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Top Rated

Reach Out and Read, Inc.

CharityWatch report issued
October 2020

Top-Rated Charity
B+
CharityWatch Grade
Our independent grade based
on a number of factors.
 
74%
Program Percentage
Amount spent on programs
relative to overhead.
 
$24
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

Reach Out and Read, Inc.
89 South Street
Suite 201
Boston, MA 02111

Other Names

None

Tax Status

501(c)3

Stated Mission

To give young children a foundation for success by incorporating books into pediatric care and encouraging families to read aloud together.

View similar charities
Data based on Fiscal Year Ended 06/30/2019

Program Percentage: 74%

The percentage of Reach Out and Read, Inc.'s cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$10,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $24

How many dollars Reach Out and Read, Inc. spends on fundraising to raise each $100 of contributions.

$6,000,000

Calculated Total Contributions

(rounded)

Government Funding

25% to 49%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
Reach Out and Read, Inc. IRS Form 990 04-3481253
Reach Out and Read, Inc. Audited Financial Statements 04-3481253
Entity: Reach Out and Read, Inc.
Document Type: IRS Form 990
Tax ID: 04-3481253
Entity: Reach Out and Read, Inc.
Document Type: Audited Financial Statements
Tax ID: 04-3481253

Governance & Transparency

CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
This charity is Top-Rated
What does it mean to be Top-Rated?
 
Reach Out and Read, Inc.
meets governance benchmarks.
 
Reach Out and Read, Inc.
meets transparency benchmarks.
Transparency
Provides Financial Information
Audit Accessibility
Governance: Policies
Reports regularly & consistently monitoring & enforcing compliance with a written Conflict of Interest Policy
Reports required, annual disclosure by officers, directors, and key staff of interests that could give rise to conflicts
Reports having a written Whistleblower Policy
Reports having a written Document Retention and Destruction Policy
Governance: Financials
Reports providing copy of tax form to all board members prior to filing it with IRS
Reports that financial statements were audited by an independent accountant
Governance: Board of Directors
Reports at least 5 voting board members
51% or more of voting board members reported as independent
Reports documenting minutes of board and board committee meetings
Privacy Policy
Privacy Policy No Sharing  

  Name Title Compensation
1 Brian Gallagher President/CEO $215,314
2 Diane Malcolmson Chief Development Officer $197,979
3 Callee Boulware Regional Executive Director $186,277
1
Name: Brian Gallagher
Title: President/CEO
Compensation: $215,314
2
Name: Diane Malcolmson
Title: Chief Development Officer
Compensation: $197,979
3
Name: Callee Boulware
Title: Regional Executive Director
Compensation: $186,277

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

According to the Reach Out and Read, Inc. (ROR) audit of June 30, 2019 (Note 3, Donated Goods and Services), ROR received donated goods and services in fiscal 2019 on which it placed a total value of $2,722,567, including $2,695,953 in "Books and literacy materials."

[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 Reach Out and Read, Inc. audit of June 30, 2019 (Note 8, Related Party Transactions):

"The Organization maintains a written conflict of interest policy under which all Directors, Officers, employees and significant consultants provide specific notice to the Organization. The information requested is specific by class of individual and is requested prior to the engagement in any transaction with the Organization. Management is not aware of any transaction occurring with any identified class during the fiscal year without prior full disclosure of the relationship in accordance with this policy. All compensation rates are approved by independent board members and/or determined by the same policy and processes used to determine rates of compensation for all other employees and/or vendors. All identified transactions received heightened Board of Directors scrutiny in accordance with this policy.

"The following transactions were processed in accordance with the Organization's conflict of interest policy:

– a Board member holds a significant position with a major vendor that provides the Organization both donated and purchased books for distribution in their programs, and;
 a Board member holds a significant position with a customer that receives donated books from the Organization."


According to the Reach Out and Read, Inc. (ROR) tax filing for the fiscal year ended June 30, 2019, ROR reports a Business Transaction Involving Interested Persons in the amount of $1,052,033 involving Board member, Jessie Lyons, with a relationship of "VP at Scholastic Books;" the transaction is described as: "Purchase of books from Scholastic Books" [also referenced in the audit note cited above] (IRS Form 990, Schedule L, Parts IV & V).

According to the Reach Out and Read, Inc. audit of June 30, 2019 (Note 5(a), Commitments and Contingencies, Insperity):

"The Organization has a co-employee relationship with Insperity, whereby all employees are compensated by Insperity. The Organization pays Insperity for 100% of gross salaries, as well as 25.35% of gross salaries for taxes, benefits and related fees...

"The total salaries, fringe benefits and administrative service fees paid under this agreement were $5,040,324 for the year ended June 30, 2019."


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