Mission: Mission: ReadWorks is committed to solving America's reading comprehension crisis and student achievement gap. Driven by cognitive science research, ReadWorks creates world-class content, teacher guidance, and integrated tools that improve teacher effectiveness and student achievement.

Vision: Every child in the United States can read well with deep comprehension because all educators teach reading effectively with the superb reading content and curriculum they need.

Readworks is a 501(c)(3) organization, with an IRS ruling year of 1991, and donations are tax-deductible.

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Contact Information

  https://digital.readworks.org/

 PO Box 24673
Brooklyn NY 11202 

  718-596-4292


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Star Rating System by Charity Navigator


Charity Navigator evaluates a nonprofit organization’s financial health including measures of stability, efficiency and sustainability. We also track accountability and transparency policies to ensure the good governance and integrity of the organization.




Exceptional

This charity's score is 93.43, earning it a 4-Star rating. Donors can "Give with Confidence" to this charity. 

This score is calculated from two sub-scores:

This score represents Form 990 data from 2019, the latest year published by the IRS.

View this organization’s historical ratings.


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Star Rated Report

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Program Expense

Program Expense Ratio

87.2%


The Program Expense Ratio is determined by Program Expenses divided by Total Expense (average of most recent three 990s).


This measure reflects the percent of its total expenses a charity spends on the programs and services it exists to deliver. Dividing a charity's average program expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Administrative Expenses

6.9%


As reported by charities on their IRS Form 990, this measure reflects what percent of its total budget a charity spends on overhead, administrative staff and associated costs, and organizational meetings. Dividing a charity's average administrative expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Fundraising Expenses

5.7%


This measure reflects what a charity spends to raise money. Fundraising expenses can include campaign printing, publicity, mailing, and staffing and costs incurred in soliciting donations, memberships, and grants. Dividing a charity's average fundraising expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Liabilities to Assets Ratio

6.6%


The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990).


Part of our goal in rating the financial performance of charities is to help donors assess the financial capacity and sustainability of a charity. As do organizations in other sectors, charities must be mindful of their management of total liabilites in relation to their total assets. This ratio is an indicator of an organization’s solvency and or long term sustainability. Dividing a charity's total liabilities by its total assets yields this percentage.


Source: IRS Form 990

Fundraising Efficiency

$0.06


The amount spent to raise $1 in charitable contributions. To calculate a charity's fundraising efficiency, we divide its average fundraising expenses by the average total contributions it receives. We calculate the charity's average expenses and average contributions over its three most recent fiscal years.


Source: IRS Form 990

Working Capital Ratio

0.35 years


Determines how long a charity could sustain its level of spending using its net available assets, or working capital, as reported on its most recently filed Form 990. We include in a charity's working capital unrestricted and temporarily restricted net assets, and exclude permanently restricted net assets. Dividing these net available assets in the most recent year by a charity's average total expenses, yields the working capital ratio. We calculate the charity's average total expenses over its three most recent fiscal years.


Source: IRS Form 990

Program Expense Growth

8.22%


We compute the average annual growth of program expenses using the following formula: [(Yn/Y0)(1/n)]-1, where Y0 is a charity's program expenses in the first year of the interval analyzed, Yn is the charity's program expenses in the most recent year, and n is the interval of years passed between Y0 and Yn.


Source: IRS Form 990

Governance


Charity Navigator looks to confirm on the Form 990 that the organization has these governance practices in place.


Sources Include: IRS Form 990

Governance:
Independent Voting Board Members  ... (More)
No Material Diversion of Assets ... (More)

A diversion of assets – any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft – can seriously call into question a charity's financial integrity. We check the charity's last two Forms 990 to see if the charity has reported any diversion of assets. If the charity does report a diversion, then we check to see if it complied with the Form 990 instructions by describing what happened and its corrective action. This metric will be assigned to one of the following categories:

  • Full Credit: There has been no diversion of assets within the last two years.

