Civic Intelligence

Scratch Foundation

990 • Fiscal year 2020 • EIN 46-2612143

Jan 01, 2020 to Dec 31, 2020 • Filed on Oct 22, 2021

201 South Street No 1-102Boston, MA 02111

(857) 233-5422

Siviq Scores

Scores are not available for this record yet.

Balance Sheet

Assets

Up

$10,241,919

Up $2,655,814 (+35%) from 2019

Net Assets

Up

$9,828,132

Up $2,398,642 (+32%) from 2019

Liabilities

Up

$413,787

Up $257,172 (+164%) from 2019

Revenue And Expenses

Revenue

Up

$7,278,166

Up $3,312,036 (+84%) from 2019

Expenses

Up

$4,879,524

Up $3,275,909 (+204%) from 2019

Net Income

Up

$2,398,642

Up $36,127 (+1.5%) from 2019

Historical Trend

Balance Sheet Trend

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

$15M$10M$5.0M$0Assets 2013: $6,963Liabilities 2013: $0Net Assets 2013: $6,9632013Assets 2014: $315,765Liabilities 2014: $10,353Net Assets 2014: $305,4122014Assets 2015: $607,476Liabilities 2015: $34,469Net Assets 2015: $573,0072015Assets 2016: $881,369Liabilities 2016: $101,734Net Assets 2016: $779,6352016Assets 2017: $1,983,765Liabilities 2017: $36,661Net Assets 2017: $1,947,1042017Assets 2018: $5,113,583Liabilities 2018: $46,608Net Assets 2018: $5,066,9752018Assets 2019: $7,586,105Liabilities 2019: $156,615Net Assets 2019: $7,429,4902019Assets 2020: $10,241,919Liabilities 2020: $413,787Net Assets 2020: $9,828,1322020Assets 2021: $12,660,412Liabilities 2021: $320,215Net Assets 2021: $12,340,1972021Assets 2022: $13,703,238Liabilities 2022: $1,669,657Net Assets 2022: $12,033,5812022Assets 2023: $6,402,212Liabilities 2023: $979,931Net Assets 2023: $5,422,2812023Assets 2024: $13,684,109Liabilities 2024: $579,690Net Assets 2024: $13,104,4192024

Highlighted filing

2020

Assets$10,241,919
Liabilities$413,787
Net Assets$9,828,132

Operations Trend

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

$30M$20M$10M$0-$10MRevenue 2013: $346,585Expenses 2013: $339,622Net Income 2013: $6,9632013Revenue 2014: $1,310,976Expenses 2014: $1,012,527Net Income 2014: $298,4492014Revenue 2015: $1,984,069Expenses 2015: $1,688,497Net Income 2015: $295,5722015Revenue 2016: $1,943,042Expenses 2016: $1,736,414Net Income 2016: $206,6282016Revenue 2017: $2,913,081Expenses 2017: $1,745,612Net Income 2017: $1,167,4692017Revenue 2018: $4,143,669Expenses 2018: $1,023,798Net Income 2018: $3,119,8712018Revenue 2019: $3,966,130Expenses 2019: $1,603,615Net Income 2019: $2,362,5152019Revenue 2020: $7,278,166Expenses 2020: $4,879,524Net Income 2020: $2,398,6422020Revenue 2021: $10,034,461Expenses 2021: $7,522,396Net Income 2021: $2,512,0652021Revenue 2022: $15,041,052Expenses 2022: $15,347,668Net Income 2022: -$306,6162022Revenue 2023: $8,770,345Expenses 2023: $14,975,731Net Income 2023: -$6,205,3862023Revenue 2024: $20,013,298Expenses 2024: $12,331,160Net Income 2024: $7,682,1382024

Highlighted filing

2020

Revenue$7,278,166
Expenses$4,879,524
Net Income$2,398,642
Jump To
Filing Snapshot
Filing Period
Jan 1, 2020 to Dec 31, 2020
Signed
Oct 22, 2021
Return Version
2020v4.1
Gross Receipts
$7,288,954
Mission and Program Overview

Mission

Code to learn foundation was established to support researchers, developers, and educators who are committed to the cultivation of computational fluency and, more specifically, to the further development and dissemination of scratch, a programming language developed at mit.

