Civic Intelligence

Lincoln Learning Solutions Inc.

990 • Fiscal year 2019 • EIN 26-0125828

Jul 01, 2018 to Jun 30, 2019 • Filed on Jan 09, 2020

294 Massachusetts AvenueRochester, PA 15074

(724) 764-7200

Siviq Scores

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

Liabilities / Assets

24th percentile

0.06x

Higher debt load relative to assets than 24% of similar nonprofits.

2019 filings • 501(c)3 • $50M-$100M nonprofits • Source year 2019

Liabilities / Revenue

30th percentile

0.18x

Higher debt load relative to revenue than 30% of similar nonprofits.

2019 filings • 501(c)3 • $50M-$100M nonprofits • Source year 2019

Net Margin

8th percentile

-25%

Higher net margin than 8% of similar nonprofits.

2019 filings • 501(c)3 • $50M-$100M nonprofits • Source year 2019

Top Officer Pay

44th percentile

$315,382

Higher top officer pay than 44% of similar nonprofits.

Top officer pay equals 1.2% of source-year revenue.

2019 filings • 501(c)3 • $50M-$100M nonprofits • Source year 2019

Asset Growth

7th percentile

-7.8%

Faster asset growth than 7% of similar nonprofits.

2019 filings • 501(c)3 • $50M-$100M nonprofits • Annualized from 2018 to 2019

Revenue Growth

34th percentile

-0.9%

Faster revenue growth than 34% of similar nonprofits.

2019 filings • 501(c)3 • $50M-$100M nonprofits • Annualized from 2018 to 2019

Assets

Down

$80,171,460

Down $6,816,487 (-7.8%) from 2018

Net Assets

Down

$75,471,559

Down $6,297,081 (-7.7%) from 2018

Liabilities

Down

$4,699,901

Down $519,406 (-10.0%) from 2018

Revenue

Down

$26,422,075

Down $252,867 (-0.9%) from 2018

Expenses

Up

$33,107,335

Up $9,539,735 (+40%) from 2018

Net Income

Down

-$6,685,260

Down $9,792,602 (-315%) from 2018

Historical Trend

Balance Sheet Trend

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

$100M$50M$0Assets 2011: $30,228,760Liabilities 2011: $7,400,826Net Assets 2011: $22,827,9342011Assets 2013: $53,568,238Liabilities 2013: $6,096,323Net Assets 2013: $47,471,9152013Assets 2014: $62,741,566Liabilities 2014: $2,919,333Net Assets 2014: $59,822,2332014Assets 2016: $80,014,442Liabilities 2016: $7,935,148Net Assets 2016: $72,079,2942016Assets 2017: $84,351,782Liabilities 2017: $5,644,063Net Assets 2017: $78,707,7192017Assets 2018: $86,987,947Liabilities 2018: $5,219,307Net Assets 2018: $81,768,6402018Assets 2019: $80,171,460Liabilities 2019: $4,699,901Net Assets 2019: $75,471,5592019Assets 2020: $70,095,014Liabilities 2020: $1,945,053Net Assets 2020: $68,149,9612020Assets 2021: $75,574,659Liabilities 2021: $2,987,552Net Assets 2021: $72,587,1072021Assets 2022: $74,277,686Liabilities 2022: $2,272,607Net Assets 2022: $72,005,0792022Assets 2024: $64,611,888Liabilities 2024: $2,534,591Net Assets 2024: $62,077,2972024

Highlighted filing

2019

Assets$80,171,460
Liabilities$4,699,901
Net Assets$75,471,559

Operations Trend

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

$40M$20M$0-$20MExpenses 2011: $24,962,2152011Expenses 2013: $25,250,9572013Revenue 2014: $34,715,046Expenses 2014: $22,258,762Net Income 2014: $12,456,2842014Revenue 2016: $37,103,100Expenses 2016: $28,034,576Net Income 2016: $9,068,5242016Revenue 2017: $33,896,683Expenses 2017: $27,689,164Net Income 2017: $6,207,5192017Revenue 2018: $26,674,942Expenses 2018: $23,567,600Net Income 2018: $3,107,3422018Revenue 2019: $26,422,075Expenses 2019: $33,107,335Net Income 2019: -$6,685,2602019Revenue 2020: $24,122,252Expenses 2020: $31,868,149Net Income 2020: -$7,745,8972020Revenue 2021: $25,553,728Expenses 2021: $23,146,610Net Income 2021: $2,407,1182021Revenue 2022: $26,156,816Expenses 2022: $23,482,805Net Income 2022: $2,674,0112022Revenue 2024: $21,151,524Expenses 2024: $23,948,278Net Income 2024: -$2,796,7542024

Highlighted filing

2019

Revenue$26,422,075
Expenses$33,107,335
Net Income-$6,685,260
Jump To
Filing Snapshot
Filing Period
Jul 1, 2018 to Jun 30, 2019
Signed
Jan 9, 2020
Return Version
2018v3.1
Gross Receipts
$47,559,261
Mission and Program Overview

Mission

The national network of digital schools foundation provides educational instruction to schools and school districts.

