Reach Out and Read, Inc.

According to the Reach Out and Read, Inc. (ROR) audit of June 30, 2022 (Note 7, Contributed nonfinancial assets), ROR received donated goods and services in fiscal 2022 on which it placed a total value of $2,067,999, including $1,949,396 in "Books"

[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, 2022 (Note 3, Note Payable - PPP Loans):

"During the year ended June 30, 2021, the Organization received a second draw PPP loan established by the Economic Aid Act and administered by the Small Business Administration (SBA). The loan was passed through Bank of America. no collateral or personal guarantees were required. The loan bore interest at a rate of 1% and was to mature in 2026. Payments of interest and principal were to be deferred for 10 months followed by equal payments with interest calculated on the unpaid principal balances. The SBA disclosed criteria for forgiveness which included but was not limited to maintaining the full-time equivalent number of employees over a certain time period and expending the funds on eligible expenses over the covered period. During the year ended June 30, 2022, the Organization recognized forgiveness of the loan in full totaling $940,956, which included $7,776 of accrued interest, upon notification of forgiveness of the loan from the SBA."

According to the Reach Out and Read, Inc. audit of June 30, 2022 (Note 12, 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. audit of June 30, 2022 (Note 9, Commitments and Contingencies, Co-employee relationship):

"The Organization has a co-employee relationship with Namely, Inc., whereby all employees are compensated by Namely, Inc. The Organization pays for 100% of gross salaries, as well as a percentage of gross salaries for taxes, benefits and related fees. As of June 30, 2022, $431,243 is owed to Namely, Inc. and is included in accrued expenses on the accompanying statement of financial position."

"The total salaries, fringe benefits and administrative service fees paid under these agreements was $6,701,002 for the year ended June 30, 2022."