Scratch Foundation (the Foundation) is a nonprofit organization that develops and supports the Scratch programming language and online community. The Foundation's mission is to provide all children, from all backgrounds, with opportunities to imagine, create, and share with new technologies. As children create and share stories, games, and animations with Scratch, they learn to think creatively, reason systematically, and work collaboratively, which are essential skills for everyone in today's society. Scratch was originally developed at the Massachusetts Institute of Technology Media Lab, and moved to the Scratch Foundation in 2019.

Balance Sheet Detail
LineBeginningEndChange
Assets
Savings and Temporary Cash Investments$6,426,567$8,902,357▲ $2,475,790
Pledges and Grants Receivable$672,063$628,743▼ $43,320
Cash and Non-Interest-Bearing Accounts$250,731$460,864▲ $210,133
Land, Buildings, and Equipment, Net$80,485$86,212▲ $5,727
Prepaid Expenses and Deferred Charges$6,259$13,743▲ $7,484
Total Assets$7,586,105$10,241,919▲ $2,655,814
Other Assets Total$150,000$150,000→ $0
Liabilities
Other Liabilities$54,081$247,035▲ $192,954
Accounts Payable and Accrued Expenses$102,534$166,752▲ $64,218
Total Liabilities$156,615$413,787▲ $257,172
Net Assets / Fund Balance
Net Assets Without Donor Restrictions$6,907,206$7,592,941▲ $685,735
Net Assets With Donor Restrictions$522,284$2,235,191▲ $1,712,907
Total Net Assets Fund Balance$7,429,490$9,828,132▲ $2,398,642
Total Liabilities and Net Assets / Fund Balance$7,586,105$10,241,919▲ $2,655,814

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$86,212$47,525$133,737
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Champika FernandoPast Interim Executive DirectorFT$162,600$89,354$251,954
Joan FuscoDirector of HR & AdministrationFT$126,383$23,701$150,084
Eric RosenbaumSenior Front End EngineerFT$122,523$23,645$146,168
Karishma ChadhaEngineering Team LeaderFT$122,685$13,916$136,601
Katelyn MannSenior EngineerFT$118,369$12,300$130,669
Paul KaplanSenior EngineerFT$119,446$6,095$125,541
Shawna YoungExecutive DirectorPT$77,972$1,974$79,946

Board Members and Trustees

NameTitle
Mitchel ResnickPresident/Chair
David M SiegelVice-Chair
Avraham KadarBoard Member
Christina MillerBoard Member
Margaret HoneyBoard Member
Ursula BurnsBoard Member
Sheri VammenSecretary
Richard SauerTreasurer

Highest Paid Contractors

ContractorServicesLocationCompensation
On-Ramps Services LLCRecruiting Services307 7th Avenue Suite 901, New York, NY 10001$116,667
Revenue and Support

Revenue Composition

Contributions and Grants
$6,969,705
Program Service Revenue
$250,000
Investment Income
$32,240
Other Revenue
$26,221
All Other Contributions
$6,969,705
Change in Net Assets
$2,398,642

Noncash Contribution Practices

Property subject to holding requirements
No
Reviewed unusual noncash gifts
No
Third parties used for noncash contributions
No

Noncash Contributions

Contribution TypeContribution CountReported AmountValuation Method
Securities Publicly Traded1$100,795Fair Market Value (FMV)
Other Non Cash Contri Table23$30,939Fair Market Value (FMV)
Total Noncash Contributions24$131,734-

Audited Revenue Reconciliation

Revenue per Audited Statements
$7,278,166
Revenue Not Reported on Financial Statements
$0
Revenue Not Reported on Form 990
$2,465,251
Total Revenue per Audited Statements
$9,743,417
Total Revenue per Form 990
$7,278,166
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$3,518,441
Other Expenses$1,304,850
Total Fundraising Expense$276,856
Professional Fundraising Fees$43,033
Grants and Similar Amounts Paid$13,200

