Civic Intelligence

Commonlit Inc.

990 • Fiscal year 2022 • EIN 46-4255260

Jan 01, 2022 to Dec 31, 2022 • Filed on Dec 14, 2023

660 Pennsylvania Ave SE 302Washington, DC 20003

(301) 200-2426

Siviq Scores

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

Liabilities / Assets

65th percentile

0.32x

Higher debt load relative to assets than 65% of similar nonprofits.

2022 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2022

Liabilities / Revenue

58th percentile

0.31x

Higher debt load relative to revenue than 58% of similar nonprofits.

2022 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2022

Net Margin

52nd percentile

7.8%

Higher net margin than 52% of similar nonprofits.

2022 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2022

Top Officer Pay

71st percentile

$252,891

Higher top officer pay than 71% of similar nonprofits.

Top officer pay equals 2.1% of source-year revenue.

2022 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2022

Asset Growth

88th percentile

36%

Faster asset growth than 88% of similar nonprofits.

2022 filings • 501(c)3 • $10M-$25M nonprofits • Annualized from 2021 to 2022

Revenue Growth

78th percentile

30%

Faster revenue growth than 78% of similar nonprofits.

2022 filings • 501(c)3 • $10M-$25M nonprofits • Annualized from 2021 to 2022

Assets

Up

$11,445,180

Up $3,034,629 (+36%) from 2021

Net Assets

Up

$7,795,950

Up $926,973 (+13%) from 2021

Liabilities

Up

$3,649,230

Up $2,107,656 (+137%) from 2021

Revenue

Up

$11,871,054

Up $2,715,692 (+30%) from 2021

Expenses

Up

$10,944,081

Up $3,859,614 (+54%) from 2021

Net Income

Down

$926,973

Down $1,143,922 (-55%) from 2021

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 2015: $12,333Liabilities 2015: $1,884Net Assets 2015: $10,4492015Assets 2016: $220,436Liabilities 2016: $89,631Net Assets 2016: $130,8052016Assets 2017: $575,952Liabilities 2017: $128,645Net Assets 2017: $447,3072017Assets 2018: $3,670,546Liabilities 2018: $188,487Net Assets 2018: $3,482,0592018Assets 2019: $3,701,855Liabilities 2019: $452,304Net Assets 2019: $3,249,5512019Assets 2020: $5,690,054Liabilities 2020: $1,091,972Net Assets 2020: $4,598,0822020Assets 2021: $8,410,551Liabilities 2021: $1,541,574Net Assets 2021: $6,868,9772021Assets 2022: $11,445,180Liabilities 2022: $3,649,230Net Assets 2022: $7,795,9502022Assets 2023: $13,125,404Liabilities 2023: $8,678,277Net Assets 2023: $4,447,1272023Assets 2024: $11,870,156Liabilities 2024: $12,181,116Net Assets 2024: -$310,9602024

Highlighted filing

2022

Assets$11,445,180
Liabilities$3,649,230
Net Assets$7,795,950

Operations Trend

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

$30M$20M$10M$0-$10MRevenue 2015: $63,990Expenses 2015: $54,349Net Income 2015: $9,6412015Revenue 2016: $728,845Expenses 2016: $608,489Net Income 2016: $120,3562016Revenue 2017: $2,542,007Expenses 2017: $2,225,505Net Income 2017: $316,5022017Revenue 2018: $6,597,620Expenses 2018: $3,562,868Net Income 2018: $3,034,7522018Revenue 2019: $4,167,286Expenses 2019: $4,399,794Net Income 2019: -$232,5082019Revenue 2020: $6,581,970Expenses 2020: $5,233,439Net Income 2020: $1,348,5312020Revenue 2021: $9,155,362Expenses 2021: $7,084,467Net Income 2021: $2,070,8952021Revenue 2022: $11,871,054Expenses 2022: $10,944,081Net Income 2022: $926,9732022Revenue 2023: $13,856,418Expenses 2023: $17,205,241Net Income 2023: -$3,348,8232023Revenue 2024: $15,869,141Expenses 2024: $20,627,228Net Income 2024: -$4,758,0872024

Highlighted filing

2022

Revenue$11,871,054
Expenses$10,944,081
Net Income$926,973
Jump To
Filing Snapshot
Filing Period
Jan 1, 2022 to Dec 31, 2022
Signed
Dec 14, 2023
Return Version
2022v5.0
Gross Receipts
$11,871,054
Mission and Program Overview

Mission

To make high-quality literacy materials accessible to teachers and the general public for the advancement of education.

