Clearwater Youth Education Network
Clearwater Youth Education Network is a financially stable, mission-aligned organization with a score of 71 (Strong) and a GrantLens grant-readiness rating of 74 — Ready with Conditions. The organization demonstrates sound financial management, consistent program growth, and active board oversight. Two governance policy gaps and one transparency flag require resolution as grant conditions before or within 60 days of award. Neither the score nor the conditions represent barriers to funding — they are areas where Meridian can add value through structured requirements. This report provides the full analytical basis for program officer recommendation and grants committee review.
Organization Profile
| Field | Detail |
|---|---|
| Legal Name | Clearwater Youth Education Network |
| EIN | 44-4444444 |
| Primary Mission | Providing afterschool academic enrichment, summer learning, and college readiness programming to underserved youth in the Denver metro area |
| City / State | Denver, CO |
| Founded | 2009 |
| Executive Director | 7-year tenure; 9% salary increase in 2023 (in line with sector) |
| Staff FTEs | 34 (2023); 28 (2022) |
| Students Served | 1,840 (2023); 1,610 (2022) |
| Revenue (FY 2023) | $5.14M |
| Primary State Contract | CO Dept. of Education afterschool grant (68% of revenue) |
| Programs | After-school tutoring (5 school sites), STEM summer camp, high-school college prep cohort |
| Board Members | 12 total; 11 independent; finance committee active |
| Annual Audit | Independent CPA — no material weaknesses (most recent letter) |
GrantLens Summary
From a funder's perspective, Clearwater Youth Education Network presents a favorable risk profile for a first-time grant relationship. The organization's financial trajectory — two consecutive operating surpluses, growing FTE count, expanding student volume, and 8.2 months of operating reserves — indicates disciplined management at a scale that can absorb and deploy grant resources without liquidity risk. The program model is clear, geographically concentrated, and grounded in documented student need in the Denver metro.
The two risk areas worth noting for Meridian's grant committee are: (1) Revenue concentration — the organization relies on a single state contract for 68% of its budget; this is common at this scale but creates structural dependency that a multi-year Meridian grant would partially offset while the organization diversifies. (2) Governance policy gaps — two standard policies (whistleblower, document-retention) are not in place. This is correctable within 60 days and should be a baseline condition of any grant award.
Program officer recommendation: Fund with standard conditions. Clearwater is ready for a general operating support or program grant in the $50K–$150K range. Meridian's investment would directly supplement the 12% of revenue currently coming from private sources, providing meaningful diversification benefit alongside its programmatic value. A multi-year commitment (2–3 years) would give the organization the stability to develop its individual and foundation donor infrastructure — reducing the state-contract dependency over time.
Dimension Scores
Composite score of 71 weighted across four dimensions. Each dimension is annotated with the funder-specific interpretation and due diligence implication.
Grant risk: Low. Operating reserves of 8.2 months exceed the institutional grant floor (6 months) and provide adequate buffer for grant-cycle timing uncertainty. Two-year operating surplus trend ($248K in 2023, $194K in 2022) indicates that the organization is not running a structural deficit masked by grant revenue. Debt-to-asset ratio of 0.18 is conservative; no outstanding lines of credit. The primary concern — state contract concentration at 68% — is disclosed and documented. This concentration, while elevated, is typical for youth-serving nonprofits at this revenue scale and does not represent an active financial crisis. Net asset growth of +3.8% YoY is positive. Funder due diligence flag: request the most recent audited financial statements and management letter prior to award.
Grant risk: Low. At 74.8% of total expenses directed to program services, Clearwater meets or exceeds the threshold most grantmakers apply for general operating support. Cost-per-student-served in 2023 was $2,799 — competitive for multi-site afterschool programming in an urban market. Fundraising efficiency of $0.14 per dollar raised is strong, indicating that the development function is not consuming a disproportionate share of overhead. Administrative overhead (16.1%) is proportionate for an organization managing five school-site partnerships with district compliance requirements. Funder note: for grant reporting purposes, require per-student cost tracking for any Meridian-funded program components, disaggregated by program model (afterschool vs. summer vs. college prep).
Grant risk: Moderate — addressable. The 990 is filed on time and is substantively complete. However, two governance policies are absent: whistleblower and document-retention. Both are standard conditions for institutional funders and should be adopted by board resolution within 60 days of grant award — this is the most important condition in the grant agreement. A 2022 Schedule L disclosure (supply contract with a board member's affiliated firm) was properly disclosed and resolved; no recurrence in 2023, indicating appropriate board process when conflicts arise. Schedule O program narratives are activity-based rather than outcome-based — a documentation quality issue, not a substantive program issue. Require an outcome-based program report at the midpoint and end of any grant period.
Grant risk: Manageable. The executive director (7-year tenure) is not a founding-leader risk profile — tenure is long enough to provide institutional continuity and short enough that succession conversations are not yet urgent. No succession plan is referenced in public documents; this is a standard gap at this size and tenure. The development director position was added in 2023 — a positive signal of institutional investment in revenue diversification. FTE growth from 28 to 34 (21% YoY) is consistent with program expansion but warrants attention to ensure compensation infrastructure keeps pace. Revenue growth has outpaced expense growth for two consecutive years — the most important stability indicator. No litigation, regulatory issues, or audit findings noted.
