Civic Intelligence

Commonlit Inc.

990 • Fiscal year 2023 • EIN 46-4255260

Jan 01, 2023 to Dec 31, 2023 • Filed on Nov 12, 2024

660 Pennsylvania Ave SE Ste 302Washington, DC 20003

(301) 200-2426

Siviq Scores

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

Liabilities / Assets

83rd percentile

0.66x

Higher debt load relative to assets than 83% of similar nonprofits.

2023 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2023

Liabilities / Revenue

72nd percentile

0.63x

Higher debt load relative to revenue than 72% of similar nonprofits.

2023 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2023

Net Margin

12th percentile

-24%

Higher net margin than 12% of similar nonprofits.

2023 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2023

Top Officer Pay

83rd percentile

$337,133

Higher top officer pay than 83% of similar nonprofits.

Top officer pay equals 2.4% of source-year revenue.

2023 filings • 501(c)3 • $10M-$25M nonprofits • Source year 2023

Asset Growth

71st percentile

15%

Faster asset growth than 71% of similar nonprofits.

2023 filings • 501(c)3 • $10M-$25M nonprofits • Annualized from 2022 to 2023

Revenue Growth

69th percentile

17%

Faster revenue growth than 69% of similar nonprofits.

2023 filings • 501(c)3 • $10M-$25M nonprofits • Annualized from 2022 to 2023

Assets

Up

$13,125,404

Up $1,680,224 (+15%) from 2022

Net Assets

Down

$4,447,127

Down $3,348,823 (-43%) from 2022

Liabilities

Up

$8,678,277

Up $5,029,047 (+138%) from 2022

Revenue

Up

$13,856,418

Up $1,985,364 (+17%) from 2022

Expenses

Up

$17,205,241

Up $6,261,160 (+57%) from 2022

Net Income

Down

-$3,348,823

Down $4,275,796 (-461%) from 2022

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

2023

Assets$13,125,404
Liabilities$8,678,277
Net Assets$4,447,127

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

2023

Revenue$13,856,418
Expenses$17,205,241
Net Income-$3,348,823
Jump To
Filing Snapshot
Filing Period
Jan 1, 2023 to Dec 31, 2023
Signed
Nov 12, 2024
Return Version
2023v5.1
Gross Receipts
$13,856,418
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
Investments in Publicly Traded Securities-$8,326,066-
Accounts Receivable$483,588$1,893,489▲ $1,409,901
Cash and Non-Interest-Bearing Accounts$7,146,079$1,096,402▼ $6,049,677
Pledges and Grants Receivable$3,502,363$913,933▼ $2,588,430
Intangible Assets$24,244$487,859▲ $463,615
Prepaid Expenses and Deferred Charges$265,568$384,317▲ $118,749
Total Assets$11,445,180$13,125,404▲ $1,680,224
Other Assets Total$23,338$23,338→ $0
Liabilities
Deferred Revenue$3,189,462$7,170,815▲ $3,981,353
Accounts Payable and Accrued Expenses$434,155$999,187▲ $565,032
Other Liabilities$25,613$508,275▲ $482,662
Total Liabilities$3,649,230$8,678,277▲ $5,029,047
Net Assets / Fund Balance
Net Assets With Donor Restrictions$5,435,719$2,876,281▼ $2,559,438
Net Assets Without Donor Restrictions$2,360,231$1,570,846▼ $789,385
Total Net Assets Fund Balance$7,795,950$4,447,127▼ $3,348,823
Total Liabilities and Net Assets / Fund Balance$11,445,180$13,125,404▲ $1,680,224
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Michelle BrownPresident & CEOFT$291,383$45,750$337,133
Geoffrey HarcourtChief Technology OfficerFT$300,000$12,015$312,015
Robert FleisherChief Revenue OfficerFT$173,439$81,080$254,519
Julian ManteChief Operating OfficerFT$247,538$457$247,995
Eliza AierstuckSenior Software EngineerFT$190,656$11,652$202,308
Catherine HuffmanDirector of MarketingFT$185,153$7,486$192,639
Brooks JohnsonSenior Software EngineerFT$178,075$6,967$185,042

Board Members and Trustees

NameTitle
Esther WojcickiDirector/trustee
John CoyneDirector/trustee
Kodjo WilderDirector/trustee
Mary Grace TigheDirector/trustee
Sabrina RoshanDirector/trustee

Highest Paid Contractors

ContractorServicesLocationCompensation
Herkimer Consulting INCPsychometrics Consulting1557 FRONT PORCH PL APT 208, Altoona, WI 54720$270,638
Rubino & CompanyAccounting Services6903 ROCKLEDGE DRIVE SUITE 100, Bethesda, MD 20817$216,713
-Outsourced Cfo Services120 LACONIA CIRCLE, N Andover, MA 01845$106,900
-Curriculum Development288 WES WHITE HILL, Richmond, VT 05477$106,672
Revenue and Support

Revenue Composition

Contributions and Grants
$8,204,327
Program Service Revenue
$5,418,739
Investment Income
$233,352
Other Revenue
$0
All Other Contributions
$7,212,310
Change in Net Assets
$-3,348,823