Balance Sheet Detail
LineBeginningEndChange
Assets
Cash and Non-Interest-Bearing Accounts$7,099,428$7,146,079▲ $46,651
Pledges and Grants Receivable$1,035,000$3,502,363▲ $2,467,363
Accounts Receivable$111,500$483,588▲ $372,088
Prepaid Expenses and Deferred Charges$141,285$265,568▲ $124,283
Intangible Assets-$24,244-
Total Assets$8,410,551$11,445,180▲ $3,034,629
Other Assets Total$23,338$23,338→ $0
Liabilities
Deferred Revenue$1,342,410$3,189,462▲ $1,847,052
Accounts Payable and Accrued Expenses$199,164$434,155▲ $234,991
Other Liabilities$0$25,613▲ $25,613
Total Liabilities$1,541,574$3,649,230▲ $2,107,656
Net Assets / Fund Balance
Net Assets With Donor Restrictions$1,417,517$5,435,719▲ $4,018,202
Net Assets Without Donor Restrictions$5,451,460$2,360,231▼ $3,091,229
Total Net Assets Fund Balance$6,868,977$7,795,950▲ $926,973
Total Liabilities and Net Assets / Fund Balance$8,410,551$11,445,180▲ $3,034,629
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Michelle BrownCEO & PresidentFT$241,782$11,109$252,891
Geoffrey HarcourtChief Technology OfficerFT$250,000-$250,000
Sarah RobertsonChief Product Officer/secretaryFT$172,763$11,045$183,808
Eliza AierstuckSenior Software Engineer - ManagerFT$174,552$3,711$178,263
Robert FleisherChief of PartnershipsFT$148,543$4,173$152,716
Agnes MalatinszkyCOO/treasurer (end Oct 22)FT$148,688-$148,688
Anna HodgesChief Academic OfficerFT$144,883-$144,883
Susanna S KosonenSenior Software EngineerFT$135,666$5,940$141,606
Kara PacosChief of StaffFT$124,765$11,331$136,096
Anthony Paul VivianiTreasurerFT$87,201$3,680$90,881

Board Members and Trustees

NameTitle
Ben ZhangDirector
Esther WojcickiDirector
John CoyneDirector
Kodjo WilderDirector
Mary Grace TigheDirector
Sonal TolmanDirector
Patrick BrownTreasurer (end June 22)

Highest Paid Contractors

ContractorServicesLocationCompensation
Rubino And Company INCAccounting Services6903 ROCKLEDGE DRIVE SUITE 300, Bethesda, MD 20817$162,906
Clever INCSoftware Services Usage Subscription1263 MISSION STREET, San Francisco, CA 94103$124,423
LearnplatformTechnology Consultant1557 FRONT PORCH PLACE 308, Altoona, WI 54720$111,263
-Prepaid Replication Subscription Fee707 N WEST STREET SUITE 104, Raleigh, NC 27603$108,800
Revenue and Support

Revenue Composition

Contributions and Grants
$8,855,365
Program Service Revenue
$3,015,689
Investment Income
$0
Other Revenue
$0
All Other Contributions
$8,855,365
Change in Net Assets
$926,973

Audited Revenue Reconciliation

Revenue per Audited Statements
$11,871,054
Revenue Not Reported on Financial Statements
$0
Revenue Not Reported on Form 990
$0
Total Revenue per Audited Statements
$11,871,054
Total Revenue per Form 990
$11,871,054
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$7,774,296
Other Expenses$3,169,785
Total Fundraising Expense$99,947
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$5,607,623$86,414$82,553$5,776,590
Current Officers, Directors, Trustees, and Key Employees$925,394$25,874-$951,268
Information Technology$920,884$7,205$4,177$932,266
Other Employee Benefits$692,443$52,597-$745,040
Fees for Services Other$695,365$4,269$154$699,788
Office Expenses$615,187$68,003$2,098$685,288
Payroll Taxes$296,381$5,017-$301,398
Occupancy$236,486$49,674$7,111$293,271
Travel$176,331$28,535$3,494$208,360
Fees for Services Accounting-$173,697-$173,697
Advertising$51,521$17,185$5$68,711
Other Expenses$54,948-$168$55,116
Conferences and Meetings$26,760$4,181$187$31,128
Insurance-$22,160-$22,160
Total Functional Expenses$10,299,323$544,811$99,947$10,944,081

Audited Expense Reconciliation

Line ItemAmount
Expenses per Audited Statements$10,944,081
Total Expenses per Audited Statements$10,944,081
Total Expenses per Form 990$10,944,081
Expenses Not Reported on Financial Statements$0
Expenses Not Reported on Form 990$0
International Activity

