Civic Intelligence

Karamu House Inc

990 • Fiscal year 2017 • EIN 34-0714448

Jul 01, 2016 to Jun 30, 2017 • Filed on May 15, 2018

2355 East 89th StreetCleveland, OH 44106

(216) 795-7070

Siviq Scores

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

Liabilities / Assets

86th percentile

0.70x

Higher debt load relative to assets than 86% of similar nonprofits.

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

Liabilities / Revenue

78th percentile

0.49x

Higher debt load relative to revenue than 78% of similar nonprofits.

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

Net Margin

80th percentile

22%

Higher net margin than 80% of similar nonprofits.

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

Top Officer Pay

75th percentile

$115,000

Higher top officer pay than 75% of similar nonprofits.

Top officer pay equals 6.3% of source-year revenue.

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

Asset Growth

90th percentile

45%

Faster asset growth than 90% of similar nonprofits.

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

Revenue Growth

92nd percentile

94%

Faster revenue growth than 92% of similar nonprofits.

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

Assets

Up

$1,287,711

Up $402,661 (+45%) from 2016

Net Assets

Up

$381,430

Up $410,912 (+1394%) from 2016

Liabilities

Down

$906,281

Down $8,251 (-0.9%) from 2016

Revenue

Up

$1,836,264

Up $890,470 (+94%) from 2016

Expenses

Up

$1,425,352

Up $99,958 (+7.5%) from 2016

Net Income

Up

$410,912

Up $790,512 (+208%) from 2016

Historical Trend

Balance Sheet Trend

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

$15M$10M$5.0M$0-$5.0MAssets 2016: $885,050Liabilities 2016: $914,532Net Assets 2016: -$29,4822016Assets 2017: $1,287,711Liabilities 2017: $906,281Net Assets 2017: $381,4302017Assets 2018: $3,042,859Liabilities 2018: $1,140,333Net Assets 2018: $1,902,5262018Assets 2019: $7,110,135Liabilities 2019: $1,033,039Net Assets 2019: $6,077,0962019Assets 2020: $7,210,800Liabilities 2020: $1,117,125Net Assets 2020: $6,093,6752020Assets 2021: $8,492,498Liabilities 2021: $769,262Net Assets 2021: $7,723,2362021Assets 2022: $10,362,256Liabilities 2022: $1,232,503Net Assets 2022: $9,129,7532022Assets 2023: $9,971,127Liabilities 2023: $513,847Net Assets 2023: $9,457,2802023Assets 2024: $9,935,609Liabilities 2024: $597,466Net Assets 2024: $9,338,1432024

Highlighted filing

2017

Assets$1,287,711
Liabilities$906,281
Net Assets$381,430

Operations Trend

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

$8.0M$6.0M$4.0M$2.0M$0-$2.0MRevenue 2016: $945,794Expenses 2016: $1,325,394Net Income 2016: -$379,6002016Revenue 2017: $1,836,264Expenses 2017: $1,425,352Net Income 2017: $410,9122017Revenue 2018: $3,249,778Expenses 2018: $1,728,682Net Income 2018: $1,521,0962018Revenue 2019: $6,448,618Expenses 2019: $2,274,048Net Income 2019: $4,174,5702019Revenue 2020: $2,336,931Expenses 2020: $2,320,352Net Income 2020: $16,5792020Revenue 2021: $3,454,930Expenses 2021: $1,825,369Net Income 2021: $1,629,5612021Revenue 2022: $4,216,971Expenses 2022: $2,810,454Net Income 2022: $1,406,5172022Revenue 2023: $3,199,564Expenses 2023: $2,872,037Net Income 2023: $327,5272023Revenue 2024: $3,773,319Expenses 2024: $3,567,375Net Income 2024: $205,9442024

Highlighted filing

2017

Revenue$1,836,264
Expenses$1,425,352
Net Income$410,912
Jump To
Filing Snapshot
Filing Period
Jul 1, 2016 to Jun 30, 2017
Signed
May 15, 2018
Return Version
2016v3.0
Gross Receipts
$1,836,264
Mission and Program Overview

Mission

To produce professional theatre, provide arts education and present community programs for all people while honoring the african-american experience

