Learning Ally

According to the Learning Ally audited Statement of Activities for the year ended June 30, 2021, Learning Ally received in-kind "Donated services, goods and rent" on which it placed a total value of $2,900,844. Of that amount, $2,879,714 consisted of donated services, "primarily of recording studio time incurred/contributed by volunteers," according to audit Note G, Donated Services, Goods and Rent.

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]

According to the Learning Ally audit of June 30, 2021 (Note K, Payment Protection Program (PPP) Loan Payable):

"On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act ('CARES Act'). One component of that Act was PPP under the auspices of the SBA [Small Business Administration]. On April 16, 2020, the Organization received a $2,082,100 PPP loan. Neither principle nor interest was due through June 18, 2021, as determined by the SBA and the bank. On June 18, 2021, the entire loan was forgiven by the SBA and is recorded as gain on forgiveness on Paycheck Protection Program loan payable on the [audited] statement of activities."

According to the Learning Ally audit of June 30, 2021 (Note L-2, Commitments and Contingencies, Litigation):

"The Organization is a party to litigation and other claims in the ordinary course of business. During the year ended June 30, 2021, the Organization settled a lawsuit and received proceeds of $1,500,000. In the opinion of management, besides the aforementioned lawsuit settlement, the ultimate resolution of these matters will not have a significant effect on the financial position, changes in net assets or cash flows of the Organization."

According to the Learning Ally audit of June 30, 2021 (Note L-3, Commitments and Contingencies, Coronavirus):

"The extent of the impact of the coronavirus ('COVID-19') outbreak on the financial performance of the Organization will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions and the impact of COVID-19 on the financial markets and the overall economy, all of which are highly uncertain and cannot be predicted. However, in response to COVID-19, the Organization has adjusted its operations to continue to serve its customers. Overall, the Organization has managed adverse effects and will continue to monitor the potential impact in the future."

According to the Learning Ally tax filing for the fiscal year ended June 30, 2021, Learning Ally reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding the payment or accrual of any compensation to officers, directors, trustees, key employees and highest compensated employees contingent on the revenues of the organization (Schedule J, Part I, line 5a):

"To enroll and retain schools [sic] participation in implementing Learning Allys [sic] educational solution, the following individuals bonus/incentive was based on certain revenues of the organization: Robert Edenzon, Carole Williams, Rebecca Hatcher, Cynthia Cortina, Shannon Penrose-Maddux, April Zay, and Scott Bernard Burns. The amount of such bonus/incentive is determined by applying a percentage to specified membership revenue. The percentage applied can range from 2 to 25 depending on the level of revenue which ranges from up to $75,000 to in excess of $750,000."

Learning Ally reports "Bonus & incentive compensation" payments to 26 individuals in calendar year 2020, including $146,207 paid to Rebecca Hatcher, Team Lead, Inside Sales Rep, and $94,500 paid to Andrew Friedman, President & CEO. The reported total compensation in 2020 for Hatcher and Friedman is $227,374 and $504,426, respectively. The other 24 reported "Bonus & incentive compensation" payments range from $82,500 to $5,400, including the bonus/incentive amounts for R. Edenzon, C. Williams, C. Cortina, S. Penrose-Maddux, and A. Zay (cited above, along with R. Hatcher), which range from $80,661 to $20,388. The associated reported total compensation for these 24 individuals ranges from $389,653 to $163,275 (IRS Form 990, Schedule J, Part II). [Scott Bernard Burns, also listed among the individuals cited on Schedule J, Part III re: Schedule J, Part I, line 5a, is not reported on Schedule J, Part II. Therefore, the bonus/incentive payment he received is not reported. His reported total compensation in calendar year 2020 is reported as $144,581, according to IRS Form 990, Part VII.]