International Summary

Offices
0
Employees
9
Spending
$57,013

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
Europe (including Iceland & Greenland)Program ServicesEnglish to Spanish Translations01$16,600
North America - Canada and Mexico, But Not the United StatesProgram ServicesCurriculum Writing for Commonlit Espanol02$14,500
South America - Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador,Program ServicesEnglish to Spanish Translations01$13,798
Europe (including Iceland & Greenland)Program ServicesPermissions and Licensing02$9,025
Central America and the CaribbeanProgram ServicesCurriculum Consultants01$1,540
South AmericaProgram ServicesWriting Resources for Teachers01$1,250
Sub-saharan AfricaProgram ServicesPermissions and Licensing01$300
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
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Lease Liability$25,613
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
No
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
Yes

Governance Explanations

Form 990, Part VI, Section A, Line 2

Michelle brown and patrick brown have a family relationship

Form 990, Part VI, Section A, Line 3

Commonlit delegated control over some management duties customarily performed by the direct supervision of officers, directors, trustees or key employees to rubino and company, chartered.

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

The organization's accountants provide a draft 990 to the board of directors and treasurer. The board and treasurer provide comments which the cpa firm incorporates. The cpa firm provides the final return to the ceo, who approves, signs, and submits.

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

Commonlit's management and board members are subject to a written conflict of interest policy. In addition to self-reporting by officers, directors, and key employees, management flags potential conflicts of interest regarding purchases, potential partnerships, and earned revenue opportunities. During 2022, no conflicts of interest were identified.

Form 990, Part VI, Section B, Line 15

The board goes through the process to set officers salaries based on market salary information and previous compensation. Ceo compensation is set through a two-step process. First, a subcommittee of independent directors analyzes compensation of ceo's at peer and comparable entities and presents a recommendation to the full board of directors. Second, the full board of directors deliberates and votes on the recommendation. The ceo is totally recused from the process, including all discussions and all votes.

Form 990, Part VI, Section C, Line 19

All information will be provided upon request and approval of the governing body.

Filing and Contact Details

Filer

Filer Name
Commonlit Inc
EIN
46-4255260
Phone
3012002426
Address
660 PENNSYLVANIA AVE SE 302, WASHINGTON, DC 20003

Signing Officer

Name
Michelle Brown
Title
CEO & President
Phone
3012002426
Signed
2023-12-14
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Michelle Brown
Formed
2013
Legal Domicile
Ma
Voting Board Members
7
Independent Board Members
6
Employees
103
Volunteers
8

Preparer

Firm
Rubino and Company Chartered
Address
6903 ROCKLEDGE DRIVE SUITE 300, BETHESDA, MD 20817-1818
Preparer
Kay Vollans CPA
Phone
3015643636
Supplemental Narrative

Additional Explanations

FORM 990, PART XII, LINE 2C:

The process has not changed from the prior year.

Financial Statement Notes

PART X, LINE 2:

Under section 501(c)(3) of the internal revenue code, the organization is a nonprofit organization and is exempt from federal taxes on income other than net unrelated business income. No provision for federal or state income taxes is required for the year ended december 31, 2022, as the organization had no taxable net unrelated business income. The organization follows the authoritative guidance relating to accounting for uncertainty in income taxes included in accounting standards codification topic 740-10, income taxes. These provisions provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity's financial statements and prescribe a threshold of "more likely than not" for recognition and derecognition of tax positions taken or exepected to be taken in a tax return. It is the organization's policy to recognize interest and/or penalties related to uncertain tax positions, if any, in income tax expenses. The organization performed an evaluation of uncertain tax positions for the year ended december 31, 2022, and determined that there were no matters that would require recognition in the financial statements or that may have any effect on its tax-exempt status. The statute of limitations generally remains open for three tax years with the u.s. Federal jusrisdiction or the various states and local jurisdictions in which the organization files tax returns.