  • Partial Credit: There has been a diversion of assets within the last two years and the charity has used Schedule O on the Form 990 to explain: the nature of the diversion, the amount of money or property involved and the corrective action taken to address the matter. In this situation, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: There has been a diversion of assets within the last two years and the charity's explanation on Schedule O is either non-existent or not sufficient. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
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Audited Financials Prepared by Independent Accountant ... (More)

Audited financial statements provide important information about financial accountability and accuracy. They should be prepared by an independent accountant with oversight from an audit committee. (It is not necessary that the audit committee be a separate committee. Often at smaller charities, it falls within the responsibilities of the finance committee or the executive committee.) The committee provides an important oversight layer between the management of the organization, which is responsible for the financial information reported, and the independent accountant, who reviews the financials and issues an opinion based on its findings. We check the charity's Form 990 reporting to see if it meets this criteria.

  • Full Credit: The charity's audited financials were prepared by an independent accountant with an audit oversight committee.

  • Partial Credit: The charity's audited financials were prepared by an independent accountant, but it did not have an audit oversight committee. In this case, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: The charity did not have its audited financials prepared by an independent accountant. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
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Does Not Provide Loan(s) to or Receive Loan(s) From Related Parties ... (More)
Documents Board Meeting Minutes ... (More)
Distributes 990 to Board Before Filing ... (More)
Compensates Board ... (More)

Policies


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization has these policies in place.


Sources Include: IRS Form 990 and organization's website

Policies:
Conflict of Interest  ... (More)
Whistleblower ... (More)
Records Retention and Destruction ... (More)
CEO Compensation Process ... (More)
Donor Privacy ... (More)

Donors have expressed extreme concern about the use of their personal information by charities and the desire to have this information kept confidential. The exchanging and sale of lists for telemarketing and the mass distribution of "junk mail," among other things, can be minimized if the charity assures the privacy of its donors. Privacy policies are assigned to one of the following categories:

  • Yes: This charity has a written donor privacy policy published on its website, which states unambiguously that (1) it will not share or sell a donor's personal information with anyone else, nor send donor mailings on behalf of other organizations or (2) it will only share or sell personal information once the donor has given the charity specific permission to do so.

  • Opt-out: The charity has a written privacy policy published on its website which enables donors to tell the charity to remove their names and contact information from lists the charity shares or sells. How a donor can have themselves removed from a list differs from one charity to the next, but any and all opt-out policies require donors to take specific action to protect their privacy.
  • No: This charity either does not have a written donor privacy policy in place to protect their contributors' personal information, or the existing policy does not meet our criteria.

The privacy policy must be specific to donor information. A general website policy which references "visitor" or "user" personal information will not suffice. A policy that refers to donor information collected on the website is also not sufficient as the policy must be comprehensive and applicable to both online and offline donors. The existence of a privacy policy of any type does not prohibit the charity itself from contacting the donor for informational, educational, or solicitation purposes.

(Less)

Transparency


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization makes this information easily accessible.


Sources Include: IRS Form 990 and organization's website

Transparency:
CEO Salary Listed on 990 ... (More)
Board of Directors Listed on Website ... (More)
Key Staff Listed on Website ... (More)
Audited Financial Statements on Website ... (More)
Form 990 Available on Website ... (More)

Additional Information

Unscored

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Total Revenue and Expenses

Total Revenue and Expenses

This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.

Salary of Key Persons

Presented here are this organizations key compensated staff members as identified by our analysts. This compensation data includes salary, cash bonuses and expense accounts and is displayed exactly how it is reported to the IRS. The amounts do not include nontaxable benefits, deferred compensation, or other amounts not reported on W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting



Terry Bowman, Executive Director

$51,605 (2.34% of Total Expenses)


Kathy Bloomfield, Director of Operations, Former Interim Executive Director

$165,000 (7.48% of Total Expenses)


Source: IRS Form 990 (page 7), filing year 2019

Business Master File Data

Below are some key data points from the Exempt Organization IRS Business Master File (BMF) for this organization. Learn more about the BMF on the IRS website


Activities:

Gifts, grants, or loans to other organizations (BMF activity code: 602)


Foundation Status:

Organization which receives a substantial part of its support from a governmental unit or the general public   170(b)(1)(A)(vi) (BMF foundation code: 15)


Affiliation:

Independent - the organization is an independent organization or an independent auxiliary (i.e., not affiliated with a National, Regional, or Geographic grouping of organizations). (BMF affiliation code: 3)

Data Sources: IRS Forms 990

The Form 990 is a document that nonprofit organizations file with the IRS annually. We leverage finance and accountability data from it to form Encompass ratings. Click here to view this organization's Forms 990 on the IRS website (if any are available).