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$2,328,689$132,205$104,730$2,565,624
Occupancy$396,438$30,282$19,920$446,640
Current Officers, Directors, Trustees, and Key Employees$240,325$66,380$25,195$331,900
Other Employee Benefits$257,572$18,484$12,616$288,672
Information Technology$248,131$883$581$249,595
Fees for Services Other$227,347$6,572$4,323$238,242
Payroll Taxes$196,670$15,023$9,882$221,575
Office Expenses$159,705$12,199$20,720$192,624
Pension Plan Contributions$99,713$6,459$4,498$110,670
Other Expenses$28,079$1,556$27,633$57,268
Depreciation Depletion$39,187$2,993$1,969$44,149
Fees for Services Professional Fundraising--$43,033$43,033
Advertising$39,098--$39,098
Fees for Services Accounting$16,872$1,289$848$19,009
Grants to Domestic Orgs$13,200--$13,200
Travel$8,724$666$538$9,928
Insurance$6,097$466$306$6,869
Conferences and Meetings$1,267$97$64$1,428
Total Functional Expenses$4,307,114$295,554$276,856$4,879,524

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Audited Statements$7,344,775
Expenses per Audited Statements$4,879,524
Total Expenses per Form 990$4,879,524
Expenses Not Reported on Form 990$2,465,251
Expenses Not Reported on Financial Statements$0
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Violence in Boston IncRoxbury, MA501(c)(3)To aid Violence in Boston, a nonprofit dedicated to empowering black and brown communities.$6,650
The Conscious KidLa Jolla, CA501(c)(3)To support a nonprofit dedicated to anti-racism programs for children, families, and educators.$6,550

International Summary

Offices
0
Employees
0
Spending
$27,280

International Compliance

Foreign grant records maintained
Yes
Activity in boycott countries
No
Foreign corporation ownership
No
Foreign partnership interest
No
Interest in foreign trust
No
Passive foreign investment company interest
No
Transfers to foreign corporations
No

International Activities

RegionActivityServicesOfficesEmployeesSpending
East Asia and the Pacific - Australia, Brunei, Burma, Cambodia,Program ServicesEducation00$27,280
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
Yes

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$43,033
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
-David M. SiegelSee Part VBusiness transactions with the Foundation conducted by the Officer of theFoundation are not excess benefit transactions. The Foundation is payingmarket rates for the services provided by Two Sigma Investments.No$96,926
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
CARES Act Funding$175,163
Deferred Rent$71,872
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 35% controlled entity
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
Yes
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, Part VI, Section A, line 2

David M. Siegel is the Co-Chairman of Two Sigma Investments, LP. Sheri Vammen and Richard Sauer are employees of Two Sigma Investments, LP.

