SOUNDEXCHANGE INC

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Financial Vulnerability Assessment (Tuckman-Chang)

4 risk indicators measuring financial stability and operational resilience

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Financial Trends

Organization Details

Formation Year

2003

Legal Domicile

Principal Officer

MICHAEL J HUPPE

Phone

2026405858

Tax Period

2023-01-01 to 2023-12-31

SOUNDEXCHANGE INC, founded in 2003, is a mid-sized nonprofit in the Community Improvement sector that reported $99.2M in total revenue in fiscal year 2023. Revenue surged 24% from the prior year, signaling strong growth momentum. The organization ran a surplus of $17.8M, a strong 18% operating margin.

Mission

SOUNDEXCHANGE IS THE PREMIER MUSIC TECH ORGANIZATION ON A MISSION TO POWER THE FUTURE OF MUSIC. INDEPENDENTLY FORMED IN 2003, THE NON-PROFIT DEVELOPS AND IMPLEMENTS INNOVATIVE, EFFICIENT, AND TRUSTED FINANCIAL-TECH AND DATA MANAGEMENT SOLUTIONS FOR THE GLOBAL MUSIC MARKETPLACE, INCLUDING PROVIDING TECHNOLOGY AND ROYALTY SOLUTIONS FOR SOUND RECORDINGS AND MUSIC PUBLISHING, AND SERVING AS THE CRITICAL BACKBONE TO TODAY'S DIGITAL MUSIC INDUSTRY. THROUGH TECHNOLOGY, DATA AND ADVOCACY, SOUNDEXCHANGE ENDEAVORS TO MAKE THE BUSINESS OF MUSIC FAIRER, SIMPLER, AND MORE EFFICIENT. THE ORGANIZATION REPRESENTS APPROXIMATELY 677,000 RECORDING ARTISTS AND SOUND RECORDING RIGHTS OWNERS INCLUDING MAJOR AND INDEPENDENT RECORD LABELS, FOR THE COLLECTION AND DISTRIBUTION OF ROYALTIES FOR PUBLIC PERFORMANCE OF THEIR WORK ON NON-INTERACTIVE DIGITAL RADIO SERVICES. SOUNDEXCHANGE ALSO ADMINISTERS DIRECT NON-STATUTORY LICENSING ARRANGEMENTS BETWEEN SOUND RECORDING COPYRIGHT OWNERS AND SERVICES PERFORMING THEIR SOUND RECORDINGS AND COLLECTS, AND DISTRIBUTES ROYALTIES RECEIVED FROM FOREIGN COLLECTIVE MANAGEMENT ORGANIZATIONS ON BEHALF OF ITS MEMBERS. SOUNDEXCHANGE ALSO ADVOCATES FOR CREATORS' RIGHTS, SEEKING ROYALTY STRUCTURES THAT PROTECT THE VALUE OF MUSIC FOR ARTISTS, ENSURING THEY ARE PAID FAIRLY NO MATTER WHERE THEIR MUSIC IS PLAYED. THE LIBRARY OF CONGRESS HAS DESIGNATED SOUNDEXCHANGE TO ADMINISTER THE STATUTORY LICENSES FOR NON-INTERACTIVE DIGITAL RADIO SERVICES AND MORE THAN 3,200 OTHER DIGITAL MUSIC SERVICES. TO DATE, SOUNDEXCHANGE HAS DISTRIBUTED OVER $10 BILLION IN ROYALTIES, AND DISTRIBUTED OVER $1 BILLION JUST IN 2023, THROUGH PROPRIETARY MUSIC TECH SOLUTIONS THAT TURN DATA INTO ACCURATE REVENUE.

Program Service Accomplishments

Program 1

SOUNDEXCHANGE PROVIDES A FULL SUITE OF INNOVATIVE TECHNOLOGY SOLUTIONS FOR THE ENTIRE MUSIC INDUSTRY, SERVING LABELS, ARTISTS, PRODUCERS, AND PUBLISHERS. INDEPENDENTLY FORMED IN 2003 TO BUILD A...

SOUNDEXCHANGE PROVIDES A FULL SUITE OF INNOVATIVE TECHNOLOGY SOLUTIONS FOR THE ENTIRE MUSIC INDUSTRY, SERVING LABELS, ARTISTS, PRODUCERS, AND PUBLISHERS. INDEPENDENTLY FORMED IN 2003 TO BUILD A FAIRER, SIMPLER, AND MORE EFFICIENT MUSIC INDUSTRY, SOUNDEXCHANGE COLLECTS AND DISTRIBUTES DIGITAL PERFORMANCE ROYALTIES ON BEHALF OF MORE THAN 677,000 RECORDING ARTISTS AND SOUND RECORDING RIGHTS OWNERS AND GROWING. THROUGH PROPRIETARY MUSIC TECH SOLUTIONS, SOUNDEXCHANGE TRANSFORMS BILLIONS OF LINES OF MUSIC STREAMING DATA INTO ACCURATE AND TIMELY REVENUE, WITH 90% OF ROYALTIES PAID OUT WITHIN 45 DAYS OF RECEIPT. SOUNDEXCHANGE HAS PAID OUT MORE THAN $10 BILLION IN ROYALTIES SINCE ITS INCEPTION.