Pandemic Response

Due to the unprecedented nature of the pandemic, we give charities such as this one the opportunity to share the story of COVID's impact on them. Charities may submit their own pandemic responses through their nonprofit portal.


Readworks reported being impacted by COVID-19 in the following ways:
  • Program Delivery

  • Fundraising Capacity

  • Staffing

  • Administrative Capacity


How COVID-19 impacted the organization's operations financially:

ReadWorks is pleased to be on solid financial footing, and in fact, because of our pandemic response activities, our financial stability improved. Our donor community recognized how critical our resources and their accessibility have been during this challenging period. We have also continued to focus on partnerships and have significantly increased the number of donations from our user base, which combined have helped to diversify our revenue. We have implemented systems and practices to create sustainable revenue flow, especially from philanthropic sources.


How COVID-19 impacted the organization's delivery of programs:

ReadWorks saw a huge surge in usage in response to COVID-19. From March to August 2020 alone, we had 434,454 new user signups. In addition, we had a 55% increase in teachers using us digitally, rather than through printing or projecting our resources. These numbers are reflective of a hunger for the type of solutions we provide. Because of our digital platform, the delivery of our program was able to instantly scale to meet the needs of our teachers and students. The main delivery method that was altered was the creation and launch of offline mode to ensure all students can access assignments, regardless of WiFi connection at home. We also rapidly increased the number of webinars we offered and adapted our content to revolve around best practices for using ReadWorks in a remote and hybrid learning environment, with over 110,000 educators watching live or on-demand.


How this organization adapted to changing conditions caused by COVID-19:

ReadWorks has been uniquely positioned to help mitigate the impact of the COVID-19 crisis. We adapted to the needs of teachers, students, and parents as they adjusted to remote and hybrid learning environments. In this response, we: -Held 46 webinars that were very well attended. In total, over 110,000 educators watched live or on-demand. -Launched remote learning resources pages that have been viewed over 613,084 times -Created videos to support remote learning that have been watched over 174,606 times -Made improvements to ReadWorks tools and features, including teacher feedback for the Article-A-Day routine, student notifications, improved Google Classroom integration, and more -Launched offline mode to ensure all students can access assignments, regardless of WiFi connection at home During the pandemic, we also became a fully remote organization and plan to keep remote flexibility for employees.


Innovations the organization intends to continue permanently after the pandemic:

Students without access to WiFi are among those with the highest risk of learning loss in remote and hybrid learning environments, so in order to improve equity of access, we created offline mode. Offline mode makes it possible for students to download their ReadWorks assignments when they are connected to WiFi, for example at school or in public spaces like libraries, and then complete their assignments at home, regardless of access to WiFi. This feature will remain available in the future to ensure that even during regular, in-person schooling, students are able to access their ReadWorks assignments. We will also continue offering a fall and spring webinar series for our users beyond the pandemic, as viewers were more likely to change their usage behavior of ReadWorks in the weeks after the webinar. For example, webinar attendees enabled the student library and their students submitted reading logs nearly three times as often as non-webinar attendees.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
4/1/20212019 93.43
12/1/20192018 92.74
2/1/20192017 93.91
3/1/20182016 95.87
7/1/20172015 96.46
6/1/20172015 91.45

This organization received multiple star ratings within this fiscal year, due to an update to it's Accountability and Transparency data and/or the receipt of an amended Form 990.

...   Impact & Results


This score estimates the actual impact a nonprofit has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact.


Impact & Results Score

Not Currently Scored

Readworks cannot currently be evaluated by our Encompass Rating Impact & Results methodology because either (A) it is eligible, but we have not yet received data; (B) we have not yet developed an algorithm to estimate its programmatic impact; (C) its programs are not direct services; or (D) it is not heavily reliant on contributions from individual donors.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.

Learn more about Impact & Results.


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Additional Information

Unscored

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Largest Programs

Largest Programs



Readworks reported its largest program on its FY 2019 Form 990 as:


$1,883,895

Spent in most recent FY

100%

Percent of program expenses


Readworks provides research-based reading comprehension curriculum and guidance directly to teachers and their students, online, for free, and to be shared broadly. Readworks is now supporting over 1. ... (More)


...   Leadership & Adaptability


This score provides an assessment of the organization's leadership capacity, strategic thinking and planning, and ability to innovate or respond to changes in constituent demand/need or other relevant social and economic conditions to achieve the organization's mission.


