Founded in 1989, FIRST is a 501(c)(3) organization that helps young people develop interests in STEM through engaging robotics programs. It offers four main programs reaching over 250,000 students annually. FIRST has experienced significant growth and positive student outcomes but faces challenges with slower revenue growth and increasing management expenses. Overall, FIRST appears to successfully fulfill its mission through its hands-on, mentor-based programs.
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FIRST
1. NONPROFIT INVESTOR
INDEPENDENT RESEARCH FOR PHILANTHROPY
FIRST SUMMARY
For Inspiration and Recognition of Science Founded in 1989, FIRST is a 501(c)(3) not-for-profit organization that helps
and Technology young people discover and develop a passion for science, engineering,
technology and math through its innovative, progressive programs.
Nonprofit Investor Rating:
STRENGTHS
BUY Participants gain valuable skills through hands-on experience. With an
annual budget of over $30MM, FIRST offers four main programs to young
Mission Statement
people from ages 6 to 18. Students not only learn engineering and
Inspire young people to be science and programming concepts but also gain important business skills such as
technology leaders, by engaging them in creating a business plan, developing a budget, forming a company,
exciting mentor-based programs that build
marketing a product, raising funds, and obtaining patents.
science, engineering and technology skills, that
inspire innovation, and that foster well- Extensive base of supporters provide diverse sources of funding. In 2010,
rounded life capabilities including self- over 90,000 mentors, coaches, and volunteers contributed a total of $6
confidence, communication, and leadership million hours to FIRST. Mentors and coaches are often professional
engineers. Additionally, the organization is supported by a network of
Financial Overview 3,500+ sponsors including corporations, foundations, and educational and
$ in MM (except # of volunteers and participants) professional institutions. For the 2010/2011 season, 145+ sponsors made
Fiscal Year Ended June 30, available nearly $15 million in college scholarships to 925+ students.
2008 2009 2010
Revenue and Support $31.9 $34.7 $35.0 CAUTIONS
Operating Expenses $30.7 $34.2 $32.9 Higher management and general expenses may signal reduced operational
efficiency. In 2010, while total operating expenses decreased by 4% from
% of Total *:
prior year due to lower program expenses, management and general
Program Expenses 87.6% 89.3% 87.3%
expenses (incl. G&A and fundraising) increased by 15%. This shift toward
G&A 9.7% 8.5% 9.9%
higher management and general expenses raises questions about the
Fundraising 2.7% 2.2% 2.8%
organization’s overall operational efficiency. Furthermore, the organization
had 8 key employees making over $100,000 annually with its President
Volunteers & Mentors 73,000 85,000 90,000
Participants 160,000 196,000 212,000
recorded a salary of $229,000 in 2009/2010 (not including $148,418 in non-
*Expense breakdown based on information in Form 990 fixed compensation). The salaries of these 8 employees (out of 94 total
employees) accounted for 35% of the total G&A expenses in 2010.
Contact Details
RECOMMENDATION: BUY
First
200 Bedford St. We believe FIRST has been successful in meeting its goals of helping young
Manchester, NH 03101 people develop interests in science, technology, engineering, and math
(603) 666-3906 / (800) 871-8326 through its engaging and educational robotic programs. These programs
http://www.usfirst.org have made positive impacts on the participating students, schools, teachers,
EIN: 22-2990908 and mentors. Satisfaction with FIRST programs has been consistently rated
highly among participants. As the programs continue to expand, we
Analyst recommend a reduction in registration fees which would help the
Annie Lee organization reach more students, particular in underserved communities.
Publication Date
October 14, 2011
Nonprofit Investor.org
2. OVERVIEW OF FIRST
Founded in 1989, FIRST is a 501(c)(3) not-for-profit organization that helps young people discover and develop a passion
for science, engineering, technology and math through its innovative, progressive programs. For the 2010/2011 season,
over 250,000 students from 50 states across the US and from more than 50 countries have participated in the
organization’s programs.
FINANCIAL OVERVIEW
FIRST appears to have healthy cash reserves and good financial security. Because the programs are not self-sustainable,
the organization depends largely on grants and contributions to fund these programs. FIRST has a diverse and supportive
donor base, with total contributions not influenced by any particular individual donor.
Revenue. While FIRST had seen significant growth in revenue from 2007 to 2008, the rate of growth had slowed down in
2009 and 2010. In 2010, revenue stayed relative flat with a 1% increase from prior year. It appears that the sluggish
revenue growth is primarily due to decline in contributions. A closer look at the pledges and nonfederal grants
receivable account reveals that lower contributions could be caused by unpaid pledges, perhaps as a result of the
adverse economic condition in 2009 and 2010.
Expense. Program expenses were 87% of total operating expenses in 2010 versus 89% previously. G&A expenses
increased from 9% to 10% of total operating expenses. Fundraising expenses increased from 2% to 3% of total operating
expenses.
