Pittsburgh Promise does not meet the following 3 Standards for Charity Accountability:
Standard 7 (Board Approval of Written Report on Effectiveness)
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.
Pittsburgh Promise does not meet this Standard because:
- Although the organization produced a written effectiveness assessment report in June 2020, the report was not submitted for approval to the board of directors.
Standard 10 (Ending Net Assets)
Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.
Pittsburgh Promise does not meet this Standard because:
- According to its audited financial statements for the year ending June 30, 2021, the organization's total unrestricted net assets were $58,844,154, or 4.8 times the charity's total expenses of $12,207,485.
Standard 16 (Annual Report)
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.
Pittsburgh Promise does not meet this Standard because the 2020 annual report did not include:
- Total expenses for each program in the same categories that appear in the organization’s financial statements (scholarships and other program expenses).
- Total program expenses.
- Total fundraising expenses.
- Total administrative expenses.
Pittsburgh Promise meets the remaining 17 Standards for Charity Accountability.
Pittsburgh Promise reports that it works to equip urban youth to achieve post-secondary education success, ensure the city of Pittsburgh and its neighborhoods flourish, and partners with regional companies to create professional contacts, potential internships, and full-time employment opportunities for the organization's graduating alumni. The organization works with all Pittsburgh high schools and charter schools to create relationships and promote academic achievement. Pittsburgh Promise operates a college fair, a transition possibilities fair, senior signing day, and a career launch program to assist students in negotiating post-secondary education plans via college and the workforce. In 2020, the organization states that it distributed 9,567 scholarships and that 3,375 Promise Alumni graduated from a post-secondary institution. In addition, Pittsburgh Promise launched the Promise Coaching Initiative, which partners with community stakeholders on working with every high school student starting in the 9th grade to explore career opportunities.
For the year ended June 30, 2021, Pittsburgh Promise's program expenses were:
| Scholarships |
$9,170,574 |
| Other program expenses |
$1,795,853 |
| Total Program Expenses: |
$10,966,427 |
*2019 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Membership appeals, Television
Fundraising costs were 22% of related contributions. (Related contributions, which totaled $4,645,823 are donations received as a result of fundraising activities.)
This organization is tax-exempt under section 501(c) (3) of the Internal Revenue Code.It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
The following information is based on Pittsburgh Promise's audited financial statements for the year ended June 30, 2021.
| Source of Funds |
| Investment income, net |
$10,181,231 |
| Contributions |
$3,931,838 |
| The Pittsburgh Foundation |
$623,150 |
| Sponsorship revenue |
$90,835 |
| Membership, ticket sales, and miscellaneous income |
$76,985 |
| Total Income |
$14,904,039 |
- Programs: 90%
- Fundraising: 9%
- Administrative: Less than 1%
| Total Income |
$14,904,039 |
| Program expenses |
$10,966,427 |
| Fundraising expenses |
$1,038,722 |
| Administrative expenses |
$202,336 |
| Other expenses |
$0 |
| Total expenses: |
$12,207,485 |
| Income in Excess of Expenses |
$2,696,554 |
| Beginning Net Assets |
$63,304,613 |
| Other Changes In Net Assets |
$0 |
| Ending Net Assets |
$66,001,167 |
| Total Liabilities |
$592,880 |
| Total Assets |
$66,594,047 |