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$768,204$1,101,612▲ $333,408
Loans From Officers Directors$266,601$213,762▼ $52,839
Pledges and Grants Receivable$79,899$134,900▲ $55,001
Cash and Non-Interest-Bearing Accounts$36,097$32,329▼ $3,768
Accounts Receivable$850$18,870▲ $18,020
Total Assets$885,050$1,287,711▲ $402,661
Liabilities
Unsecured Notes Loans Payable$284,761$287,757▲ $2,996
Accounts Payable and Accrued Expenses$344,188$258,244▼ $85,944
Other Liabilities$7,422$133,423▲ $126,001
Deferred Revenue$11,560$13,095▲ $1,535
Total Liabilities$914,532$906,281▼ $8,251
Net Assets / Fund Balance
Unrestricted Net Assets$-135,359$225,458▲ $360,817
Temporarily Rstr Net Assets$105,877$155,972▲ $50,095
Total Net Assets Fund Balance$-29,482$381,430▲ $410,912
Total Liabilities and Net Assets / Fund Balance$885,050$1,287,711▲ $402,661

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$921,501$1,185,445$2,106,946
Equipment$62,483$238,168$300,651
Other Land Buildings$10,528$152,890$163,418
Land$107,100-$107,100
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseTotal
Mr Tony SiasPresident & CEOFT$115,000$115,000
Revenue and Support

Revenue Composition

Contributions and Grants
$1,552,012
Program Service Revenue
$213,838
Investment Income
$53
Other Revenue
$70,361
All Other Contributions
$1,034,733
Change in Net Assets
$410,912

Audited Revenue Reconciliation

Revenue per Audited Statements
$1,836,264
Revenue Not Reported on Financial Statements
$0
Revenue Not Reported on Form 990
$0
Total Revenue per Audited Statements
$1,836,264
Total Revenue per Form 990
$1,836,264
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$925,086
Salaries, Compensation, and Employee Benefits$500,266
Total Fundraising Expense$93,883
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Fees for Services Other$343,217-$56,054$399,271
Other Salaries and Wages$177,162$126,776$21,129$325,067
Current Officers, Directors, Trustees, and Key Employees$62,660$44,770$7,570$115,000
All Other Expenses$80,534$18,605$2,837$101,976
Occupancy$56,621$24,266-$80,887
Depreciation Depletion$38,255$16,395-$54,650
Fees for Services Accounting$14,103$38,883-$52,986
Payroll Taxes$23,764$17,005$2,834$43,603
Interest$9,985$20,121-$30,106
Insurance$20,965$8,985-$29,950
Royalties$23,645--$23,645
Other Employee Benefits$9,045$6,472$1,079$16,596
Other Expenses$12,094$3,967$2,380$12,094
Travel$1,285$5,858-$7,143
Conferences and Meetings-$1,518-$1,518
Total Functional Expenses$977,176$354,293$93,883$1,425,352

Audited Expense Reconciliation

Line ItemAmount
Expenses per Audited Statements$1,425,352
Total Expenses per Audited Statements$1,425,352
Total Expenses per Form 990$1,425,352
Expenses Not Reported on Financial Statements$0
Expenses Not Reported on Form 990$0
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
No
Subject to proxy tax
No
Insider Transactions and Loans

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$266,601$213,762▼ $52,839
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Aes Management Corp$130,454
Lease Obligation$2,969
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
No
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, Part VI, Section B, line 11B

Form 990 review - form 990 is supplied to both management and finance committee members for review prior to submission to the irs. The review is for errors in the return.

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

Form 990 provided to governing body - form 990 was circulated to members of the finance committee of the board of directors prior to filing. A copy of form 990 was given to all board members, but not until it had been filed with the internal revenue service. As such, we are required to answer "no" to the question on line 11a of part vi of form 990.

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

Monitoring and enforcement of conflict policy - board members are required to disclose all potential conflicts to the entire board for any board decision that may be a conflict of interest. Also, all board members are required to complete a related party questionnaire as part of the annual audit. If a conflict arise, the person with the potential conflict is not permitted to participate in the discussion or to vote on the transaction. The decision about the transaction is made by persons who are independent of the individual with the conflict.

Form 990, Part VI, Section B, line 15

Compensation review and approval - the president and ceo was hired by the board of directors in 2015. His compensation was set in an employment contract and was determined to be at fair market value for the position. The president and ceo has not received a compensation increase since being hired in 2015, and therefore the board believes that his compensation is at or below fair market value for this year.

Form 990, Part VI, Section C, line 19

Availability of documents - the organization makes its organizing documents, conflict of interest policy, and financial statements available to the public upon request.