Leadership & Adaptability Score

100

out of 100

The score earned by Readworks is a passing score.

Encompass Rating V4 provides an evaluation of the organization's Leadership & Adaptability through the nonprofit organization submitting a survey response directly to Charity Navigator.


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Leadership & Adaptability Report

100

of 100 points

Mission

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission


ReadWorks is committed to solving America’s reading comprehension crisis and student achievement gap. Driven by cognitive science research, ReadWorks creates world-class content, teacher guidance, and integrated tools that improve teacher effectiveness and student achievement. Through our digital platform, we provide research-based content, curricular supports, and other features that integrate with core English Language Arts (ELA) curricula. In the 2020-2021 school year alone, ReadWorks was used by more than 1 million educators and their millions of students, including those in 93% of the highest-poverty K-8 schools–the population we are most focused on based on our mission.


Source: Nonprofit submitted responses

Vision

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.


Every child in the United States can read well with deep comprehension because all educators teach reading effectively with the superb reading content and curricular supports they need.


Source: Nonprofit submitted responses

Strategic Goals

The nonprofit organization presents evidence of strategic thinking and goal setting through sharing their most important strategic goals.


Goal One: Deepening Impact by actively promoting and improving teacher practices and platform features that help students achieve improved outcomes in reading comprehension.

Goal Type: Focus on core programs to achieve mission and scale back on programs not seen as core.


Goal Two: Supporting Educational Equity by critically examining ReadWorks’ products and services through an equity lens and engaging teachers to use our equity-focused products and features.

Goal Type: Grow, expand, scale or increase access to the existing programs and services.


Goal Three: Building Our Talent, Technology, and Infrastructure to support and advance these efforts and create a sustainable organization.

Goal Type: Invest in the capacity of our organization (financial, management, technical, etc.).


Source: Nonprofit submitted responses

Leadership Development

The nonprofit provides evidence of investment in leadership development


Describe an investment in leadership

ReadWorks leadership encourages participation in and works to connect employees with professional development opportunities. This can include one-time professional development webinars, weeks or months-long programs, and training sessions for the entire organization to complete together. In the last year, ReadWorks has developed four organization-wide leadership projects that were adopted by interested employees to push their personal and professional growth even further in the upcoming year.

Source: Nonprofit submitted responses

Mobilizing for Mission

The nonprofit provides evidence of leadership through focusing externally and mobilizing resources for the mission.


This organization mobilizes for mission in the following ways:
  • Strategic Partnerships

  • Networks of Collective Impact Efforts

  • Thought Leadership

  • Raising Awareness

  • Community Building

What are this organization’s external mobilizaton efforts?

In 2020, we established an Educator Advisory Group of 12 diverse educators from across the U.S. and abroad. We convene quarterly to discuss ways we can better support their instruction and students. Some of the knowledge sharing activities of Susanne Nobles, Chief Academic Officer, include: -Speaking on an International Dyslexia Association webinar in August 2020 -Presenting at the Everyone Reading conference in 2/21 on supports for pre-fluent readers and the Adobe Education Leaders conference in 7/21 on research into the impact of format on reading comprehension -Completing an interview with the Readability Matters -Publishing a blog on the connection between the Reading Mindset Snapshot and Student Library -Highlighting how ReadWorks differentiation supports help students, as shown in the Digital Promise research Education Learners Alliance podcast

Source: Nonprofit submitted responses

Story of Adaptability

The nonprofit has an opportunity to tell the story of how the organization adapted to tremendous external changes in the last year.