Audited Revenue Reconciliation

Revenue per Audited Statements
$13,856,418
Revenue Not Reported on Financial Statements
$0
Revenue Not Reported on Form 990
$0
Total Revenue per Audited Statements
$13,856,418
Total Revenue per Form 990
$13,856,418
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$12,843,361
Other Expenses$4,361,880
Total Fundraising Expense$378,620
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$10,300,605$88,698$294,888$10,684,191
Fees for Services Other$1,473,132$164,572$509$1,638,213
Information Technology$1,130,128$28,785$2,696$1,161,609
Other Employee Benefits$454,531$195,292$15,958$665,781
Current Officers, Directors, Trustees, and Key Employees$609,225$22,200$17,723$649,148
Travel$421,870$120,077$12,649$554,596
Payroll Taxes$470,428$17,128$13,687$501,243
Pension Plan Contributions$321,912$11,721$9,365$342,998
Occupancy$195,381$58,321$4,790$258,492
Fees for Services Accounting-$236,713-$236,713
Office Expenses$144,845$55,510$3,462$203,817
Conferences and Meetings$101,131$27,714$2,276$131,121
Advertising$61,721$151$12$61,884
Insurance-$53,980-$53,980
Other Expenses$21,184$6,323$519$28,026
Fees for Services Legal$3,490$1,042$86$4,618
Total Functional Expenses$15,733,194$1,093,427$378,620$17,205,241

Audited Expense Reconciliation

Line ItemAmount
Expenses per Audited Statements$17,205,241
Total Expenses per Audited Statements$17,205,241
Total Expenses per Form 990$17,205,241
Expenses Not Reported on Financial Statements$0
Expenses Not Reported on Form 990$0
International Activity

International Summary

Offices
0
Employees
9
Spending
$229,576

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
South AmericaProgram ServicesContent Writing, Marketing Support, Spanish Language Text03$102,227
North AmericaProgram ServicesDevelop Spanish Language Lessons, Spanish Training Materials, and Spanish Curriculum Documents03$79,664
East Asia and the PacificProgram ServicesSupport Engineering Team Projects01$26,400
Central America and CaribbeanProgram ServicesSpanish Language Test Writing & Revisions01$16,823
Sub-saharan AfricaProgram ServicesPartnerships Team Support - Business Development01$4,462
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$508,275
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 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 2023, 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 ceos 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 STE 302, WASHINGTON, DC 20003

Signing Officer

Name
Michelle Brown
Title
CEO & President
Phone
3012002426
Signed
2024-11-12
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Michelle Brown
Formed
2013
Legal Domicile
Ma
Voting Board Members
6
Independent Board Members
5
Employees
128
Volunteers
0

Preparer

Firm
Calibre CPA Group Pllc
Address
7501 WISCONSIN AVENUE SUITE 1200, WEST, BETHESDA, MD 20814
Preparer
Scott E Hallberg CPA
Phone
2023319880
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, 2023, as the organization had no taxable net unrelated business income. The organization follows the authoritative guidance relating to accountin for uncertainty in income taxes. These provisions provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity's financial statemetns and prescribe a threshold of "more likely than not" for recognition and derecognition of tax positions taken or expected 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 ealuation of uncertain tax positions for the year ended december 31, 2023, 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 jurisdiction or the various states and local jurisdictions in which the organization files tax returns.

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IRS990/Form990PartVIISectionAGrp/TitleTxt0PRESIDENT & CEO
IRS990/Form990PartVIISectionAGrp/TitleTxt1DIRECTOR/TRUSTEE
IRS990/Form990PartVIISectionAGrp/TitleTxt2DIRECTOR/TRUSTEE
IRS990/Form990PartVIISectionAGrp/TitleTxt3DIRECTOR/TRUSTEE
IRS990/Form990PartVIISectionAGrp/TitleTxt4DIRECTOR/TRUSTEE
IRS990/Form990PartVIISectionAGrp/TitleTxt5DIRECTOR/TRUSTEE
IRS990/Form990PartVIISectionAGrp/TitleTxt6CHIEF TECHNOLOGY OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt7CHIEF OPERATING OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt8CHIEF REVENUE OFFICER
IRS990/Form990PartVIISectionAGrp/TitleTxt9SENIOR SOFTWARE ENGINEER
IRS990/Form990PartVIISectionAGrp/TitleTxt10SENIOR SOFTWARE ENGINEER
IRS990/Form990PartVIISectionAGrp/TitleTxt11DIRECTOR OF MARKETING
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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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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, 2023, AS THE ORGANIZATION HAD NO TAXABLE NET UNRELATED BUSINESS INCOME. THE ORGANIZATION FOLLOWS THE AUTHORITATIVE GUIDANCE RELATING TO ACCOUNTIN FOR UNCERTAINTY IN INCOME TAXES. THESE PROVISIONS PROVIDE CONSISTENT GUIDANCE FOR THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMETNS AND PRESCRIBE A THRESHOLD OF "MORE LIKELY THAN NOT" FOR RECOGNITION AND DERECOGNITION OF TAX POSITIONS TAKEN OR EXPECTED 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 EALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEAR ENDED DECEMBER 31, 2023, 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 JURISDICTION OR THE VARIOUS STATES AND LOCAL JURISDICTIONS IN WHICH THE ORGANIZATION FILES TAX RETURNS.
IRS990ScheduleD/SupplementalInformationDetail/FormAndLineReferenceDesc0PART X, LINE 2:
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