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blog no. 6: AED’s 990 form explored.

Here is my attempt to interpret The Academy for Educational Development’s 990 tax form.  According guidestar.com’s publication of the 2006 990 tax form, AED’s total revenue was $335, 176, 196. AED’s total expenses paid out for employees and services were $326, 480, 600. This means 97% of the money generated by AED in 2006 to achieve its goal was used in 2006. Although their net assets are $34, 070, 679 which means they have a lot of money saved. As professor Sweetman said in class it’s a good rule of thumb to keep one year’s expenses in saving in case of any problems. In this regard AED has a significant fallback. I am confused on how to interpret the expenses/allowances paid out to top employees. For example the highest paid employee has 16,176 next to their name. Three others have 5,465 and lastly 266. It would be hard to believe that the highest paid employee of a 400 million dollar organization is only making $16, 176. Being confused I wouldn’t go further as to say whether or not I think that is too little or too much to be paid as an employee of AED.


One Response to “blog no. 6: AED’s 990 form explored.”

  1. Wow that is amazing. It would be interesting to see where the funding goes (How it broken down by department) since it is not the employees taking most of the money. I have to agree with the standards that it is a good rule of thumb to have the least amount of money possible in your assets at the beginning of each year. The company is allowed to start fresh and really show what they are capable of doing within that year.

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