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Trantor Score

Financial Health Score (300–850) · Liquidity · Solvency · Sustainability · Efficiency

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Liquidity (40%) • Solvency (30%) • Sustainability (20%) • Efficiency (10%)

Financial Overview (2023)

Revenue Breakdown

Contributions & Grants $0

Program Service Revenue $72,492,989

Investment Income $23,793,586

Other Revenue $2,949,090

TOTAL REVENUE $99,235,665

Expense Breakdown

Grants Paid $0

Salaries & Benefits $37,409,864

Fundraising Expenses $0

Other Expenses $43,977,483

TOTAL EXPENSES $81,387,347

Year-over-Year Comparison

	2023	2022	Change
Revenue	$99,235,665	$80,022,837	+0.2%
Expenses	$81,387,347	$76,735,490	+0.1%
Net Income	$17,848,318	$3,287,347	+4.4%

Key Indicators

✗ Grants to Organizations ✗ Grants to Individuals ✗ Lobbying ✗ Political Activity ✓ Foreign Activities ✗ Donor Advised Fund ✗ Schedule B Required

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Financial Health Indicators

Comprehensive financial analysis: Altman Z-Score, liquidity, solvency, sustainability, efficiency, and growth metrics

Financial Distress Indicator

Liquidity & Cash Position

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Altman Z-Score • Liquidity Ratios • Solvency Analysis • Growth Indicators • Efficiency Metrics

Governance

Voting Members

Independent Members

Employees

244

Volunteers

Governance Policies

✓ Conflict of Interest Policy

✓ Whistleblower Policy

✗ Document Retention Policy

Special Practices & Reported Activities

✗ Operated a School

✗ Operated a Hospital

✗ Provided First Class Travel

✗ Reported Conflict of Interest

✗ Reported Asset Diversion

✗ Excess Benefit Transaction

✗ Made Political Expenditures

✗ Engaged in Lobbying

✗ Operated Donor Advised Fund

✗ Maintained Art Collections

✗ Filed Form 720

Compensation of Officers, Directors & Key Employees

Total Officers

$3,434,965

Total Directors

Key Employees

$669,851

Highest Compensated

reported

Name	Title	Hours/Week	Role	Reportable Comp	Other Comp	Total
ALASDAIR MCMULLAN	DIRECTOR	1.00	Director	$0	$0	$0
ANDREA FINKELSTEIN	DIRECTOR	1.00	Director	$0	$0	$0
DARIUS VAN ARMAN	DIRECTOR	1.00	Director	$0	$0	$0
DAVID BYRNE	DIRECTOR	1.00	Director	$0	$0	$0
DUNCAN CRABTREE-IRELAND	DIRECTOR	1.00	Director	$0	$0	$0
JAY L COOPER	DIRECTOR	1.00	Director	$0	$0	$0
JEFF WALKER	DIRECTOR	1.00	Director	$0	$0	$0
JESSICA GOLDENBERG	DIRECTOR	1.00	Director	$0	$0	$0
JON GLASS	DIRECTOR	1.00	Director	$0	$0	$0
LAURIE SORIANO	DIRECTOR	1.00	Director	$0	$0	$0
MARTHA REEVES	DIRECTOR	1.00	Director	$0	$0	$0
MICHAEL HAUSMAN	DIRECTOR	1.00	Director	$0	$0	$0
MITCH GLAZIER	DIRECTOR	1.00	Director	$0	$0	$0
PATRICK RAINS	DIRECTOR	1.00	Director	$0	$0	$0
RAY HAIR	DIRECTOR	1.00	Director	$0	$0	$0
RICHARD BURGESS	DIRECTOR	1.00	Director	$0	$0	$0
VICTOR ZARAYA	DIRECTOR	1.00	Director	$0	$0	$0
KENDALL MINTER	DIRECTOR	1.00	Director	$0	$0	$0
MICHAEL J HUPPE	PRESIDENT & CEO	40.00	Officer	$1,870,480	$51,445	$1,921,925
ANJULA SINGH	CFO & COO	40.00	Officer	$870,884	$31,042	$901,926
TIMOTHY A DADSON	GENERAL COUNSEL	40.00	Officer	$580,208	$30,906	$611,114
LUIS F HECTOR BONILLA	CTO	40.00	Key Emp	$620,431	$49,420	$669,851
TOMMY KORPINEN	CHIEF BUSINESS DEVELOPMENT OFFICER	40.00	Highest	$558,848	$38,225	$597,073
EMILY A FULP	SVP, EXEC. OFFICE & COMMUNICATIONS	40.00	Highest	$398,408	$48,998	$447,406
BRIEANNE E JACKSON	DEP. GEN. COUNSEL LIC & ENF	40.00	Highest	$400,610	$46,540	$447,150
BARRY LEVINE	VP, STRATEGIC PARTNERSHIP	40.00	Highest	$400,076	$39,357	$439,433
PAUL GILLS	SVP, OPS. & CLIENT ENGAGEMENT	40.00	Highest	$386,623	$42,057	$428,680

Note: Compensation data is self-reported by the organization on their Form 990. "Reportable Comp" includes salary, bonuses, and other reportable compensation from the organization and related organizations. "Other Comp" includes benefits, deferred compensation, and non-taxable benefits.

Historical Data

Year	Revenue	Expenses	Assets	Net Income
2024	No data	No data	No data	No data
2023	$99,235,665	$81,387,347	$818,772,709	$17,848,318
2022	$80,022,837	$76,735,490	$762,717,143	$3,287,347
2021	$68,696,516	$67,251,701	$739,346,856	$1,444,815
2020	$62,047,984	$61,935,976	$722,546,752	$112,008
2019	$66,777,189	$62,378,660	$696,901,194	$4,398,529
2018	$68,273,280	$57,785,089	$679,657,161	$10,488,191