Filing and Contact Details

Filer

Filer Name
Karamu House Inc
EIN
34-0714448
Phone
2167957070
Address
2355 East 89th Street, Cleveland, OH 44106

Signing Officer

Name
Tony Sias
Title
President & CEO
Phone
2167957070
Signed
2018-05-15
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Tony Sias
Formed
1915
Legal Domicile
Oh
Voting Board Members
14
Independent Board Members
14
Employees
30
Volunteers
36

Preparer

Firm
Maloney Novotny LLC
Address
1111 Superior Ave Suite 700, Cleveland, OH 44114-2540
Preparer
Christopher B Anderson
Phone
2163630100
Supplemental Narrative

Additional Explanations

PART III, LINE 4 - ADDITIONAL PROGRAM SERVICES INFORMATION:

In 2017 Karamu House leadership filled three important positions that have contributed to the organization's operational and financial turnaround. An experienced Development Director, Chief Financial Officer and Marketing Director were hired to raise necessary funds, stabilize organizational finances and increase visibility and draw audiences from across Northeast Ohio to Karamu programs. In calendar year 2017, Karamu presented five socially relevant and professional-quality, theatre productions, REPAIRING A NATION, YOU CAN'T TAKE IT WITH YOU, SIMPLY SIMONE, THE LAKE EFFECT and A HOLIDAY JAZZ REVUE. REPAIRING A NATION and THE LAKE EFFECT were part of Karamu's Social Justice Series. At least two performances of each play included talk back sessions with community leaders on the issues raised in the play. In collaboration with Playhouse Square and Cleveland Metropolitan School District, Karamu House also celebrated the 50-year anniversary of Cleveland Mayor Carl Stokes taking office with the world premiere play BELIEVE IN CLEVELAND on June 10, 2017 at Karamu's historic Jelliffe Theatre. As the arts and culture anchor of Cleveland's Fairfax neighborhood, during fiscal year 2017 Karamu served more than 300 youth in its arts education programs-205 in after school and Saturday classes, and 80 children ages 7-17, participated in the summer arts program. These classes advanced several organizational priorities for Karamu. Classes for children and adults engaged community members of all ages. Sequential instruction made arts education accessible for individuals with varying skill levels and experience, and provided opportunity for advancement within each of the three artistic disciplines of dance, drama and vocal ensemble. These three disciplines correlate to Karamu's professional-quality theatre program, allowing students to study the components of theatre performance. Karamu's arts education program creates a pipeline to lifelong artistic study-students develop their talent, skills, and knowledge of the arts; identify and cultivate their interests; and access increasingly challenging opportunities to support and participate in full-scale, professional-quality productions. In the fall of 2017, Karamu House launched a pilot mastery program in the theatre arts called "Karamu's Youth Repertory Company." The program's goal is to prepare young people for post-secondary study or careers in musical theatre performance. The company was born from a desire of high performing students (and their parents) in Karamu's Summer Arts program to continue instruction in dance, drama and vocal music. Professional artists teach students, accepted into the company through auditions or class participation, to prepare musical performances that can be toured to schools and community venues. Karamu also launched its redesigned summer arts program in 2017. Moving away from summer activities to a program of arts education, students utilized the theme of "porches" to explore the Fairfax community. They interviewed residents about the perspective from their porches, describe their own family's use and memories of porches, and presented a culminating music, dance, vocal, and spoken word performances for the Fairfax community about the stories they gathered. As part of its community programming, in 2017 Karamu House celebrated Kwanzaa with the principle of Ujaama or cooperative economics. The topics of building and generating wealth, budgeting and spending for success, hyper consumerism and debt management were explored through a panel discussion plus a vendor market place and community meal. Martin Luther King, Jr. Day was celebrated with a day of service at Karamu House. Community members assisted staff in cleaning and organizing Karamu's vast collection of props and artifacts. Karamu House also reached nearly 2,000 children and adults throughout Greater Cleveland with lively, professional jazz and blues performances. Featuring Cleveland-based, nationally-renowned

Form 990, Part IX, line 11G

ACTORS AND STAFF FOR PRODUCTIONS: Program service expenses 343,217. Management and general expenses 0. Fundraising expenses 0. Total expenses 343,217. GRANT WRITING SERVICES: Program service expenses 0. Management and general expenses 0. Fundraising expenses 56,054. Total expenses 56,054.

Financial Statement Notes

Part X, Line 2:

FIN 48 (ASC 740) FOOTNOTE - KARAMU HOUSE IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE, AND IS CONSIDERED A CHARITABLE CORPORATION. KARAMU HOUSE BELIEVES IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AND, AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT WOULD BE MATERIAL TO THE FINANCIAL STATEMENTS. KARAMU HOUSE'S FEDERAL TAX RETURNS ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED.

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