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IRS990/Form990PartVIISectionAGrp/PersonNm8SARAH ROBERTSON
IRS990/Form990PartVIISectionAGrp/PersonNm9AGNES MALATINSZKY
IRS990/Form990PartVIISectionAGrp/PersonNm10ANTHONY PAUL VIVIANI
IRS990/Form990PartVIISectionAGrp/PersonNm11GEOFFREY HARCOURT
IRS990/Form990PartVIISectionAGrp/PersonNm12ELIZA AIERSTUCK
IRS990/Form990PartVIISectionAGrp/PersonNm13ROBERT FLEISHER
IRS990/Form990PartVIISectionAGrp/PersonNm14ANNA HODGES
IRS990/Form990PartVIISectionAGrp/PersonNm15SUSANNA S KOSONEN
IRS990/Form990PartVIISectionAGrp/PersonNm16KARA PACOS
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IRS990/Form990PartVIISectionAGrp/TitleTxt0CEO & PRESIDENT
IRS990/Form990PartVIISectionAGrp/TitleTxt1DIRECTOR
IRS990/Form990PartVIISectionAGrp/TitleTxt2DIRECTOR
IRS990/Form990PartVIISectionAGrp/TitleTxt3DIRECTOR
IRS990/Form990PartVIISectionAGrp/TitleTxt4DIRECTOR
IRS990/Form990PartVIISectionAGrp/TitleTxt5DIRECTOR
IRS990/Form990PartVIISectionAGrp/TitleTxt6DIRECTOR
IRS990/Form990PartVIISectionAGrp/TitleTxt7TREASURER (END JUNE 22)
IRS990/Form990PartVIISectionAGrp/TitleTxt8CHIEF PRODUCT OFFICER/SECRETARY
IRS990/Form990PartVIISectionAGrp/TitleTxt9COO/TREASURER (END OCT 22)
IRS990/Form990PartVIISectionAGrp/TitleTxt10TREASURER
IRS990/Form990PartVIISectionAGrp/TitleTxt11CHIEF TECHNOLOGY OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt12SENIOR SOFTWARE ENGINEER - MANAGER
IRS990/Form990PartVIISectionAGrp/TitleTxt13CHIEF OF PARTNERSHIPS
IRS990/Form990PartVIISectionAGrp/TitleTxt14CHIEF ACADEMIC OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt15SENIOR SOFTWARE ENGINEER
IRS990/Form990PartVIISectionAGrp/TitleTxt16CHIEF OF STAFF
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IRS990/MissionDesc0TO MAKE HIGH-QUALITY LITERACY MATERIALS ACCESSIBLE TO TEACHERS AND THE GENERAL PUBLIC FOR THE ADVANCEMENT OF EDUCATION.
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IRS990/OtherExpensesGrp/TotalAmt055116
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IRS990ScheduleD/FootnoteTextInd0X
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Amt025613
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Desc0LEASE LIABILITY
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IRS990ScheduleD/RevenueSubtotalAmt011871054
IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt0UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, THE ORGANIZATION IS A NONPROFIT ORGANIZATION AND IS EXEMPT FROM FEDERAL TAXES ON INCOME OTHER THAN NET UNRELATED BUSINESS INCOME. NO PROVISION FOR FEDERAL OR STATE INCOME TAXES IS REQUIRED FOR THE YEAR ENDED DECEMBER 31, 2022, AS THE ORGANIZATION HAD NO TAXABLE NET UNRELATED BUSINESS INCOME. THE ORGANIZATION FOLLOWS THE AUTHORITATIVE GUIDANCE RELATING TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES INCLUDED IN ACCOUNTING STANDARDS CODIFICATION TOPIC 740-10, INCOME TAXES. THESE PROVISIONS PROVIDE CONSISTENT GUIDANCE FOR THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS AND PRESCRIBE A THRESHOLD OF "MORE LIKELY THAN NOT" FOR RECOGNITION AND DERECOGNITION OF TAX POSITIONS TAKEN OR EXEPECTED TO BE TAKEN IN A TAX RETURN. IT IS THE ORGANIZATION'S POLICY TO RECOGNIZE INTEREST AND/OR PENALTIES RELATED TO UNCERTAIN TAX POSITIONS, IF ANY, IN INCOME TAX EXPENSES. THE ORGANIZATION PERFORMED AN EVALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEAR ENDED DECEMBER 31, 2022, AND DETERMINED THAT THERE WERE NO MATTERS THAT WOULD REQUIRE RECOGNITION IN THE FINANCIAL STATEMENTS OR THAT MAY HAVE ANY EFFECT ON ITS TAX-EXEMPT STATUS. THE STATUTE OF LIMITATIONS GENERALLY REMAINS OPEN FOR THREE TAX YEARS WITH THE U.S. FEDERAL JUSRISDICTION OR THE VARIOUS STATES AND LOCAL JURISDICTIONS IN WHICH THE ORGANIZATION FILES TAX RETURNS.
IRS990ScheduleD/SupplementalInformationDetail/FormAndLineReferenceDesc0PART X, LINE 2:
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IRS990ScheduleD/TotalExpensesPerForm990Amt010944081
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