Form 990, Part VI, Section A, line 4

On September 23, 2020, the board of directors (the "Board of Directors") of Scratch Foundation (the "Foundation") approved changes to its governing documents by adopting and approving an amendment and restatement of the Foundation's bylaws (the "Amended & Restated Bylaws"). The Amended & Restated Bylaws are a completely updated and revised set of bylaws that represent a complete rewriting of the Foundation's prior bylaws; the following significant changes are included in the Amended & Restated Bylaws: Name: Updated the Foundation's name to reflect the change from "Code-To-Learn Foundation" to "Scratch Foundation". Objectives and Purposes; Nonpartisan Activities: Clarified the charitable and educational purposes of the Foundation and included a prohibition on lobbying and political activities. Dedication of Assets: Irrevocably dedicated the properties and assets of the Foundation to charitable and educational purposes; provided for the distribution of assets upon the dissolution of the Foundation. Membership: Identified the founding members of the Foundation and provided for the establishment of one or more additional classes of voting or nonvoting members by resolution of the Foundation's board of directors; set a majority of votes of the members as both (i) the quorum requirement for a meeting of members and (ii) the approval requirement for actions by members; provided for the resignation or termination of members. Directors: Placed general corporate powers and management of the Foundation's business under the power and direction of the board of directors; clarified the specific powers and duties of the board of directors; provided that the authorized size of the board shall be fixed by the board of directors from time to time but shall be no less than two (2) directors; provided that additional directors shall be elected by a majority of the board of directors, provided that no more than forty-nine percent (49%) of the directors may be interested persons receiving compensation from the Foundation for services; set the term of office for directors at three (3) years (other than directors elected as lifetime directors, who serve for life); provided for the resignation and removal of directors; set a majority of directors as both (i) the quorum requirement for a meeting of directors and (ii) the approval requirement for actions by directors; identified the standard of care for the performance of director duties, including with respect to investments by the Foundation; provided for board review of executive director compensation. Committees of the Board of Directors: Provided for the establishment of committees by resolution of a majority of the board of directors, including (i) board committees comprised only of directors, (ii) advisory committees comprised of directors and/or non-directors, (iii) an audit committee for the Foundation, and (iv) an insider trust subfund committee for the Foundation; established rules for governance of, and limitations on, committees. Officers: Identified as the officers of the Foundation the chair of the board, the vice chair of the board, an executive director, a treasurer, a secretary and such other assistant treasurers, assistant secretaries or other officers as may be elected by the board of directors on an annual basis; provided for the duties, election, resignation and removal of officers. Limitations on Certain Transactions: Established rules prohibiting certain loans to officers and directors and prohibiting self-dealing transactions, and approval procedures for exceptions. Indemnification: Established procedures for indemnification of directors, officers, employees and agents of the Foundation in certain situations, including advancement of expenses, limitations, and insurance. Administrative Matters: Established procedures for maintenance of corporate records, annual reports and financial audits; established requirements for contracts, checks, deposits and gifts. Fiscal Year: Set the

Form 990, Part VI, Section A, line 6

The Organization has two members who were elected by the sole incorporator.

Form 990, Part VI, Section A, line 7A

The members have the right to appoint individuals to the Board of Directors.

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

The Form is prepared by a third party. The Form 990 goes through a detailed review internally by the Treasurer. Once the return has gone through this review, the final Form 990 is distributed via email to the Audit Committee members for their review and approval. After the Audit Committee members review and approve Form 990, it is emailed to each member of the Board of Directors for their review and comment and with a recommendation to file the return with the IRS.

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

The conflict of interest policy and disclosure form are sent to every board member and corporate officer on an annual basis. During the course of board meetings, board members disclose any conflicts related to the agenda item/discussion and abstain from voting. Whenever appropriate, the board member would be excused from the room during discussion and voting. To ensure the foundation operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews of this policy are conducted.

Form 990, Part VI, Section B, line 15A

The Foundation will enter into a written compensation arrangement, specifying the date and terms of any arrangement whereby the foundation will pay compensation to a person, company or entity, prior to paying compensation to any person, company, or entity. The Foundation can only enter into a compensation arrangement with the approval of a majority of Board of Directors. When determining whether to vote for a proposed compensation arrangement, the Board of Directors considers information about compensation paid by similarly situated taxable or tax-exempt organizations for similar services, current compensation surveys compiled by independent firms, or actual written offers from similarly situated organizations. The Foundation will record in writing the information on which it bases its decision to approve a compensation arrangement.

Form 990, Part VI, Section C, line 19

The Organization considers requests for financial statements, governing documents or conflict of interest policy on a case by case basis.

Form 990, Part VII:

Richard Sauer is an employee of Two Sigma Investments, LP ("TSI") and was paid for the services he provided to the Foundation through a management contract the Foundation has with TSI. Payments by the Foundation for such services of this officer were made to TSI quarterly in arrears. All such payments are for the portion of the direct compensation of such officer attributable to the services rendered to the Foundation.

Filing and Contact Details

Filer

Filer Name
Scratch Foundation
EIN
46-2612143
Phone
8572335422
Address
201 South Street No 1-102, Boston, MA 02111

Signing Officer

Name
Mitchel Resnick
Title
President/Chair
Phone
8572335422
Signed
2021-10-22
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Mitchel Resnick
Formed
2013
Legal Domicile
De
Voting Board Members
6
Independent Board Members
5
Employees
47
Volunteers
6

Preparer

Firm
Berry Dunn McNeil & Parker LLC
Address
PO BOX 1100, Portland, ME 04104-1100
Preparer
Joseph R Byrne
Phone
2077752387
Supplemental Narrative

Additional Explanations

Form 990, Part X, Line 10: Land, Buildings, and Equipment

Section 1.263(a)-3(n) Election: Scratch Foundation 201 South Street, Suite 1-102 Boston, MA 02111 EIN 46-2612143 Scratch Foundation is electing to capitalize repair and maintenance costs under Regulation Section 1.263(a)-3(n).

