Civic Intelligence

Scratch Foundation

990 • Fiscal year 2021 • EIN 46-2612143

Jan 01, 2021 to Dec 31, 2021 • Filed on Nov 10, 2022

201 South Street 1-102Boston, MA 02111

(857) 233-5422

Siviq Scores

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

Liabilities / Assets

23rd percentile

0.03x

Higher debt load relative to assets than 23% of similar nonprofits.

2021 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2021

Liabilities / Revenue

15th percentile

0.03x

Higher debt load relative to revenue than 15% of similar nonprofits.

2021 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2021

Net Margin

70th percentile

25%

Higher net margin than 70% of similar nonprofits.

2021 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2021

Top Officer Pay

85th percentile

$345,251

Higher top officer pay than 85% of similar nonprofits.

Top officer pay equals 3.4% of source-year revenue.

2021 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2021

Asset Growth

76th percentile

24%

Faster asset growth than 76% of similar nonprofits.

2021 filings • 501(c)3 • $10M-$25M nonprofits • Annualized from 2020 to 2021

Revenue Growth

74th percentile

38%

Faster revenue growth than 74% of similar nonprofits.

2021 filings • 501(c)3 • $10M-$25M nonprofits • Annualized from 2020 to 2021

Assets

Up

$12,660,412

Up $2,418,493 (+24%) from 2020

Net Assets

Up

$12,340,197

Up $2,512,065 (+26%) from 2020

Liabilities

Down

$320,215

Down $93,572 (-23%) from 2020

Revenue

Up

$10,034,461

Up $2,756,295 (+38%) from 2020

Expenses

Up

$7,522,396

Up $2,642,872 (+54%) from 2020

Net Income

Up

$2,512,065

Up $113,423 (+4.7%) from 2020

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

2021

Assets$12,660,412
Liabilities$320,215
Net Assets$12,340,197

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

2021

Revenue$10,034,461
Expenses$7,522,396
Net Income$2,512,065
Jump To
Filing Snapshot
Filing Period
Jan 1, 2021 to Dec 31, 2021
Signed
Nov 10, 2022
Return Version
2021v4.2
Gross Receipts
$10,146,799
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 young people with digital tools and opportunities to imagine, create, share, and learn. 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$8,902,357$11,436,691▲ $2,534,334
Cash and Non-Interest-Bearing Accounts$460,864$528,136▲ $67,272
Pledges and Grants Receivable$628,743$318,696▼ $310,047
Land, Buildings, and Equipment, Net$86,212$111,909▲ $25,697
Prepaid Expenses and Deferred Charges$13,743$74,980▲ $61,237
Accounts Receivable$0$40,000▲ $40,000
Total Assets$10,241,919$12,660,412▲ $2,418,493
Other Assets Total$150,000$150,000→ $0
Liabilities
Accounts Payable and Accrued Expenses$166,752$241,536▲ $74,784
Other Liabilities$247,035$78,679▼ $168,356
Total Liabilities$413,787$320,215▼ $93,572
Net Assets / Fund Balance
Net Assets Without Donor Restrictions$7,592,941$11,219,427▲ $3,626,486
Net Assets With Donor Restrictions$2,235,191$1,120,770▼ $1,114,421
Total Net Assets Fund Balance$9,828,132$12,340,197▲ $2,512,065
Total Liabilities and Net Assets / Fund Balance$10,241,919$12,660,412▲ $2,418,493

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$111,909$89,850$201,759
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Shawna YoungExecutive DirectorFT$318,021$27,230$345,251
Carl BowmanDesign DirectorFT$149,527$16,433$165,960
Eric RosenbaumProduct ManagerFT$139,772$25,975$165,747
Raymond SchampPrincipal Software EngineerFT$132,397$28,216$160,613
Karishma ChadhaPrincipal Software EngineerFT$136,569$15,001$151,570
Rupa ShahDirector of PhilanthropyFT$135,771$14,943$150,714

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 A SauerTreasurer

Highest Paid Contractors

ContractorServicesLocationCompensation
On-Ramps Services LLCRecruiting Services307 7th Avenue Suite 901, New York, NY 10001$193,099
Purpose Talent IncRecruiting Services8368 State Route 22, Copake Falls, NY 12517$193,000
Paris AndrewCoaching Services806 Poplar Street, Durham, NC 27703$164,850
Two Sigma Investments LPAccounting, Bookkeeping100 Avenue of the Americas 16th Fl, New York, NY 10013$162,957
The Collective Good LLCStrategic Advisory Services7201 Wisconsin Avenue Suite 440, Bethesda, MD 20814$138,950
Revenue and Support

Revenue Composition

Contributions and Grants
$9,994,913
Program Service Revenue
$0
Investment Income
$-332
Other Revenue
$39,880
All Other Contributions
$9,819,750
Change in Net Assets
$2,512,065

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$99,658Stock Market Value
Total Noncash Contributions1$99,658-

