and communities. The first is its Money Mentors financial coaching program, which supported 150 people to reach their financial goals in 2017 - supporting increased savings, decreased debt, increased confidence, and more. Money Mentors is a volunteer-based program, and in 2017 also launched a peer-led component to offer peer support and education on participant-chosen topics, such as retirement, understanding credit, and entrepreneurship. FAIR InitiativeP+P's FAIR Initiative (Financial Access in Reach) is designed to counter the $141 billion financial service marketplace that strips wealth from millions of low-and moderate-income, financially underserved households, and to help them transact, save, and build credit. FAIR launched a beta test in FY 2017 with 53 consumers, and learned a lot over the six-month period. Due to unexpected and unforeseen circumstances, P+P's banking partner was closed by its federal regulator in May, 2017. P+P will soon identify a new financial partner, and in the next year will roll out a new suite of financial products through a distribution network of trusted nonprofits, public sector systems, and employers. FAIR will start local and expand in the coming years. P+P is working with external evaluators to assess the value and impact of FAIR on low-income consumers.
IRS990/ProgSrvcAccomActy2Grp/ExpenseAmt0714984
IRS990/ProgSrvcAccomActy3Grp/Desc0Education and awarenessP+P educates the public and policy makers about the importance of tax credits, free tax programs, and other issues designed to facilitate financial stability and to protect consumers. The organization manages the Claim it! campaign, which is supported by the Greater Twin Cities United Way and is designed to promote and increase uptake of the Earned Income Tax Credit (EITC). In 2017, P+P worked with 455 nonprofit, government, and education organizations to boost awareness of the EITC, distribute materials, and present at forums and outreach events; and 1,300 service providers received resources through partner e-mails. In total, 91,000 Claim it! outreach materials were distributed during the 2017 tax season.In 2017, P+P also engaged in education and advocacy efforts to strengthen policy to protect and expand refundable tax credits and support asset building. Specifically, P+P worked with coalition partners to expand the Minnesota Working Family Credit to lower the age requirement from 25 to 21, and engaged in efforts to protect the MN Renters Credit and protect funding for free tax assistance. P+P staff, customers, and volunteers testified throughout the legislative session during several hearings. Finally, in 2017 P+P provided in-person and virtual training and technical assistance to other organizations across Minnesota to in turn build their capacity to run successful free tax programs.
IRS990/ProgSrvcAccomActy3Grp/ExpenseAmt092461
IRS990/ProgSrvcAccomActyOtherGrp/Desc0Training and education servicesP+P provides in-depth training and technical assistance to other organizations across Minnesota to build their capacity to run successful free tax programs. P+P assists anywhere from 12 to 18 organizations to provide free tax assistance to taxpayers across the state.
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IRS990ScheduleC/RalliesDemonstrationsInd00
IRS990ScheduleC/SupplementalInformationDetail/ExplanationTxt0As shared in another section, Prepare + Prosper staff members participated in efforts to pass three bills. The first was a second year attempt to pass the Tax Time Savings bill, although this year the bill was amended to focus solely on increasing funding for free tax programs. Towards the end of the session, P+P and its coalition partners ended up having to protect current funding, so was unsuccessful in securing an increase. The second bill would have significantly increased funding for the Minnesota Working Family Credit. With the leadership of other coalition partners, the program received a slight increase, to start in 2019, for younger tax filers. Finally, P+P hired a lobbyist to help the organization secure a direct appropriation for its FAIR program (see earlier section for information about FAIR). This effort was successful. Throughout the legislative session, Prepare + Prosper staff testified in several committees about all of these bills, and recruited two others (customer and seasonal staff) to testify as well. P+P staff also met 1:1 with the chief sponsors of its FAIR bill.
IRS990ScheduleC/SupplementalInformationDetail/FormAndLineReferenceDesc0Part II-B, Line 1:
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IRS990ScheduleC/VolunteersInd00

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Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2025Facts available. Structured filing facts are available, but richer extracted sections are limited.$1.48$0.56$0.91$2.78$3.41$0.63
2024Detailed filing. Detailed filing data is available for this year.$2.00$0.45$1.55$2.01$2.98$0.98
2023Detailed filing. Detailed filing data is available for this year.$3.15$0.63$2.52$2.57$2.47$0.10
2022Detailed filing. Detailed filing data is available for this year.$2.51$0.11$2.40$2.16$2.20$0.04
2021Detailed filing. Detailed filing data is available for this year.$2.80$0.32$2.47$2.51$2.24$0.26
2020Detailed filing. Detailed filing data is available for this year.$2.44$0.27$2.16$2.34$1.80$0.54
2019Detailed filing. Detailed filing data is available for this year.$1.70$0.07$1.63$2.09$2.10$0.01
2018Detailed filing. Detailed filing data is available for this year.$1.71$0.07$1.64$2.19$1.97$0.22
2017Detailed filing. Detailed filing data is available for this year.$1.52$0.10$1.42$1.88$1.90$0.02
2016Detailed filing. Detailed filing data is available for this year.$1.58$0.15$1.43$2.34$1.71$0.63
2015Detailed filing. Detailed filing data is available for this year.$0.93$0.12$0.82$1.75$1.49$0.25
2013Facts available. Structured filing facts are available, but richer extracted sections are limited.$0.67$0.09$0.58$1.29
2012Facts available. Structured filing facts are available, but richer extracted sections are limited.$0.55$0.09$0.46$1.08
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$0.62$0.07$0.55$1.03