To empower learning communities by providing them with products, strategies and services aligned with proven educational practices.

Balance Sheet Detail
LineBeginningEndChange
Assets
Savings and Temporary Cash Investments$24,735,125$19,751,468▼ $4,983,657
Intangible Assets$18,562,670$13,680,249▼ $4,882,421
Investments Other Securities$12,866,708$12,866,708→ $0
Investments in Publicly Traded Securities$7,638,512$10,939,117▲ $3,300,605
Inventories for Sale or Use$9,693,360$8,595,556▼ $1,097,804
Other Notes and Loans Receivable, Net$6,040,439$6,040,439→ $0
Land, Buildings, and Equipment, Net$4,233,072$3,804,950▼ $428,122
Prepaid Expenses and Deferred Charges$862,425$2,056,970▲ $1,194,545
Cash and Non-Interest-Bearing Accounts$2,059,664$1,922,282▼ $137,382
Accounts Receivable$182,286$455,676▲ $273,390
Total Assets$86,987,947$80,171,460▼ $6,816,487
Other Assets Total$113,686$58,045▼ $55,641
Liabilities
Accounts Payable and Accrued Expenses$3,740,216$3,677,775▼ $62,441
Grants Payable$1,058,337$645,733▼ $412,604
Mortgage Notes Payable Secured by Investment Property$420,754$362,893▼ $57,861
Deferred Revenue-$13,500-
Total Liabilities$5,219,307$4,699,901▼ $519,406
Net Assets / Fund Balance
Unrestricted Net Assets$81,768,640$75,471,559▼ $6,297,081
Total Net Assets Fund Balance$81,768,640$75,471,559▼ $6,297,081
Total Liabilities and Net Assets / Fund Balance$86,987,947$80,171,460▼ $6,816,487

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$3,070,240$1,114,629$4,184,869
Equipment$371,643$1,220,187$1,591,830
Other Land Buildings$24,374$749,800$774,174
Land$288,479-$288,479
Leasehold Improvements$50,214$102,897$153,111
Closely Held Equity Interests$12,866,708--
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Robert C ClementsBoard Member/presidentFT$282,821$32,561$315,382
James C LivingstoneChief Financial OfficerFT$200,800$29,112$229,912
John G TheisChief Academic OfficerFT$186,361$25,230$211,591
Daryl CareChief Technology OfficerFT$179,920$27,750$207,670
Bradley NeugartVP of Sales & MarketingFT$153,330$26,736$180,066
George PacindaVP of PhilanthropyFT$126,721$22,033$148,754
Patricia KeaneChief Technology Officer (terminated)FT$131,231$15,351$146,582
Joseph DeplatoDirector of Information & SFT$123,624$19,006$142,630
Mimi WilsonHuman ResourcesFT$126,721$12,117$138,838
Craig McmillenSenior Business ManagerFT$121,200$6,062$127,262
Bruce BoliverTreasurerPT$30,549-$30,549
Connie HowardBoard MemberPT$26,949-$26,949
Gerald GumpfBoard MemberPT$20,534-$20,534

Board Members and Trustees

NameTitle
Robert L Dusch JrSecretary

Highest Paid Contractors

ContractorServicesLocationCompensation
Landmark Media Enterprises LLCOperating System Backups For Data ProtecPO BOX 645209, Pittsburgh, PA 15264-5209$490,588
Bookpal LLCCurriculum Book Wholesaler18101 VON KARMAN AVENUE SUITE 120, Irvine, CA 92612$336,349
Mcmillen Urick Tocci & JonesLegal Services2131 BRODHEAD RD, Aliquippa, PA 15001$279,000
Sla ProfessionalsTechnology Consulting2266 W NEW ORLEANS STREET, Broken Arrow, OK 74014$278,556
Creative Curriculum Initiatives LLCCurriculum Developer80 5TH AVENUE, New York, NY 10011$232,113
Revenue and Support