Audited Revenue Reconciliation

Revenue per Audited Statements
$10,034,461
Revenue Not Reported on Financial Statements
$0
Revenue Not Reported on Form 990
$4,886,776
Total Revenue per Audited Statements
$14,921,237
Total Revenue per Form 990
$10,034,461
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$4,599,698
Other Expenses$2,817,510
Total Fundraising Expense$491,148
Grants and Similar Amounts Paid$69,500
Professional Fundraising Fees$35,688

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$3,130,132$201,502$148,431$3,480,065
Fees for Services Other$995,300$65,730$60,456$1,121,486
Office Expenses$500,650$40,353$42,107$583,110
Occupancy$394,715$31,814$29,262$455,791
Information Technology$377,676$633$5,993$384,302
Other Employee Benefits$304,656$22,522$19,238$346,416
Current Officers, Directors, Trustees, and Key Employees$172,626$69,050$103,575$345,251
Payroll Taxes$261,293$21,060$19,371$301,724
Pension Plan Contributions$114,632$6,924$4,686$126,242
Travel$64,814$5,224$4,805$74,843
Grants to Domestic Orgs$69,500--$69,500
Other Expenses$50,727$3,362$12,935$67,024
Depreciation Depletion$36,653$2,954$2,717$42,324
Conferences and Meetings$36,268$102$94$36,464
Fees for Services Professional Fundraising--$35,688$35,688
Advertising$25,692$113$104$25,909
Fees for Services Accounting$16,037$1,293$1,189$18,519
Insurance$6,701$540$497$7,738
Total Functional Expenses$6,558,072$473,176$491,148$7,522,396

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Audited Statements$12,409,172
Expenses per Audited Statements$7,522,396
Total Expenses per Form 990$7,522,396
Expenses Not Reported on Form 990$4,886,776
Expenses Not Reported on Financial Statements$0
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Dev ColorSan Francisco, CA501(c)(3)Corporate sponsorship of DevColor 2021 conference$35,000
MIT Office of Engineering Outreach ProgramsCambridge, MA501(c)(3)Office of Engineering Outreach Program corporate sponsorship$25,000
Deaf Kids CodeWest Lafayette, IN501(c)(3)Support of their Scratch Equity Toolkit resource and subsequent workshop in Dec'21.$9,500

International Summary

Offices
0
Employees
0
Spending
$69,490

International Compliance

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$63,842
South AmericaProgram ServicesEducation00$3,000
Sub-Saharan AfricaProgram ServicesEducation00$1,400
Europe (Including Iceland & Greenland)Program ServicesEducation00$1,248
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
Yes

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$35,688
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$162,957
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Deferred Rent$78,679
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
No
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 (Co-Chair of the Scratch Board) is the Co-Chairman of Two Sigma Investments, LP. Sheri Vammen (Board Secretary) and Richard Sauer (Board Treasurer) are employees of Two Sigma Investments, LP.

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 1-102, Boston, MA 02111

Signing Officer

Name
Margaret Honey
Title
President/Chair
Phone
8572335422
Signed
2022-11-10
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Margaret Honey
Formed
2013
Legal Domicile
De
Voting Board Members
6
Independent Board Members
5
Employees
72
Volunteers
6

Preparer

Firm
Berry Dunn McNeil & Parker LLC
Address
2211 Congress St, Portland, ME 04102
Preparer
Joseph R Byrne
Phone
2077752387
Supplemental Narrative

Additional Explanations

Form 990, Part IX, line 11G

Other Professional Fees: Program service expenses 995,300. Management and general expenses 65,730. Fundraising expenses 60,456. Total expenses 1,121,486.

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 12,692.

Part XII, Line 2D - Other Adjustments:

Cost of Sales 12,692.

Raw XML AppendixShowing 400 of 799 raw XML fields

This appendix keeps the raw XML leaves available for debugging and edge-case review. The human report above is the primary experience.

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IRS990/ActivityOrMissionDesc0Scratch 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 young people with digital tools and opportunities to imagine, create, share, and learn. 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/Form990PartVIISectionAGrp/PersonNm1David M Siegel
IRS990/Form990PartVIISectionAGrp/PersonNm2Christina Miller
IRS990/Form990PartVIISectionAGrp/PersonNm3Margaret Honey
IRS990/Form990PartVIISectionAGrp/PersonNm4Avraham Kadar
IRS990/Form990PartVIISectionAGrp/PersonNm5Ursula Burns
IRS990/Form990PartVIISectionAGrp/PersonNm6Shawna Young
IRS990/Form990PartVIISectionAGrp/PersonNm7Richard A Sauer
IRS990/Form990PartVIISectionAGrp/PersonNm8Sheri Vammen
IRS990/Form990PartVIISectionAGrp/PersonNm9Carl Bowman
IRS990/Form990PartVIISectionAGrp/PersonNm10Eric Rosenbaum
IRS990/Form990PartVIISectionAGrp/PersonNm11Karishma Chadha
IRS990/Form990PartVIISectionAGrp/PersonNm12Rupa Shah
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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 young people with digital tools and opportunities to imagine, create, share, and learn. 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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IRS990ScheduleA/Form990ScheduleAPartVIGrp/ExplanationTxt0Other Income - 2017 Amount: $ 891. 2018 Amount: $ 1,554.
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