Financial Analysis
| Line Item | FY 2022 | FY 2023 | Change |
|---|---|---|---|
| State Education Contracts | $3.06M | $3.50M | +14.4% |
| City / District Contracts | $412K | $396K | -3.9% |
| Foundation Grants | $298K | $471K | +58.1% |
| Individual Donations | $112K | $151K | +34.8% |
| Special Events | $68K | $87K | +27.9% |
| Other Revenue | $32K | $535K | — |
| Total Revenue | $3.982M | $5.140M | +29.1% |
| Program Services | $2.81M | $3.66M | +30.2% |
| Management & General | $694K | $788K | +13.5% |
| Fundraising | $284K | $441K | +55.3% |
| Total Expenses | $3.788M | $4.889M | +29.1% |
| Operating Surplus | +$194K | +$251K | +29.4% |
Positive: Revenue and expense growth were equal at 29.1%, and the surplus increased in dollar terms. Foundation grants grew 58% YoY — the development director addition in 2023 appears to be generating early returns. The $535K in "Other Revenue" is a one-time COVID relief fund recognition.
Financial Ratios
Ten ratios benchmarked against peer youth education organizations ($3M–$8M revenue). Peer medians from a cohort of 178 comparable organizations. Funder-relevant flags are noted in the Verdict column.
| Ratio | This Org | Peer Median | Benchmark | Verdict |
|---|---|---|---|---|
| Program Expense Ratio | 74.8% | 73.1% | ≥70% | Strong |
| Administrative Expense Ratio | 16.1% | 17.4% | ≤20% | Strong |
| Fundraising Efficiency (cost per $1 raised) | $0.14 | $0.22 | ≤$0.20 | Strong |
| Operating Reserve Ratio (months) | 8.2 mo. | 5.9 mo. | ≥6 mo. | Strong |
| Current Ratio | 2.24× | 1.98× | ≥2.0× | Strong |
| Debt-to-Asset Ratio | 0.18 | 0.24 | ≤0.40 | Strong |
| Revenue Concentration (top source) | 68% | 52% | ≤50% | Warning |
| Net Asset Growth Rate (YoY) | +3.8% | +5.1% | ≥0% | Adequate |
| Operating Surplus Margin | 4.9% | 3.2% | ≥0% | Strong |
| Cost Per Beneficiary | $2,799 | $2,940 | Sector range | Strong |
Eight of ten ratios are Strong or Adequate. The revenue concentration flag (68% in one contract) is the only material ratio concern — and it is a structural feature of the organization's current funding mix, not a management failure. The organization's cost-per-beneficiary of $2,799 is below the peer median, meaning Meridian's grant dollars will produce above-average reach relative to comparable grantees in this sector.
Communications Audit
Funder-oriented review of how Clearwater communicates its identity, impact, and financial stewardship to external audiences. Scored on a 0–100 scale.
Governance Scorecard
| Governance Area | Status | Funder Implication |
|---|---|---|
| Conflict-of-Interest Policy | In Place | Annual disclosure documented; 2022 conflict properly disclosed and resolved |
| Whistleblower Policy | Missing | Required as grant condition — adopt within 60 days of award |
| Document Retention Policy | Missing | Required as grant condition — adopt within 60 days of award |
| Board Independence | Strong | 11 of 12 members independent; no compensation to board members |
| Board Size | Adequate | 12 members; appropriate for organization at this scale |
| Finance Committee | Active | Quarterly meetings with documented minutes; receives budget vs. actual reports |
| Annual Audit | Complete | Independent CPA; no material weaknesses or significant deficiencies |
| 990 Filing Timeliness | On Time | Filed by extended due date in each of past 3 years |
| Executive Succession Plan | Partial | Not formally documented; recommend requiring a succession framework within 12 months |
| Strategic Plan | Active | 2024–2027 plan referenced in board minutes; available upon request |
Grant Conditions
Recommended conditions for the grant agreement. Organized by type: Pre-Award (must be met before funds are released), Within 60 Days, and Ongoing Reporting.
Grantee Onboarding Plan
Recommended 90-day onboarding sequence to establish a productive funder-grantee relationship and ensure early compliance with grant conditions.
Grantee Risk Summary
Strengths — Funder Confidence Factors
- Two consecutive operating surpluses — no structural deficit masked by grant revenue
- 8.2 months of operating reserves — above institutional grant floor; low liquidity risk
- Strong program efficiency — 74.8% to direct services; cost-per-student below peer median
- Active finance committee with quarterly board oversight of financials
- Clean audit — no material weaknesses or significant deficiencies in 3-year review
- Development Director added in 2023 — evidence of intentional revenue diversification investment
- Responsive funder communications — 24-hour LOI response; complete financial materials submitted
- 21% student volume growth — documented program demand and delivery capacity
Risks — Funder Monitoring Priorities
- 68% revenue concentration in single state contract — material structural vulnerability
- Whistleblower and document-retention policies absent — required as grant conditions
- 990 Schedule O narratives are activity-based, not outcome-based — documentation gap
- No formal executive succession plan — key-person risk if ED departs
- FTE growth (21% YoY) must be monitored to ensure compensation infrastructure remains adequate
- One prior Schedule L disclosure (2022) — resolved, no recurrence, but warrants noting
- Strategic plan not publicly accessible — request as part of grant documentation package
Disclaimer: This Vantage GrantLens Report was generated through the Nonprofit Advisory Studio platform for internal use by Meridian Family Foundation in its grant due diligence process. All analysis is derived from publicly available IRS Form 990 filings and organization-provided materials. This report does not constitute legal, accounting, or investment advice and is not a substitute for independent professional review. Clearwater Youth Education Network (EIN 44-4444444) and Meridian Family Foundation are fictional entities used for demonstration purposes only.