Revenue Composition

Contributions and Grants
$0
Program Service Revenue
$8,785,931
Investment Income
$770,553
Other Revenue
$16,865,591
Change in Net Assets
$-6,685,260
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$22,892,106
Other Expenses$7,070,076
Grants and Similar Amounts Paid$3,145,153
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$13,541,124$2,315,957-$15,857,081
Other Employee Benefits$3,210,208$587,620-$3,797,828
Grants to Domestic Orgs$3,145,153--$3,145,153
Information Technology$1,239,631$296,484-$1,536,115
Payroll Taxes$1,257,769$237,219-$1,494,988
Fees for Services Other$1,021,802$366,769-$1,388,571
Current Officers, Directors, Trustees, and Key Employees$580,699$580,698-$1,161,397
Occupancy$794,762$235,696-$1,030,458
Office Expenses$511,664$78,705-$590,369
Pension Plan Contributions$492,375$88,437-$580,812
Depreciation Depletion-$417,546-$417,546
Travel$191,044$173,702-$364,746
Fees for Services Legal-$356,239-$356,239
Insurance$178,744$77,169-$255,913
Advertising$50,341$152,960-$203,301
Fees for Services Lobbying-$116,356-$116,356
Fees for Service Investment Mgmnt Fees-$60,238-$60,238
Conferences and Meetings$21,525$38,567-$60,092
Interest-$34,329-$34,329
Other Expenses$105,950$108-$108
Total Functional Expenses$26,342,791$6,764,544$0$33,107,335
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Lincoln Park Performing Arts Charter SchoolMidland, PA501(c)(3)Support Operations$1,598,133
Hekima PlacePittsburgh, PA501(c)(3)Support Operations$300,000
Lincoln Park Performing Arts CenterMidland, PA501(c)(3)Support Operations$101,499
Beaver County Educational TrustBeaver, PA501(c)(3)Support Operations$60,000
United Way of Beaver CountyMonaca, PA501(c)(3)Support Operations$57,913
Ach Clear PathwaysPittsburgh, PA501(c)(3)Support Operations$50,000
Mcguire MemorialNew Brighton, PA501(c)(3)Support Operations$50,000
Community College of Beaver CountyMonaca, PAGovernmentSupport Operations$20,431
Borough of MidlandMidland, PAGovernmentSupport Operations$15,000
Village Theater CompanySewickley, PA501(c)(3)Support Operations$15,000
Independence FundCharlotte, NC501(c)(3)Support Operations$12,000
Greater Midland Scholarship FoundationMidland, PA501(c)(3)Support Operations$10,862
The Center MidlandMidland, PA501(c)(3)Support Operations$8,000
Lincoln Park AthleticsMidland, PA501(c)(3)Support Operations$7,200
Carnegie Free Library of MidlandMidland, PA501(c)(3)Support Operations$5,000
Foundation for Free Enterprise EducationErie, PA501(c)(3)Support Operations$5,000
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
Yes
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Casey ClementsCasey Clements Is the Son of Robert Clements, Board Member/presidentCompensationNo$35,067
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
Yes
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
Yes
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Form 990, Part VI, Section B, Line 11B

The form 990 is made available to all board members for review and approval prior to filing.

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

Board members and officers are required to disclose annually interests that could give rise to conflicts. They also review and complete a 990 disclosure questionnaire regarding related organizations on an annual basis.

Form 990, Part VI, Section B, Line 15

The organization utilizes the guidestar compensation report to gauge reasonableness of pay for the executive team. Any pay increases are reviewed and approved by the board.

Form 990, Part VI, Section C, Line 19

Governing documents and form 990 are available to the public upon request for a nominal copying fee. The financial statements for the organization are part of consolidated financial statements that include a for-profit entity; therefore, the financial statements are not offered to the public.

FORM 990, PART VIII, LINE 10:

The amounts reported on line 10 reflect revenue and expense derived from the sale of educational curriculum materials needed to further the organization's exempt purpose.

Filing and Contact Details

Filer

Filer Name
Lincoln Learning Solutions Inc
EIN
26-0125828
Phone
7247647200
Address
294 MASSACHUSETTS AVENUE, ROCHESTER, PA 15074

Signing Officer

Name
Robert Clements
Title
President
Phone
7247647200
Signed
2020-01-09
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Robert Clements
Formed
2005
Legal Domicile
Pa
Voting Board Members
5
Independent Board Members
4
Employees
430
Volunteers
0

Preparer

Firm
Deluzio and Company Llp
Address
351 HARVEY AVENUE SUITE A, GREENSBURG, PA 15601-1911
Preparer
Lisa M Altschaffl CPA
Phone
7248388322
Supplemental Narrative

Additional Explanations

Form 990, Part III, Line 3

Due to losses in the early learning program in prior years it was no longer feasible for the organization to continue operating the program. A local non-profit organization has assumed the responsibilities of the program.

FORM 990, PART XII, LINE 2C:

The oversight process has not changed from the prior year.

Financial Statement Notes

PART X, LINE 2:

The organization has evaluated its tax positions taken for all open years. Currently, the 2017, 2016 and 2015 tax years are open and subject to examination by the internal revenue service (irs) and the pennsylvania department of revenue. The organization is not currently under audit, nor has it been contacted by the irs or the pennsylvania department of revenue that it is subject to examination. As of june 30, 2019, no interest or penalties have been recorded. If interest and penalties were recorded, they would be included in income tax expense. Based on the evaluation of the organization's tax positions and elections, management believes all tax positions taken and elections made would be upheld under an examination. Therefore, no provision for the effects of uncertain income tax positions or elections has been recorded as of june 30, 2019.

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