Civic Intelligence

Prepare and Prosper

990 • Fiscal year 2018 • EIN 23-7131829

Jul 01, 2017 to Jun 30, 2018 • Filed on Nov 05, 2018

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

39th percentile

0.04x

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

2018 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2018

Liabilities / Revenue

31st percentile

0.03x

Higher debt load relative to revenue than 31% of similar nonprofits.

2018 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2018

Net Margin

66th percentile

10.0%

Higher net margin than 66% of similar nonprofits.

2018 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2018

Top Officer Pay

72nd percentile

$109,553

Higher top officer pay than 72% of similar nonprofits.

Top officer pay equals 5.0% of source-year revenue.

2018 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2018

Asset Growth

75th percentile

12%

Faster asset growth than 75% of similar nonprofits.

2018 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2017 to 2018

Revenue Growth

72nd percentile

17%

Faster revenue growth than 72% of similar nonprofits.

2018 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2017 to 2018

Assets

Up

$1,710,439

Up $186,217 (+12%) from 2017

Net Assets

Up

$1,643,066

Up $223,175 (+16%) from 2017

Liabilities

Down

$67,373

Down $36,958 (-35%) from 2017

Revenue

Up

$2,190,112

Up $312,857 (+17%) from 2017

Expenses

Up

$1,971,242

Up $72,523 (+3.8%) from 2017

Net Income

Up

$218,870

Up $240,334 (+1120%) from 2017

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

2018

Assets$1,710,439
Liabilities$67,373
Net Assets$1,643,066

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

2018

Revenue$2,190,112
Expenses$1,971,242
Net Income$218,870
Jump To
Filing Snapshot
Filing Period
Jul 1, 2017 to Jun 30, 2018
Signed
Nov 5, 2018
Return Version
2017v2.3
Gross Receipts
$2,207,992
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.

Prepare + Prosper and its volunteers work with low to moderate-income people to build financial well-being through free tax preparation and financial services, products, and coaching, and by changing systems to create economic opportunity.

Balance Sheet Detail
LineBeginningEndChange
Assets
Savings and Temporary Cash Investments$811,184$1,016,737▲ $205,553
Pledges and Grants Receivable$485,000$500,000▲ $15,000
Investments in Publicly Traded Securities$121,612$132,343▲ $10,731
Land, Buildings, and Equipment, Net$59,592$52,854▼ $6,738
Accounts Receivable$39,279$950▼ $38,329
Total Assets$1,524,222$1,710,439▲ $186,217
Other Assets Total$7,555$7,555→ $0
Liabilities
Accounts Payable and Accrued Expenses$104,331$67,373▼ $36,958
Total Liabilities$104,331$67,373▼ $36,958
Net Assets / Fund Balance
Temporarily Rstr Net Assets$769,977$932,387▲ $162,410
Unrestricted Net Assets$527,175$577,325▲ $50,150
Permanently Rstr Net Assets$122,739$133,354▲ $10,615
Total Net Assets Fund Balance$1,419,891$1,643,066▲ $223,175
Total Liabilities and Net Assets / Fund Balance$1,524,222$1,710,439▲ $186,217

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$27,216$31,592$58,808
Leasehold Improvements$25,638$16,029$41,667

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2017$122,739$470▲ $11,501-$132,226
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
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Tracy FishmanExecutive DirectorFT$106,714$2,839$109,553

Board Members and Trustees

Revenue and Support

Revenue Composition

Contributions and Grants
$2,160,728
Program Service Revenue
$5,423
Investment Income
$8,674
Other Revenue
$15,287
All Other Contributions
$1,167,664
Change in Net Assets
$218,870

Audited Revenue Reconciliation

Revenue per Audited Statements
$2,188,755
Revenue Not Reported on Financial Statements
$1,357
Revenue Not Reported on Form 990
$74,318
Total Revenue per Audited Statements
$2,263,073
Total Revenue per Form 990
$2,190,112
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$1,343,280
Other Expenses$627,962
Total Fundraising Expense$157,020
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$908,025$47,927$97,329$1,053,281
Fees for Services Other$186,599$15,242$2,583$204,424
Occupancy$184,707$6,122$7,293$198,122
Office Expenses$128,298$4,502$8,853$141,653
Current Officers, Directors, Trustees, and Key Employees$48,834$36,670$24,579$110,083
Other Employee Benefits$85,583$2,146$4,408$92,137
Payroll Taxes$73,404$5,690$8,685$87,779
Fees for Services Accounting-$21,900-$21,900
Depreciation Depletion$15,287$589$624$16,500
Travel$8,447$179$567$9,193
Insurance$2,524$2,633$190$5,347
Conferences and Meetings$2,023$1,619$647$4,289
Other Expenses$6,311$3,521$1,134$3,521
Advertising$140--$140
Total Functional Expenses$1,664,397$149,825$157,020$1,971,242

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Audited Statements$2,039,898
Expenses per Audited Statements$1,971,242
Total Expenses per Form 990$1,971,242
Expenses Not Reported on Form 990$68,656
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 Gross Income$20,967
Fundraising Direct Expenses$14,357
Professional Fundraising Fees$0

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Golf Event$43,745$20,967$806$20,161
Taxathon$6,175-$1,033-
Total Events$55,467$20,967$14,341$6,626
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
2018-11-05
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Tracy Fischman
Formed
1971
Legal Domicile
Mn
Voting Board Members
15
Independent Board Members
15
Employees
85
Volunteers
669

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 IX, line 11G

Contract Services/Professional: Program service expenses 186,599. Management and general expenses 15,242. Fundraising expenses 2,583. Total expenses 204,424.