Fiscal Year Ended June 30 2006 2007 2008 2009 2010
Revenue and other support:
Program registration fees $ 11,066,236 $ 12,763,146 $ 14,461,818 $ 15,535,666 $ 14,843,617
Contributions/grants/sponsorship 7,686,794 9,827,940 15,143,000 16,315,420 14,976,448
Net asset released from restrictions 999,843 781,277 1,321,005 2,231,912 4,347,633
Other 1,050,648 1,173,033 1,011,934 603,989 804,452
Total revenue and other support $ 20,803,521 $ 24,545,396 $ 31,937,757 $ 34,686,987 $ 34,972,150
Operating expenses:
Program expenses $ 16,006,344 $ 19,857,107 $ 26,957,672 $ 30,289,600 $ 28,369,788
Robotics Competition 14,023,526 17,015,186 22,841,964 25,259,844 23,313,034
LEGO League 1,271,223 1,894,727 3,025,709 3,714,529 3,835,473
Tech Challenge 634,510 854,916 1,004,250 1,169,372 1,132,089
FIRST Place 77,085 92,278 85,749 145,855 89,192
Management expense 2,676,235 3,078,237 3,273,371 3,382,414 3,893,127
Other 698,862 745,083 442,519 508,708 598,320
Total operating exp enses $ 19,381,441 $ 23,680,427 $ 30,673,562 $ 34,180,722 $ 32,861,235
Change in unrestricted net assets:
Operating surplus/(deficit) $ 1,422,080 $ 864,969 $ 1,264,195 $ 506,265 $ 2,110,915
Refundable advances - amortization 140,200 319,969 319,969 319,968 -
Net assets released from restriction for purchase of PP&E 12,839 17,460 - - -
Change in unrestricted net assets $ 1,575,119 $ 1,202,398 $ 1,584,164 $ 826,233 $ 2,110,915
Unrestricted net assets 7,477,340 8,679,738 10,263,902 11,090,135 13,201,050
Total net assets 8,720,782 10,210,605 14,834,301 19,318,283 24,412,729
Revenue yoy growth 18% 30% 9% 1%
Expenses yoy growth 22% 30% 11% -4%
Participants 130,000 160,000 196,000 212,000
Expenses per Participant $ 182.16 $ 191.71 $ 174.39 $ 155.01
Source: 2006 through 2010 annual reports
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3. RESULTS AND TRANSPARENCY
FIRST provides detailed financial information through its annual reports (from 2003 through 2011) and Form 990s.
Financial statements for fiscal year 2010 and 2011 are audited by an independent auditor. FIRST also provides results
and impact of its programs through independent studies conducted by Brandeis University’s Center for Youth and
Communities.
According to this study, FIRST alumni attended college at a rate substantially higher than the national average for
graduated high school students. When compared to a peer group of non-FIRST participants with similar demographic
and academic experiences, FIRST alumni were much more likely to major in science or engineering, have an internship in
their freshman year, achieve a postgraduate degree, and pursue a career in science, technology or engineering. The
chart below illustrates some of the positive education and career outcomes associated with participation in FIRST
programs based on the comparison group analysis.
100%
88% FIRST Robotics Competition Alumni
90%
Matched Comparison Group
80% 77%
69% 71%
70%
% of Surveyed Students
60% 55%
53%
50% 45%
41%
40%
31% 30%
28% 27%
30%
20%
20%
13%
8%
10%
3%
0%
Attend college Achieve a post- Major in science Major Internship/Co- Pursue science Pursue career Perform
full-time graduate degree or engineering specfically in op job during or technology- speficially in community
engineering freshman year related career engineering service
Source: “An Evaluation of the FIRST Robotics Competition Participant and Institutional Impacts” by Center for Youth and
Communities at the Heller School for Social Policy and Management of Brandeis University
GROWTH
FIRST’s largest and oldest program, FIRST Robotics Competition (> 80% of total program expenses) had grown from 28
teams at its inception in 1992 to 2,075 teams in 2011, reaching over 52,000 high school students in the past year alone.
FIRST’s newest program, FIRST Tech Challenge, had 1,607 teams participating in 2010, a 45% increase from prior year.
FIRST’s program for its younger participants, FIRST LEGO League, expanded to 19,000+ teams in 50+ countries in 2010.
NPI RECOMMENDATION VS. CHARITY NAVIGATOR
FIRST has been consistently rated four-stars (out of a total of four-stars) for the past four years by Charity Navigator,
placing the organization in the top 7% of all charities evaluated by Charity Navigator.
ADDITIONAL DILIGENCE AREAS
FIRST has recently released its audited financial reports for fiscal year ending in June 2011. This new information will
provide an updated view of how FIRST programs have grown over the past year.
GET INVOLVED
To donate: http://www.usfirst.org/involved/donate; To volunteer: http://www.usfirst.org/community/volunteers
DISCLOSURES
Annie does not have any affiliation with FIRST and has never made a donation to FIRST. All information presented in this
report is sourced from the organization’s website, annual reports, and IRS 990 forms.
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