Clearwater Youth Education Network
Clearwater Youth Education Network presents as a financially sound organization in the Strong band (score: 71), with demonstrated program efficiency and healthy reserve levels. The GrantLens assessment surfaces two governance flags and one financial concentration flag that Meridian Family Foundation should address in due diligence conversations before committing to a multi-year grant relationship. None of these flags are disqualifying; they represent areas where the funder can add value through requirements or milestone-based reporting. The organization is assessed as grant-ready with conditions.
Grant-Readiness Signals
Key indicators evaluated through the GrantLens framework — factors that directly affect a funder's risk profile and stewardship confidence.
Financial Snapshot
Key financial indicators from the 2023 Form 990, reviewed for grant due diligence purposes.
| Metric | Value |
|---|---|
| Total Revenue | $5.14M |
| Total Expenses | $4.89M |
| Net Assets | $6.72M |
| Program Expense Ratio | 74.8% |
| Operating Surplus | $248K |
| Reserve Months | 8.2 mo. |
| State Contract Revenue (% total) | 68% |
| Individual / Foundation Donations | $622K (12%) |
Dimension Scores
The composite score of 71 is weighted across four dimensions. The GrantLens view annotates each dimension with the funder-specific risk implication.
Funder implication: Low financial risk. With 8.2 months of operating reserves and a two-year track record of operating surpluses, Clearwater demonstrates the financial stability to manage grant funds without cash-flow pressure that might distort spending behavior. The primary concern is revenue concentration — state contract dependency at 68% of revenue means a single contract non-renewal could create organizational-level financial stress. A multi-year grant commitment from Meridian would meaningfully improve diversification and reduce this risk. Debt-to-asset ratio of 0.18 is conservative; no outstanding lines of credit as of fiscal year end.
Funder implication: Appropriate stewardship of direct program funding. At 74.8% of expenses directed to program services, the organization meets or exceeds the threshold most grantmakers apply for general operating support. Administrative overhead (16.1%) reflects proportionate infrastructure costs for a youth education organization of this scale. The organization reported serving 1,840 youth in afterschool and summer learning programs in 2023, consistent with prior-year claims. Fundraising costs are $0.14 per dollar raised — efficient. Funder should require per-student cost reporting for grant-funded program components.
Funder implication: Moderate governance risk — addressable. The 990 is filed on time and is substantially complete. The transparency gap is narrative quality: Schedule O program descriptions describe activities rather than outcomes, and evaluation methodology is not referenced. This is the most common deficiency in youth-serving nonprofits at this revenue scale. Missing governance policies (whistleblower, document-retention) are a procedural risk rather than a structural one; adoption timelines of 30–60 days are standard. Meridian should require these as grant conditions, not as disqualifying factors. One board self-dealing disclosure in 2022 (a supply contract with a board member's firm) was disclosed and resolved; no recurrence in 2023.
Funder implication: Manageable succession risk. The executive director has served for 7 years; compensation increased 9% in 2023 (in line with sector trends). No succession plan is documented in public filings. The development director position appears to have been added in 2023, reflecting a strategic shift toward philanthropy — a positive indicator for long-term revenue diversification. Staff FTE count grew from 28 to 34 between 2022 and 2023, consistent with program expansion. Revenue growth has outpaced expense growth in both tracked years, a healthy sign. The organization's strategic plan (2024–2027) is referenced in the 990 but not publicly available for review.
Funder Considerations
- Adopt whistleblower and document-retention policies within 60 days of grant execution.
- Provide a 12-month revenue diversification report at the mid-grant check-in, including a written target of reducing single-source dependency below 55% within 24 months.
- Submit an outcome-based program report (not activity-based) at 6-month and 12-month intervals, aligned with logic model to be provided at grant kick-off.
The full Vantage GrantLens Report includes a complete 10-ratio financial analysis benchmarked against peer organizations, a detailed revenue concentration visualization, a grant-readiness narrative assessment with suggested LOI language, a board governance scorecard, and a 90-day onboarding checklist for newly funded organizations. Contact your Meridian Foundation program officer to request the Vantage assessment for this grantee.
Disclaimer: This report was generated through the Nonprofit Advisory Studio GrantLens platform for use by Meridian Family Foundation in grant due diligence. All analysis is derived from publicly available IRS Form 990 filings and is not a substitute for independent legal or accounting review. Clearwater Youth Education Network (EIN 44-4444444) and Meridian Family Foundation are fictional entities used for demonstration purposes.