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, 2018. 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/MissionDesc0Prepare + Prosper (P+P) works with low to moderate-income people to build financial well-being and advance economic justice through direct service, field-shaping, and systems change. In 2018, P+P completed a new five-year strategic plan to guide the organization's work in the years ahead. This included revising the organizational mission statement, as follows: Prepare + Prosper and its volunteers work with low to moderate-income people to build financial well-being through free tax preparation and financial services, products, and coaching, and by changing systems to create economic opportunity.
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IRS990/ProgSrvcAccomActy2Grp/Desc0Financial Capability + LearningPrepare + Prosper runs two specialized programs designed to increase the financial well-being of individuals, families, and communities: Money Mentors and the FAIR (Financial Access in Reach) Initiative. Money MentorsIn 2018, P+P enrolled 148 participants in two cohorts of P+P's volunteer-based financial coaching program, Money Mentors (forty-four of whom participated in both consecutive six-month sessions). This program uses behaviorally-based and research-backed coaching techniques combined with technological interventions to help participants decrease debt, increase confidence, savings, and credit scores.The Money Mentors program pairs trained volunteer financial coaches with participants to set goals, build skills and knowledge, and take concrete steps toward achieving financial goals. The program includes one-on-one meetings between participants and coaches, as well as group workshops and peer learning discussions. These workshops balance technical content with work planning to support direct application of information to each person's financial situation. For participants in the most recently completed cohort:o 59% decreased their debt by an average of $3,117; o 61% increased their savings by an average of $1,236;o 46% increased their income;o 56% increased their FICO credit score and did so by an average of 20 points.FAIR InitiativeThe goal of Prepare + Prosper's FAIR Initiative (Financial Access in Reach) is to reduce reliance on wealth-stripping financial products and services, and to connect financially underserved consumers with financial products and supporting mechanisms designed to facilitate financial well-being. The products include checking and savings accounts, and a credit-builder product. The products are coupled with behavioral support and financial coaching to facilitate successful use and outcomes.After P+P's first banking partner was unexpectedly closed by its federal regulator in May, 2017, P+P set out to identify a new financial partner. In 2018, P+P finalized a partnership agreement with Sunrise Banks and launched its pilot to enroll 100 people in the financial product offerings by early 2019. P+P continues to work with an array of other nonprofit, employer, and public sector partners in this work as well as its evaluators from the Future Services Institute at the University of Minnesota's Humphrey School of Public Affairs.
IRS990/ProgSrvcAccomActy2Grp/ExpenseAmt0617291
IRS990/ProgSrvcAccomActy3Grp/Desc0P+P educates the public and policy makers about the importance of tax credits, free tax programs, and other issues designed to support asset-building and 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 2018, P+P collaborated with a cross-sector of 478 organizations to boost awareness of the EITC, distribute tens of thousands of materials, and present at forums and outreach events.In 2018, P+P also engaged in education and advocacy efforts to strengthen policy to protect and expand refundable tax credits. Specifically, P+P worked with coalition partners to try and expand the Federal Earned Income Tax Credit and Minnesota's Working Family Credit during tax reform deliberations in Congress and the Minnesota legislature, respectively. P+P staff and volunteers testified at several hearings and contacted legislators throughout the Minnesota legislative session.P+P also expanded its role as convener and leader in fostering financial well-being. For example, P+P hosted the first-ever national "VITAcon," a gathering of 80 people from across the country to share resources and insights around running free tax prep sites. Additionally, P+P collaborated with the Federal Reserve Bank of Minneapolis, as well as the Minnesota Chamber of Commerce and Greater Twin Cities United Way, to co-host an event for employers to learn about partnerships, programs, and best practices to improve employee financial well-being. Finally, P+P presented with the Aspen Institute and others on a Federal Reserve Bank of St. Louis Connecting Communities webinar: "Advancing Financial Inclusion: Innovative Financial Products and Services for Low-Income Households."
IRS990/ProgSrvcAccomActy3Grp/ExpenseAmt0106047
IRS990/ProgSrvcAccomActy3Grp/RevenueAmt05423
IRS990/ProgSrvcAccomActyOtherGrp/Desc0Organizational capacity:In 2017, Prepare + Prosper re-structured its programs, services, and business lines. One newly created department, the department of organizational capacity, combined P+P's financial management, HR, volunteer management, operations, and IT programming. Several initiatives are underway within this department, which were launched or enhanced in 2018, including:- Expanded focus on advancing P+P's commitment to diversity, equity, and inclusion (DEI), which included the creation of a new value statement, embedding DEI into volunteer training; working with consultants to train and support staff in recognizing bias; and developing long-range plans to bolster internal capabilities to carry out this work. - Enhancing P+P's data security systems, policies, and practices and the beginning of a process to hire a data security consultant.
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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