Over the last year, many new features and tools have been added to our website to support teacher instruction and student engagement with assignments, especially during remote and hybrid learning. As discussed above, this included both the development of offline mode and our webinar series. The other most salient adaptations include: Article-A-Day Scope & Sequences Planner Fall 2020 - Teachers can introduce their students to a new topic every week of the school year with our Scope & Sequences. Our new Scope & Sequences tool lets educators plan ahead for a month up to the entire year. For each grade level, Scope & Sequences group Article-A-Day sets either by topic or to build vocabulary systematically. ReadWorks continues to update our curriculum to include a wide range of culturally relevant Scope & Sequence topics, including Hispanic Heritage Month, Black History, and Asian American and Pacific Islander Heritage Month. New Interactive Vocabulary Activities - ReadWorks launched our new interactive vocabulary activities in spring 2021. Through these activities, developed in partnership with Wordsmyth, students explore and play with key vocabulary words, promoting active learning and interest in words. As students complete the interactive activities, they see the vocabulary multiple times and in multiple contexts, increasing the likelihood of students mastering these vocabulary words. The activities are ungraded and self-correcting to encourage continual exploration. Enhanced Teacher Guide - We enhanced and relaunched all of our training resources in the 2020-2021 school year with our new teacher guide to make it easier for teachers to understand both how to use our products most effectively with their students as well as the research that informs all of our curricular and technology development.

Source: Nonprofit submitted responses

...   Culture & Community


This score provides an assessment of the organization's engagement with the constituents it serves, a practice we term Constituent Feedback. When organizations listen to constituents, they are able to better deliver on programs and meet the needs of stakeholders. A future version of this Beacon will also assess an organization's people operations and its Diversity, Equity and Inclusion (DEI) metrics.


Culture & Community Score

Not Currently Scored

Readworks is currently not eligible for a Culture & Community score because we have not received its Constituent Feedback data. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.


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Culture & Community Report

Unscored

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Constituent Feedback

Constituent Feedback

Not Scored


This organization reported that it is collecting feedback.


Here's how this organization is listening and learning from the people they serve:


How is your organization collecting feedback from the people you serve?

Electronic surveys (by email, tablet, etc.), Focus groups or interviews (by phone or in person), Constituent (client or resident, etc.) advisory committees, Suggestion box/email


How is your organization using feedback from the people you serve?

To identify and remedy poor client service experiences, To identify bright spots and enhance positive service experiences, To make fundamental changes to our programs and/or operations, To inform the development of new programs/projects, To identify where we are less inclusive or equitable across demographic groups, To strengthen relationships with the people we serve


With whom does your organization share the feedback you got from the people you serve?

The people we serve, Our staff, Our board, Our funders, Our community partners


What challenges does your organization face in collecting feedback from the people you serve?

We don't have any major challenges to collecting feedback


Briefly describe a recent change that your organization made in response to feedback from the people you serve.

As part of launching new vocabulary activities in 2021, our ReadWorks Educator Advisory Group (see more about this group below) provided feedback on the instructions and, even more significantly, prompted the redesign of one of the activities so that it more closely aligns with the intended learning goal and is more intuitive to students. We also received feedback from advisory members that they value our diverse content as a significant part of their culturally responsive pedagogy, and we will continue to get their input on important areas to continue to grow this diversity.



Methodology


Charity Navigator believes nonprofit organizations that engage in inclusive practices, such as collecting feedback from the people and communities they serve, may be more effective. We've partnered with GuideStar by Candid to survey organizations about their feedback practices. Nonprofit organizations can fill out the How We Listen section of their Candid profile to receive a rating.


Charity Navigator awards full credit for this Beacon to every nonprofit that is eligible for an Encompass Rating that completes the survey, in recognition of their willingness to publicly share this information with the nonprofit and philanthropic communities. This data is not evaluated for quality at this time. Validation will be added in future iterations of this Beacon.

Analysis and Research


Like the overall Encompass Rating System, the Culture & Community Beacon is designed to evolve as metrics are developed and ready for integration. Our partnership with Feedback Labs and Guidestar by Candid, and other partners including Fund for Shared Insight, GlobalGiving, and Keystone Accountability, enables us to launch the first version of this beacon with Constituent Feedback information collected on Candid's site.


Feedback practices have been shown to support better Diversity, Equity, and Inclusion outcomes, an essential area of assessment that we intend to further expand and develop in the future. Feedback Labs has documented several studies which indicate that beyond achieving organizational goals, nonprofits that are attentive and responsive to concerns and ideas raised by beneficiaries establish stronger relationships with the people they serve, promote greater equity, and empower constituents in ways that can help to ensure better long-term outcomes. You can find resources to help nonprofits improve their feedback practices here.

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