Financial Statement Notes

Part XI, Line 2D - Other Adjustments:

Cost of Sales 10,788.

Part XII, Line 2D - Other Adjustments:

Cost of Sales 10,788.

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IRS990/Form990PartVIISectionAGrp/PersonNm0Champika Fernando
IRS990/Form990PartVIISectionAGrp/PersonNm1Joan Fusco
IRS990/Form990PartVIISectionAGrp/PersonNm2Eric Rosenbaum
IRS990/Form990PartVIISectionAGrp/PersonNm3Karishma Chadha
IRS990/Form990PartVIISectionAGrp/PersonNm4Katelyn Mann
IRS990/Form990PartVIISectionAGrp/PersonNm5Paul Kaplan
IRS990/Form990PartVIISectionAGrp/PersonNm6Shawna Young
IRS990/Form990PartVIISectionAGrp/PersonNm7Mitchel Resnick
IRS990/Form990PartVIISectionAGrp/PersonNm8David M Siegel
IRS990/Form990PartVIISectionAGrp/PersonNm9Sheri Vammen
IRS990/Form990PartVIISectionAGrp/PersonNm10Richard Sauer
IRS990/Form990PartVIISectionAGrp/PersonNm11Ursula Burns
IRS990/Form990PartVIISectionAGrp/PersonNm12Margaret Honey
IRS990/Form990PartVIISectionAGrp/PersonNm13Avraham Kadar
IRS990/Form990PartVIISectionAGrp/PersonNm14Christina Miller
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IRS990/Form990PartVIISectionAGrp/TitleTxt0Past Interim Executive Director
IRS990/Form990PartVIISectionAGrp/TitleTxt1Director of HR & Administration
IRS990/Form990PartVIISectionAGrp/TitleTxt2Senior Front End Engineer
IRS990/Form990PartVIISectionAGrp/TitleTxt3Engineering Team Leader
IRS990/Form990PartVIISectionAGrp/TitleTxt4Senior Engineer
IRS990/Form990PartVIISectionAGrp/TitleTxt5Senior Engineer
IRS990/Form990PartVIISectionAGrp/TitleTxt6Executive Director
IRS990/Form990PartVIISectionAGrp/TitleTxt7President/Chair
IRS990/Form990PartVIISectionAGrp/TitleTxt8Vice-Chair
IRS990/Form990PartVIISectionAGrp/TitleTxt9Secretary
IRS990/Form990PartVIISectionAGrp/TitleTxt10Treasurer
IRS990/Form990PartVIISectionAGrp/TitleTxt11Board Member
IRS990/Form990PartVIISectionAGrp/TitleTxt12Board Member
IRS990/Form990PartVIISectionAGrp/TitleTxt13Board Member
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IRS990/MissionDesc0See Schedule OScratch Foundation (the Foundation) is a nonprofit organization that develops and supports the Scratch programming language and online community. The Foundation's mission is to provide all children, from all backgrounds, with opportunities to imagine, create, and share with new technologies. As children create and share stories, games, and animations with Scratch, they learn to think creatively, reason systematically, and work collaboratively, which are essential skills for everyone in today's society. Scratch was originally developed at the Massachusetts Institute of Technology Media Lab, and moved to the Scratch Foundation in 2019.
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IRS990/SavingsAndTempCashInvstGrp/EOYAmt08902357
IRS990ScheduleA/Form990ScheduleAPartVIGrp/ExplanationTxt0Other Income - 2016 Amount: $ 1,069. 2017 Amount: $ 891. 2018 Amount: $ 1,554.
IRS990ScheduleA/Form990ScheduleAPartVIGrp/FormAndLineReferenceDesc0Schedule A, Part II, Line 10, Explanation of Other Income:
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